Enterprise Resource Planning module 6

8/3/2019 Enterprise Resource Planning module 6

1/55

ENTERPRISE SYSTEM


2/55

Enterprise involves a complete business consist of:

y Functions

y Divisionsy Other components

used to accomplish specific objectives and defined goals.

Resources

People Goals /

Objectives

Money,

Factory,

Material

Enterprise


3/55

Manufacturing process Customers

Suppliers Regional Set up

Corporate office

Integration of organization by ERP


4/55

y Enterprise Resource Planning is an integrated cross

functional software that re-engineers manufacturing,

distribution, finance, Human resources and other basic

business process of company to improve its efficiency,agility and profitability.

y Cross functional Information systems: Are

information systems that are integrated combination ofbusiness information systems. Sharing information

resources across the functional units of an organization.


5/55

ENTERPRISE RESOURCE PLANNING SYSTEM

y Integrated application environment (operational, managerial andstrategic information for an enterprise to improve productivity,quality and competitiveness)

y Integration in real time (Provide real-time online information fordecision making).

y Business model for planning, control and global organization ofentire supply-chain

y Allows information to enter at a single point (.e.g. materialsreceived in manufacturing stage) and updates single shared databaseof all functions.

y Information accessed throughout the system


6/55

CHALLENGES FORERP

To address global access issues.

Development of information system that will cater to

both intra and extra information needs.

To deliver complete best business process. Adaptable business systems for easy installations and

post implementation maintenance.


7/55

Sales &

marketin

g

HR Logistics Productio

n

accounts

Business process

Business process

Business process


8/55

FEATURES OF ERPy 1. Three tier client / server architecture

y DeskTop (tier -1)

y Application Server(tier - 2)

y Database Server(tier -3)

y 2.Two tier model

y 3. Middleware : is a software that helps diverse networked computersystems work together thus promoting them interoperability. It is acollection of software that are needed to provide the connections an

process the interaction between the layers.


9/55

SCM, Sourcing,

Procurement

ERP

Internal Business

process

CRMMarketing

Sales service

Knowledge

managementPartner

Relationship

Management

Suppliers

Customer

Emplo

yees partner

s

Enterprise Application Architecture


10/55

CROSS FUNCTIONAL ENTERPRISE APPLICATION

Informationsystem in thereal world

Crossfunctionalbusiness system

Businessprocess like

are integrated

combination of Which support

Productdevelopment

Production

Distribution

Order mgt.


11/55


12/55

ERP SOLUTIONS

( Oracle, PeopleSoft, SAP)

Production planning and control

ManufacturingQuality control

Sales and distribution

Accounting

Customer Relations

Human resource


13/55

MODULES OF ERP

Finance Modules

-General ledger(Central accounts and financialbusiness)

-Accounts payable-track payments fromcustomers, bill payments to suppliers and assets Costs with building property, distributors

Fixed equipment

Treasury management-Cash holdings, investmentCost Control-costs related to overheads, products,

manufacturing


14/55

MODULES OF ERPManufacturing and logisticsy Production planning-daily production schedule

y Sale and distribution (receipt related to billing andshipping)

y Warehouse management-records of warehouse delivery of

productsy Project Maintenance Costs, work schedule by projects

y Plant Maintenance

y Customer Service Management

Human Resources-Human Resources Administration (Recruitment, travel.)


15/55

ENTERPRISE SOLUTION (BENEFITS)

y Single computer system serving all needs

y Single database so that various depts can share informationand communicate

y

Consolidates various parts and purposes of an organizationy Enormous data into useful information

y Enables organization balance customer demands influencedby multiple interrelated items and multipleplant locations.

y

Shipping and distributiony Product and customer demand to sales

y ERP data flow to suppliers, vendors, customers and products.


16/55

CUSTOMERRELATIONSHIP MANAGEMENT(CRM)


17/55

CUSTOMERRELATIONSHIP MANAGEMENT(CRM)

CRM uses technology to

y Create a cross-functional enterprise system

y That integrates and automates many of the processes

in sales, marketing and customer service that interactwith customers

y Create a framework of web-enabled software and

databases that integrate these processes with the restof the companys processes


18/55

CRM APPLICATIONS CLUSTERS


19/55

CRMAPPLICATIONS

Contract and Account Management

y Helps sales, marketing and service professionals

y Capture and track data about past and planned

contacts with customers and prospects

Sales

y Provides sales reps with software tools and data they

need to support and manage sales activities

y Cross-selling is trying to sell a customer of oneproduct with a related product

y Up-selling is trying to sell customer a better product

than they are currently seeking


20/55

CRMAPPLICATIONS

Marketing and Fulfillment

y Help marketing professionals accomplish direct

marketing campaigns by tasks such as

y Qualifying leads for targeted marketing and

scheduling and tracking direct marketing mailings


21/55

CRMAPPLICATIONS

Customer Service and Support

y Provides sales reps with software tools and database

access to customer database shared by sales and

marketing professionsy Helps create, assign and manage requests for service

y Call center software routes calls to customer support

agents based upon their skills and type of call

yHelp desk software provides relevant service data andsuggestions for resolving problems for customer service

reps helping customers with problems


22/55

CRMAPPLICATIONS

Retention and Loyalty Programs

y Try to help a company identify, reward, and market to

their most loyal and profitable customers

y Data mining tools and analytical softwarey Customer data warehouse


23/55

SOFTWARE'S ASSOCIATED WITH CRM

Sales Force Automation- Selling and marketingfunctions such as managing leads, customer contacts,pipeline management, generating proposals,configuring products for price quotes and

telemarketing. Salespeople retrieve information quickly

Customer Service and Support (CSS)-softwareaddresses after sale activities such as help desks, call

centers, order tracking, repair scheduling, serviceagreements and contracts

Marketing applications-Web-based and traditionalmarket campaigns.


24/55

CRMSUPPORTS CUSTOMER LIFE CYCLE


25/55

CRMBENEFITS

Identify and target best customers

Real-time customization and personalization of

products and services

Track when a customer contacts a company

Provide consistent customer experience and

superior service and support


26/55

REASONS FORCRMFAILURES

Lack of understanding and preparation

Rely on application to solve a problem without

first changing the business processes

Business stakeholders not participating and not

prepared


27/55

SUPPLYCHAIN MANAGEMENT

(SCM)


28/55

SUPPLYCHAIN MANAGEMENT (SCM)

A cross-functional interenterprise system

To help support and manage the links between a

companys key business processes

And those of its suppliers, customers and businesspartners


29/55

SCMGOAL

Fast, efficient, low-cost network of business

relationships orsupply chain to get a companys

products from concept to market

A supply chain:

y Interrelationships with suppliers, customers,

distributors, and other businesses that areneeded to design, build and sell a product


30/55

SCM


31/55

ROLE OF SCM


32/55

GOALS AND OBJECTIVES OF SCM


33/55

CAUSES OF PROBLEMS IN SCM

Lack of proper demand-planning knowledge, tools and

guidelines

Inaccurate or overoptimistic demand forecasts

Inaccurate production, inventory, and other data Lack of adequate collaboration within the company and

between partners

SCM software considered immature, incomplete and

hard to implement


34/55

OVERALL PERSPECTIVE OF SCM

Informs customer chain from customer side to supplierside.

Keeping goods moving-Resolve inventory and deliverygoods

Track performance of suppliers quantatively

Channel effectiveness-Keep track of customers buyinghabits (audio, audivisual, video, etc.)

Customer service- Web-based information about their

ordersManaging coordination- Dynamic scheduling of sales and

distribution


35/55

SCMMODULES(SUPPLYCHAIN REPORTING & ANALYTICS)

Represents a key decision support activity

Selective flexible report structures

Analyze supply chain activity at every process step and use thisinformation to provide feedback to the processes themselves, bothon an ongoing basis as well as periodic review

Typical reports include planned versus actual analyses. Suchreporting helps companies to monitor their current situation aswell as form the basis for further business strategy


36/55

SERVICE PARTS PLANNING (SCMMODULE)|

Planning capabilities specific to service parts. It creates

demand histories of location products that form the basis

of further planning processes such as forecasting and

inventory planning, These applications include thefollowing:

Historical Data Capture

Historical Data Maintenance

Demand Forecasting

Inventory Planning


37/55

RESOLUTION MANAGEMENT

Scenarios

Resolution Scorecard

Performance Metrics

Multi site Visibility Interactive Spreadsheets

Integrated Process Flow

Event Response


38/55

INVENTORYOPTIMIZATION

Workflow and Collaboration

S&OPModeling (Sales and operations planning fordecision making)

Optimization User Interface

Optimization Reporting

Inventory Optimization Integration

Inventory Modeling

Demand Modeling


39/55

ADVANCED PRODUCTION SCHEDULING

Scheduling System Interfaces

Product Scheduling System Integration

Product Scheduling Parameters and options

Product scheduling reporting Optimization Scheduling & Sequencing.

Finite product scheduling.


40/55

SUPPLYCHAIN PLANNING

Supply Chain Planning Systems Integration

Supply Chain Planning Parameters

Supply Chain Planning Analysis

Supply Chain Optimization Planning Supply Chain Modeling

Supply Chain Analytics


41/55

SHIPMENT PLANNING & MANAGEMENT

Shipping Documentation

Vehicle Load Planning

Shipment Planning Systems Integration

Shipment Planning Shipment Management

Fleet Management

CarrierManagement


42/55

REPLENISHMENT PLANNING &SCHEDULING

Replenishment Planning

Replenishment Inventory Management |

Replenishment Planning System Integration

Finished Goods Replenishment Requisitions


43/55

MATERIAL REQUIREMENTS PLANNING(MRP)

SupplierPlanning/Receipt Scheduling

Repetitive Production Scheduling

Project Planning

Material Requirements PlanningMRP System Integration

MRPReporting

MRPPlanner Views, Messages & Activities

MRPPeggingMRPParameters, Policies & Options

Interactive Planning Simulation & Analysis


44/55

MASTERPRODUCTION SCHEDULING

Resource Planning

Product Line Planning

Master Scheduling Simulation

Master Scheduling Process

Master Scheduling Planning OptionsMaster Scheduling Pegging

Master Scheduling Parameters, Policies & Options

MPS System Integration

MPS ReportingMPS Planner Views, Messages & Activities

MPS On-line Inquiries

MPS Demand Planning/Forecasting


45/55

INVENTORYMANAGEMENT

Stocking Location Master

Inventory Valuation

InventoryTransactions

Inventory Status Inventory Reporting

Inventory Planning

InventoryManagement Systems Integration

Inventory Item Details Inventory Calculation & Analysis

Bulk Inventory


46/55

DEMAND PLANNING

Statistical Forecasting

Multi-dimensional Forecast Planning

Historical Demand

Forecast AdjustmentDemand Planning System Integration

Demand Planning Parameters, Policies &Options

Demand Performance Analysis

DemandModeling

Collaborative Demand Planning


47/55

DRP (DISTRIBUTION REQUIREMENT PLANNING

& DISTRIBUTION NETWORKPLANNING

Dynamic Constraint-Based Distribution Planning

Distribution Sourcing Analysis

Distribution Requirements Planning (DRP)

Distribution Replenishment/Inventory Deployment

Distribution Planning System Integration

Distribution Network Enterprise Modeling

Distribution NetworkManagement & Analysis

DRPPlanner Options & Actions

DRPParameters, Policies & Options


48/55

CUSTOMERPLANNING/SHIPMENTSCHEDULING

Customer order processing

Customer profitability

Customer profiles

Customer product requirements


49/55

CAPACITYREQUIREMENTS PLANNING(CRP)

Capacity Requirements Loading & Planning

Capacity Planning Simulation

CRP System Integration

CRPParameters, Policies & Options | CRP Inquiry & Reporting


50/55

NEWTECHNOLOGIES

Radio Frequency Identification (RFID)-

RFID tags embed an integrated microchip (transponder)and radio antenna in product labeling and packaging.

Each tag stores a unique 64 or 96-bit Electronic ProductCode that identifies the item both by type and individualserial number.

Multiple tags can be read concurrently without the line-of-sight restrictions of optical bar code scanning

systems. An entire shipping container, pallet, case orshopping cart can be scanned in seconds by automatedreading equipment.


51/55

TYPES OF RFID

EAS (Electronic Article Surveillance) systems:Generally used in retail stores to sense the presence orabsence of an item. Products are tagged and largeantenna readers are placed at each exit of the store to

detect unauthorized removal of the item. Portable Data Capture systems: Characterized by theuse of portable RFID readers, which enables this systemto be used in variable settings. Networked systems: Characterized by fixed position

readers, which are connected directly to a centralizedinformation management system, while transponders arepositioned on moveable items. Positioning systems: Used for automated locationidentification of tagged items or vehicles.


52/55

NEWTECHNOLOGIES(E-PROCUREMENT)

Lower procurement costs

Less paperwork

Improved supplier relationships- Reduce the overallnumber of suppliers. Focus on agreement negotiation

and strategic sourcing. Identify suppliers who are notperforming. No continual need to check deliveries andtrack purchase orders.

Reduction in unauthorized purchasing Allowsemployees to order supplies, equipment and servicesfrom online catalogues of corporate vendors.

Employee empowerment- Use guidelines set bycorporate purchasing, supplier constantly updatescatalogue systems, reduction of unauthorized purchasing


53/55

KEYREQUIREMENTS OF E-PROCUREMENT

Configuration- Interface with ERP

Easy to use- Processing of requisition andpurchase orders suitable in a single user

interface.Security-Must have in-built controls to guard

against illegal access to company controls.Ability to alternate between e-mail, automaticfax, and Internet EDI for sending and receivingof purchase orders as well as interfacing withthe corporate back-office system is arequirement


54/55

NEWTECHNOLOGIES

Web- based EDI

POS-comprehensive module - view all products, inventory,customer records and buying history at retail outlet. It archivesand provides information in real-time, so that critical decisioncan be taken based on accurate data.

Internet auctions

XML,(EXtensible Markup Language) Platform independentand easy transmitting of data across systems

ERP (All three have real time analytics to act on needs of customers)

CRM

SCM

data mining,web-order processing

epayment,,

Drive-through retail stores with touch screen for menus and deliverythrough lifts

Virtual retail stores with simulation of actual sore


55/55

NEWTECHNOLOGIES

Enterprise PortalE

Enterprise portal-Portals are browser-basedapplications that collect information thatcomes from various sources. They provide a

single place to share and manage allinformation such as calendars, tasks, andlists.

Store Workbench and Manager Dashboard

the presentation of real-time information for the

(district manager), a workbench (the single point ofaccess to information and systems for the storemanager), and a scorecard

Documents

Enterprise Resource Planning module 6