ERP is an integrated system used globally across industries.Still Spinning mills in India has not implemented this ERP in whole to get real time information to take right decision.WINSYS SMC has explained `what an ERP` can do for them.

1. ERP - SPINNING MILLS
A.Kanthimathinathan,CEO
WINSYS SMC

2. Learning Goals
Introduction about ERP
ERP Supplier
ERP Implementer
ERP Modules
Implementation process
Benefits of ERP

3. What is ERP?
Enterprise
Resource

4. “Enterprise Resource Planning” is
A set of integrated software modules
for supporting all of an enterprise’s
processes in real-time.
What is ERP?

5. ERP
ENTERPRISE RESOURCE PLANNING
VENDORS
SAP
PEOPLESOFT
ORACLE
RAMCO

6. IMPLEMENTORS
SIEMENS
WIPRO
IBM
PRICEWATER HOOPERS
(SMALL ENTERPRISES ARE MANY)

7. Difference
SAP - SOFTWARE PROVIDER
SIEMENS-IMPLEMENTOR
Roles are clear.Implementor is responsible for
understanding the business scenerio and offers the
best combination of modules to the buying
organisation.

8. EXISTING SYSTEMS
STAND ALONE PACKAGES
SERVES FOR USERS WITH ALL FLEXIBILITY AND
CUSTOMISATION
MIS ANALYSIS-PARTIAL AND NOT AUTOMATIC
BASED ON OUR KNOWLEDGE OUR SUPPLIERS
ONLY

9. ERP
BETTER PROJECT MANAGEMENT
EXCELLENT CUSTOMER SERVICE/RAPPORT
AUTOMATIC INTRODUCTION OF LATEST
TECHNOLOGIES
EXPERTISE DATA BASE

10. ERP-DRIVING FORCES
BUSINESS
CUSTOMER SATISFACTION
BUSINESS DEVELOPMENT
ABILITY TO FACE COMPETITION
EFFICIENT PROCESSES TO PUSH THE COMPANY
TO THE TOP GEAR
(CONTD)

11. ERP-DRIVING FORCES
INFORMATION TECHNOLOGY
PRESENT SOFTWARE DOES`NT MEET BUSINESS
NEEDS
OBSOLETE HARDWARE /SOFTWARE

12. ERP-PROBLEMS TO BE TACKLED
MATERIAL SHORTAGE
PRODUCTIVITY ENHANCEMENT
QUALITY ENHANCEMENT
CUSTOMER SERVICE
CASH MANAGEMENT
INVENTORY MANAGEMENT

13. BUSINESS INTELLIGENCE
ANY TOOLS ENABLING PEOPLE TO MAKE
DECISIONS TO IMPROVE THEIR BUSINESS
PROCESSES.
EXAMPLE
-DECISION SUPPORT SYSTEMS
-EXECUTIVE INFORMATION SYSTEM
-REPORTING
-DATA DRILLING/MINING
-EARLY WARNING SYSTEMS

14. ERP
BPR
EXECUTION
WORKFLOW
MGT
WORKFLOW

15. Cross-Functional Nature of the
Order Management Process
Quote Commit Produce
Check
Credit
Deliver Bill Collect
Sales & Distribution
Production
Planning
Financial
Accounting
Materials
Mgmt

16. Integration
S
U
P
P
L
I
E
R
S
U
P
P
L
I
E
R
C
U
S
T
O
M
E
R
C
U
S
T
O
M
E
R
ProcurementProcurement ProductionProduction DistributionDistribution
Finance and Accounting
MMMM PPPP SDSD
FIFI COCO
All business processes throughout the supply chain areAll business processes throughout the supply chain are
executed in one system sharing all informationexecuted in one system sharing all information
Workflow

17. SD: Sales and Distribution
Sales &Sales &
DistributionDistribution
SDSD
MMMM
PPPP
QMQM
PMPM
HRHR
FIFI
COCO
TRTR
PSPS
WFWF
ISIS
MaterialsMaterials
Mgmt.Mgmt.
ProductProduct
PlanningPlanning
QualityQuality
Mgmt.Mgmt.
Plant Mainte-Plant Mainte-
nancenance
HumanHuman
ResourcesResources
FinancialFinancial
AccountingAccounting
ControllingControlling
TreasuryTreasury
ProjectProject
SystemSystem
WorkflowWorkflow
IndustryIndustry
SolutionsSolutions
 The SD application module helps toThe SD application module helps to
optimize all the tasks and activitiesoptimize all the tasks and activities
carried out in sales, delivery, and billingcarried out in sales, delivery, and billing
ERP ModulesERP Modules

18. SD Overview
SDSD MD Order
Goods Issue
Sales Order
Delivery to Customer
Invoicing
Pricing
Transportation

19. MM: Materials Management
Sales &Sales &
DistributionDistribution
SDSD
MMMM
PPPP
QMQM
PMPM
HRHR
FIFI
COCO
TRTR
PSPS
WFWF
ISIS
MaterialsMaterials
Mgmt.Mgmt.
ProductProduct
PlanningPlanning
QualityQuality
Mgmt.Mgmt.
Plant Mainte-Plant Mainte-
nancenance
HumanHuman
ResourcesResources
FinancialFinancial
AccountingAccounting
ControllingControlling
TreasuryTreasury
ProjectProject
SystemSystem
WorkflowWorkflow
IndustryIndustry
SolutionsSolutions
 The MM application module supports theThe MM application module supports the
procurement and inventory functionsprocurement and inventory functions
occurring in day-to-day businessoccurring in day-to-day business
operationsoperations
ERP ModulesERP Modules

20. Material requirement
planning
External procurement
Purchasing
Internal procurement
Production
Invoice
verification
Goods
receipt
Inventory
management
Goods
issue
Transfer
posting
Internal and external accounting Sales and distribution
Master data
Material
Batch
Vendor
Customer
G/L
Storage bins
...
MMMM

21. FI: Financial Accounting
Sales &Sales &
DistributionDistribution
SDSD
MMMM
PPPP
QMQM
PMPM
HRHR
FIFI
COCO
TRTR
PSPS
WFWF
ISIS
MaterialsMaterials
Mgmt.Mgmt.
ProductProduct
PlanningPlanning
QualityQuality
Mgmt.Mgmt.
Plant Mainte-Plant Mainte-
nancenance
HumanHuman
ResourcesResources
FinancialFinancial
AccountingAccounting
ControllingControlling
TreasuryTreasury
ProjectProject
SystemSystem
WorkflowWorkflow
IndustryIndustry
SolutionsSolutions
 The FI application module is designed forThe FI application module is designed for
automated management and externalautomated management and external
reporting of general ledger, accountsreporting of general ledger, accounts
receivable, accounts payable, and otherreceivable, accounts payable, and other
sub-ledger accounts with a user-definedsub-ledger accounts with a user-defined
chart of accountschart of accounts
ERP ModulesERP Modules

22. External Accounting
LedgersLedgers
Data storageData storage
CustomersCustomers VendorsVendors
MaterialMaterial AssetAsset
mgmt.mgmt.
GeneralGeneral
ledgerledger
FIFI

23. Components of FI
FIFI
FI-GLFI-GL
FI-ARFI-AR
FI-APFI-AP
FI-SLFI-SL
FI-AAFI-AA
General Ledger
Accounts Receivable
Accounts Payable
Asset Accounting
Special Ledger

24. CO: Controlling
Sales &Sales &
DistributionDistribution
SDSD
MMMM
PPPP
QMQM
PMPM
HRHR
FIFI
COCO
TRTR
PSPS
WFWF
ISIS
MaterialsMaterials
Mgmt.Mgmt.
ProductProduct
PlanningPlanning
QualityQuality
Mgmt.Mgmt.
Plant Mainte-Plant Mainte-
nancenance
HumanHuman
ResourcesResources
FinancialFinancial
AccountingAccounting
ControllingControlling
TreasuryTreasury
ProjectProject
SystemSystem
WorkflowWorkflow
IndustryIndustry
SolutionsSolutions
 The CO application module representsThe CO application module represents
the company’s flow of cost and revenuethe company’s flow of cost and revenue
 CO is a management instrument forCO is a management instrument for
organizational decisionsorganizational decisions
ERP ModulesERP Modules

25. Integration PP
MM
FI CO
SD
FI
Which modules are involved?
Planned
Requirement
MRP
Requirement
on component
level
Purchase
Order
Goods
Receipt
Invoice
Verification
Accounts
Payable
Planned
Order
Production
Order
Production
completed
Order
Settlement
Customer
Order
Shipping
Invoicing
Account
Receivable

26. ERP SELECTION
CHECK
–ALL FUNCTIONAL ASPECTS ARE COVERED
- ALL BUSINESS FUNCTIONS AND PROCESSES
ARE INTEGRATED
- ALL IT TRENDS ARE COVERED
- IMPLEMENTING CAPABILITIES
- PURSE AND ROI

27. ERP Implementation Phases
ProjectProject
PreparationPreparation
BusinessBusiness
BlueprintBlueprint RealizationRealization
FinalFinal
PreparationPreparation
Go Live &Go Live &
SupportSupport
Evaluate Empower ExcelExecute
Articulate
business
vision &
Evolve
CSF’s
Develop
PM’s &
PT’s
Establish
Project
Team
Envision
Evaluate change
Readiness and
change impact
Finalize
changes to be
implemented
Develop
Change
Leadership
Execute
Communication
strategy
Define HR
Policies
Define
Jobs and
skills
Align
Skills and
culture
Review
Results
Continuously
measure
and improve

28. Project preparation
Define the goals and objectives
Clarify the scope of our implementation
Define implementation strategy

29. Project preparation
Draw project schedule and implementation sequence
Form project organisation
Form the committes responsible

30. Business blueprint
Detailed documentation of the resultsgathered
during the requirements workshop,a common
understanding is established between the ERP
suppliers and the organisation.
Redefine project goals
Define the baseline scope
Redefine the overall project schedules

31. Realisation
THIS PHASE IS USED FOR ,
Training the key users
Process modelling
Compleion of baseline and final configuration

32. Final preparation
Phase before starting the actual transactions
Transaction testing
Enduser training
System management
Handholding

33. Go live
Final phase of moving from preproduction stage to
production environment
By the time integration with all modules is complete

34. Hardware support
Lease line for connectivity
Radio frequency towers(40 circular km)
Dedicated servers
Safety features for servers and antennas

35. Goals in ERP
One time ,one place,one entry-prompt
Reduce manual work
Help decision making

36. Goals in ERP
Establish real time connectivity and seamless
information
Conversion of present working logic “ as it is”
Provide powerful MIS
Automate to maximum

37. Terms in ERP
Core team
Master data
Testing team
BPR
ABAP
GO LIVE

38. Terms in ERP
SOP-STANDARD OPERATING PROCEDURES
KPM-KEY PERFORMANCE MEASURES

39. ERP Returns….
Manual or pre-ERP environment
ERP and inter company integration of
finance, sales, production, distribution
etc…
Leverage market presence
Knowledge based decision making
Enhance customer relationship
Extend availability of services
Enhanced employee service available
anywhere
Streamlined procurement
Integrated SCM in the full value chain
Exploit economy of scale in collaboration
with your business partners

40. BENEFITS IN ERP
Optimised asset /resource utilisation
Increased operational efficiency from accurate data
Reduced inventory levels

41. Benefits in ERP
PERFORMANCE ANALYSIS
IDENTIFY PRODUCTION COSTS
ENHANCED CUSTOMER SERVICE

42. BENEFITS IN ERP
Enhanced customer service
Quick response to customer orders
Use of realtime information for decision making

43. Change Management
Change Management is a disciplined approach applied
in the organizational units that will operate the new
systems to ensure their acceptance and readiness (to
use the new system effectively).

44.  Thank you