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    ERP ERP Presentation Transcript

    • Eloquent Technology
      ……With Us!
      EXPERIENCE YOU CAN TRUST #
      INSIGHT YOU CAN USE #
      INNOVATION YOU CAN PROFIT #
      Adaptive
      ERP:
      The vision is now…
    • ERP
      Enterprise Resources Planning
    • ERP – WHAT?
      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
      • Information system to manage enterprise information (about resources) : products, clients, suppliers, productions, finance.
      • Tight relation with the organizational, structure of the enterprises.
      • <<< Software Packages >>> ???
    • ERP
      • 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.
    • ERP Setup
      • ERP – The most complex software system in enterprise – Database size, transactions, complexity, logic, users.
      • Problems to cope up with when managing ERP introduction ;
      • Know business process
      • Know software possibilities (what is there, complements required, how to add)
      • Financial problems
      • Team
      • The factor that differentiate success / failure : How to solve problems so they do not appear again.
    • Enterprise Architecture – Before ERP
      • Isolated applications
      • Manual management information (paper)
      • Reactive to problems (firefighting)
      • Difficulties to access directly information. Use PHONES, PAPERS to track material, orders, purchases
      • NIH Syndrome NIH <<<not invented here>>>
    • Evaluation of Business Applications
      • MIS - Management Information Systems
      Decision Support - No
      • IIS - Integrated Information Systems
      Decision Support - No
      • EIS - Executive Information Systems
      Decision Support - Yes
      • CIS - Corporate Information Systems
      Decision Support - Yes
      • EWS - Enterprise Wide Systems
      Decision Support - No
      Logistics are considered as a part of system
    • Evaluation of Planning Systems
      • Materials Requirement Planning (MRP)
      • Manufacturing Resource Planning ( MRP II)
      • Enterprise Resource Planning ( ERP)
      Other terminologies are :
      • Money Resource Planning (MRP III)
      • Supply Chain Management
      • Value Chain Management
    • CAN WE WAIT?
      Wait if you have :
      Good ERP systems running.
      No immediate threat of Y2K, Euro and other known/unknown problems.
      No management commitment.
      Financial problems.
      Do not wait if you have :
      Tough competition in the market.
      Multiple location operations.
      Plans to grow Globally.
      Management Commitment for change.
    • ERP
      UNDERSTANDING
    • Integration of Information System
      IS messages
      IS messages
      Manufacturing
      Head Quarters
      Marketing/Sales
      • Local purchasing, invoice verification
      • Inventory management
      • Internal sales, shipping and billing
      • Profit/loss
      • Capacity utilization
      • Wastage Control
      • Information Systems:
      • Project Mgmt
      • Inventory
      • Purchasing
      • Sales
      • Budget
      • Cash Management
      • Credit Control
      • Daily Reports (Real-time)
      • Sales, shipping and billing
      • Purchasing of trading goods
      • Inventory Management
      • Customer service
    • Definition of Business Intelligence
      Any tools enabling people to make better decisions and thus improve their business processes
      • Decision support systems (DSS)
      • Executive information systems (EIS)
      • Reporting
      • Data mining
      • Early warning systems (robots)
      Examples:
    • Please Accept my new order for 1000 more sets
      Change customer master data
      Customer
      Representative
      Schedule customer
      visit
      Launch
      Workflow
      Increase
      credit limit
      Prepare
      production
      Sales Manager
      Credit Manager
      Product Manager
      Changes of Customer Information
    • The integrated supply chain
      Control
      Profit/Loss
      Finance
      Balance sheet
      Capital
      Costs
      Procurement
      market
      Purchasing
      Production
      Sales.
      Machines
      Human resources
      Operating resources
      Managing Resources
    • ERP
      GLOBAL SCENERIO
    • For Healthy Operations
      • Integration of Systems across the Functional Departments in a Company as well as across the Enterprise as a Whole.
      • Better Customer Service.
      • Introduction of Latest Technologies as and when the are ready for the Industry acceptance
      • Expertise database
      • Avoids data redundancy
    • Competition in the Market
      • Manufacturing Challenges.
      Manufacturing Globally.
      Distribution network spread.
      New Product introduction.
      Lower manufacturing lead time.
      • Focus on industry markets.
      Satisfying the needs of customers.
      Develop specific business methods and processes.
      Integration with third party products.
    • Demands on the Industry
      • Better products at lower costs
      • Tough competition
      • Need to analyze costs / revenues on a product or customer basis
      • Flexibility to respond to changing business requirements
      • More informed management decision making
    • ERP
      The Enabler
    • What is that ERP Enabler?
      • Systematic Look into your Systems & procedures
      • Optimizing the processes
      • Enables you to adapt yourself to new technologies
      • Discipline across the functions
    • What does ERP integrate?
      • Database
      • Application
      • Integrate
      • Tools
    • What drives ERP
      Business
      Customer Satisfaction
      Business Development - new areas, products, services
      Ability to face competition
      Efficient processes required to push the company to top gear
      IT
      Present Software does not meet business needs
      Legacy systems difficult to maintain, Y2K Problem , Euro currency
      Obsolete hardware/software difficult to maintain
    • Business Process Overview
    • Funding Doc
      Requirements
      Budget Allocation
      Field Bills
      Initial Planning
      Budget
      Formulation
      Field Executes Work
      Purchase From Vendor
      Budget Exhibits
      Purchase From Vendor
      Purchase
      Budget Consolidation
      Equipment Receipt & Acceptance
      Fixed Asset Receipt & Acceptance
      Finance
      Unplanned
      Maintenance Order
      Budget Allocation
      Field Does Asset Accounting
      All Transactions
      Reports
      Monthly & Annual
      Close
      Create Notification
      Create Maintenance Order
      Inventory Reserved
      Certification Control
      Advanced Planning
      Time Management
      Person Trained & Certified
      MRP
      Inventory
      Repair Completed
      Event Management
      Person Hired
      Goods Receipt & Acceptance
      Order Settled
      Internal, External, & Consignment Requisitions
      Configuration Management
      Invoice
      Purchase Order
      Material Issued
      Assignment Control
      ERP…Business Process Overview
      Head Office
      Field
      Activities
      Somente
      Common
      Support
      Maintenance
      Supply
    • … with Adaptive Enterprise Resources Planning
      Adaptive business framework require an adaptive ERP network that
      • 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
    • Major Benefits realization of ERP…
      • 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
      • Improved customer response times
      • Eliminates multiple data entry points
      • Improves supply chain flow
      • Improved monitoring capabilities
      • Provides a true representation of the overall health of the organization
      • Highlights specific problem area within the organization
      • Complete trail of all transactions with in the organization
      • Instant P & L by customer, product, sales rep, product line, branch, warehouse etc.
      • Decreased time spent with month end / quarter end year end reporting
      • Cash collection time increases
      • AR aging decreases
      • Increased inventory management capabilities
    • ERP - Advantages
      • Highly Graphics based User Interface.
      • Zero Down time/ planned down time.
      • Readymade solutions for most of the Problems.
      • Only Customization required.
      • Integration of all functions ensured.
      • ROI earlier than the software developed in-house.
      • Easy enterprise wide information sharing.
      • Suppliers and Customers can be on-line communication.
      • Knowledge transfer between industries guarantees innovation.
      • Automatic adaptation to new technology.
    • Problems taken care of…
      • Availability check at the time of Accepting Sales order
      • On-line Material Status & Shortages
      • Productivity Enhancements
      • Material Planning
      • Customer Service
      • Credit Control
      • Cash Management
      • Inventory
      • Quality & lot more….
    • Subsystems of ERP
      • Logistics
      • Bill Of Materials
      • Sales & Marketing
      • Master Scheduling
      • Materials Requirement Planning
      • Capacity Requirements Planning
      • Purchasing
      • Shop Floor Control
      • Accounts Payable/Receivable
      • HR & Lot More…..
    • ERP
      Go Ahead with ERP >>>>
    • Business Process Re-engineering
      • In-depth study of existing systems/processes is required before ERP is considered.
      • This study brings out deficiencies of the existing system/process.
      • This study is called BPR
      • BPR attempts to re-structure and re-organize the human resources, functional areas, Man-Machine interfaces in the organization.
      • Hence BPR attempts to maximize productivity
    • Re-engineering
      • Study the current system & Processes
      • Design and develop new systems
      • Define Process, organization structure, procedures
      • Develop/Customize the software
      • Train people
      • Implement new system
    • ERP without Re-engineering
      Advantages
      No visible changes in Functionality
      Users find it more acceptable
      Can be completed within time frame.
      Cost can be with in your control
      Impact on Organization will be moderate
      Disadvantages
      Best Business practices would have been ignored
      Stability of the system is known only in long run
      May not achieve Corporate wide systems integration
      New technologies have to be studied your self
      Some functionality may be lost
    • Breakdown of Key Process Measures
      P
      P
      In
      -
      Process Measures
      In
      -
      Process Measures
      Core Process
      O
      O
      I
      I
      Deliver Products/
      Deliver Products/
      Measures
      Distribution Ops
      Output
      Output
      Services (order to cash)
      Services (order to cash)
      Input
      Input
      “Level 1”
      Measures
      Measures
      Measures
      Measures
      Product
      Development
      Distribution
      Delivery
      Supply
      Chain
      Manufacturing
      Strategic
      Planning &
      Alignment
      Sales
      P
      P
      Macro Process
      P
      Measures
      I
      I
      O
      O
      I
      O
      “Level 2”
      P
      P
      P
      P
      Sub
      -
      process
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      I
      O
      I
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      I
      O
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      O
      I
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      I
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      I
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      I
      O
      I
      O
      I
      O
      I
      O
      Measures
      I
      I
      I
      I
      O
      O
      O
      O
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
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      P
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      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
      P
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      P
      I
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      O
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      “Level 3”
      Human Capital Management
      Information Capital Management
      Organizational Capital Management
      Strong Focus on Business Processes and Measures
      “Core Process View..”
      • Develop high-level, global, and integrated business processes based on strategic / operational needs
      • Focus on touchpoints and handoffs between business units and departments
      • Identify high-level corporate measures and target levels of performance
      • Develop detailed process flows by function
      • Identify operational performance measures and linkages to higher-level corporate measures
      • Assign ownership of processes and measures
      • Document business “blueprint” to guide ERP technical development
    • Re-engineering – A part life with ERP
      • Re-engineer process before going for ERP
      • Re-engineer during implementation of ERP
      • Re-engineer after implementing ERP
      • Continuous re-engineering through ERP
    • The U.S.A. Principle
      Understand – Simplify - Automate
      Understand
      Existing
      Practices
      Simplify
      Processes
      by
      Eliminating waste
      Automate
      the
      Process
      Eliminating
      Combining
      Rearranging
      Diagramming
      Story-boarding
      Brain storming
      EDI
      ERP
    • Prepare Base for ERP
      • Do not start without Management commitment
      • Allocate sufficient funds
      • Identify Core Project Team
      • Select specialists from all functional areas
      • Make an Implementation Plan
      • Present plan to Management Committee for sanctions
      • Present plan to Employee groups for feedback/acceptability
      • Plan for User Training
      • Plan for Future upgrades
    • ERP Involves
      • Project Planning
      • Business & Operational Analysis, including Gap Analysis
      • Business Process Re-engineering (BPR)
      • Installation & Configuration
      • Project Team Training
      • Business Requirements Mapping to Software
      • Module Configuration
      • System Modification and Interfaces
      • Data Conversion
      • Custom Documentation
      • End User Training
      • Conference Room Pilot
      • Acceptance Testing
      • Production
      • Post-Implementation Audit/Support
    • Implementation Approach
      Tasks
      Phase
      Deliverables
      Detailed
      Discussions
      Design &Customization
      Implementation/
      Prepare to Go Live
      Production/
      Go Live
      • Project Initialization
      • Evaluation of current processes,
      business practices, requirements
      • Set-Up Project Organization
      • Map Organization
      • Map Business Processes
      • Define Functions and Processes
      • ERP S/w Configuration
      • Build ERP System Modifications
      • Create Go-Live Plan & Documentation
      • Integrate Applications
      • Test the ERP Customization
      • Train Users
      • Run Trial Production
      • Maintain systems
      • Accepted norms & Conditions
      • Project Organization Chart
      • Identify Work Teams
      • Organization Structure
      • Design Specification
      • Process Flow Diagrams
      • Function Model
      • Configuration Recording
      • Systems Modification
      • Testing Environment report
      • Customization Test Report
      • Implementation Report
      • Reconciliation Reports
      • Conversion Plan Execution
    • STRATEGIES
      FOR
      PROFITABLE GROWTH
    • YOU’RE CONSTANTLY TRANSFORMING
    • Why ERP… Expectations…
      Process Standardization
      • economies where available
      Configuration Control
      • right product to the right client
      Transparency into operations
      • proactive / timely
      Integration with ERP
      - real time collaboration
      Enable Productive Growth
      Improve Customer Satisfaction
      Enhance Operational Capabilities
    • “Less than 25% of IT projects will deliver hard, monetary benefits that exceed the cost of the implementation”
      “80% of Metric Systems Fail or Are Discontinued within 2 Years.”
      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.”
      Source: Information Week
      Source: Gartner Group
      Source: Gartner Group
      Common ERP Challenges
    • Embrace New Technologies
    • http://hwtwww.wdf.punjstar.de:1081/SOMENET/Marketing/InfoForm.html
      Internet / Intranet Enabled
    • USA
      Pro Dialer
      +91 11 30889300
      INDIA
      Video Conferencing
    • FI/CO & HR
      PP
      SD
      HO
      MM
      PSI Vision for SOMENTE
      SOMENTE is a
      CENTERLIZE DATABASE PLATFORM
      …that delivers
      SUSTAINABLE SAVINGS
      SOMENTE
      Operational Authorities
      PP
      MM
      HR
      CRM
      SD
      FI
      …and
      VALUE GENERATION
      …for world-class
      ENTERPRISE RESOURCE PLANNING
    • SCHEDULING TOOLS
      (Open Plan/
      MS Project)
      PRICING SYSTEMS
      Somente
      Master
      Planner
      STATUS REPORTS
      OUTPUTS AT EACH
      MANAGEMENT LEVEL
      INTEGRATED TIME & COST REPORTS
      WORK FLOW DESCRIPTIONS
      BUDGET REPORTS
      STAFF WORK LOAD CURVES
      Interface Between Planning & Company System
      “By SOMENTE..”
      SKILLS DATA BASE
      FINANCE SYSTEMS
      WEEKLY STATUSING
      SYSTEMS
      EXECUTIVE TASKING & ANALYSIS
      RELATED DATABASES
      OUTPUTS
    • Data points where SCM, CRM & ERP can Integrate
      Note : Depending upon the client requirements
    • Value Chain Management
      Demand Chain
      Management
      Supply Chain Management
    • ERP Benefits
      • 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.
    • ERP Benefits
      • 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.
    • ERP Risks
    • Future of SOMENTE
      Lines between SCM, CRM, and ERP will continue to blur
      Internet – continue to help organizations integrate data and process across functional departments
      Interface – customizable employee browsers
      Wireless technology – support a mobile workforce
    • Advantages for YOU (On Adapting ERP)
      • Know what we are
      • Transparency & Statuary Obligation
      • Debate to acceptance
      • Transform of Info system
      • Adoption of best business practices
      • Extend corporate & IT governance
      • Doing business with confidence
      • Wastage Control
      • Theft Control
      • Mishandling and Misuse Control
    • Conclusion for YOU
      • Commitment of Top Management / Lead Management
      • Using from work / pre – configured solution
      • Taking cue from best business practices
    • Summary
      • Complete Integration of Systems across the departments in a company as well as across the Enterprise as a Whole.
      • Solution for better Project Management
      • Better Customer Service
      • Introduction of latest Technologies
      • Expertise Database
    • In Closing….
      • Challenging:
      • Use technology to help solve tough business problems…
      • Customer:
      • Use technology to improve the overall experience…
      • Capabilities:
      • Use technology to improve and to outperform the competition…
    • THANKS