Sose! ERP Enterprise Resource Planning Presentation

SOSE!
ERP Presentation
SOSE!
ERP
Enterprise Resource Planning
Presentation
http://www.open-source-erp-site.com/
SOSE! ERP Presentation
Definition Of ERP
Software solution that addresses all the needs of an

enterprise with the process view of an organization
to meet the organizational goals and integrate all
the functions of the enterprise
What is ERP ?
• Facilitates Company-wide integrated Information

Systems Covering all functional Areas.
• Performs core Corporate activities and increases
customer service augmenting Corporate Image.
• Organizes & Optimizes the data input
methodologies systematically.
Evolution of Business Applications

• MIS - Management Information Systems
Decision Support - No
• IIS - Integrated Information Systems

No Decision Support - No
• EIS - Executive Information Systems

Decision Support - Yes
• CIS - Corporate Information Systems

Decision Support - Yes
• EWS - Enterprise Wide Systems

Decision Support - No
Logistics are considered as a part of system
Evolution of Planning Systems
• Materials Requirement Planning (MRP)

• Manufacturing Resource Planning ( MRP II)
• Enterprise Resource Planning ( ERP)
Other terminologies are :

• Money Resource Planning (MRP III)
• Supply Chain Management
• Value Chain Management
Is It Only a Jargon ?
No. MRP and MRP II were there for a long time.
ERP is an enhancement over these.
It is true that Year 2000 problem accelerated the

sales and acceptance of ERP.
Introduction of ERP provides you a chance to

have a new look at your working.
Is It Going to be there long?
Yes and No.
ERP will be there for a long time, if you are willing to

upgrade to new versions with new features as and
when the are released in the market
Your ERP may still work after a long time without

enhancements, if your company is not growing!
Moral : Upgrading the systems are a must!
Can We wait ?
Wait if you have :
Good systems running.
No immediate threat of Y2K, Euro and
other known/unknown problems.
No management commitment.
Financial problems.
Do not wait if you have :

Tough competition in the market.
Multiple location operations.
Plans to grow Globally.
Management Commitment for change.
Why ERP ?
Profitability
You have Two Choices :
Increase in sales - Say 30%

OR
Reduce Procurement Cost - say by 5-10 %
What IT Dept. shall look into?
 Automatic Identification System

 Hardware & Networking
 Software DBMS/RDBMS
 Communication
 ERP
 Supply Chain Management
 EDI
 Intranet
 Internet
For Healthy Operations
• Integration of Systems across the Functional Departments

in a Company as well as across the Enterprise as a Whole.
• Better Customer Service.
• Introduction of Latest Technologies as and when the are
ready for the Industry acceptance
• Expertise database
• Avoids data redundancy
Competition In the Market!

Manufacturing Challenges.
Manufacturing Globally.
Distribution network spread.
New Product introduction.
Lower manufacturing lead time.
Focus on industry markets.
Satisfying the needs of customers.
Develop specific business methods and processes.
Integration with third party products.
Demands on the Industry

• Better products at lower costs
• Tough competition
• Need to analyze costs / revenues on a product or

customer basis
• Flexibility to respond to changing business

requirements
• More informed management decision making
What are your Problems ?
 Unable to get accurate, timely information
 Applications not complete for existing business

practices
 Modifications are time consuming or not feasible
A Typical IT Story
Manufacturing Finance
location 1
Corporate
office
Sales Group Manufacturing

location 2
ERP - The Kick starter!
What is that ERP enables ?
Systematic Look into your Systems & procedures
Optimizing the processes
Enables you to adapt yourself to new technologies
Discipline across the functions
What does ERP integrate ?
• Database
• Applications
• Interfaces
• Tools
What drives ERP ?
• Business
• Customer Satisfaction
• Business Development - new areas, products, services
• Ability to face competition
• Efficient processes required to push the company to
top gear
• IT
• Present Software does not meet business needs
• Legacy systems difficult to maintain, Y2K Problem ,
Euro currency
• Obsolete hardware/software difficult to maintain
Problems Taken Care of
 Availability check at the time of Accepting Sales order

 On-line Material Status & Shortages
 Productivity Enhancements
 Material Planning
 Customer Service
 Cash Management
 Inventory
 Quality
Subsystems of ERP
• Logistics
• Bill Of Materials
• Sales & Marketing
• Master Scheduling
• Materials Requirement Planning
• Capacity Requirements Planning
• Purchasing
• Shop Floor Control
• Accounts Payable/Receivable
• HR
Understanding ERP
Integration of Information Systems
IS messages IS messages
Manufacturing Head Quarters Marketing/Sales

 Local purchasing, invoice  InformationSystems:
 Sales, shipping and
verification  Project Mgmt
 Inventory management  Inventory
billing
 Purchasing of
 Internal sales, shipping  Purchasing
trading goods
and billing  Sales  Inventory
 Profit/loss  Budget
 Capacity utilization
Management
 Cash Management  Customer service
Definition of Business Intelligence
Any tools enabling people to make better decisions

and thus improve their business processes
• Decision support systems (DSS)

Examples:
• Executive information systems (EIS)
• Reporting
• Data mining
• Early warning systems (robots)
Enabling Best Business Practices
Customer
Business
Customer Supplier’s Engineering
Require- Reference Model Workbench
ments
Best Business Practices
New Business New

Concepts Technologies
Changes of Customer Information
Please Accept my Change customer
new order for 1000 master data
more sets
Customer
Representative
Launch
Workflow
Increase Schedule
credit limit customer
visit
Prepare
production
Credit Manager Product Manager Sales Manager
The Integrated Supply Chain
Control
Finance Capital Costs Profit/Loss Balance sheet
Procurement Purchasing Production Sales.

market
Machines Operating resources Human resources
Managing Resources
Process Automation and Lead Time

Standard functions
Pricing
Allocation Transport
ATP Credit limit

Picking
EDI Sales order Delivery Billing EDI

entry
EDI EDI Scan Loading

entry Blocked note log list
Workflow for
exception handling, Trigger for mail, transactions,
EDI
Go Ahead with ERP
Business
• In-depth Process
study Re-Engineering
of existing ( BPR) is
systems/processes
required before ERP is considered.
• This study brings out deficiencies of the existing
system/process.
• This study is called BPR
• BPR attempts to re-structure and re-organize the
human resources, functional areas, Man-
Machine interfaces in the organization.
• Hence BPR attempts to maximize productivity
Re-engineering
• Study the current system & Processes

• Design and develop new systems
• Define Process, organization structure, procedures
• Develop/Customize the software
• Train people
• Implement new system
ERP without Re-engineering

• Advantages
– No visible changes in Functionality
– Users find it more acceptable
– Can be completed within time frame.
– Cost can be with in your control
– Impact on Organization will be moderate
• Disadvantages
– Best Business practices would have been ignored
– Stability of the system is known only in long run
– May not achieve Corporate wide systems integration
– New technologies have to be studied your self
– Some functionality may be lost
Re-Engineering -a part Life with ERP!
• Re-engineer process before going for ERP

• Re-engineer during implementation of ERP
• Re-engineer after implementing ERP
• Continuous re-engineering through ERP
If It is a Big Change, don’t do it!
If the Modifications are small and

important to the business, you may
customize and implement.
If the proposed changes are more,

discuss with all concerned . Else
you may be going towards a
dead-end!
The USA Principle
• Understand, Simplify, Automate
Simplify Automate
Understand
Processes the
Existing
by Process
Practices
Eliminating waste
Diagramming Eliminating EDI

Story-boarding Combining ERP
Brain storming Rearranging
ERP Selection
• Check whether all functional aspects of your

Business are covered
• Check whether all the business functions and
processes are integrated
• Check whether all latest IT trends are covered
• Check whether the vendor has customizing &
implementing capabilities
• Check the Service options available
• Check your purse & calculate ROI
o not start without Prepare

ManagementBasecommitment
for ERP
locate sufficient funds
entify Core Project Team
elect specialists from all functional areas
valuate and select ERP package
valuate Implementation Partner
ake an Implementation Plan
resent plan to Management Committee for sanctions
resent plan to Employee groups for feedback/acceptability
an for User Training
an for Future upgrades
Define Requirements
• Determine the hardware required

• Analyze the existing Processes
• Fine tune the processes to be in line with those of
ERP defined
• Analyze effect of system changes.
• Prototype and present
• Refine the prototype & freeze the specifications
ERP Implementation
• Commitment from Management

• Form a task force with personnel from all functional
Areas
• Take care of Hardware requirements
• Step-by-step rather than big-bang introduction
• Be patient. ERP implementation takes Time.
ERP Involves
• Project Planning
• Business & Operational Analysis, including Gap Analysis
• Business Process Re-engineering (BPR)
• Installation & Configuration
• Project Team Training
• Business Requirements Mapping to Software
• Module Configuration
• System Modification and Interfaces
• Data Conversion
• Custom Documentation
• End User Training
• Conference Room Pilot
• Acceptance Testing
• Production
• Post-Implementation Audit/Support
Implementation Approach
Phase Tasks Deliverables
Detailed ■ Project Initialization ■ Accepted norms & Conditions
Discussions ■ Evaluation of current processes, ■ Project Organization Chart
business practices, requirements ■ Identify Work Teams
■ Set-Up Project Organization
Design & ■ Map Organization

Customization ■ Map Business Processes ■ Organization Structure
■ Define Functions and Processes ■ Design Specification
■ ERP S/w Configuration ■ Process Flow Diagrams
■ Build ERP System Modifications ■ Function Model
■ Configuration Recording
■ Systems Modification
Implementation/ ■ Create Go-Live Plan & Documentation

Prepare to Go Live ■ Integrate Applications ■ Testing Environment report
■ Test the ERP Customization ■ Customization Test Report
■ Train Users ■ Implementation Report
Production/ ■ Run Trial Production

Go Live ■ Maintain systems
■ Reconciliation Reports
■ Conversion Plan Execution
Advantages Of ERP
Advantages Of ERP Package

 Highly Graphics based User Interface.
 Zero Down time/ planned down time.
 Readymade solutions for most of the Problems.
 Only Customization required.
 Integration of all functions ensured.
 ROI earlier than the software developed in-house.
 Easy enterprise wide information sharing.
 Suppliers and Customers can be on-line communication.
 Knowledge transfer between industries guarantees innovation
 Automatic adaptation to new technology.
Decide
Make Or Buy !
Project Development takes time . Ready made Projects.
Reinventing the wheel. Needs only customization
Process specific to your industry Best Business practices followed

are implemented
Documentation may not be present Documentation is part of system
EDI implementation modifications EDI Compatible. Universally accepted

to be taken care of
Enterprise implementation is The package itself is designed as

difficult as each unit follows Enterprise Package.
different S/W option
Latest Developments to be studied Constant Updates on Technology
as and when they are introduced. and Processes assured
Embrace
New Technologies
Electronic Data Interchange
Transporters
EDI
Banks Vendors
Customs Retailers
Value Chain Management
Demand Chain
Management
Supply Chain
Management
Summary
• Optimum utilization of resources

• Customer satisfaction
• Seamless integration between Functions
• Reduced overheads & inventory
• Timely responsiveness
• Market share & image enhancement
• Faster design to manufacturability
• Keep up with technology changes
• Only way for integrated systems for a client
with multiple locations

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SOSE!

Software solution that addresses all the needs of an

• Facilitates Company-wide integrated Information

Evolution of Business Applications

• IIS - Integrated Information Systems

• EIS - Executive Information Systems

• CIS - Corporate Information Systems

• EWS - Enterprise Wide Systems

Evolution of Planning Systems

• Materials Requirement Planning (MRP)

Other terminologies are :

No. MRP and MRP II were there for a long time.

ERP is an enhancement over these.

It is true that Year 2000 problem accelerated the

Introduction of ERP provides you a chance to

Is It Going to be there long?

Yes and No.

ERP will be there for a long time, if you are willing to

Your ERP may still work after a long time without

Moral : Upgrading the systems are a must!

Do not wait if you have :

You have Two Choices :

Increase in sales - Say 30%

What IT Dept. shall look into?

 Automatic Identification System

 Supply Chain Management

For Healthy Operations

• Integration of Systems across the Functional Departments

Competition In the Market!

Demands on the Industry

• Need to analyze costs / revenues on a product or

• Flexibility to respond to changing business

• More informed management decision making

What are your Problems ?

 Unable to get accurate, timely information

 Applications not complete for existing business

 Modifications are time consuming or not feasible

Sales Group Manufacturing

ERP - The Kick starter!

What is that ERP enables ?

Systematic Look into your Systems & procedures

Optimizing the processes

Enables you to adapt yourself to new technologies

Discipline across the functions

What does ERP integrate ?

What drives ERP ?

Problems Taken Care of

 Availability check at the time of Accepting Sales order

Integration of Information Systems

Manufacturing Head Quarters Marketing/Sales

Definition of Business Intelligence

Any tools enabling people to make better decisions

• Decision support systems (DSS)

Enabling Best Business Practices

Best Business Practices

New Business New

The Integrated Supply Chain

Procurement Purchasing Production Sales.

Machines Operating resources Human resources