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ERP Implementation

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This presentation outlines some of the fundamental concepts one needs to know about the implementation of ERP systems. It outlines what an ERP system is, – PowerPoint PPT presentation

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Title: ERP Implementation


1
Enterprise Requirement Planning Business
Intelligence
Erwin Moeyaert Belgium
2
Agenda
  • What is an ERP System ?
  • Demo
  • What is Business Intelligence ?
  • Demo

3
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.

4
The Current Scenario
  • Islands of information
  • Difficult to get timely accurate information
  • Heterogeneous Hardware Software platforms
    practices
  • Poor connectivity between different
    organizational locations
  • Sticking with obsolete technology
  • Resist to change
  • Lack of proven man-power to develop integrated
    software


5
Why ERP
  • For Management to know what is happening in the
    company
  • One solution for better Management
  • For cycle time reduction
  • To achieve cost control low working capital
  • To marry latest technologies
  • To shun the geographical gaps
  • To satisfy the customers with high expectations
  • To be Competitive for survival

6
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
7
Evolution of ERP
  • 1960s - Systems Just for Inventory Control
  • 1970s - MRP Material Requirement Planning
  • (Inventory with material planning
    procurement)
  • 1980s - MRP II Manufacturing Resources
    Planning
  • (Extended MRP to shop floor distribution
    Mgnt.)
  • Mid 1990s - ERP Enterprise Resource Planning
  • (Covering all the activities of an
    Enterprise)
  • 2000's ERP II Collaborative Commerce
  • (Extending ERP to external business
    entities)
  • 2010 ERP via Internet facilities

8
ERP Expectations
  • Integrating all the functions
  • Integrating the systems running in all the
    locations
  • Transparency of information using a single
  • data source across the organization
  • Software must be responsive
  • Modular
  • Flexible
  • Easy to add functionalities
  • Provide growth path

9
Integration of Information Systems
IS messages
IS messages
Manufacturing
Head Quarters
Marketing/Sales
  • Local purchasing, invoice verification
  • Inventory management
  • Internal sales, shipping and billing
  • Profit/loss
  • Capacity utilization
  • Information Systems
  • Project Mgmt
  • Inventory
  • Purchasing
  • Sales
  • Budget
  • Cash Management
  • Sales, shipping and billing
  • Purchasing of trading goods
  • Inventory Management
  • Customer service

10
Changes of Customer Information
Customer Representative
Launch Workflow
Increase credit limit
Sales Manager
Credit Manager
Product Manager
11
Supply Chain
  • Raw Materials Suppliers
  • Processing Plants
  • Assembly Plants
  • Service Centers (warehouses)
  • Retail outlets

12
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13
Integrated Supply Chain
Control
Profit/Loss
Finance
Balance sheet
Capital
Costs
Procurement market
Purchasing
Production
Sales.
Machines
Human resources
Operating resources
Managing Resources
14
Subsystems of ERP
  • Financial Accounting
  • Logistics and Warehousing
  • Sales Marketing
  • Purchasing
  • Accounts Payable/Receivable
  • Bill Of Materials
  • Master Scheduling
  • Materials Requirement Planning
  • Capacity Requirements Planning
  • Shop Floor Control
  • Human Resources

15
Accounting
  • General Ledger
  • Financial Reporting
  • Costing
  • Budgeting
  • Accounts Payable
  • Accounts Receivables
  • Controlling
  • Investment Management
  • Cash Management

16
Accounting Processes
  • Operational management level
  • Production of transactions
  • Paychecks, invoices, checks, purchase orders

17
Management Control Processes
  • Budgeting
  • Analysis of allocations, expenditures, revenues
  • Cash management
  • Cash flow analysis
  • What-if analysis
  • Capital budgeting
  • Investment management

18
ERP Financial Accounting Module
  • External reporting
  • Set by general accounting standards
  • Legal requirements
  • Includes accounts receivable subsystem
  • Interfaces with cash management
  • Monitors accounts and updates, handles payments,
    creates due date lists

19
Management Accounting Modules
  • Information on variances between planned and
    actual data
  • Key activities
  • Cost center accounting
  • Internal orders as a basis for collecting and
    controlling costs
  • Activity-based costing of business processes
  • Product cost controlling for profitability
    analysis
  • Profitability analysis by market segment
  • Profit center accounting of individual areas of
    organization

20
Sales and Marketing
  • Lead tracking
  • Sales forecasting
  • Customer management
  • Sales Order management
  • CRM Customer Relationship Management

21
Sales Process
  • Sales orders.
  • Direct sales.
  • Pre-sales.
  • Rate applications prices, discounts and price
    limit controls.
  • Reserves of goods in warehouse for unprocessed
    orders.
  • Delivery note.
  • Automatic creation from pending order lines.
  • Automation of the outgoing orders (according to
    stocks, with rules of priority by expiry,
    location, etc).
  • Invoicing process for all types of invoicing
  • immediate,
  • delivered goods, order completely delivered.
  • Periodically, (weekly, fortnightly, monthly).
  • Reports of orders, sales order supplied, delivery
    notes, invoices, orders not invoiced, details of
    invoicing

22
Customer Relationship Management
  • Provides sales force with management tools
  • Sales activity
  • Sales and territory management
  • Contact databases
  • Leads generation and monitoring
  • customer visit reports
  • Knowledge and information resource management
  • CRM data accessible through data warehouse

23
List of vendors
Update vendor list/rating
Purchase order
Product data
Purchase order
Received orders
Update record
Invoice, Dispatch
Order released /Pending
Receipt/Pending Payments
Statements /Invoice
Payable vendor receipt
Payment data
Payments
Update dues/payable
24
Warehousing
  • Warehouses and storage bins
  • Stock products in multiple units
  • Personalized product attributes in the warehouse
    (color, size, quality description, etc.).
  • Lot and serial numbers.
  • Restocking control.
  • Traceability configurable by product
  • Movement among warehouses.
  • Physical inventory.
  • Inventory planning.
  • Continuous inventory.

25
Production Management
  • Some of the major sub-systems of the production
    module are-
  • Material and capacity planning
  • Quality management
  • Cost management
  • Configuration management
  • Engineering data management
  • Engineering change control
  • Tooling

26
Production Planning and Manufacturing Processes
  • Operational-level processes
  • Daily activities
  • Purchasing
  • Acquire correct quantity of raw materials and
    supplies
  • Receiving
  • Inspection of delivered products and processing
  • Quality control
  • Monitoring of receivables and identification of
    unacceptable deliveries
  • Monitoring quality of production goods
  • Inventory management
  • Maintains appropriate levels

27
Material Resource Planning
  • Processes
  • Identify stock needed
  • Calculate lead time for stock
  • Determine safety stock levels
  • Assign most cost-effective order quantities
  • Produce accurate purchase orders

28
Capacity Planning
  • Evaluation of production capacity against
    production goals
  • Requires manufacturing order information
  • Creates time-phased plans for product and
    production area
  • Production scheduling
  • Estimates human resource needed

29
Human Resources
  • Recruiting
  • Compensation
  • Assessment
  • Development and Training
  • Planning
  • Payroll

30
ERP HR Modules
  • Components
  • HR Management
  • Personnel records
  • Resumes
  • Benefits administration
  • Links employee data to actual benefits
  • Allows selection from group of benefits
  • Payroll
  • Paychecks, tax reports, accounting data
  • Time and labor management
  • Employee/Manager self service
  • Travel reimbursement
  • Personnel data and benefits changes
  • Training class

31
Advantages Of ERP
32
  • 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.

33
Embrace New Technologies
34
Internet/Intranet enabled
35
Electronic Data Interchange
Transporters
Banks Vendors Custom
s Retailers
EDI Electronic Data Interchange
36
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37
Data WarehousingBusiness Intelligence
38
Mountains of Data
  • From Operational Systems
  • ERP (Enterprise Resource Planning)
  • Sales/Order
  • Inventory
  • Customer Relationship Management (CRM)
  • Web Sites
  • Orders
  • Click-stream
  • External sources ( Nielsen NIS)

39
What is BI?
The process by which an organization manages
large amounts of data, extracting pertinent
information, and turning that information into
knowledge upon which actions can be taken.
40
Benefits of BI
  • Improved performance based upon timely and
    accurate information
  • Elimination of guesswork
  • Expedited decision making
  • Early visibility of changes
  • Customer buying patterns
  • Supply chain activity
  • Financial arrangements
  • Single Version of the truth
  • Accurate, timely data available to all levels of
    the organization

41
To Note
Although we call it Business Intelligence, the
concepts and techniques are applicable to almost
any organization including those in health care,
biotech, education, government
42
BI Activities
  • BI applications include the activities of
  • decision support,
  • query and reporting,
  • online analytical processing (OLAP),
  • statistical analysis,
  • forecasting, and
  • data mining.

43
BI Users
  • There are many different users who can benefit
    from business intelligence
  • Executives
  • Business Decision Makers
  • Information Workers
  • Line Workers
  • Analysts

44
General View BI Actions
45
Data Flow from Transaction to Warehouse
Simplified Structure Necessary for Fast, Powerful
Reports
46
Some Components In The BI Toolkit
  • Reports (Example)
  • Commonly needed data can be structured in a set
    of pre generated reports made available to large
    numbers of users
  • Flexibility can be given to users through ad-hoc
    querying and filters
  • Cubes (Example)
  • Multi-dimensional, allowing the user the view the
    data from multiple angles
  • Interactive, giving the user the ability to
    change what is viewable on the fly
  • Charts Graphs (Example)
  • Graphical Representation of data
  • Commonly used in presentations and statistical
    analysis
  • Dashboards (Example)
  • Actively updating graphical displays that
    provides business users with updates on key
    metrics
  • Some dashboards provide drill through capability,
    allowing users to start with summary data and
    dive in to the details

47
Report Example
48
Cube Example
49
Chart/Graph Example
50
Dashboard Example
51
Multi-Dimensional Databases
  • Measures
  • Any quantitative expression
  • Some are designated as Key Performance
    Indicators (KPI)
  • Appropriate to the business process.
  • Dimensions
  • How we describe the measures Product/Customer/R
    egion/Time
  • These are the Bys
  • What were our Customer Sales by Product Line by
    Region by Quarter for the past two years?.

52
OLAP
Multi-Dimensional Databases
  • What is OLAP ?
  • On-Line Analytical Processing
  • Ad-hoc reports
  • Slice Dice
  • Drill-down (hierarchies)
  • Drill-through (details)

53
OLAP An Example
Beef Stew
February
For Beef Stew, show me the margin for February
Margin
Sales
Margin
Units
Cost
Measures
54
BI Future
  • One of the fastest growing segments of IT
  • Less likely to be outsourced
  • May exist in business units rather than IT
  • Knowledge/understanding of the organization is
    the key

55
Jobs
  • Economical Jobs
  • Data Analyst
  • Business Analyst
  • Functional Analyst
  • Marketing Analyst
  • IT Jobs
  • Report Developer
  • Data Modeler
  • ETL Developer
  • Data Architect
  • Data Warehouse Designer
  • Data Warehouse Developer
  • Data Warehouse Administrator
  • Database Administrator

56
(No Transcript)
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