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 >>> ???
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 – 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)
The factor that differentiate success / failure : How to solve problems so they do not appear again.
Enterprise Architecture – Before ERP
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.
Integration of Information System IS messages IS messages Manufacturing Head Quarters Marketing/Sales
Local purchasing, invoice verification
Internal sales, shipping and billing
Daily Reports (Real-time)
Sales, shipping and billing
Purchasing of trading goods
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)
Early warning systems (robots)
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
Avoids data redundancy
Competition in the Market
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
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?
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
Quality & lot more….
Subsystems of ERP
Bill Of Materials
Sales & Marketing
Materials Requirement Planning
Capacity Requirements Planning
Shop Floor Control
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.
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 O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O 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 P P P P P P P P P P P P P P P P I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O I O “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
Business & Operational Analysis, including Gap Analysis
Business Process Re-engineering (BPR)
Installation & Configuration
Project Team Training
Business Requirements Mapping to Software
System Modification and Interfaces
End User Training
Conference Room Pilot
Implementation Approach Tasks Phase Deliverables Detailed Discussions Design &Customization Implementation/ Prepare to Go Live Production/ Go Live
Evaluation of current processes,
business practices, requirements
Set-Up Project Organization
Map Business Processes
Define Functions and Processes
ERP S/w Configuration
Build ERP System Modifications
Create Go-Live Plan & Documentation
Test the ERP Customization
Run Trial Production
Accepted norms & Conditions
Project Organization Chart
Identify Work Teams
Process Flow Diagrams
Testing Environment report
Customization Test Report
Conversion Plan Execution
STRATEGIES FOR PROFITABLE GROWTH
YOU’RE CONSTANTLY TRANSFORMING
Why ERP… Expectations… Process Standardization
economies where available
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
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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
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.
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.
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
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
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
Use technology to help solve tough business problems…
Use technology to improve the overall experience…
Use technology to improve and to outperform the competition…