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Session Objectives Assess the performance of your ERP system
implementation
Learn how to improve the integration of your system
into the business
Examine how the application of ERP best practicescan improve the operation of your business
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Technology- Hardware
- Software
- Network
Skills- Managerial
- Process Knowledge
- Technical Matter
Organization
- Management Hierarchy- Business Process Design
- Feedback & Control Mechanisms
- Communication Systems
System Integration Factors
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Agenda
Assessing ERP Performance
Ensuring Data Integrity
Managing Variability
Protecting the Critical Path
Powering Decision-Making
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ERP Best Practices Chart
Process
Innovatio
n
Process Control
Level I
Level II
Level III
Level IV
Feedback and
control mechanisms
in place to ensure
data integrity
System detects
performance issues to
protect the critical path
and facilitate workflowthroughout the enterprise
Transforming data into
information to power
decision-making across
the extended enterprise
Capabilities established
to manage and control
sources of variability
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Agenda
Assessing ERP Performance
Ensuring Data Integrity
Managing Variability
Protecting the Critical Path
Powering Decision-Making
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MonitorTransaction Reporting
Transaction Types inventory receipts, issues, transfers, and
adjustments
labor entries for operation reporting invoice and payment processing
Includes inaccurate, late and missing
transactions negative inventory balance locations
labor variances
production receipt and material issue
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Maintain Schedule Validity
Verify material and capacityavailability before releasing
orders into production
Update shop order date andquantity fields to reflect
variances from plan based on
actual production
Establish policy and procedures
to control schedule changes
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Verify Foundation Data
Foundation Data Sources Item Master BOM / Route Master
Work Center Master Customer Master Vendor Master
Knowledge repositories used as thebasis for orders and as a reference forcommunication throughout the
extended enterprise
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Agenda
Assessing ERP Performance
Ensuring Data Integrity
Managing Variability
Protecting the Critical Path
Powering Decision-Making
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ERP Benefit
Busters
Material Usage Variability
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Change Management
Practices Establish the who, what, when, where, and how on:
Capturing engineering changes and errors andupdating the bill of material and routing on a timelybasis
Adjusting the schedule to reflect production quantityand lead time variances
Updating standard machine capacities as capabilities
and product mix change Revising the shop calendar with planned downtime,overtime, and / or extra shifts
Revising the production schedule for new orders or
changes to existing orders
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Responsiveness
Responsive companies have theability to quickly and efficientlyrespond to unexpected changes andvariability
Responsiveness can be improved bydeveloping:
Flexible processes Supply chain relationships
Contingency plans
alternate plans or business rules to handlecommon situations
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Closing the Loop
Feedback and control closes theloop between the plan andeverything that prevents
execution of the plan__
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Agenda
Assessing ERP Performance
Ensuring Data Integrity Managing Variability
Protecting the Critical Path
Powering Decision-Making
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Theory of Constraints Lessons
Solving local optima through processcontrol will not necessarily generatemore throughput, i.e. money for the
company Business processes involved to
complete a customer order consist of
a series of dependent steps referred toas the critical path
The critical path determines the rate
of throughput for the company
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Business Process Flow
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Manage System Constraints Identify bottleneck
Physical constraint or policy constraint Exploit it Improve capacity utilization Schedule the sequence of work
Remove resource contentions Reengineer policies and procedures
Subordinate all other resources to it
Match non-bottleneck output tobottleneck
Ensure support activities enhance ratherthan detract from bottleneck productivity
Elevate it
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Strengthen Linkages
Strengthen the linkages betweensteps in the critical path
Facilitate workflow along thesteps Analyze workflow
Design and evaluate solutions toimprove throughput and lower costs Rules-based routing
Event-based notification
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Supply Chain Facts
Youre only as strong as yourweakest link. Tight linkages with suppliers and
customers are just as important as tightlyintegrated internal operations
Information delays, inconsistent
and infrequent ordering, and poorcommunication in the supply chainresults in higher inventory and
lower customer service levels
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Supply Chain Best Practices Include supply chain partners in decision-making
process
Establish data exchange systems with supply chainpartners to ensure rapid dissemination of information
Streamline procurement process using online suppliers,trading communities, exchanges, and auction sites
Integrate business systems of supply chain partnersusing XML or other data format
BizTalkBizTalk -- WebPlanWebPlan
Extend workflow analysis, rules-based routing, andevent-based notification throughout the supply chain
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Agenda
Assessing ERP Performance
Ensuring Data Integrity Managing Variability
Protecting the Critical Path
Powering Decision-Making
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Facilitate Communication Breakdown barriers to access to
information Install LAN / WAN backbone
Provide data query and reporting tools
Use software collaboration tools email, video conferencing, FTP, workgroup
tools
Integrate front-office and back-office
systems
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Improve Data Mining
The ERP database serves as atransaction backbone--arepository of data that can be
accessed and manipulated to: evaluate strategic marketing or
financial opportunities
support process control andcontinuous improvement efforts
adjust tactical plan based on
unplanned events
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Enhance Analysis Tools Data becomes a valuable resource
only when knowledge workers canderive information from it to support
business decisions.
Rapidly fading are the days where theelectronic spreadsheet will suffice asthe stand-alone analysis tool for the
business manager
More advanced tools are needed tomanage the complexity and scale ofthe current business environment
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ERP Best Practices
Matrix
Level I:Level I:
Ensure Data Integrity Formalize Change Process
Improve Responsiveness
Control Process Variance
Process Control
P
rocessInnovation
Level II:Level II:
Manage Variability
Facilitate Communication
Improve DataMining
Enhance Analysis Tools
Level IV:Level IV:
Power Decision-Making
Manage Constraints
Strengthen Linkages
Integrate Supply Chain
Level III:Level III:
Protect Critical Path
Monitor Transactions
Maintain Schedule Validity
Verify Foundation Data
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