1. What Is ERP:-
ERP is short for enterprise resource planning.
Enterprise resource planning (ERP) is business process management software that allows an
organization to use a system of integrated applications to manage the business and automate many back
office functions related to technology, services and human resources. ERP software integrates all facets
of an operation, including product planning, development, manufacturing, sales and marketing.
ERP software is considered an enterprise application as it is designed to be used by larger businesses
and often requires dedicated teams to customize and analyze the data and to handle upgrades and
deployment. In contrast, Small business ERP applications are lightweight business management
software solutions, customized for the business industry you work in.
2. CEO
Sales
Sales reps Back Office
Front
Office
Accounting
and IT
Warehouse Purchasing
Office
Manager
Business Functions, Departments, Business Processes
3. What is a Business Process?
A business process is a collection of coherent activities
that starts with a trigger and ends with the delivery of
one or several products.
The products represent a value for the customer of these
products. The customer could be an external customer, as
well as an internal customer (a department).
Services are also considered as products.
6. MRP (I)
Materials Requirement Planning
Deciding about material requirement for a production
process
Using a BOM and the quantity of neede finished products
Material requirement leads to purchase proposals and
eventually to purchase orders
Bike example
7. CRM
Customer Relationship Management
“Know your customer”
Registering customer data, purchase behavior, data from
external sources
Analyzing and combining data
8. Modules / Departments
Financial Management
Sales & Marketing
Purchase
Warehouse
Manufacturing
Jobs
Resource Planning
Service
Human Resources
Administration
10. Customer
Master data
Contact data
Transaction data
Customer Card
Customer posting
groups
11. Payment Terms and Delivery Terms
Creditability
Creditability as an amount
Creditability as a period of time
Payment terms:
Cash on delivery
7 days
1 month (8 days)
Delivery/shipment terms
12. Customer
Customer (discount) groups
Characteristics in common
Discounts
Per customer
Per item
Per order
E-commerce
Web shop
Electronic payment
B2B and B2C
13. The Sales Process (O2C)
More:
• Blanket orders
• Return orders and credit memos
Contacting
the
customer
Issuing Sales
Quotation
Sales Order
processing
Delivering
and
Shipping
Billing
Collecting
money
14. Delivery and Shipping
Warehouse gets assignments (sales orders with today’s
delivery date)
Picking and packing, then shipping
Create shipping documents
Postings in the ERP system
Logistic
Financial
15. Billing
Creating and sending Sales Invoice
Invoice is usually made from data sales order
Separation of goods and money streams
Prepayment
16. Return Orders
Items are damages on arrival at customer site
Shipping wrong items
Customer has ordered too much
RMA procedure
Destination of returned items
Credit memo (sales)
17. Discounts and Credit Memos
Discounts because of RMA, revenue bonus, correction of
mistakes
Sales decides upon contents credit memo
Credit memo lowers the debt-claim on the customer
Detailed checks are necessary
18. CRM
Customer Relationship Management
Relation a company maintains with its customers
Register and analyze customer behaviour
Enlarge profitability and customer satisfaction
Customer pyramid
Pros CRM
Lower costs by operational efficiency
Higher revenue by better segmented market
Improved strategy and better measure effects on actions
19. Trading Item
Master data
Item number, -name and short description
Base unit of measurement
Sizes and weight
Replenishment method
Safety stock level
Costing method
Price data (purchase price, COGS, sales price)
Product posting group
Item vendor
Item tracking (serial nrs/lot nrs/expiry date)
20. The Purchasing Process (P2P)
Also:
• Working with blanket orders
• Return shipments and credit memos
Purchase
initiative
Request for
quotation and
vendor selection
Creation
puchase order
Goods receipt
Vendor invoice
check
Vendor
payment
21. Create Purchase Order
Coming from quotation?
Purchase order number
Order confirmation
Planning for the warehouse
22. Warehouse Process
Sales process and Purchasing process
Movements (logistic transportations)
Regular checks
Stock-taking
Separate Goods Receipt Dock
Separate Shipping Dock
Several warehouses / plants
23. MTS
Make-to-Stock (COPD1)
Produce entirely on stock
Customer sales orders do not directly influence the
manufacturing process
Manufacturing process is based on MPS, which is built on
sales forecast from the market
Examples:
Deep freezers
Off-the-peg clothes
Sanitary fittings
24. MTO
Make-to-Order (COPD3)
Customer sales order stretches out deep into the
production process
No stock production
Standard materials and standard designs
Longer delivery period
Example:
Computers with limited standard configuration possibilities
25. Service Management
After Sales Service
Warrantly issues
Controlling repair and maintenance at customer sites
Service contracts
Spare parts management
26. Analyses
Product design
Where are components used, comparison BOMs
Capacities
Work per work center/machine center, Gantt diagram
Planning
Availability of materials
Execution
Material shortage list
Valuation
Production order statistics, cost calculation
27. Internal Reporting and BI
Internal reporting aims at enterprise management
Steering
Accountability
Reports
Lists and documents
Account schedules
BI
Not only from strategic point of view
Easy export from Dynamics NAV to Excel (wizards)
28. The HRM Process
Recruitment and
selection
Commencement
of employment
Compention
management
Assessment Resignation Payroll
29. Master Data HRM
Name, address, bank account, date of birth, social
security number, employment/resignation date, type of
albor contract
Employee card
