Erp role in chemical industry


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Erp role in chemical industry

  1. 1. Enterprise Resource Planning <br />ERP<br />
  2. 2. How ERP Systems Works?<br />A typical ERP system would use multiple component of computer software and hardware to achieve integration<br />ERP delivers a single database that contains all data for the software module<br />
  3. 3. Example of Activity Process<br />Industrial Engineering Faculty wants to buy a new Printer.<br />For this reason Secretary gives a purchasing order by filling purchasing order forms.<br />Next slide shows how this purchasing request process flow was working before ERP systems.<br />
  4. 4. New Printer Purchasing Process<br />Purchase order form for a new printer<br />Head of Department Confirmation- Faculty Head<br />Purchase order document sent to E.M.U. Account Office<br />Account Office Secretary sents the purchase order to the Responsibles<br />Purchase order- Responsible personal Confirmation<br />Purchasing department- Manager Confirmation <br />Transfer to Finance Department Secretary for processing<br />Finance Department Responsible’s Confirmation<br />Transfer to Rector’s Office<br />Rector’s Secretary- Confirmation<br />Confirmation Transfer, to Purchase Department Secretary<br />Purchase Responsible personal commends with Purchase:<br />
  5. 5. Example: Before ERP Systems<br />Transfer to Accounting Office<br />Transfer to Finance Departmen<br />Transfer to Accounting Office<br />Transfer to Manager<br />Secretary’s New printer application<br />
  6. 6. After ERP Systems<br />
  7. 7. Example Faculty <br />Industrial Engineering Faculty wants to buy a new HP Printer.<br />For this reason Secretary gives a purchasing order with using E.M.U. Online ERP systems.<br />Next slide shows the purchasing order process flow with ERP Systems.<br />
  8. 8. In this real case there the benefits of the ERP systems<br />Online Data Flow decreases the process time<br />Fast & Online Confirmation<br />Less Paperwork<br />No need for folder storage<br />Database Security<br />Less Employee needed <br />Easy Financial Management<br />Better Inventory Management<br />
  9. 9. Chemical company before ERP Systems<br />
  10. 10. Chemical Industry Business Process GoalsEnabling Efficient Processes and Reducing Cost<br /> Improve visibility<br />Enable decision making with consolidated and relevant data<br />(sense, learn, and respond)<br />Provide consistent data across entities<br />Obtain broad visibility of production status<br />Ensure faster closing, get information to management daily<br /> Become more responsive<br />Ensure flexible response to demand changes in<br />manufacturing and supply chain<br />Distribute new plans to supply chain network<br /> Speed up cash-to-cash cycle<br /> Move toward real-time “sense and respond” capability<br /> Simplify change<br />Enable collaboration<br />Move toward standard business processes<br />Cooperate with external partners<br />Easily manage mergers, acquisitions, and divestitures<br />
  11. 11. Strategic Area For Improvement in Chemical Org.<br />
  12. 12. Innovation Management<br /> Business Issues:<br />Meet regulatory & compliance needs<br />Manage capital investments<br />Manage resources and stage gate projects<br />Visibility in development activities<br />Develop new markets<br />Meet customer formulation needs<br />View of all R&D portfolio<br />Cross functional communication & planning<br />Document product formulas<br />Minimize R&D costs<br />Knowledge retention<br /> ERP Solution:<br /> Specification Management<br /> Recipe Management and Trials<br />R&D Project Management<br />Knowledge & Document<br />Management<br /> Collaboration tools<br /> Benefits:<br />Faster time to market<br /> Streamlined Development Processes<br /> Minimize R&D spend<br /> Stronger program management<br /> Knowledge retention & sharing<br /> Easy regulatory compliance<br />
  13. 13. Supplier Collaboration<br />ERP Solution:<br />Contract management<br />Vendor evaluation & monitoring<br />Purchase order processing<br />Delivery schedule processing<br />Invoice processing<br />Managing catalog content<br />Purchasing statistics<br />Material & service procurement<br />Self service procurement<br /> Business Issues:<br />Obtain total view of purchases<br /> Evaluate vendor performance<br /> Manage strategic & tactical sourcing<br /> Minimize inventory<br /> Maintain standard catalog<br /> Minimize transaction costs<br /> Analyze all types of purchases<br /> Control spending<br /> Manage contract compliance<br /> Benefits:<br />Lower purchase prices<br />Better purchasing leverage<br />Stronger vendor commitment<br />Better inter-plant coordination<br />Less expedited shipments<br />Standard parts<br />Lower costs to procure<br />
  14. 14. Supply Chain Planning & Execution<br />ERP Solution:<br />Supply Chain Planning<br />Material Requirements Planning<br />Distribution Requirements Planning<br />Vendor Managed Inventory (VMI)<br />Inventory & Warehouse Management<br />Shipping and transportation<br />Commodity Management and Bulk Logistics<br />Physical inventory process<br />Operations analytics<br />Business Issues:<br />Globalization and low cost country sourcing drives complicated & expensive supply chain<br />Minimizing costs & wastes<br /> Rising transportation costs due to tighter security and regulations<br />Rising natural gas, raw material and fuel Costs<br />Managing and optimizing supply chain<br />Global visibility of extended supply chain activities<br />Manage & evaluate vendors and carriers<br /> Benefits:<br />Lower inventory <br /> Lower logistics costs<br /> Higher service levels <br /> Faster order-to-cash cycle<br /> More accurate planning3<br /> Stronger S&OP process<br />
  15. 15. Manufacturing<br />ERP Solution:<br />Materials Requirements<br />Planning (MRP) process<br />Production planning, scheduling & execution<br />Batch management<br />Subcontracting<br />Shop floor integration<br />Enterprise asset management<br />Predictive maintenance<br />Preventive maintenance<br />Work order processing<br />Shutdown management<br />Failure mode analysis<br />Work clearance management<br />Mobile asset management<br /> Business Issues:<br />Pack and Make to order planning<br />Understand plant capability<br />Maintenance planning & control<br />Accurate asset records<br />Interface with plant control systems<br />Produce to plan<br />Visibility of data<br />Cost control and reporting<br /> Benefits:<br />Integrate production & planning<br />Less inventory<br />Longer production runs, increased uptime<br />Lower maintenance costs<br />Faster maintenance shutdowns<br />Integrated reporting<br />
  16. 16. Sales & Marketing<br />ERP Solution<br />Contract management<br />Inquiry & quotation management<br />Sales order management<br />Internet sales<br />Availability check<br />Billing & credit management<br />Rebate processing<br />Pricing, tax & text handling<br />Product listing, substitution and Exclusion<br />Sales analytics<br />Complaints processing<br />Returns management & credit memos<br />Quality assurance & control<br />Business Issues:<br /> Accurate customer data<br /> Efficient Order-to-Cash process<br /> Meet customer‘s service & delivery needs<br /> Immediate Available to Promise<br /> Efficient price management<br /> Contract compliance<br /> Appropriate credit & collections policies<br /> Product information<br /> Order status information<br /> Benefits:<br />Integration of orders to production and supply chain<br />Higher order fill rates<br />Lower cost to serve<br />Smooth customer facing business process<br />Lower day sales outstanding<br />Greater customer contract compliance<br />Analyze complaint sources effectively<br />
  17. 17. Quality Management & Compliance<br />ERP Solution:<br />Quality engineering<br />Quality assurance and control in<br />purchasing, production & sales<br />Quality improvement<br />Audit management<br />Product safety<br />Waste management<br />Dangerous goods movement<br />Industrial hygiene & safety<br />Substance Volume Tracking / REACH<br /> Business Issues:<br /> Product and process data accuracy and Transparency<br /> 6 Sigma analysis and ISO requirements<br /> Incoming quality tracing<br /> Process control tie-in<br /> Select to customer requests<br /> Plant capability vs. customer needs<br /> Regulatory compliance<br /> Protection of Worker<br /> Benefits:<br />Better analysis of quality root cause issues<br />Improved production and inventory quality profile, leading to lower inventory<br />Reduced risk of non-compliance and protection of brand value<br />Reduced compliance costs through increased productivity<br />
  18. 18. Enterprise Management & Support<br />ERP Solution:<br />General Ledger Accounting<br />Accounts Receivable<br />Accounts Payable<br />Bank Accounting<br />Cash Journal Accounting<br />Fixed Asset Accounting<br />Inventory Accounting<br />Tax Accounting<br />Strategic Enterprise Management & Analytics<br />Managerial Accounting<br />Cost & Profit Center Accounting<br />Internal Order & Project Accounting<br /> Product Costing<br />Investment Management<br />Profitability Analysis<br />Business Issues:<br /> Single source of financial truth<br /> Corporate Governance & Financial Reporting Standards<br /> Lack of internal control & visibility<br /> Minimize financial costs<br /> Inability to pinpoint most profitable products, customers, Business Units<br /> Benefits:<br />Faster close process<br />Better data visibility<br />Insightful analytics<br />Better cost and segmented profit data<br />Financial Compliance<br />
  19. 19. Chemical company after ERP Systems<br />
  20. 20. Finish <br />AnubhavBharadwaj<br /><br />
  21. 21. “Technology is a gift of God. After the gift of life it is perhaps the greatest of God's gifts. It is the mother of civilizations, of arts and of sciences.” - Freeman Dyson<br />Lets embrace technology. If you like it, please Share!<br /><br />This presentation is a part of the presentation contest organized by Eastern Software Systems. <br />DISCLAIMER: The views are entirely that of the author of the presentation (participant) and ESS does not associate itself with the content whatsoever. ESS cannot be held liable in any way for any claims arising out of the presentation or any copyright infringements by any of the participants or any repercussions from partial/complete implementation of any of the ideas presented. <br />