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1
What is ERP?
 ERP (Enterprise resource planning) can be defined as a
software solution that addresses the enterprise needs
taking the process view of the organization, to meet the
organizational goals by tightly integrating all functions of
an enterprise.
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ERP (Enterprise resource planning)
 It is an industry term for the broad set of activities
supported by multi-module application software that
help a manufacturer or other business that manage the
all the parts of its business.
 ERP facilitates integration of company-wide
information systems with the potential to go across
companies.
.
7
ERP - Definition
“Software solution that addresses the
Enterprise needs, taking a process view of
the overall organization to meet the goals,
by tightly integrating all functions and
under a common software platform”
8
Description:
 Enterprise Resource Planning is Software for running a
business. ERP is a suite of applications including
financials, manufacturing, human resources and other
modules, that together automate the back-office
business administration functions of an enterprise.
Leading ERP vendors include SAP, Oracle, People
soft and JD Edwards.
9
Description
 The ERP solutions seek to streamline and integrate
operation processes and information flow in the
company to synergies the resources of an organization
namely men, material, money and machine through
information.
 Initially implementation of an ERP package was
possible only for very large Multi-National companies
and Infrastructure companies due to high cost
involved.
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ERP - Software
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12
Why ERP?
For Management – to know what is happening in the
company
One solution for better Management
For cycle time reduction
To achieve cost control & low working capital
To marry latest technologies
To satisfy the customers with high expectations
To be Competitive & for survival
13
Role of ERP in Textile
 Traditionally the textile industry is highly concerned
with the design or manufacture of clothing as well as
the distribution and use of textiles. However, the
industry has been changed extremely in the last few
years.
 Flexibility and rapid response has become essential
qualities for any successful textile business. Achieving
them requires dynamic management of the entire
organization.
14
Role of ERP in Textile
 ERP system maintains the benefits of a standard
package with a high level of adaptability, ensuring
that the solution can be tailored to almost any
requirement.
 Its modules could be configured to the needs of any
textile business, whatever its size.
15
Role of ERP in Textile
 ERP provides a framework within which textile
industries can organize their business and
manufacturing . Industry decision makers must have
rapid access to company data.
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Benefits
1. Increase operational efficiencies and maximize cash
flow.
2. Reduce order-cycle times.
3. Always maintain inventories at proper levels. Reduce
wastage of Materials
4. Make quick business decisions using real-time
5. Manage in-house and job work production.
6. Low cost of ownership
17
Benefits
7. Updates only need to be done once to be
implemented company-wide
8. Provides real-time information, reducing the
possibility of errors
9. May create a more efficient work environment for
employees
18
Features of ERP
1. Manage processes from Spinning / Knitting / Weaving / Dyeing to
production in a single system
2. Project and monitor production/sourcing
3. Track raw materials availability automatically
4. Monitor production orders
5. Visual Dashboards for easy access
6. Reliable technology platform that supports a high volume of transactions
7. Smooth flow of information across the company and outside
19
Benefits of ERP in Textile
1. Easily monitoring of an industry:
2. Compiling report within a very short time
3. No chance for data manipulation
4. Saving time
5. Easy access anywhere from the world
20
Easily monitoring of an industry
 There are so many departments marketing,
merchandising, production, commercial and
administrative.
 It is quite difficult to maintain MIS(management
information system through manual operations
and it is yet time consuming to prepare all reports
manually for the management.
21
Compiling reports
 ERP enterprise resource planning can handle
exclusive report both on daily basis and summary type
to give operational visibility, and take a good second
to find out any of reports from the system.
 When the reports are compiled manually(even
through excel sheet), it often so tough to get the actual
scenario of order wise production process, planned
dates item availability in warehouse etc.
22
No chance for data manipulation
 With the use of ERP data manipulation can’t take
place as authorized users will use the system and there
will be a log file maintaining which person is dealing
with what, so in that way it would be easy to track. All
the departments are integrated under one crown.
23
Saving Time
 Any information once entered in the system, need not
to re-enter again.
 Among many ERP solution vendors, oracle is one of
the leading ERP solution providers keeping in mind
the necessities of textile & apparel industry.
24
Easy Access
 It is completely web based solution so can be
accessed any where from the world .
 Crucial area that need more attention by
management.
25
Function of ERP Software
Sales order entry:
 Considering color size combinations
 Creation of preformed invoice
 Shipping document
 Sales invoice
 Packing list generation
26
Function of ERP Software
Inventory:
 Availability of raw materials/work-in progress/
finished goods per lot.
 Container
 Batch wise
 Order wise
27
Function of ERP Software
Procurement:
 Requisition
 Approvals
 Purchase order creation
 Receiving goods through receiving document.
28
Function of ERP Software
Production:
 Production control
 Monitoring
 Waste calculation
 Production progress tracking.
Costing:
 Pre-costing by merchandisers and actual costing from
raw materials utilized in production floor.
29
Function of ERP Software
Managing dye house:
 A lot of wastage comes from dyeing industry that
certainly increases the fabric price.
 ERP software facilitates dye house management.
 Providing chemical inventory.
 Batch management system.
 Daily production report with waste calculation, recipe
creation, lab-management, actual cost calculation
reprocess dyeing etc, in recognized ERP system.
30
Problems
 Poor leadership from top management
 Unrealistic expectations
 Poor project management
 Inadequate education and training
 Mismatch between the system capabilities and the
organizations processes and procedures
 Inaccurate data
 Significant technical difficulties
31
Components of ERP
32
33
ERP Software Solution for Textiles Industries
 Finance ERP,
 Spinning ERP,
 Yarn Dyeing ERP,
 Technical Textiles ERP,
 Weaving ERP,
 Asset Management ERP,
 HRMS,
 Sewing Thread ERP
34
Use of ERP in Textile Industry
• Production Planning & Control
• Manufacturing Resource Planning (MRP II)
• Material Requirement Planning(MRP)
• Master Production Schedule
• Customer Relationship Management (CRM)
• Bill of Material (BOM)
• Warehouse Management
35
Use of ERP in Textile Industry
• Inventory Management
• Purchasing Management
• Shop Floor Control (SFC)
• Capacity Requirement Planning (CRP)
• Cost Reporting/Management
• Lot Traceability
• Engineering Change Control
• Material Requirement Planning (MRP)
36
Use of ERP in Textile Industry
• HR Management
• Plant Maintenance
• Service Management
• Finance Management
• Purchase Order Management
• Product Management
• Quality Management
37
Benefits of ERP in Textile
Reduction in cycle time:
 Allocation of material to specific customer
order is not possible with the current system.
 Such allocations are useful for making
deliveries as planned, as there is no possibility
of the material, which is required by one order,
getting consumed for different order.
38
Reduction in cycle time:
 In such cases earlier order would get delayed if
material were not available in the stock while
production time is spent on other order, which could
have waited without causing any problem.
39
Benefits of ERP in Textile
Cost saving:
Company losses 2% of its sales value in
discounts, which are the result of surplus
production.
Implementing quality management system
can help to bring down excess production,
as management will be assured of the
quality right from the raw material itself.
40
Benefits of ERP in Textile
Reduction in machinery downtime:
 5 % machinery downtime is attributed to non-availability
of raw material in the stores.
 This is due to absence of proper planning system and due
to communication delays at every place because of
information recompiling.
 Prompt communication coupled with effective supplier
selection module and planning system would be useful in
bringing down the machinery downtime.
41
Benefits of ERP in Textile
Improvement in sales:
 75 % customers place repeat orders.
 Three factors are price, quality and delivery can effect orders.
 Integrated system will definitely be useful on this account.
 Price is one of the causes of losing customers.
 Therefore company can offer lower prices and incentives to
attract customers through integrated information management
solution.
42
Benefits of ERP in Textile
Customer satisfaction:
 Current system is ineffective in tracking problems
related to customers.
 The response regarding effectiveness falls in
unsatisfactory category.
 Capacity planning for received order also falls in average
category.
43
Customer satisfaction:
 Efficient capacity management system can bring down the
delivery time for execution of the order and improve
customer satisfaction.
 This management scheme can be very useful in
maintaining better customer relations with prompt
response and by knowing their past history.
44
45
46
ERP Software
Software Name Website
ACS Optima www.cgsinc.com/softwaresolutions/index.html
Bann www.baan.com
BPCS www.ssagt.com
Datatex www.datatex-tim.com
Intenia MovexFashion www.intentia.com/w2000.nsf/Index
J D Edwards www.jdewards.com
PointMan www.pivotpoint.co.uk
SAP www.sap.com
Oracle www.oracle.com/us/solutions/
47
Production Planning and Control
48
SAP
 SAP SE (Systems, Applications & Products in Data
Processing) is a German multinational
software corporation that makes enterprise software to
manage business operations and customer relations.
 SAP ERP is enterprise resource planning software
developed by the German company SAP SE. SAP ERP
incorporates the key business functions of an
organization. The latest version (SAP ERP 6.0) was made
available in 2006. The most recent Enhancement Package
(EHP7) for SAP ERP 6.0 was released in 2013.
49
SAP
 The company's official name became SAP AG (a public
limited company) after the 2005 annual general
meeting.
 In 2014, SAP changed from an AG to a European
Company (Societas Europaea or SE)
50

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Erp in textile

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  • 2. What is ERP?  ERP (Enterprise resource planning) can be defined as a software solution that addresses the enterprise needs taking the process view of the organization, to meet the organizational goals by tightly integrating all functions of an enterprise. 2
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  • 7. ERP (Enterprise resource planning)  It is an industry term for the broad set of activities supported by multi-module application software that help a manufacturer or other business that manage the all the parts of its business.  ERP facilitates integration of company-wide information systems with the potential to go across companies. . 7
  • 8. ERP - Definition “Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform” 8
  • 9. Description:  Enterprise Resource Planning is Software for running a business. ERP is a suite of applications including financials, manufacturing, human resources and other modules, that together automate the back-office business administration functions of an enterprise. Leading ERP vendors include SAP, Oracle, People soft and JD Edwards. 9
  • 10. Description  The ERP solutions seek to streamline and integrate operation processes and information flow in the company to synergies the resources of an organization namely men, material, money and machine through information.  Initially implementation of an ERP package was possible only for very large Multi-National companies and Infrastructure companies due to high cost involved. 10
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  • 13. Why ERP? For Management – to know what is happening in the company One solution for better Management For cycle time reduction To achieve cost control & low working capital To marry latest technologies To satisfy the customers with high expectations To be Competitive & for survival 13
  • 14. Role of ERP in Textile  Traditionally the textile industry is highly concerned with the design or manufacture of clothing as well as the distribution and use of textiles. However, the industry has been changed extremely in the last few years.  Flexibility and rapid response has become essential qualities for any successful textile business. Achieving them requires dynamic management of the entire organization. 14
  • 15. Role of ERP in Textile  ERP system maintains the benefits of a standard package with a high level of adaptability, ensuring that the solution can be tailored to almost any requirement.  Its modules could be configured to the needs of any textile business, whatever its size. 15
  • 16. Role of ERP in Textile  ERP provides a framework within which textile industries can organize their business and manufacturing . Industry decision makers must have rapid access to company data. 16
  • 17. Benefits 1. Increase operational efficiencies and maximize cash flow. 2. Reduce order-cycle times. 3. Always maintain inventories at proper levels. Reduce wastage of Materials 4. Make quick business decisions using real-time 5. Manage in-house and job work production. 6. Low cost of ownership 17
  • 18. Benefits 7. Updates only need to be done once to be implemented company-wide 8. Provides real-time information, reducing the possibility of errors 9. May create a more efficient work environment for employees 18
  • 19. Features of ERP 1. Manage processes from Spinning / Knitting / Weaving / Dyeing to production in a single system 2. Project and monitor production/sourcing 3. Track raw materials availability automatically 4. Monitor production orders 5. Visual Dashboards for easy access 6. Reliable technology platform that supports a high volume of transactions 7. Smooth flow of information across the company and outside 19
  • 20. Benefits of ERP in Textile 1. Easily monitoring of an industry: 2. Compiling report within a very short time 3. No chance for data manipulation 4. Saving time 5. Easy access anywhere from the world 20
  • 21. Easily monitoring of an industry  There are so many departments marketing, merchandising, production, commercial and administrative.  It is quite difficult to maintain MIS(management information system through manual operations and it is yet time consuming to prepare all reports manually for the management. 21
  • 22. Compiling reports  ERP enterprise resource planning can handle exclusive report both on daily basis and summary type to give operational visibility, and take a good second to find out any of reports from the system.  When the reports are compiled manually(even through excel sheet), it often so tough to get the actual scenario of order wise production process, planned dates item availability in warehouse etc. 22
  • 23. No chance for data manipulation  With the use of ERP data manipulation can’t take place as authorized users will use the system and there will be a log file maintaining which person is dealing with what, so in that way it would be easy to track. All the departments are integrated under one crown. 23
  • 24. Saving Time  Any information once entered in the system, need not to re-enter again.  Among many ERP solution vendors, oracle is one of the leading ERP solution providers keeping in mind the necessities of textile & apparel industry. 24
  • 25. Easy Access  It is completely web based solution so can be accessed any where from the world .  Crucial area that need more attention by management. 25
  • 26. Function of ERP Software Sales order entry:  Considering color size combinations  Creation of preformed invoice  Shipping document  Sales invoice  Packing list generation 26
  • 27. Function of ERP Software Inventory:  Availability of raw materials/work-in progress/ finished goods per lot.  Container  Batch wise  Order wise 27
  • 28. Function of ERP Software Procurement:  Requisition  Approvals  Purchase order creation  Receiving goods through receiving document. 28
  • 29. Function of ERP Software Production:  Production control  Monitoring  Waste calculation  Production progress tracking. Costing:  Pre-costing by merchandisers and actual costing from raw materials utilized in production floor. 29
  • 30. Function of ERP Software Managing dye house:  A lot of wastage comes from dyeing industry that certainly increases the fabric price.  ERP software facilitates dye house management.  Providing chemical inventory.  Batch management system.  Daily production report with waste calculation, recipe creation, lab-management, actual cost calculation reprocess dyeing etc, in recognized ERP system. 30
  • 31. Problems  Poor leadership from top management  Unrealistic expectations  Poor project management  Inadequate education and training  Mismatch between the system capabilities and the organizations processes and procedures  Inaccurate data  Significant technical difficulties 31
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  • 34. ERP Software Solution for Textiles Industries  Finance ERP,  Spinning ERP,  Yarn Dyeing ERP,  Technical Textiles ERP,  Weaving ERP,  Asset Management ERP,  HRMS,  Sewing Thread ERP 34
  • 35. Use of ERP in Textile Industry • Production Planning & Control • Manufacturing Resource Planning (MRP II) • Material Requirement Planning(MRP) • Master Production Schedule • Customer Relationship Management (CRM) • Bill of Material (BOM) • Warehouse Management 35
  • 36. Use of ERP in Textile Industry • Inventory Management • Purchasing Management • Shop Floor Control (SFC) • Capacity Requirement Planning (CRP) • Cost Reporting/Management • Lot Traceability • Engineering Change Control • Material Requirement Planning (MRP) 36
  • 37. Use of ERP in Textile Industry • HR Management • Plant Maintenance • Service Management • Finance Management • Purchase Order Management • Product Management • Quality Management 37
  • 38. Benefits of ERP in Textile Reduction in cycle time:  Allocation of material to specific customer order is not possible with the current system.  Such allocations are useful for making deliveries as planned, as there is no possibility of the material, which is required by one order, getting consumed for different order. 38
  • 39. Reduction in cycle time:  In such cases earlier order would get delayed if material were not available in the stock while production time is spent on other order, which could have waited without causing any problem. 39
  • 40. Benefits of ERP in Textile Cost saving: Company losses 2% of its sales value in discounts, which are the result of surplus production. Implementing quality management system can help to bring down excess production, as management will be assured of the quality right from the raw material itself. 40
  • 41. Benefits of ERP in Textile Reduction in machinery downtime:  5 % machinery downtime is attributed to non-availability of raw material in the stores.  This is due to absence of proper planning system and due to communication delays at every place because of information recompiling.  Prompt communication coupled with effective supplier selection module and planning system would be useful in bringing down the machinery downtime. 41
  • 42. Benefits of ERP in Textile Improvement in sales:  75 % customers place repeat orders.  Three factors are price, quality and delivery can effect orders.  Integrated system will definitely be useful on this account.  Price is one of the causes of losing customers.  Therefore company can offer lower prices and incentives to attract customers through integrated information management solution. 42
  • 43. Benefits of ERP in Textile Customer satisfaction:  Current system is ineffective in tracking problems related to customers.  The response regarding effectiveness falls in unsatisfactory category.  Capacity planning for received order also falls in average category. 43
  • 44. Customer satisfaction:  Efficient capacity management system can bring down the delivery time for execution of the order and improve customer satisfaction.  This management scheme can be very useful in maintaining better customer relations with prompt response and by knowing their past history. 44
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  • 47. ERP Software Software Name Website ACS Optima www.cgsinc.com/softwaresolutions/index.html Bann www.baan.com BPCS www.ssagt.com Datatex www.datatex-tim.com Intenia MovexFashion www.intentia.com/w2000.nsf/Index J D Edwards www.jdewards.com PointMan www.pivotpoint.co.uk SAP www.sap.com Oracle www.oracle.com/us/solutions/ 47
  • 49. SAP  SAP SE (Systems, Applications & Products in Data Processing) is a German multinational software corporation that makes enterprise software to manage business operations and customer relations.  SAP ERP is enterprise resource planning software developed by the German company SAP SE. SAP ERP incorporates the key business functions of an organization. The latest version (SAP ERP 6.0) was made available in 2006. The most recent Enhancement Package (EHP7) for SAP ERP 6.0 was released in 2013. 49
  • 50. SAP  The company's official name became SAP AG (a public limited company) after the 2005 annual general meeting.  In 2014, SAP changed from an AG to a European Company (Societas Europaea or SE) 50