ERP – WHAT?<br />Software solution that addresses all the needs of an enterprise with the process view of an organization to meet the organizational goals and integrate all the functions of the enterprise<br /><ul><li>Information system to manage enterprise information (about resources) : products, clients, suppliers, productions, finance.
Tight relation with the organizational, structure of the enterprises.
<<< Software Packages >>> ???</li></li></ul><li> ERP<br /><ul><li>Facilitates Company-wide integrated Information Systems Covering all functional Areas.
Performs core Corporate activities and increases customer service augmenting Corporate Image.
Organizes & Optimizes the data input methodologies systematically.</li></li></ul><li> ERP Setup<br /><ul><li>ERP – The most complex software system in enterprise – Database size, transactions, complexity, logic, users.
Problems to cope up with when managing ERP introduction ;
Difficulties to access directly information. Use PHONES, PAPERS to track material, orders, purchases
NIH Syndrome NIH <<<not invented here>>></li></li></ul><li> Evaluation of Business Applications<br /><ul><li>MIS - Management Information Systems</li></ul> Decision Support - No<br /><ul><li>IIS - Integrated Information Systems</li></ul> Decision Support - No<br /><ul><li>EIS - Executive Information Systems</li></ul> Decision Support - Yes<br /><ul><li>CIS - Corporate Information Systems</li></ul> Decision Support - Yes<br /><ul><li>EWS - Enterprise Wide Systems</li></ul> Decision Support - No <br />Logistics are considered as a part of system<br />
Evaluation of Planning Systems<br /><ul><li>Materials Requirement Planning (MRP)
Value Chain Management</li></li></ul><li> CAN WE WAIT?<br />Wait if you have :<br /> Good ERP systems running.<br /> No immediate threat of Y2K, Euro and other known/unknown problems.<br /> No management commitment.<br /> Financial problems.<br />Do not wait if you have :<br /> Tough competition in the market.<br /> Multiple location operations.<br /> Plans to grow Globally.<br /> Management Commitment for change.<br />
Customer service</li></li></ul><li> Definition of Business Intelligence<br />Any tools enabling people to make better decisions and thus improve their business processes<br /><ul><li>Decision support systems (DSS)
Avoids data redundancy</li></li></ul><li> Competition in the Market<br /><ul><li>Manufacturing Challenges.</li></ul> Manufacturing Globally.<br /> Distribution network spread.<br /> New Product introduction.<br /> Lower manufacturing lead time.<br /><ul><li>Focus on industry markets.</li></ul> Satisfying the needs of customers.<br /> Develop specific business methods and processes.<br /> Integration with third party products.<br />
Demands on the Industry<br /><ul><li>Better products at lower costs
Tools</li></li></ul><li> What drives ERP<br />Business <br /> Customer Satisfaction<br /> Business Development - new areas, products, services<br /> Ability to face competition<br /> Efficient processes required to push the company to top gear<br />IT <br /> Present Software does not meet business needs<br /> Legacy systems difficult to maintain, Y2K Problem , Euro currency<br /> Obsolete hardware/software difficult to maintain<br />
… with Adaptive Enterprise Resources Planning<br />Adaptive business framework require an adaptive ERP network that <br /><ul><li> Manages a dynamic network of customers, suppliers and other partners including all corners of business process
Requires the dynamic synchronization of demand-driven planning, logistics, production, finance, BPM and network execution
Link business practices and industry processes with real time information</li></li></ul><li>Major Benefits realization of ERP…<br /><ul><li>Breaks down communication barriers between departments
All company transaction are stored in one database
Provides company management with 100% of corporate data for better decision making
Provides employees with the ability to gather information more effectively and efficiently
Increased productivity per employee / department / organization
Implement new system</li></li></ul><li> ERP without Re-engineering<br />Advantages<br /> No visible changes in Functionality<br /> Users find it more acceptable<br /> Can be completed within time frame.<br /> Cost can be with in your control<br /> Impact on Organization will be moderate<br />Disadvantages<br /> Best Business practices would have been ignored<br /> Stability of the system is known only in long run<br /> May not achieve Corporate wide systems integration<br /> New technologies have to be studied your self<br /> Some functionality may be lost<br />
Why ERP… Expectations…<br />Process Standardization<br /><ul><li> economies where available</li></ul>Configuration Control<br /><ul><li> right product to the right client</li></ul>Transparency into operations<br /><ul><li> proactive / timely</li></ul>Integration with ERP<br />- real time collaboration<br />Enable Productive Growth<br />Improve Customer Satisfaction<br />Enhance Operational Capabilities<br />
“Less than 25% of IT projects will deliver hard, monetary benefits that exceed the cost of the implementation”<br />“80% of Metric Systems Fail or Are Discontinued within 2 Years.”<br />A recent survey revealed that 27% of clients either have not been able or did not attempt to measure business benefits…an additional 64% have only measured ‘some’ benefits. Determining benefits, along with lack of a repeatable ‘benefits process’ were the top two obstacles to justifying investments.”<br />Source: Information Week<br />Source: Gartner Group<br />Source: Gartner Group<br />Common ERP Challenges<br />
ERP Benefits<br /><ul><li>Integrate Financial Information : In order to understand Organizations overall performance they must have a single financial view.
Integrate Customer Order Information : With all Order Information in a Single System It is easier to coordinate manufacturing, inventory and shipping in order to send a common message to a customer regarding order status.
Standardize and speedup manufacturing processes : ERP System provide standard methods for manufacturing companies to use when alternating steps in the manufacturing process. Standardizing manufacturing process across an organization same time increase production and reduces head count.
Reduce Inventory : With the improved visibility into the order fulfillment process an organization can reduce inventories and streamline deliveries to its customers.</li></li></ul><li> ERP Benefits<br /><ul><li>Standardize Human Resource Information : ERPs provide a unified method for tracking employee’s time as well as communicating HR Benefits and Services.
Improve data entry process & thereby reduce errors. Eliminate huge paperwork, thus reducing the potential of error.
Reduce operations cost. Seeing where your money is going in the first step of cutting cost.
Increase productivity. Efficient scheduling on the shop floor reduces down time and over time.
Reduce lead times. ‘Up to the minutes’ information on your upcoming material requirements.
Improve on-time delivery. Identify & tackle supply chain battle work before they deliver problems.
Reduce purchasing cost. Just in time (JIT) information.
Reduce work force. Non-value added activities.</li></li></ul><li> ERP Risks<br />
Future of SOMENTE<br />Lines between SCM, CRM, and ERP will continue to blur<br />Internet – continue to help organizations integrate data and process across functional departments<br />Interface – customizable employee browsers <br />Wireless technology – support a mobile workforce<br />
Advantages for YOU (On Adapting ERP)<br /><ul><li> Know what we are