ERP - Improve organization efficiency

Abhijit Pradhanwww.bigbangconsultancy.com

Talley

SAP

ERP

Impact on economy Slowing GDP growth Collapsed share market Currency devaluation

Impact on industries Slow demand Lower production Higher raw material cost

Answer is YES………

& this tool is called asERP

What is ERP? Improve organization efficiency and

profitability using ERP? Various ERP products and budget SAP information Why SAP is so popular globally? Is SAP useful for small and medium

companies? Can SAP projects fail?

Finance department decides to implement IT software….calls IT expert….develops IT solution for Finance department

Purchase Department decides to implement IT software….calls IT expert….develops IT solution for Purchase department

Sales team decides to implement IT software ….……….do…….………………. Develops Sales Software

Production Planning team decides to implement IT software ….……….do…….………………. Develops Planning Software

ResultToo many home grown , independent, standalone

and non-integrated software systems in the organization

Product Engineering

Finance

Costing

PlantMaintenance

xxxxx

Purchase Quality Production Stores

Sales Marketing Service Warranty

1. How much worth of faulty car batteries returned back from the market till now?

2. Reasons of failure? 3. Financial loss?

Product Engineering

Finance

Costing

PlantMaintenance

xxxxx

Purchase Quality Production Stores

Sales Marketing Service Warranty

Getting quick and accurate informationis almost impossible

Data in too many systems and hence

manual compilation

Duplication of data entry

Non Standard procedures

Variations in information formats

Only few people has access to key

information

Integration of existing system is technically very complex and expensive

Need dedicated IT team System can become very unstable after

addition of new functionalities Maintenance of system is expensive

Solution

Readymade Software with built-in integration

called as ERP

PP

GL

HR

FA

AP

AR

Payroll

Mg

ERP with built-in integration between various departments E.g. For every good despatched, Finance and inventory data

automatically gets updated

Single software can be used across the organization and from any part of the world

Instant availability of information E.g. material received at factory gate is immediately visible to

all concern depart across the organization

Information captured at source

Using various features in ERP, Organization efficiency can be improved –

e.g. Reduce procurement lead time Improve customer response time Reduce production cost Faster communication with customer and supplier

Profitability can be improved – e.g. Reduced inventory carrying cost Reduced production losses Reduced production cost Minimize wastages

SAP is a German company

SAP is the most popular ERP software globally

and in India

Almost all top companies are using SAP

Tata Motors, Mahindra, Reliance, Birla group, BMC,

CIDCO

Microsoft, GM, Chevron, Toyota, German Goverment

Sales & Distribution

Materials Management

Production Planning

Quality Management

Plant Maintenance

Finance

Costing

Project System

R/3R/3Client / ServerClient / Server

ABAP/4ABAP/4

COCO

PSPS

WFWF

ISIS

MMMM

HRHR

SDSD

PMPM

PPPP

QMQM

FIFI

More than 20 modules

Product is proven globally with almost zero bugs

It has most number of features as compared to other ERPs

Scalable solution - can be extended as per business

requirement

SAP is not implemented by IT team but by people from

business e.g. Consultant with CA or ICWA qualification is

responsible for implementation of Finance module

Yes…..SAP Project Can fail………

…………………but not because of product problem

Wrong implementation strategy Too many modules implemented together Too many sites implemented simultaneously

No supported from top management Proper infrastructure not available in time Inadequate implementation partner

knowledge & experience If change management issues are not

addressed

ERP selection -Which ERP is suitable? Deciding strategy - Which modules to be

implemented and at what stage? Finding out investment budget Helping customer in deciding infrastructure Helping in selection of implementation partner Help customer in timely completion of project?

Ensuring successful SAP Implementation