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ERP for Manufacturing Industry

  1. 1. ERP - For <br />MANUFACTURING INDUSTRY<br />VELCOM ERP IT SOURCING PVT LTD<br />An Independent ERP Consulting & Talent Sourcing Company<br />1<br />
  2. 2. ERP MODULES - OVERVIEW<br />Financials<br />Sales & Receivables<br />Purchase & Payables<br />Inventory & Warehousing<br />General Ledger<br />Fixed Assets<br />Cash Management<br />Budget & Forecast<br />Cost Accounting<br />Inter-Company & Consolidation<br />Receivables<br />Invoicing<br />Order Management<br />Return Order Management<br />Pricing & Discounting<br />Tax<br />Payables<br />Invoicing<br />Order Management<br />Return Order Management<br />Pricing & Discounting<br />Tax<br />Stock Keeping Unit & BOM<br />Substitution & Cross Reference<br />Item Tracking & Cycle Counting<br />Logistics – In & Out Bound<br />Multiple Locations<br />Barcode<br />HRMS<br />Planning<br />Production<br />CRM<br />Marketing Automation<br />Telemarketing<br />Sales Force Automation<br />Sales Management<br />Service Management<br />Email Integration<br />R&D<br />Supply Planning<br />Capacity Planning<br />Finite Loading<br />Demand Planner<br />Production Order<br />Bill of Material<br />Routing <br />Shop Floor Control<br />Lean Manufacturing<br />Recruitment<br />Performance Management<br />Compensation<br />Training & Development<br />Attendance System<br />Payroll<br />Add-on’s<br />Web Portal<br />Analytics<br />Administration<br />Projects<br />Quality<br />Enterprise Asset Management<br />Balance Scorecard<br />Travel<br />Compliance & Governance<br />Industry Solution<br />Employee<br />Customer<br />Sales Person<br />Vendor<br />Consultant<br />Business Analytics<br />Business Intelligence<br />Report Builder<br />User Management<br />Configuration Tool<br />Business Connectors<br />Backup / Restore<br />2<br />
  3. 3. MANUFACTURING INDUSTRY – KEY CHALLENGES<br /><ul><li>Achieving Growth & Profitability while meeting customer expectations against competition
  4. 4. Continually strive for following to grow & be profitable
  5. 5. Reduce Production & Supply chain costs
  6. 6. Improve Process efficiencies & Product quality
  7. 7. Satisfy an avalanche of Customer demands & Regulatory requirements
  8. 8. Drive to optimize manufacturing processes in order to increase agility & to ride the efficiency curve to serve the customer better
  9. 9. Other Key Challenges
  10. 10. Better Customer Service
  11. 11. Business Integration
  12. 12. On-time Delivery</li></ul>3<br />
  13. 13. ERP BENEFITS<br />Automate & Streamline Business Processes with Greater Adaptability<br /><ul><li>Align key business processes in planning, design, development, procurement, inventory, manufacturing, sales & delivery
  14. 14. Match overall supply with demand and manage all resources & assets along the entire value chain</li></ul>Respond quickly to Changing market conditions<br /><ul><li>Use integrated, real-time sales & operational information to accurately anticipate, plan for & respond to orders and new demand, as well as reduce forecasting errors
  15. 15. Model production capabilities, quickly share engineering information & adjust product mix for changes in demand to capitalize on new opportunities
  16. 16. Support compliance with regulatory requirements, including safety & environmental regulations, by quickly validating manufacturing processes while conforming to individual markets requirements</li></ul>Decision Making on Strategic Business Insight<br /><ul><li>Rich out-of-the-box analytical performance measurement tools hone the strategic planning & monitor the overall health of the organization
  17. 17. 360-degree visibility on accurate forecasts, effective budgets, proper resource allocation & goals
  18. 18. Combine operation & financial analyses to optimize day-to-day operation</li></ul>4<br />
  19. 19. ERP BENEFITS<br />Enhance Customer Satisfaction<br /><ul><li>Delivering products on time with high quality
  20. 20. Faster time to market, higher-quality products & accurate information provided to customers</li></ul>Improve Productivity<br /><ul><li>Collaborate across business functions to consolidate information, align strategies & standardize operational processes
  21. 21. Increase information worker productivity through realistic, appropriate business roles
  22. 22. Increase adaptability to process changes by enhancing existing skills & assets with real-time information</li></ul>Fuel efficiency & Reduce risk across the entire organization<br /><ul><li>Standardize processes & easily share best practices
  23. 23. Support multiple manufacturing modes & a hybrid or mixed-mode environment
  24. 24. Reduce time across the Order Process Cycle (Quote-Order-Delivery) there by reducing the loss risk</li></ul>Gain insight into Costs & Process efficiency<br /><ul><li>Analyze & manage production schedules with reporting tools & “what-if” scenarios, including capacity loading, shop floor activities & production costs
  25. 25. View real time client, contract & project details for an accurate accounting of profitability</li></ul>5<br />
  26. 26. ERP BENEFITS<br />Manage Demand Pro-actively<br /><ul><li>Trace expected to actual sales & forecast future sales while taking into account seasonal & promotional effects
  27. 27. Use simulations, demand models & error analysis to determine optimal stock levels for better profit & operations margins</li></ul>Expand Sales Success<br /><ul><li>Monitor market demand & meet margin objectives through effective promotions
  28. 28. Increase capacity to evaluate product turnover in response to campaign & align production & inventory accordingly</li></ul>Improve Customer Service<br /><ul><li>Enhance the security & reliability of deliveries with the global available-to-promise (ATP) view, which provides delivery alternatives in the event of unexpected disruptions
  29. 29. Automate sales & purchasing processes, track & locate inventory items quickly & help ensure accurate pricing & discounts to improve customer satisfaction
  30. 30. Deep visibility & control over the supply chain, increase order fill rates, reduce risk of stock out or inventory excess & enhance overall responsiveness to customers</li></ul>6<br />
  31. 31. ERP BENEFITS<br />Increase Revenue<br /><ul><li>Higher profit margins by automating & streamlining all business processes resulting in reduced operations costs through adherence to better business practices
  32. 32. Improved cash flow by more efficient & accurate billing procedures, lower inventory levels & quick turnaround
  33. 33. New opportunities identified through continuous, real-time monitoring of KPIs
  34. 34. Opening up new sales channels like e-commerce</li></ul>Reduce Operating Costs<br /><ul><li>Decreased overall operating costs by converting time-consuming manual processes into automated, streamlined, real-time business process management
  35. 35. Lower transportation costs through consolidated orders & combined shipments
  36. 36. Reduced warehouse costs from optimized utilization of resources & assets
  37. 37. Reduced cost of sales from use of profitable sales interaction channels
  38. 38. Sustained cost savings for all spend categories due to a standard approach to both strategic & operational procurement
  39. 39. Reduced IT costs because administration & usability have been improved, fewer interfaces are used & IT resources have been freed up to focus on value-adding strategic projects
  40. 40. Lowered TCO (total cost of ownership) by leveraging technology for facilitated exchange & interoperability with non-ERP systems</li></ul>7<br />
  41. 41. ERP BENEFITS<br />Increase Visibility & Simplify across the Supply Chain Process<br /><ul><li>Empower users with real-time data through a user-friendly interface & Role centre that provides access to tasks & critical Business Intelligence data such as KPIs & custom reports
  42. 42. Exchange data across multiple systems & gain visibility into business processes to improve decision making & control at every level of the supply chain
  43. 43. Connect inventory, production, purchasing & sales processes to gain accurate, real-time view of the entire supply chain.
  44. 44. Improve collaboration with trading partners with support for a wide range of predefined XML business documents</li></ul>Reduce Cost by optimizing supply chain processes<br /><ul><li>Improve productivity, adapt internal processes quickly to meet new demands & optimize processes across sites in the supply chain</li></ul>Better Collaboration with all Supply Chain Partners<br /><ul><li>Enhance collaboration among departments, customers, suppliers, business partners for a significant improvement
  45. 45. Integrate partners of all sizes to release data throughout the chain that’s accurate, complete & available up to the minute
  46. 46. Costs reduced, processes speed up & smooth flowing operations throughout the supply chain</li></ul>8<br />
  47. 47. ERP BENEFITS<br />Demand Driven Supply Chain Approach can help<br /><ul><li>Maintain competitive edge
  48. 48. Integration of supply chain processes with other business processes e.g. Sales & Operations
  49. 49. Respond effectively with a comprehensive, cross-functional view of the company, better understanding of customer needs through downstream data analysis & effective collaboration between trading partners</li></ul>Control & Streamline Inventory<br /><ul><li>Use powerful inventory management tools to improve forecasting & planning, match supply with customer demand
  50. 50. Create sales & purchasing forecasts based on specific items & time periods</li></ul>Meet Complex Inventory requirements<br /><ul><li>Create multi-dimensional inventory records & track items throughout the supply chain for online & accurate inventory status
  51. 51. Enhance Material & Product Traceability
  52. 52. Implement effective recall procedures & maintain complete forward & backward traceability of any material
  53. 53. Track materials from purchase through production & sale with lot & location control</li></ul>9<br />
  54. 54. ERP BENEFITS<br />Integrate Design innovation into Manufacturing<br /><ul><li>Shorten time to market for product innovation by integrating design & manufacturing processes & collaborating effectively with suppliers, partners & customers</li></ul>Support a wide range of Manufacturing processes & Business models<br /><ul><li>Tailor the solution to serve make-to-stock, make-to-order, assemble-to-order, configure-to-order, & engineer-to-order environments
  55. 55. Manage items from design through assembly, testing, shipping, installation & maintenance
  56. 56. Meet specific customer needs by configuring build-to-order items easily & effectively
  57. 57. Help efficiently produce & deliver products that follow custom formulas or recipes & take full advantage of manufacturing & supply chain capabilities
  58. 58. Empower to streamline, monitor & control the entire production cycle</li></ul>Improve Project management for customized orders<br /><ul><li>Create estimates & quotes quickly & accurately
  59. 59. Forecast machine & resource requirements for strategic scheduling & precise delivery times by analyzing project cost & order processing time</li></ul>10<br />
  60. 60. ERP BENEFITS<br />Increase Productivity with a Role-Based Solution & Centralized Information<br /><ul><li>Provide empowering self-service & role-specific information that increase user productivity
  61. 61. Personalize portal to meet business users specific needs
  62. 62. Manage centrally the critical documents (e.g.) BOM, routing data, CAD designs, recipes, project plans & item information</li></ul>Streamline Integration with Web services<br /><ul><li>Improve integration within & Outside the organization by using a flexible Web services framework
  63. 63. Maintain high production levels & on-time delivery rates by sharing portal-based, real-time information about specifications, order status & quality control testing among key departments & trading partners</li></ul>11<br />
  64. 64. ERP – CONSTRAINTS<br /><ul><li>ERP Customization is limited or expensive
  65. 65. Business Process Re-engineering to fit the "industry standard" prescribed by the ERP may lead to a loss of competitive advantage
  66. 66. ERP is sometimes too rigid or difficult to adapt to the specific workflow & business processes
  67. 67. Many integrated links need high accuracy in other applications to work effectively. This should be done on a phased manner for smooth transition.
  68. 68. Once established, ERP switching costs are very high
  69. 69. Resistance in sharing sensitive internal information between departments can reduce the effectiveness of ERP
  70. 70. ERP once implemented is the lifeline of the business and downtime costs are very high & impact the business critically</li></ul>12<br />
  71. 71. ERP IMPLEMENTATION – KEY SUCCESS FACTORS<br /><ul><li>Top Management Commitment
  72. 72. Clear Goal Setting & Budget Planning (TCO)
  73. 73. Business Process Re-Engineering
  74. 74. Change Management
  75. 75. Effective Project Management
  76. 76. Good Project Team - Client & Vendor
  77. 77. High Communication Standards
  78. 78. Scope Creep Management
  79. 79. Data & Approvals on Time
  80. 80. Education & Training</li></ul>13<br />
  81. 81. THANK YOU! <br />14<br />

Editor's Notes

  • Enables streamlining of business processes &amp; simplify management of complex tasks such as order management, logistics, material planning, inventory traceability &amp; machine workload managementHelps optimize operations &amp; support compliance with legal, regulatory &amp; market requirements to profitably satisfy customers &amp; gain acompetitive advantageHelps component, sub-assembly &amp; whole-system manufacturers increase operational visibility, enhance control of processes &amp; projects &amp; fuel expansion into new territories &amp; services