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ERP for Manufacturing Industry

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  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Transcript

    • 1. ERP - For
      MANUFACTURING INDUSTRY
      VELCOM ERP IT SOURCING PVT LTD
      An Independent ERP Consulting & Talent Sourcing Company
      1
    • 2. ERP MODULES - OVERVIEW
      Financials
      Sales & Receivables
      Purchase & Payables
      Inventory & Warehousing
      General Ledger
      Fixed Assets
      Cash Management
      Budget & Forecast
      Cost Accounting
      Inter-Company & Consolidation
      Receivables
      Invoicing
      Order Management
      Return Order Management
      Pricing & Discounting
      Tax
      Payables
      Invoicing
      Order Management
      Return Order Management
      Pricing & Discounting
      Tax
      Stock Keeping Unit & BOM
      Substitution & Cross Reference
      Item Tracking & Cycle Counting
      Logistics – In & Out Bound
      Multiple Locations
      Barcode
      HRMS
      Planning
      Production
      CRM
      Marketing Automation
      Telemarketing
      Sales Force Automation
      Sales Management
      Service Management
      Email Integration
      R&D
      Supply Planning
      Capacity Planning
      Finite Loading
      Demand Planner
      Production Order
      Bill of Material
      Routing
      Shop Floor Control
      Lean Manufacturing
      Recruitment
      Performance Management
      Compensation
      Training & Development
      Attendance System
      Payroll
      Add-on’s
      Web Portal
      Analytics
      Administration
      Projects
      Quality
      Enterprise Asset Management
      Balance Scorecard
      Travel
      Compliance & Governance
      Industry Solution
      Employee
      Customer
      Sales Person
      Vendor
      Consultant
      Business Analytics
      Business Intelligence
      Report Builder
      User Management
      Configuration Tool
      Business Connectors
      Backup / Restore
      2
    • 3. MANUFACTURING INDUSTRY – KEY CHALLENGES
      • Achieving Growth & Profitability while meeting customer expectations against competition
      • 4. Continually strive for following to grow & be profitable
      • 5. Reduce Production & Supply chain costs
      • 6. Improve Process efficiencies & Product quality
      • 7. Satisfy an avalanche of Customer demands & Regulatory requirements
      • 8. Drive to optimize manufacturing processes in order to increase agility & to ride the efficiency curve to serve the customer better
      • 9. Other Key Challenges
      • 10. Better Customer Service
      • 11. Business Integration
      • 12. On-time Delivery
      3
    • 13. ERP BENEFITS
      Automate & Streamline Business Processes with Greater Adaptability
      • Align key business processes in planning, design, development, procurement, inventory, manufacturing, sales & delivery
      • 14. Match overall supply with demand and manage all resources & assets along the entire value chain
      Respond quickly to Changing market conditions
      • Use integrated, real-time sales & operational information to accurately anticipate, plan for & respond to orders and new demand, as well as reduce forecasting errors
      • 15. Model production capabilities, quickly share engineering information & adjust product mix for changes in demand to capitalize on new opportunities
      • 16. Support compliance with regulatory requirements, including safety & environmental regulations, by quickly validating manufacturing processes while conforming to individual markets requirements
      Decision Making on Strategic Business Insight
      • Rich out-of-the-box analytical performance measurement tools hone the strategic planning & monitor the overall health of the organization
      • 17. 360-degree visibility on accurate forecasts, effective budgets, proper resource allocation & goals
      • 18. Combine operation & financial analyses to optimize day-to-day operation
      4
    • 19. ERP BENEFITS
      Enhance Customer Satisfaction
      • Delivering products on time with high quality
      • 20. Faster time to market, higher-quality products & accurate information provided to customers
      Improve Productivity
      • Collaborate across business functions to consolidate information, align strategies & standardize operational processes
      • 21. Increase information worker productivity through realistic, appropriate business roles
      • 22. Increase adaptability to process changes by enhancing existing skills & assets with real-time information
      Fuel efficiency & Reduce risk across the entire organization
      • Standardize processes & easily share best practices
      • 23. Support multiple manufacturing modes & a hybrid or mixed-mode environment
      • 24. Reduce time across the Order Process Cycle (Quote-Order-Delivery) there by reducing the loss risk
      Gain insight into Costs & Process efficiency
      • Analyze & manage production schedules with reporting tools & “what-if” scenarios, including capacity loading, shop floor activities & production costs
      • 25. View real time client, contract & project details for an accurate accounting of profitability
      5
    • 26. ERP BENEFITS
      Manage Demand Pro-actively
      • Trace expected to actual sales & forecast future sales while taking into account seasonal & promotional effects
      • 27. Use simulations, demand models & error analysis to determine optimal stock levels for better profit & operations margins
      Expand Sales Success
      • Monitor market demand & meet margin objectives through effective promotions
      • 28. Increase capacity to evaluate product turnover in response to campaign & align production & inventory accordingly
      Improve Customer Service
      • Enhance the security & reliability of deliveries with the global available-to-promise (ATP) view, which provides delivery alternatives in the event of unexpected disruptions
      • 29. Automate sales & purchasing processes, track & locate inventory items quickly & help ensure accurate pricing & discounts to improve customer satisfaction
      • 30. Deep visibility & control over the supply chain, increase order fill rates, reduce risk of stock out or inventory excess & enhance overall responsiveness to customers
      6
    • 31. ERP BENEFITS
      Increase Revenue
      • Higher profit margins by automating & streamlining all business processes resulting in reduced operations costs through adherence to better business practices
      • 32. Improved cash flow by more efficient & accurate billing procedures, lower inventory levels & quick turnaround
      • 33. New opportunities identified through continuous, real-time monitoring of KPIs
      • 34. Opening up new sales channels like e-commerce
      Reduce Operating Costs
      • Decreased overall operating costs by converting time-consuming manual processes into automated, streamlined, real-time business process management
      • 35. Lower transportation costs through consolidated orders & combined shipments
      • 36. Reduced warehouse costs from optimized utilization of resources & assets
      • 37. Reduced cost of sales from use of profitable sales interaction channels
      • 38. Sustained cost savings for all spend categories due to a standard approach to both strategic & operational procurement
      • 39. Reduced IT costs because administration & usability have been improved, fewer interfaces are used & IT resources have been freed up to focus on value-adding strategic projects
      • 40. Lowered TCO (total cost of ownership) by leveraging technology for facilitated exchange & interoperability with non-ERP systems
      7
    • 41. ERP BENEFITS
      Increase Visibility & Simplify across the Supply Chain Process
      • Empower users with real-time data through a user-friendly interface & Role centre that provides access to tasks & critical Business Intelligence data such as KPIs & custom reports
      • 42. Exchange data across multiple systems & gain visibility into business processes to improve decision making & control at every level of the supply chain
      • 43. Connect inventory, production, purchasing & sales processes to gain accurate, real-time view of the entire supply chain.
      • 44. Improve collaboration with trading partners with support for a wide range of predefined XML business documents
      Reduce Cost by optimizing supply chain processes
      • Improve productivity, adapt internal processes quickly to meet new demands & optimize processes across sites in the supply chain
      Better Collaboration with all Supply Chain Partners
      • Enhance collaboration among departments, customers, suppliers, business partners for a significant improvement
      • 45. Integrate partners of all sizes to release data throughout the chain that’s accurate, complete & available up to the minute
      • 46. Costs reduced, processes speed up & smooth flowing operations throughout the supply chain
      8
    • 47. ERP BENEFITS
      Demand Driven Supply Chain Approach can help
      • Maintain competitive edge
      • 48. Integration of supply chain processes with other business processes e.g. Sales & Operations
      • 49. Respond effectively with a comprehensive, cross-functional view of the company, better understanding of customer needs through downstream data analysis & effective collaboration between trading partners
      Control & Streamline Inventory
      • Use powerful inventory management tools to improve forecasting & planning, match supply with customer demand
      • 50. Create sales & purchasing forecasts based on specific items & time periods
      Meet Complex Inventory requirements
      • Create multi-dimensional inventory records & track items throughout the supply chain for online & accurate inventory status
      • 51. Enhance Material & Product Traceability
      • 52. Implement effective recall procedures & maintain complete forward & backward traceability of any material
      • 53. Track materials from purchase through production & sale with lot & location control
      9
    • 54. ERP BENEFITS
      Integrate Design innovation into Manufacturing
      • Shorten time to market for product innovation by integrating design & manufacturing processes & collaborating effectively with suppliers, partners & customers
      Support a wide range of Manufacturing processes & Business models
      • Tailor the solution to serve make-to-stock, make-to-order, assemble-to-order, configure-to-order, & engineer-to-order environments
      • 55. Manage items from design through assembly, testing, shipping, installation & maintenance
      • 56. Meet specific customer needs by configuring build-to-order items easily & effectively
      • 57. Help efficiently produce & deliver products that follow custom formulas or recipes & take full advantage of manufacturing & supply chain capabilities
      • 58. Empower to streamline, monitor & control the entire production cycle
      Improve Project management for customized orders
      • Create estimates & quotes quickly & accurately
      • 59. Forecast machine & resource requirements for strategic scheduling & precise delivery times by analyzing project cost & order processing time
      10
    • 60. ERP BENEFITS
      Increase Productivity with a Role-Based Solution & Centralized Information
      • Provide empowering self-service & role-specific information that increase user productivity
      • 61. Personalize portal to meet business users specific needs
      • 62. Manage centrally the critical documents (e.g.) BOM, routing data, CAD designs, recipes, project plans & item information
      Streamline Integration with Web services
      • Improve integration within & Outside the organization by using a flexible Web services framework
      • 63. Maintain high production levels & on-time delivery rates by sharing portal-based, real-time information about specifications, order status & quality control testing among key departments & trading partners
      11
    • 64. ERP – CONSTRAINTS
      • ERP Customization is limited or expensive
      • 65. Business Process Re-engineering to fit the "industry standard" prescribed by the ERP may lead to a loss of competitive advantage
      • 66. ERP is sometimes too rigid or difficult to adapt to the specific workflow & business processes
      • 67. Many integrated links need high accuracy in other applications to work effectively. This should be done on a phased manner for smooth transition.
      • 68. Once established, ERP switching costs are very high
      • 69. Resistance in sharing sensitive internal information between departments can reduce the effectiveness of ERP
      • 70. ERP once implemented is the lifeline of the business and downtime costs are very high & impact the business critically
      12
    • 71. ERP IMPLEMENTATION – KEY SUCCESS FACTORS
      • Top Management Commitment
      • 72. Clear Goal Setting & Budget Planning (TCO)
      • 73. Business Process Re-Engineering
      • 74. Change Management
      • 75. Effective Project Management
      • 76. Good Project Team - Client & Vendor
      • 77. High Communication Standards
      • 78. Scope Creep Management
      • 79. Data & Approvals on Time
      • 80. Education & Training
      13
    • 81. THANK YOU!
      14

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