ERP

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ERP

  1. 1. Eloquent Technology<br />……With Us!<br />EXPERIENCE YOU CAN TRUST #<br />INSIGHT YOU CAN USE #<br />INNOVATION YOU CAN PROFIT #<br />Adaptive<br />ERP:<br />The vision is now…<br />
  2. 2. ERP<br />Enterprise Resources Planning<br />
  3. 3. 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.
  4. 4. Tight relation with the organizational, structure of the enterprises.
  5. 5. <<< Software Packages >>> ???</li></li></ul><li> ERP<br /><ul><li>Facilitates Company-wide integrated Information Systems Covering all functional Areas.
  6. 6. Performs core Corporate activities and increases customer service augmenting Corporate Image.
  7. 7. 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.
  8. 8. Problems to cope up with when managing ERP introduction ;
  9. 9. Know business process
  10. 10. Know software possibilities (what is there, complements required, how to add)
  11. 11. Financial problems
  12. 12. Team
  13. 13. The factor that differentiate success / failure : How to solve problems so they do not appear again.</li></li></ul><li> Enterprise Architecture – Before ERP <br /><ul><li>Isolated applications
  14. 14. Manual management information (paper)
  15. 15. Reactive to problems (firefighting)
  16. 16. Difficulties to access directly information. Use PHONES, PAPERS to track material, orders, purchases
  17. 17. 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 />
  18. 18. Evaluation of Planning Systems<br /><ul><li>Materials Requirement Planning (MRP)
  19. 19. Manufacturing Resource Planning ( MRP II)
  20. 20. Enterprise Resource Planning ( ERP)</li></ul>Other terminologies are :<br /><ul><li>Money Resource Planning (MRP III)
  21. 21. Supply Chain Management
  22. 22. 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 />
  23. 23. ERP<br />UNDERSTANDING<br />
  24. 24. Integration of Information System<br />IS messages<br />IS messages<br />Manufacturing <br />Head Quarters<br />Marketing/Sales<br /><ul><li>Local purchasing, invoice verification
  25. 25. Inventory management
  26. 26. Internal sales, shipping and billing
  27. 27. Profit/loss
  28. 28. Capacity utilization
  29. 29. Wastage Control
  30. 30. Information Systems:
  31. 31. Project Mgmt
  32. 32. Inventory
  33. 33. Purchasing
  34. 34. Sales
  35. 35. Budget
  36. 36. Cash Management
  37. 37. Credit Control
  38. 38. Daily Reports (Real-time)
  39. 39. Sales, shipping and billing
  40. 40. Purchasing of trading goods
  41. 41. Inventory Management
  42. 42. 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)
  43. 43. Executive information systems (EIS)
  44. 44. Reporting
  45. 45. Data mining
  46. 46. Early warning systems (robots)</li></ul>Examples:<br />
  47. 47. Please Accept my new order for 1000 more sets<br />Change customer master data<br />Customer <br />Representative<br />Schedule customer<br />visit<br />Launch<br />Workflow<br />Increase<br /> credit limit<br />Prepare<br />production<br />Sales Manager<br />Credit Manager<br />Product Manager<br /> Changes of Customer Information<br />
  48. 48. The integrated supply chain<br />Control<br />Profit/Loss<br />Finance<br />Balance sheet<br />Capital<br />Costs<br />Procurement<br />market<br />Purchasing<br />Production<br />Sales.<br />Machines<br />Human resources<br />Operating resources<br />Managing Resources<br />
  49. 49. ERP<br />GLOBAL SCENERIO<br />
  50. 50. For Healthy Operations<br /><ul><li>Integration of Systems across the Functional Departments in a Company as well as across the Enterprise as a Whole.
  51. 51. Better Customer Service.
  52. 52. Introduction of Latest Technologies as and when the are ready for the Industry acceptance
  53. 53. Expertise database
  54. 54. 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 />
  55. 55. Demands on the Industry<br /><ul><li>Better products at lower costs
  56. 56. Tough competition
  57. 57. Need to analyze costs / revenues on a product or customer basis
  58. 58. Flexibility to respond to changing business requirements
  59. 59. More informed management decision making</li></li></ul><li>ERP<br />The Enabler<br />
  60. 60. What is that ERP Enabler?<br /><ul><li>Systematic Look into your Systems & procedures
  61. 61. Optimizing the processes
  62. 62. Enables you to adapt yourself to new technologies
  63. 63. Discipline across the functions</li></li></ul><li> What does ERP integrate?<br /><ul><li>Database
  64. 64. Application
  65. 65. Integrate
  66. 66. 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 />
  67. 67. Business Process Overview<br />
  68. 68. Funding Doc<br />Requirements<br />Budget Allocation<br />Field Bills<br />Initial Planning<br />Budget<br />Formulation<br />Field Executes Work<br />Purchase From Vendor<br />Budget Exhibits<br />Purchase From Vendor<br />Purchase<br />Budget Consolidation<br />Equipment Receipt & Acceptance<br />Fixed Asset Receipt & Acceptance<br />Finance<br />Unplanned<br />Maintenance Order<br />Budget Allocation<br />Field Does Asset Accounting<br />All Transactions<br />Reports<br />Monthly & Annual<br />Close<br />Create Notification<br />Create Maintenance Order<br />Inventory Reserved<br />Certification Control<br />Advanced Planning<br />Time Management<br />Person Trained & Certified<br />MRP<br />Inventory<br />Repair Completed<br />Event Management<br />Person Hired<br />Goods Receipt & Acceptance<br />Order Settled<br />Internal, External, & Consignment Requisitions<br />Configuration Management<br />Invoice<br />Purchase Order<br />Material Issued<br />Assignment Control<br /> ERP…Business Process Overview<br />Head Office<br />Field<br />Activities<br />Somente<br />Common<br />Support<br />Maintenance<br />Supply<br />
  69. 69. … 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
  70. 70. Requires the dynamic synchronization of demand-driven planning, logistics, production, finance, BPM and network execution
  71. 71. 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
  72. 72. All company transaction are stored in one database
  73. 73. Provides company management with 100% of corporate data for better decision making
  74. 74. Provides employees with the ability to gather information more effectively and efficiently
  75. 75. Increased productivity per employee / department / organization
  76. 76. Improved customer response times
  77. 77. Eliminates multiple data entry points
  78. 78. Improves supply chain flow
  79. 79. Improved monitoring capabilities
  80. 80. Provides a true representation of the overall health of the organization
  81. 81. Highlights specific problem area within the organization
  82. 82. Complete trail of all transactions with in the organization
  83. 83. Instant P & L by customer, product, sales rep, product line, branch, warehouse etc.
  84. 84. Decreased time spent with month end / quarter end year end reporting
  85. 85. Cash collection time increases
  86. 86. AR aging decreases
  87. 87. Increased inventory management capabilities</li></li></ul><li> ERP - Advantages<br /><ul><li>Highly Graphics based User Interface.
  88. 88. Zero Down time/ planned down time.
  89. 89. Readymade solutions for most of the Problems.
  90. 90. Only Customization required.
  91. 91. Integration of all functions ensured.
  92. 92. ROI earlier than the software developed in-house.
  93. 93. Easy enterprise wide information sharing.
  94. 94. Suppliers and Customers can be on-line communication.
  95. 95. Knowledge transfer between industries guarantees innovation.
  96. 96. Automatic adaptation to new technology.</li></li></ul><li> Problems taken care of…<br /><ul><li>Availability check at the time of Accepting Sales order
  97. 97. On-line Material Status & Shortages
  98. 98. Productivity Enhancements
  99. 99. Material Planning
  100. 100. Customer Service
  101. 101. Credit Control
  102. 102. Cash Management
  103. 103. Inventory
  104. 104. Quality & lot more….</li></li></ul><li> Subsystems of ERP<br /><ul><li>Logistics
  105. 105. Bill Of Materials
  106. 106. Sales & Marketing
  107. 107. Master Scheduling
  108. 108. Materials Requirement Planning
  109. 109. Capacity Requirements Planning
  110. 110. Purchasing
  111. 111. Shop Floor Control
  112. 112. Accounts Payable/Receivable
  113. 113. HR & Lot More…..</li></li></ul><li>ERP<br />Go Ahead with ERP >>>><br />
  114. 114. Business Process Re-engineering<br /><ul><li>In-depth study of existing systems/processes is required before ERP is considered.
  115. 115. This study brings out deficiencies of the existing system/process.
  116. 116. This study is called BPR
  117. 117. BPR attempts to re-structure and re-organize the human resources, functional areas, Man-Machine interfaces in the organization.
  118. 118. Hence BPR attempts to maximize productivity</li></li></ul><li> Re-engineering<br /><ul><li>Study the current system & Processes
  119. 119. Design and develop new systems
  120. 120. Define Process, organization structure, procedures
  121. 121. Develop/Customize the software
  122. 122. Train people
  123. 123. 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 />
  124. 124. Breakdown of Key Process Measures<br />P<br />P<br />In<br />-<br />Process Measures<br />In<br />-<br />Process Measures<br />Core Process <br />O<br />O<br />I<br />I<br />Deliver Products/<br />Deliver Products/<br />Measures<br />Distribution Ops<br />Output<br />Output<br />Services (order to cash)<br />Services (order to cash)<br />Input<br />Input<br />“Level 1”<br />Measures<br />Measures<br />Measures<br />Measures<br />Product<br /> Development<br />Distribution<br />Delivery<br />Supply <br />Chain<br />Manufacturing<br />Strategic<br />Planning &<br />Alignment<br />Sales<br />P<br />P<br />Macro Process <br />P<br />Measures<br />I<br />I<br />O<br />O<br />I<br />O<br />“Level 2”<br />P<br />P<br />P<br />P<br />Sub<br />-<br />process <br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />Measures<br />I<br />I<br />I<br />I<br />O<br />O<br />O<br />O<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />I<br />O<br />“Level 3”<br />Human Capital Management<br />Information Capital Management<br />Organizational Capital Management<br />Strong Focus on Business Processes and Measures<br />“Core Process View..”<br /><ul><li>Develop high-level, global, and integrated business processes based on strategic / operational needs
  125. 125. Focus on touchpoints and handoffs between business units and departments
  126. 126. Identify high-level corporate measures and target levels of performance
  127. 127. Develop detailed process flows by function
  128. 128. Identify operational performance measures and linkages to higher-level corporate measures
  129. 129. Assign ownership of processes and measures
  130. 130. Document business “blueprint” to guide ERP technical development</li></li></ul><li> Re-engineering – A part life with ERP<br /><ul><li>Re-engineer process before going for ERP
  131. 131. Re-engineer during implementation of ERP
  132. 132. Re-engineer after implementing ERP
  133. 133. Continuous re-engineering through ERP</li></li></ul><li> The U.S.A. Principle<br />Understand – Simplify - Automate<br />Understand <br />Existing <br />Practices<br />Simplify<br />Processes<br />by <br />Eliminating waste<br />Automate<br />the <br />Process<br />Eliminating<br />Combining<br />Rearranging<br />Diagramming<br />Story-boarding<br />Brain storming<br />EDI<br />ERP<br />
  134. 134. Prepare Base for ERP<br /><ul><li>Do not start without Management commitment
  135. 135. Allocate sufficient funds
  136. 136. Identify Core Project Team
  137. 137. Select specialists from all functional areas
  138. 138. Make an Implementation Plan
  139. 139. Present plan to Management Committee for sanctions
  140. 140. Present plan to Employee groups for feedback/acceptability
  141. 141. Plan for User Training
  142. 142. Plan for Future upgrades</li></li></ul><li> ERP Involves<br /><ul><li>Project Planning
  143. 143. Business & Operational Analysis, including Gap Analysis
  144. 144. Business Process Re-engineering (BPR)
  145. 145. Installation & Configuration
  146. 146. Project Team Training
  147. 147. Business Requirements Mapping to Software
  148. 148. Module Configuration
  149. 149. System Modification and Interfaces
  150. 150. Data Conversion
  151. 151. Custom Documentation
  152. 152. End User Training
  153. 153. Conference Room Pilot
  154. 154. Acceptance Testing
  155. 155. Production
  156. 156. Post-Implementation Audit/Support</li></li></ul><li> Implementation Approach<br />Tasks<br /> Phase<br />Deliverables<br />Detailed<br />Discussions<br />Design &Customization<br />Implementation/<br />Prepare to Go Live<br />Production/<br />Go Live<br /><ul><li>Project Initialization
  157. 157. Evaluation of current processes,</li></ul> business practices, requirements<br /><ul><li>Set-Up Project Organization
  158. 158. Map Organization
  159. 159. Map Business Processes
  160. 160. Define Functions and Processes
  161. 161. ERP S/w Configuration
  162. 162. Build ERP System Modifications
  163. 163. Create Go-Live Plan & Documentation
  164. 164. Integrate Applications
  165. 165. Test the ERP Customization
  166. 166. Train Users
  167. 167. Run Trial Production
  168. 168. Maintain systems
  169. 169. Accepted norms & Conditions
  170. 170. Project Organization Chart
  171. 171. Identify Work Teams
  172. 172. Organization Structure
  173. 173. Design Specification
  174. 174. Process Flow Diagrams
  175. 175. Function Model
  176. 176. Configuration Recording
  177. 177. Systems Modification
  178. 178. Testing Environment report
  179. 179. Customization Test Report
  180. 180. Implementation Report
  181. 181. Reconciliation Reports
  182. 182. Conversion Plan Execution</li></li></ul><li>STRATEGIES<br />FOR<br />PROFITABLE GROWTH<br />
  183. 183. YOU’RE CONSTANTLY TRANSFORMING<br />
  184. 184. 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 />
  185. 185. “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 />
  186. 186. Embrace New Technologies<br />
  187. 187. http://hwtwww.wdf.punjstar.de:1081/SOMENET/Marketing/InfoForm.html<br /> Internet / Intranet Enabled<br />
  188. 188. USA<br />Pro Dialer<br />+91 11 30889300<br />INDIA<br /> Video Conferencing<br />
  189. 189. FI/CO & HR<br />PP<br />SD<br />HO<br />MM<br /> PSI Vision for SOMENTE<br />SOMENTE is a<br />CENTERLIZE DATABASE PLATFORM<br />…that delivers<br />SUSTAINABLE SAVINGS<br />SOMENTE<br />Operational Authorities<br />PP<br />MM<br />HR<br />CRM<br />SD<br />FI<br />…and<br />VALUE GENERATION<br />…for world-class<br />ENTERPRISE RESOURCE PLANNING<br />
  190. 190. SCHEDULING TOOLS<br />(Open Plan/<br />MS Project)<br />PRICING SYSTEMS<br />Somente <br />Master<br />Planner<br />STATUS REPORTS<br />OUTPUTS AT EACH <br />MANAGEMENT LEVEL<br />INTEGRATED TIME & COST REPORTS<br />WORK FLOW DESCRIPTIONS<br />BUDGET REPORTS<br />STAFF WORK LOAD CURVES<br />Interface Between Planning & Company System<br />“By SOMENTE..”<br />SKILLS DATA BASE<br />FINANCE SYSTEMS<br />WEEKLY STATUSING <br /> SYSTEMS<br />EXECUTIVE TASKING & ANALYSIS<br />RELATED DATABASES<br />OUTPUTS<br />
  191. 191. Data points where SCM, CRM & ERP can Integrate<br />Note : Depending upon the client requirements<br />
  192. 192. Value Chain Management<br />Demand Chain<br />Management<br />Supply Chain Management<br />
  193. 193. ERP Benefits<br /><ul><li>Integrate Financial Information : In order to understand Organizations overall performance they must have a single financial view.
  194. 194. 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.
  195. 195. 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.
  196. 196. 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.
  197. 197. Improve data entry process & thereby reduce errors. Eliminate huge paperwork, thus reducing the potential of error.
  198. 198. Reduce operations cost. Seeing where your money is going in the first step of cutting cost.
  199. 199. Increase productivity. Efficient scheduling on the shop floor reduces down time and over time.
  200. 200. Reduce lead times. ‘Up to the minutes’ information on your upcoming material requirements.
  201. 201. Improve on-time delivery. Identify & tackle supply chain battle work before they deliver problems.
  202. 202. Reduce purchasing cost. Just in time (JIT) information.
  203. 203. Reduce work force. Non-value added activities.</li></li></ul><li> ERP Risks<br />
  204. 204. 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 />
  205. 205. Advantages for YOU (On Adapting ERP)<br /><ul><li> Know what we are
  206. 206. Transparency & Statuary Obligation
  207. 207. Debate to acceptance
  208. 208. Transform of Info system
  209. 209. Adoption of best business practices
  210. 210. Extend corporate & IT governance
  211. 211. Doing business with confidence
  212. 212. Wastage Control
  213. 213. Theft Control
  214. 214. Mishandling and Misuse Control</li></li></ul><li> Conclusion for YOU<br /><ul><li> Commitment of Top Management / Lead Management
  215. 215. Using from work / pre – configured solution
  216. 216. Taking cue from best business practices</li></li></ul><li> Summary<br /><ul><li> Complete Integration of Systems across the departments in a company as well as across the Enterprise as a Whole.
  217. 217. Solution for better Project Management
  218. 218. Better Customer Service
  219. 219. Introduction of latest Technologies
  220. 220. Expertise Database</li></li></ul><li> In Closing….<br /><ul><li>Challenging:
  221. 221. Use technology to help solve tough business problems…
  222. 222. Customer:
  223. 223. Use technology to improve the overall experience…
  224. 224. Capabilities:
  225. 225. Use technology to improve and to outperform the competition…</li></li></ul><li>THANKS<br />

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