2. • ERP is a set of tools and processes that integrates department and functions across a company
into one computer system.
• ERP runs off a single database, enabling various deptts to share information and communicate with
each other.
• ERP system comprise function specific modules designed to interact with other modules, e.g.
accounts receivable, accounts payable purchasing etc.
• ERP is an enterprise reengg. solutions that uses new business computing paradigms to integrate IT
processes across co’s divisions and departments.
ERP
3. Evolution of ERP
Timeline System Description
1960s Inventory Mgmt &
control
It’s a combination of infr. tech, and bus processes of
maintaining the appropriate level of stock in a warehouse.
1970s Material Req. Planning Utilizes s/w applications for scheduling production processes.
1980s MRP II Utilizes S/w applications for coordinating mfg processes.
1990s Enterprise Resource
Planning
Uses multi module application s/w foe improving the
performance of internal bus, processes.
4. Components of ERP
• Customer Relationship Management (CRM) - Sales Force Automation, Quoting & Estimating, Order
Entry
• Manufacturing - Forecasting, Material & Production Planning (MPP), Shop Floor Control, Routings,
Capacity Planning & Scheduling, Purchasing, Lot/Serial Control, Inventory, Workflow
• Supply Chain - Demand Planning, Purchasing, Supplier Management.
• Financials - Costing, Accounts Receivable (AR), Accounts Payable (AP), General Ledger (GL)
• Human Resources - Labour Collection, Payroll, Benefits
• Business Performance Management (BPM) - Business Intelligence (BI), Multi-Entity Consolidation,
Corporate Governance, Reporting
5. How ERP is Different Then other Systems.
• Integrated modules
• Common database
• Update one module, automatically updates others
• ERP systems reflect a specific way of doing business
6. ERP system Works
• Click to add text
Employees
Managers and
Stakeholders
Central
Database
Reporting
Applications
Human
Resource
Management
Applications
Financial
Applications
Manufacturing
Applications
Inventory
And Supply
Applications
Human
Resource
Management
Applications
Service
Applications
Sales and
Delivery
Applications
Sales Force
And Customer
Service Reps
Customers Back-office
Administrators
And Workers
Suppliers
7. Benefits of ERP Systems
• Scalability
• Improved reporting
• Data quality
• Lower cost of operations
• Business analytics
• Reduced complexity
10. Techlogix helps Nestlé innovate in Milk Production Planning
• Nestlé Pakistan operates the biggest milk collection operation in Pakistan
• Nestlé milk is collected from an estimated 190,000 farmers spread out over the provinces of Punjab and Sindh
•I t produces a full range of dairy products including milk, powdered milk, cream, tea whiteners and yoghurt
• The demand for milk products is relatively constant throughout the year
• But milk production varies very significantly from season to season
• The content of milk obtained from farmers also varies
• Nestlé is faced with the problem of managing its production capacity in the most efficient way based on both major supply side
constraints and demand side variations
• Nestlé was unable to automate its highly complex milk production planning process
11. Challenges
• Minimizing milk wastage
• Producing some material which will be used as stock for future months when fresh milk supply is insufficient
• Efficiently using imported material
• Generating import requests in case of material shortage well in time
• Efficiently using available plant capacity for bulk production
• Efficiently using available line capacity for packaging
• Plant and Line capacities and their maintenance schedules
• Raw material availability and stock expiry dates
• Nestlé has implemented SAP as its ERP but complexity of the milk production planning problem was not captured in the ERP
• The manual planning: a process with multiple known flaws
• Production planning is done each month, the activity had to be repeated each month and consumed a significant portion of the
month to complete.
12.
13.
14. Solution
• Techlogix designed and delivered a web application built on the Microsoft .Net stack which would invoke a simulation
engine as a separate OS process
• Each process took in metadata as input and ran an iterative algorithm to produce a production plan along with variety of
reports
• The reports helped the planner visualize different aspects of the production plan
• The production planning algorithm is the core of the solution has two distinct aspects: planning and scheduling
• The planning aspect of the algorithm uses fresh milk quantity, raw material stock quantity, and other inputs to optimal
production of bulk material
• This quantity is handed over to the scheduling algorithm which attempts to schedule production on plants within
specified capacities
• If required production capacity is not available, the planning algorithm adjusts production and attempts a reschedule
• The algorithm generates reports that allow a production planner to view productions in terms of bulk produced, plant
and line capacities used and other relevant parameters
