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Enterprise Performance Management
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Enterprise Performance Management

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    Enterprise Performance Management Enterprise Performance Management Presentation Transcript

    • Designing an Enterprise Performance Management (EPM) System
      for
      Guided by
      Mr.S. Anandane, Sr. Manager-EDP
      Anglo French Textiles, Pudhucherry
      &
      Mr.S. Victor Anand Kumar, Senior Lecturer
      Pondicherry University, Pudhucherry
      Presented by
      M.Sundarrajan
      II MBA
      Pondicherry University
    • The shape of the textile industry in India
      Large Industry – 3% of GDP, 27% of Forex earnings, 21% of total employment
      Very large unorganized sector – about 76% of total fabrics production
      Market is very diverse, does not lend itself to comparative studies in terms of market share etc
      India's home textile exports expected to grow from $1.2 billion now to $5 billion by 2010
    • The Global scenario…
      The end of the Multi fiber agreement (MFA)
      Competitiveness of Indian industry
      • Low level of modernization
      • Fragmented nature – low capacities
      • Infrastructure, Labour laws
      Exports have risen by 10% but at the same time China’s exports have risen by more than 20%, even countries like Pakistan and Bangladesh have done better
    • Company Profile – Anglo French Textiles
      Legacy of over 100 years ( started in 1898)
      Company is owned by Government of Pondicherry
      Known as a ‘composite mill’
      Products
      Bed sheets, school uniforms, parachute suits etc
      Employee Strength: 3,279 no's (465 staff and the rest workers)
    • Enterprise Performance Management System – EPM Overview
    • Enterprise Performance Management - EPM overview
      Brings management processes under a single umbrella, connecting financial and operational decisions
      Activities with transactional systems to form a comprehensive management picture
      EPM helps to
      Identify information gaps,
      Focus on the right points of connection,
      Evolve the performance measurement
    • Enterprise Performance Management - EPM
      Source: adopted from the CPM models of IBM-COGNOS, January 2008
    • EPM- Frame work
      It is about connecting processes, people, metrics, systems, and businesses to improve decision-making and drive competitive advantage
      Many factors influence the performance of the organization’s decisions, categorized as
      How are we doing? (– scorecards, dashboards)
      Why?(– reporting & analysis)
      What should we be doing?(– planning)
    • EPM- Frame work
      Source: The Performance Management Framework of Cognos, 2008
    • Identification of Key Performance Indicators (KPIs)
      Evaluating the performance of any department starts with the key performance indicators (KPIs)
      Classified based on the origin, namely department, workflow, cost incurring activity, profitable activity, etc
      The whole organization is classified into main eight quarters and the activities are monitored
      Finance
      Manufacturing (Operation)
    • Finance department KPIs
      Focus on checks and controls
      to comply with legal, tax, and accounting regulations and requirements
      to advise the business on future directions, performance, and opportunities
      Income statement
      Drill-down variance
      Operational plan variance
      Cash flow and working capital
      Balance sheet
      Capital expenditure and strategic investments
      Reserves
    • Production department KPIs
      Provides the delivery mechanism for the business, gives both what the business sells and how that product gets to market
      Purchasing and Procurement
      Production and Capacity
      Inventory Management
      Distribution and Logistics
      Cost and Quality Management
      Process Efficiency
    • Existing Decision Support System (DSS) @ AFT
      Information support to many day-to-day decision making needs
      Analysis and reports remain
      Unconsolidated & Scattered (connected inefficiently)
      Only few can read the plan, but cant modify according to the departmental drivers
      Disjointed technologies lead to silos of information and limit the ability to act with focus and agility
    • CENTRALIZED EDP FUNCTION
      DATA OUTPUT
      DATA CAPTURE
      DATA PROCESSING
      Present DSS
      • Centralized Function
      • Aids performance monitoring
      • Modules are not integrated
      • Inconsistency and redundancy
    • Problems in the existing system
      Data redundancy and inconsistency
      Data available in operational/ transactional level are not integrated.
      Non-availability of compact data
      Large volumes of data with high levels of detail and low levels of granularity
      System does not support unstructured decision-making.
      Requires large processing time and effort
    • Project-Overview
      • Need for the project
      • Scope of the project
      • Proposed system
      • Benefits
    • Need for the project…
      Need for an Enterprise Performance Management System to provide information support for unstructured decision making and strategic planning
      Need for well defined Key Performance Indicators KPIs
      Need for well established metrics for the evaluation of KPIs
      Statistical and graphical reports to identify patterns and trendsare needed
    • Scope of the project…
      Identify the KPIs in the organization, by analyzing various information and to suggest solution
      Develop an enterprise performance management system (EPM) model in order to aid managers in making quick decision in each department of the organization
    • Proposed EPM System Model
      Model adapted from CPM models of Cognos, IBM and Oracle, 2007
    • Benefits of the proposed system
      Focus on the leading metrics
      Data integrity
      Visualization tools for navigating
      Securing a continuum of homogeneous and aligned information
      Address the full scope of the business
    • System Design
      • Database views of KPIs
      • Construction of Applications
    • System Design
      Data Design: The data design is used to group data into a number of tables called the dimension tables
      The database design is used to group data into a number of tables
      Reduction in duplication of data
      Simplification of functions like addition, deletion, modification, etc
      Retrieving data
      Increasing clarify and ease of use
      Providing more information at less cost
    • Database view of the KPIs
    • Database view of the KPIs
    • Database view of the KPIs
    • Database view of the KPIs
    • Construction of the application
    • Construction of the application
    • Construction of the application
    • Construction of the application
    • Recommendations
    • Recommendations
      Adopting an uniform performance management
      Decentralization of the information
      Risk and compliances integrated performance management
      Enhance the usage of Business Intelligence in the organization
      Implementing a scenario based analysis of problem
      Knowledge about the competitors
      Reducing the cost components
    • Conclusion
      The proposed system helps the organization to process the information in no time
      People are connected by embracing a broader definition of stakeholders and a more flexible performance management approach
      Easy to connect business beyond boarders
    • Scope for future work
      Adapting to Web-based reporting and analysis solution
      Develop a fully integrated solution based on a single, common reference data repository
      Enhance the system to work in real time
      EPM solutions can be made more access modes
      BlackBerry®,
      Windows Mobile,
      Google
      MS Office application, or Web browser
    • Thanking You