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Introduction to ERP


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Introduction to ERP Systems and conecepts

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Introduction to ERP

  1. 1. ERP in ATCO Concepts and Real Applications By Ahmed Rami Elsherif 21/05/2007
  2. 2. What Is ERP? • ERPS (Enterprise Resource Planning Systems) comprises of software packages that promises the seamless integration of all the information flowing through the organization - financial, accounting, human resources, purchasing, Sales, Inventory, Cost Controlling, Etc.. • ERP Systems provide information management and analysis to organizations. • ERP Systems need of an integrated hardware infrastructure to deliver its full potential • ERP Implementation project is a Business Project. IT is a supplier and facilitator for such a project.
  3. 3. ERP Characteristics • Integrated online/real time information throughout all the functional areas of an organization. • Data standardization and accuracy across the enterprise. • Best-practices or optimized solutions are included in the applications. • Creates efficiencies that organizations would not otherwise have. • Delivers analysis and reporting capacity that can be used for short and long-term planning and management.
  4. 4. ERP Planning Finance & Accounting Expenses & Costs Human Resources Material Management Fixed Assets Special Solutions Division 1 Division 2 Division N An Integrated Model Branch 1 Branch 2 Branch X
  5. 5. ERP Division 1 Division 2 Division N Standardized Data Chart of Accounts Budget Items Cost & Profit Centers Employees Master Data Materials Master Data Assets Master Data Third Parties Single Master Data Entry through out the Organization.
  6. 6. Best-Practices e.g. Purchase Order Process Purchase Petition Approval PP Offer Evaluation Purchase Order Approval PO Reception of Goods ERP Budget Accounting & Finance Purchasing Limit Material Management
  7. 7. Analysis and Reporting Sorting Criteria Drill-Down Analysis Balance and Result Sheets Divisions Costume Presentation Economical Indicators Graphical Presentations Accounts payables and receivables Graphical Presentations
  8. 8. ERP Benefits Tangibles: • Inventory Reduction (25 – 30 %). • Material Cost Reduction (5 %). • Labor Cost Reduction (10%). • Improved Customer Service & Sales (10 %). • Reduce AR & AP Delays (18 %). Intangibles: • Single Source, Online Data, Information & knowledge for the decision making. • Control and Management over the enterprise processes. “Not everything that counts can be counted, and not everything that can be counted counts.” Einstein
  9. 9. Where Does ATCO Stands? • Partially Connected Network. • Diverse non-integrated number of Information System across divisions and branches. • Un standardized master data in some cases. • Varied procedures and processes depending on available systems and interconnectivity. • Redundant work by operational and administrative personnel. • Excel based estimation process and lack of integration between Estimation, Planning and execution in the Construction division.
  10. 10. Network and system current situation. Hardware East West Factory ATCO-Dammam Head office CMD Warehouse Other Branches Other showrooms Software ATCO Menu Head Office Accpac-Head office Paradox-Warehouse & Showrooms Gesco – Office 1 DacEasy – Jeddah & Riyadh Riyadh Office Jubail Office Jaddah Office
  11. 11. Actual Sales Process Flow Sales and Invoicing Elaborated twice: 1. In branch 2. In head office Sales Order Non Existent because is done post operation. Financial Credit Control Invoicing Distribution and Logistics Product/Service Delivery Sales Person Inventory Control Elaborated twice: 1. In branch 2. In head office Elaborated twice: 1. In branch 2. In head office Redundant Time •70 % of Accountant •50 % of Auxiliary Acc.
  12. 12. Construction Project Lifecycle Planning Estimation Execution Excel Based. Lacks controls and retro alimentation from executed data. Done in Primavera but it lacks integration with Estimation and Execution Done in Accpac and Atco menu. It suffers from the same problems we mention earlier.
  13. 13. Proposed Improvements New: • IS/IT Organizational structure. • Infrastructure. • Optimizing the ERP systems by eliminating redundant work and adding control elements. • Construction division automation, integration between estimation, planning, and execution. • Intranet and Business Intelligence Portal. Under Implementation: • CRM or Sales tracking system. • Tracking system for E&W. • Sales & Distribution system.
  14. 14. Proposed Plan # Pri. Task Est. $$ Lead Time Prereq. Dependency 1 1 IT/IS Organizational Structure 15 Days 0 ---Form a competency center in charge of internal software and information systems -------Organanizational chart -------Pay scale? ---Form steering committee made up from different business divisions -------Members nominated by divisions -------Regular meetings 2 1 Infrastructure 3 Months 1 --Work with infrastructure and steering committee in prior zing 3 2 CRM or Sales Tracking System 2 Months 1 --Implement 1 4 2 Tracking System for E&W 2 Months --Implement 5 3 Sales & Distribution System for trading Divisions 3 Months 1 --Implement 6 2 ERP evaluation & reimplementation 12-18 Months 0 --First option initiate a conversation with Accpac people for possible upgrade 1-2 Months --Look at other products in the market --Make a decision on the way to go --Implement 7 2 Construction Division Integration 12-18 Months 0 --Evaluate Estimation, Planning and Execution support software 1-2 Months --Possible Integrations with other softwares --Implement 8 2 Intranet and Business Intelligence portal 1-2 Months 0 --Implement as a confidence building measurement 9 XX Others? New Business requirements?
  15. 15. Conclusion ERP/IT plays a key role in providing businesses a competitive edge by managing, optimizing, and transparenting organizational activities like: 1. Financial. 2. Administrative 3. Accounts payable and receivable. 4. Payroll. 5. Material Management, etc.. Not only does it enhances accountability, responsibility and communication but also it is used as a reporting tool; what have we done? and did we gain or lose money?. Demo