1. Sushil S Mundada

2. Agenda
Enterprises Resource Planning (ERP)
Supply Chain Management (SCM)
Customer Relationship Management (CRM)
Call Centre, BPO, KPO
International Business Management
TQM – Total Quality Management
Six Sigma
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3. Enterprise resource planning (ERP)
ERP integrates internal and external management
functions like finance/accounting, manufacturing,
sales and service, etc.
Single software solution integrating the different
functions and activities
Action taken by one department results in the
appropriate follow-up action up and down the line
Customer ordering and delivery where a customer's
order moves smoothly from Sales, to Inventory and
Warehousing, to Finance, and on to Manufacturing
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4. Scope of ERP
Production Department: Bills of Material, Scheduling,
Capacity, Workflow Management, Quality Control,
Manufacturing Process
Supply Chain Management: Inventory, Order Entry,
Purchasing,
Financials: General Ledger, Cash Management, Accounts
Payable, Accounts Receivable, Fixed Assets
Projects: Costing, Billing, Time and Expense
Human Resources: Human Resources, Payroll Training,
Time & Attendance
Customer Relationship Management: Sales and
Marketing, Commissions 4

5. Package ERP Solution Vs Custom Development ERP
Custom Development Packaged ERP
Definition: Developed either for a specific Definition: Consolidate all of company's departments
organization or function & functions in single computer system
Scope: Usually created for companies, business Scope: ERP packages are made for mass market
Budget: Companies pay for customized software for Budget: These are planned for long term and are
budget or project managing budgeted as a part of company maintenance.
Cost: Is one time or as per contract. Generally low. Cost: Cost is one time for installation and
implementation. High
Maintenance: Have to be frequently updated Maintenance: Any change in industry by the ERP
company
Up gradation: In case of up gradation, its very Up gradation: Is easy and cost effective
difficult
Custom Reports: Custom development is a part of the Custom Reports: These are generally open source
contract codes
Technical: They are designed as per specified Technical: These are generally designed to run on
hardware or Operating Systems multi-OS, hardware and system
Examples of bespoke software Examples: SAP, Oracle, Peoplesoft, JD Edwards,
Websites, Inventory Management, Customer BAAN etc.
Management, Employee Management
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6. SUPPLY CHAIN MANAGEMENT
(SCM)
Example - For a large retailer like Supermarkets, it
has many regional distribution centers, a supply chain
management system will effective coordinate between
suppliers of clothes, paper products and
Supermarket's retail stores to reduce the inventory
cost
Supply chain execution means managing and
coordinating the movement of materials, information
and funds across the supply chain.
The flow is bi-directional.
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7. SCM must address following problems
Distribution Network Configuration: number, location
and network missions of suppliers, production facilities,
distribution centers
Distribution Strategy: Operating control (centralized,
decentralized or shared)
Trade-Offs in Logistical Activities: Achieve the lowest
total logistics cost
Information: Integration of processes through the supply
chain to share valuable information
Inventory Management
Cash-Flow
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8. Customer Relationship
Management (CRM)
Process used to learn more about customers' needs and
behaviors in order to develop stronger relationships with
them
Information about customers, sales, marketing
effectiveness, responsiveness and market trends
The overall goals are to find, attract, and win new clients,
nurture and retain existing
Tracking and measuring multichannel campaigns - email,
search, social media, telephone and direct mail
Metrics monitored include clicks, responses, leads, deals,
and revenue
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9. CRM Benefits
Retaining customers - by excellent customer service
Enables easier growth, indirectly and directly, for
example by sustaining healthier volumes and
margins,
High levels of customer retention via effective
customer service also improves staff morale
Focus more on proactive opportunities (growth,
innovation, development, etc)
Having a culture of delighting and retaining
customers fuels positive publicity and reputation in
the media, and increasingly on the web in blogs and 9

10. Call Centre
A call center is an office where a company's inbound
calls are received or outbound calls are made
Customer service, sales, and support functions
Call centers have been increasingly popular as
outsourcing increases
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11. BPO
Contracting of the operations and responsibilities of
specific business functions (or processes) to a third-
party service provider
Back office outsourcing - which includes internal
business functions such as human resources or
finance
Front office outsourcing - which includes customer-
related services such as contact center services
BPO Advantages - Cost reductions, Concentration on
core business, Outside expertise, Cater to changing
customer demands
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12. KPO
Knowledge-related and information-related work is
shared
High-value work carried out by highly skilled staff
Focused on knowledge-intensive business processes
that require significant domain expertise
People with MBAs, and medical, engineering, design
or other specialist business skills
Create value for the client by providing business
expertise rather than process expertise
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13. Significance of KPO
Investment research services (equity, fixed income
and credit, and quantitative research)
Business research services
Data Analytics
Market research services
Valuation and Fairness Opinions
Legal research services (Legal Process Outsourcing)
Patent research services
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14. International Business
Management
Process of focusing on the resources of the globe and
objectives if the organizations on global business
opportunities and threats
Nature of International Business - Variations in
political, social, cultural and economic factors
Impact of Culture/Language - Language is an
important factor in international business.
Nationalism and Business Policy – Example 'Be Indian
and Buy Indian'
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15. Total Quality Management
Quality is defined as “the totality of features and
characteristics of a product or service that bears its
ability to satisfy stated or implied needs.”
TQM looks at the overall quality measures used by a
company including managing quality design and
development, quality control and maintenance,
quality improvement and quality assurance.
TQM takes into account all quality measures taken at
all levels and involving all company employees.
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16. Advantages
Long-term benefits - higher productivity, higher
moral of personnel, decreasing of costs and increasing
of consumers' trust
Avoidance of mistakes allows company to save money
and time
Creates atmosphere of enthusiasm and satisfaction
with performed job
Uses team style of work
More flexibility in work and collaboration
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17. Principles of TQM
Executive Management –Should act as the main driver
Training – Employees should receive regular training
Customer Focus – Improve customer satisfaction
Decision Making – Made based on measurements
Methodology and Tools – Non-conformances are
identified, measured and corrected
Continuous Improvement in quality procedures
Company Culture –Developing employees ability to work
together to improve quality
Employee Involvement –Pro-active in identifying and
addressing quality related problems
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18. Six Sigma
Quality management initiative that takes a very data-
driven, methodological approach to eliminating
defects
Aim to reach six standard deviations from the desired
target of quality. Six standard deviations means 3.4
defects per million (99.99966%)
Improve the quality of process outputs by identifying
and removing the causes of defects (errors)
Defined sequence of steps and has quantified
financial targets (cost reduction or profit increase)
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19. Approach to Six Sigma - DMAIC
The DMAIC project methodology (used for existing
products and processes) has five phases:
Define the problem
Measure key aspects of the current process
Analyze the data to investigate
Improve the current process
Control the future state process
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20. DMADV or DFSS
The DMADV project methodology, (used for creating
new products and processes):
Define design goals
Measure and identify CTQs (characteristics Critical
To Quality), product capabilities, etc.
Analyze to develop and design alternatives
Design details, optimize the design, and plan for
design verification
Verify the design, set up pilot runs, implement the
production process
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21. Roles in implementation
Executive Leadership - top management
Champions - Responsibility for Six Sigma
implementation across the organization in an
integrated manner
Master Black Belts, identified by champions
Black Belts operate under Master Black Belts to apply
Six Sigma methodology to specific projects
Green Belts are the employees
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22. Advantages
Based on Data: In Six Sigma, decisions are made
based on empirical evidence
Proven Success: Beginning with Motorola, large
companies have successfully rolled out initiatives
Sustainable Solutions: The DMAIC and DMADV
processes are specifically designed for sustainable
solutions
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