ERP for Manufacturing Organizations

8/14/2019 ERP for Manufacturing Organizations

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ERP for

Manufacturing

Organizations

Dr. [email protected]


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Types of resources

Peoplepower

Materials

Money

Time

Knowledge


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For information to be useable

it must be

Correct

Current

Consistent Clear

Complete

Available

Secure


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Evolution of Logistical Systems

OrderPoint

MRP

MRP II

ERP

CRM/ SCM

Computing Complexity

1950 1965 1980 1995 2000


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Order Processing - Process

IntegrationOrder entry

Productionorder

Materialrequirements planning

Invoice

Accountsreceivable

Storage/Delivery


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Integration


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Simply put, an ERP System is.. An IT based transaction processing system

Integrated information management and retrieval Covers strategic and operational requirements of

the business

Finance

Manufacturing

SalesMaterials

HR


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What do ERP systems cover ?

MarketingMarketingManufacturingManufacturing

MaterialsMaterials

DistributionDistribution

FinanceFinance

EngineeringEngineering SalesSales

Human ResourcesHuman Resources

Planning andPlanning and

ExecutionExecution


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Business and technical

advantages of using ERPs Implements best-of-class practices and provides

benchmarking opportunities

Enables easy scale-up of operations

Enables real-time data creation by the persons actually

responsible for it Pushes the latest data to the operational-level personnel for

better and faster decisions

Integrates organizational data into a single, comprehensivedatabase

Provides correct and up-to-date online data and populates

the warehouse for analysis and reporting


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Benefits of ERP

Information integration Reduction in cycle time

Improved resource utilization

Better customer satisfaction

Improved supplier performance Increased flexibility

Reduced quality costs

Better analysis and planning capabilities

Improved information accuracy& decision making capability Use of latest technology


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How does ERP create value?

Integrate the organizations activities

Force the use of best practices

Enable organizational standardization

Eliminate information asymmetries

Provide online and real-time information

Allow simultaneous access to the same data for planningand control

Facilities intra-organization communication Enable inter-organization collaboration


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Risks of ERP

People issues

Internal staff adequacy

Project team Training

Employee re-location and re-training

Top management support Consultants

Discipline

Resistance to change


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ERP Implementation

Standard ERP ( directly using all featuresthat has come with the product)

Customization as per our requirement

( using special programs written by us, using

our logic) , then integrating with the ERP


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ERP implementation- the hidden costs

Training

Customization

Integration and testing

Data conversion

Data analysis ERP consultants

Brain drain (Employee turnover)

Continuing maintenance


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Different phases of ERP implementation

Pre-evaluation screening

Package evaluation

Project planning phase Gap analysis

Reengineering

Customization Implementation team training

Testing

Going live End-user training

Post-implementation (Operation & Maintenance)


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Organization of the implementation team

Chief executive officer

Executive committee

External consultants

Project manager

Project management team

Work teams or implementation teams

Technical support team Administrative support team


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Implementation issues

Project size

Lengthy implementation time

High initial investments

Unreasonable deadlines

Insufficient funding Interface

Organizational politics

Configuration difficulties


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Before you LEAP

Assembling the participants Feasibility study review

Project mission and vision statements creation

Determination of organizational structure

Determination of the modules to be implemented Creating the core team

Establishing the training needs

Establishing the data conversion/migration strategy

Establishing interfaces

Determining work estimates

Cost of Consultants

Calculation of implementation time

Identifying constraints

Establishing polices and guidelines


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ERP Implementation (Transition) Strategies

Transition strategies

Big bang strategy

Big bang variants

Phase implementation

Parallel implementation

Process line transition strategy

Hybrid Transition strategy Choosing a strategy


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ERP and Related Technology

Business process reengineering

Business Intelligence

Data warehousing

Data mining

On-line analytical processing

Product life cycle management Supply chain management

Customer relationship management

Geographical information systems


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Business Intelligence

Introduction Reasons for business intelligence

Benefits of BI

Factors influencing Business Intelligence

Business intelligence technology

Techniques for integrating business intelligenceinto business processes

Business intelligence and ERP


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BPR-The different phases

Phase 1:Begin Organizational Change

Phase 2:Build the reengineering organization

Phase 3:Identify BPR Opportunities

Phase 4:Understand the Existing process

Phase 5:Re-engineer the process

Phase 6:Blueprint the New business system Phase 7:Perform the Transformation


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Thank You


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Documents

ERP for Manufacturing Organizations