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Oracle Supply Chain management ERP Introduction
- 1. Jagannath Vidyala welcomes All theParticipants to the ERP Overview Session
- 2. Agenda 1. Introduction 2. Awarenesson ERP for better prospects. 3. What is ERP? 4. Why ERP is needed? 5. How ERP defines any process simple and easy? 6. Manufacturing processes 7. Procurement Process 8. Inventory Process 9. Integration between business functions 10.Benefits of ERP Software
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- 4. Introduction to ERP •Enterprise Resource Planning Enterprise Resource Planning (ERP) is an exercise that focuses on optimizing the way things are done internally. It attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments' particular needs. ERP – Enterprise Resource Planning • Planning Resources for effective Utilization – Man – Money – Machinery – Materials • Integrating all the Departments – Inventory, Purchase, Production, Sales, Accounts etc.,
- 5. ERP Evolution 1970’s MRP Inventoryand process time reduction with new production planning systems 1980’s MRP I Greater reductions due to the integration with Accounting and Human Resource Systems 2000 ERP Extended or ERP II Focused on clients, optimizing the whole business network, including suppliers and clients 1990’s MRP II Focused on clients, Real time transactions, Asset management
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- 7. What is ERP? ERPis a software solution, which Facilitates company-wide integrated information sharing, covering to all functional areas Addresses the Enterprise's needs, taking a process view of the whole organization Enables Enterprise-wide goal congruence by integrating functions under a common platform Utilizes a single integrated database to aid in data integrity, single holistic views and therefore improved service.
- 8. What is ERP? ERP is a software system that is often referred as the backbone for the entire business. These systems have lots of brains (process logic), muscle (business transactions), and heart (business policy). The software communicates (as a nervous system) across business functions. ERP systems attempts to replicate business structure, processes, policies, and procedures.
- 9. Why ERP isneeded? Reduced cycle time Customer focus Sharing information across the enterprise globally Resource planning Integration of manufacturing Efficiency in distribution Financial applications Messaging and electronic mail Document management and database systems Internet technology and data warehousing
- 10. Why ERP isneeded? The ERP systems have functionality to support industry standard and best practices (APICS). ERP systems are implemented by companies for many tangible, intangible, strategic benefits and hence don’t even try to calculate Return On Investment (ROI).
- 11. Manufacturing Functional Foundation Applications OracleBills of Material and Engineering Oracle Master Scheduling / MRP Oracle Inventory Oracle Cost Management Oracle Quality Oracle Work in Process Oracle Order Management Oracle Purchasing
- 12. Inventory Process Internal Shipment Receive Deliver Inspect Transfer ShopFloor Inventory Supplier Shipment Expense Inventory Order Entry
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- 14. Order to CashLifecycle Bank Reconciliation Invoice Pick Release Book Orders Receiving Payment Enter and Price Orders Receivables Ship Confirm Order Management AutoInvoice Cash Management Shipping Execution
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- 17. Oracle Apps –Manufacturing & Distribution Integration between Modules PAYABLES PURCHASING GENERAL LEDGER WORK IN PROCESS RECEIVABLE ORDER MGMT INVENTORY BILL OF MATERIAL MS / MRP QUALITY MGMT WAREHOUSE MGMT CUSTOMER SUPPLIER
- 18. Independent ofthe nature of the Industry Easy Access to Information Integration of the cross functional business processes Integration of Database, Application and People Consolidation of data in a single database Alignment with the best practices of the industry Efficient reporting facility Improve workflow and efficiency Improve control and program alerts Benefits - ERP
- 19. Benefits - ERP Reduce the amount invested in inventory. Improve worker productivity. Reduce processing cost per business transaction. Reduce the time to perform a financial close and prepare statements. Reduce procurement costs. Install systems with vendor-supported maintenance. Improve the scalability of business systems to support future growth. Upgrade systems to support globalized transactions.
- 20. Benefits - ERP Accuracy in reporting business Info. Replace legacy systems and install new or improved business processes. Integrate and standardize processes among business units and trading partners in supply chain. Improve system performance, reliability, and fault tolerance. Improve Order management, customer service and on-time delivery.
- 21. Aerospace & Defense Automotive Chemicals Consumer Communications Energy Engineering& Construction Financial Services Government Healthcare High Technology Higher Education Industrial Manufacturing Life Sciences Professional Services Retail Travel & Transportation Utilities Any where - ERP
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- 23. Oracle Oracle eBusiness Applications eBusinessApplications Finance Self-Service Applications Business Agents (Alert) Workflow EDI Gateway Business Intelligence Discoverer Human Resources Payroll Training/Benefits Sales & Marketing Service Interaction Center E-Commerce Inventory Purchasing Order Management Configurator Advanced Planning & Scheduling Projects Project Billing Projects Time & Expense Project Connect Engineering Bills of Material Master Scheduling / MRP Capacity Work in Process Cost Management Quality Projects Human Resources SCM Information Technology Manufacturing CRM General Ledger Receivables Payables Assets Cash Management Financial Analyzer Treasury
- 24. Oracle Apps –Manufacturing & Distribution Daily Business Intelligence Daily Business Intelligence is an integrated reporting and analysis application that enables senior managers and executives to see relevant, accurate, and timely information using self-service dashboards.
- 25. People • Global ServicesConsultants – Understand Customer Business Processes – Understand Existing Systems – Analyze Infrastructure Needs – Have good understanding of ERP built-in Functionalities – Good Understanding of Software Licensing needs – Ability to do Gap Analysis – Preparing Project Plan Global Service Consultants are like an Engine for ERP Implementation
- 26. People • Functional Consultants –Supply Chain Management • Good Understanding of the business functions like Order Management, Procurement, Inventory, Costing, Shipping Execution, Advance Pricing, Vendor Mgmt., ASCP and Customer Needs and fulfillments. – Manufacturing • Good Understanding of Manufacturing functions like Bills of Material, Work in progress, and Quality. People deliver solutions to meet Customer business Functions
- 27. People • Functional Consultants –Finance Management • Good Understanding of the business functions like General Ledger, Accounts Receivables, Accounts Payables, Cash Management, Fixed Assets, Order Management, Purchasing, Inventory, iProcurement, People deliver solutions to meet Customer business Functions
- 28. People • Business Leadersor Customer Business Leaders – Project Sponsors – Regular follow up on implementation status • Business Super Users – Module Leaders from the customer standpoint – ERP owners for individual business functions • Business Users – People who enter Transactions – People who run the customer business processes People deliver solutions to meet Customer business Functions
- 29. Conclusion • Enterprise ResourcePlanning is the end result of thirty years of trial and error, innovative thinking and leveraging of computer technology. • The business concepts embedded in it have and will continue to produce tremendous competitive advantage and economic benefit to the manufacturing industry. • A sizable amount of time and dedication as well as commitment from all user levels in an organization is required for setting ERP up and running. • ERP is the right tool for the years ahead.
Editor's Notes
- #11 Manufacturing Functional Foundation The functional foundation of Oracle Manufacturing / Supply Chain consists of the following products: Oracle Bills of Material / Engineering Oracle Inventory Oracle Cost Management Oracle Purchasing Oracle Order Management Oracle Master Scheduling / MRP Oracle Work in Process Oracle Quality
- #12 Inventory Overview You must plan how Oracle Inventory represents your company’s inventory sites and business units. This includes defining organizations, locations, subinventories, and locators depending on your company structure. Oracle Inventory, with Oracle Order Management, Oracle Purchasing, and Oracle Work in Process, provides you with a complete set of transactions and reports for maintaining inventory control. This enables you to control the flow of material from the time you receive items to the time you ship finished goods to the customer. Instructor Note: Refer to the Oracle Inventory User’s Guide.
- #13 Purchasing Overview Through Oracle Purchasing, you can automatically create and approve purchase orders, manage suppliers and items, and track projects and reports. Purchasing streamlines the procurement process with end-to-end business automation for direct and indirect materials and services. Instructor Note: Refer participants to the Oracle Purchasing User’s Guide.
- #14 Order to Cash Lifecycle You can enter orders manually or import orders from external systems like CRM, EDI/XML. In a standard order lifecycle, the order is priced, scheduled and booked, then shipped to customers. Items may be accepted or rejected by customers, in which case returns (with or without credit notes) are registered in the Order Management module. Other order cycles include: Drop Shipments (where the items are sent directly to the customers from the suppliers as the company may not have them in stock). Sales Agreements (long term agreements between the company and the customer to transact goods over a period of time in specified quantities or amount) Internal Orders (where items are required by an organization that belongs to the same legal entity/set of books). In Order Management the order is entered which allows for a review of the order information including: customer, ship-to, bill-to, payment terms, order type, price list, unit price, and warehouse. Then the order is booked which allows it to proceed through the workflow process. If it is a shipping item and the quantities are available, it can be processed by shipping execution. In Shipping Execution the order is pick released which generates the move order. Once the item is brought from the sub-inventory into the staging area it is ready to be placed on a shipping vehicle. Now you can run the ship confirm process to allow the shipment to processed. AutoInvoice is run to bring the order from Order Management to Receivables. In Receivables you can print the invoice and send it to the customer. You can proceed with collection efforts until you receive payment and post your receipt. In Cash Management the system pulls information from posted receipts and matches them to the bank statement for reconciliation.
- #23 A tightly integrated family of Application Products with a common database Automates an entire enterprise with more than 35 software modules Provides strong built-in adaptability Full Graphical User Interface Business Flow Orientation Oracle Application enables: Worldwide Best Practices Standardisation of Business Processes across the Organisation Enables Global Financial Management Enterprise Decision Support Rapid Continuous Improvement