ERP for spinning mills

ERP - SPINNING MILLS

A.Kanthimathinathan,CEOWINSYS SMC

Learning GoalsIntroduction about ERPERP SupplierERP ImplementerERP ModulesImplementation processBenefits of ERP

What is ERP?

Enterprise

Resource

Planning

“Enterprise Resource Planning” is

A set of integrated software modules

for supporting all of an enterprise’s

processes in real-time.

What is ERP?

ERPENTERPRISE RESOURCE PLANNINGVENDORSSAPPEOPLESOFTORACLERAMCO

IMPLEMENTORSSIEMENSWIPROIBMPRICEWATER HOOPERS(SMALL ENTERPRISES ARE MANY)

DifferenceSAP - SOFTWARE PROVIDERSIEMENS-IMPLEMENTOR

Roles are clear.Implementor is responsible for understanding the business scenerio and offers the best combination of modules to the buying organisation.

EXISTING SYSTEMSSTAND ALONE PACKAGESSERVES FOR USERS WITH ALL

FLEXIBILITY AND CUSTOMISATIONMIS ANALYSIS-PARTIAL AND NOT

AUTOMATICBASED ON OUR KNOWLEDGE OUR

SUPPLIERS ONLY

ERPBETTER PROJECT MANAGEMENTEXCELLENT CUSTOMER

SERVICE/RAPPORTAUTOMATIC INTRODUCTION OF LATEST

TECHNOLOGIESEXPERTISE DATA BASE

ERP-DRIVING FORCESBUSINESSCUSTOMER SATISFACTIONBUSINESS DEVELOPMENTABILITY TO FACE COMPETITIONEFFICIENT PROCESSES TO PUSH THE

COMPANY TO THE TOP GEAR(CONTD)

ERP-DRIVING FORCESINFORMATION TECHNOLOGYPRESENT SOFTWARE DOES`NT MEET

BUSINESS NEEDSOBSOLETE HARDWARE /SOFTWARE

ERP-PROBLEMS TO BE TACKLEDMATERIAL SHORTAGEPRODUCTIVITY ENHANCEMENTQUALITY ENHANCEMENTCUSTOMER SERVICECASH MANAGEMENTINVENTORY MANAGEMENT

BUSINESS INTELLIGENCEANY TOOLS ENABLING PEOPLE TO

MAKE DECISIONS TO IMPROVE THEIR BUSINESS PROCESSES.

EXAMPLE-DECISION SUPPORT SYSTEMS-EXECUTIVE INFORMATION SYSTEM-REPORTING-DATA DRILLING/MINING-EARLY WARNING SYSTEMS

ERPBPR

EXECUTION

WORKFLOWMGT

WORKFLOW

Cross-Functional Nature of the Order Management Process

Quote Commit ProduceCheckCredit Deliver Bill Collect

Sales & Distribution

ProductionPlanning

Financial

Accounting

MaterialsMgmt

Integration

SUPPLIER

CUSTOMER

Procurement Production Distribution

Finance and Accounting

MMMM PPPP SDSD

FIFI COCO

All business processes throughout the supply chain are All business processes throughout the supply chain are executed in one system sharing all informationexecuted in one system sharing all information

Workflow

SD: Sales and Distribution

Sales &Sales &DistributionDistribution

SDSD

MMMM

PPPP

QMQM

PMPM

HRHR

FIFI

COCO

TRTR

PSPS

WFWF

ISIS

MaterialsMaterialsMgmt.Mgmt.

ProductProductPlanningPlanning

QualityQualityMgmt.Mgmt.

Plant Mainte-Plant Mainte-nancenance

HumanHumanResourcesResources

FinancialFinancialAccountingAccounting

ControllingControlling

TreasuryTreasury

ProjectProjectSystemSystem

WorkflowWorkflow

IndustryIndustrySolutionsSolutions

The SD application module helps to The SD application module helps to optimize all the tasks and activities optimize all the tasks and activities carried out in sales, delivery, and billingcarried out in sales, delivery, and billing

ERP ModulesERP Modules

SD OverviewSDSD MD Order

Goods Issue

Sales Order

Delivery to Customer

Invoicing

Pricing

Transportation

MM: Materials Management

Sales &Sales &DistributionDistribution

SDSD

MMMM

PPPP

QMQM

PMPM

HRHR

FIFI

COCO

TRTR

PSPS

WFWF

ISIS

MaterialsMaterialsMgmt.Mgmt.

ProductProductPlanningPlanning

QualityQualityMgmt.Mgmt.

Plant Mainte-Plant Mainte-nancenance

HumanHumanResourcesResources

FinancialFinancialAccountingAccounting

ControllingControlling

TreasuryTreasury

ProjectProjectSystemSystem

WorkflowWorkflow

IndustryIndustrySolutionsSolutions

The MM application module supports the The MM application module supports the procurement and inventory functions procurement and inventory functions occurring in day-to-day business occurring in day-to-day business operationsoperations

ERP ModulesERP Modules

Material requirement planning

External procurementPurchasing

Internal procurementProduction

Invoiceverification

Goodsreceipt

Inventory management

Goodsissue

Transferposting

Internal and external accounting Sales and distribution

Master dataMaterialBatchVendorCustomerG/LStorage bins...

MMMM

FI: Financial Accounting

Sales &Sales &DistributionDistribution

SDSD

MMMM

PPPP

QMQM

PMPM

HRHR

FIFI

COCO

TRTR

PSPS

WFWF

ISIS

MaterialsMaterialsMgmt.Mgmt.

ProductProductPlanningPlanning

QualityQualityMgmt.Mgmt.

Plant Mainte-Plant Mainte-nancenance

HumanHumanResourcesResources

FinancialFinancialAccountingAccounting

ControllingControlling

TreasuryTreasury

ProjectProjectSystemSystem

WorkflowWorkflow

IndustryIndustrySolutionsSolutions

The FI application module is designed for The FI application module is designed for automated management and external automated management and external reporting of general ledger, accounts reporting of general ledger, accounts receivable, accounts payable, and other receivable, accounts payable, and other sub-ledger accounts with a user-defined sub-ledger accounts with a user-defined chart of accountschart of accounts

ERP ModulesERP Modules

External AccountingLedgersLedgers

Data storageData storage

CustomersCustomers VendorsVendors

MaterialMaterial Asset Asset mgmt.mgmt.

General General ledgerledger

FIFI

Components of FI

FIFI

FI-GLFI-GL

FI-ARFI-AR

FI-APFI-AP

FI-SLFI-SL

FI-AAFI-AA

General Ledger

Accounts Receivable

Accounts PayableAsset Accounting

Special Ledger

CO: Controlling

Sales &Sales &DistributionDistribution

SDSD

MMMM

PPPP

QMQM

PMPM

HRHR

FIFI

COCO

TRTR

PSPS

WFWF

ISIS

MaterialsMaterialsMgmt.Mgmt.

ProductProductPlanningPlanning

QualityQualityMgmt.Mgmt.

Plant Mainte-Plant Mainte-nancenance

HumanHumanResourcesResources

FinancialFinancialAccountingAccounting

ControllingControlling

TreasuryTreasury

ProjectProjectSystemSystem

WorkflowWorkflow

IndustryIndustrySolutionsSolutions The CO application module represents The CO application module represents

the company’s flow of cost and revenuethe company’s flow of cost and revenue CO is a management instrument for CO is a management instrument for

organizational decisionsorganizational decisions

ERP ModulesERP Modules

Integration PP

MM

FI CO

SD

FI

Which modules are involved?Planned

Requirement

MRP

Requirementon component

level

PurchaseOrder

GoodsReceipt

InvoiceVerification

AccountsPayable

PlannedOrder

ProductionOrder

Productioncompleted

OrderSettlement

CustomerOrder

Shipping

Invoicing

AccountReceivable

ERP SELECTIONCHECK –ALL FUNCTIONAL ASPECTS ARE

COVERED- ALL BUSINESS FUNCTIONS AND

PROCESSES ARE INTEGRATED- ALL IT TRENDS ARE COVERED- IMPLEMENTING CAPABILITIES- PURSE AND ROI

ERP Implementation Phases

Project Project PreparationPreparation

Business Business BlueprintBlueprint RealizationRealization

Final Final PreparationPreparation

Go Live & Go Live & SupportSupport

Evaluate Empower ExcelExecute

Articulate business vision & Evolve CSF’s

Develop PM’s & PT’s

Establish Project Team

Envision

Evaluate changeReadiness andchange impact

Finalize changes to be implemented

DevelopChangeLeadership

Execute Communicationstrategy

Define HR Policies

DefineJobs and skills Align

Skills and culture

Review Results

Continuouslymeasure

and improve

Project preparationDefine the goals and objectives

Clarify the scope of our implementation

Define implementation strategy

Project preparationDraw project schedule and implementation

sequence

Form project organisation

Form the committes responsible

Business blueprintDetailed documentation of the

resultsgathered during the requirements workshop,a common understanding is established between the ERP suppliers and the organisation.

Redefine project goalsDefine the baseline scopeRedefine the overall project schedules

RealisationTHIS PHASE IS USED FOR ,Training the key users

Process modelling

Compleion of baseline and final configuration

Final preparationPhase before starting the actual

transactions

Transaction testingEnduser training

System managementHandholding

Go liveFinal phase of moving from preproduction

stage to production environment

By the time integration with all modules is complete

Hardware support

Lease line for connectivity

Radio frequency towers(40 circular km)

Dedicated serversSafety features for servers and antennas

Goals in ERPOne time ,one place,one entry-prompt

Reduce manual work

Help decision making

Goals in ERPEstablish real time connectivity and seamless

informationConversion of present working logic “ as it

is”Provide powerful MISAutomate to maximum

Terms in ERPCore teamMaster dataTesting teamBPRABAPGO LIVE

Terms in ERPSOP-STANDARD OPERATING PROCEDURES

KPM-KEY PERFORMANCE MEASURES

ERP Returns….

Manual or pre-ERP environment

ERP and inter company integration of finance, sales, production, distribution etc…

Leverage market presence

Knowledge based decision making

Enhance customer relationship

Extend availability of services

Enhanced employee service available anywhere

Streamlined procurement

Integrated SCM in the full value chain

Exploit economy of scale in collaboration with your business partners

BENEFITS IN ERPOptimised asset /resource utilisationIncreased operational efficiency from

accurate dataReduced inventory levels

Benefits in ERPPERFORMANCE ANALYSIS

IDENTIFY PRODUCTION COSTS

ENHANCED CUSTOMER SERVICE

BENEFITS IN ERPEnhanced customer service

Quick response to customer orders

Use of realtime information for decision making

Change Management

Change Management is a disciplined approach applied in the organizational units that will operate the new systems to ensure their acceptance and readiness (to use the new system effectively).

Thank you