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Introduction to ERP Systems and conecepts
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ERP in ATCOConcepts and Real Applications
By Ahmed Rami Elsherif21/05/2007
What Is ERP?• ERPS (Enterprise Resource Planning Systems) comprises of software packages that promises the seamless integration of all the information flowing through the organization - financial, accounting, human resources, purchasing, Sales, Inventory, Cost Controlling, Etc..
• ERP Systems provide information management and analysis to organizations.
• ERP Systems need of an integrated hardware infrastructure to deliver its full potential
• ERP Implementation project is a Business Project. IT is a supplier and facilitator for such a project.
ERP Characteristics• Integrated online/real time information throughout all the
functional areas of an organization.• Data standardization and accuracy across the enterprise.• Best-practices or optimized solutions are included in the
applications.• Creates efficiencies that organizations would not otherwise
have.• Delivers analysis and reporting capacity that can be used for
short and long-term planning and management.
ERP
Planning
Finance & Accounting
Expenses & Costs
Human Resources
Material Management
Fixed Assets
Special Solutions
Division 1
Division 2
Division N
An Integrated Model
Branch 1
Branch 2
Branch X
ERP
Division 1
Division 2
Division N
Standardized DataChart of Accounts
Cost & Profit Centers
Employees Master Data
Materials Master Data
Assets Master Data
Third Parties
Budget Items
Single Master Data Entry
through out the Organization.
Best-Practices e.g. Purchase Order Process
Purchase Petition
Approval PP
Offer Evaluation
Purchase Order
Approval PO
Reception of Goods
ERP
Material Management
Accounting & Finance
Budget
Purchasing Limit
Analysis and Reporting
Balance and Result Sheets
Divisions
Costume Presentation
Economical Indicators
Drill-Down Analysis
Graphical Presentations
Accounts payables and receivables
Sorting Criteria
Graphical Presentations
ERP Benefits
Tangibles:• Inventory Reduction (25 – 30 %).• Material Cost Reduction (5 %).• Labor Cost Reduction (10%).• Improved Customer Service & Sales (10 %).• Reduce AR & AP Delays (18 %).Intangibles:• Single Source, Online Data, Information & knowledge for the decision
making.• Control and Management over the enterprise processes.“Not everything that counts can be counted, and not everything that can
be counted counts.” Einstein
Where Does ATCO Stands?
• Partially Connected Network.• Diverse non-integrated number of Information System across
divisions and branches.• Un standardized master data in some cases.• Varied procedures and processes depending on available
systems and interconnectivity.• Redundant work by operational and administrative personnel.• Excel based estimation process and lack of integration
between Estimation, Planning and execution in the Construction division.
Network and system current situation.
ATCO-DammamHead office
East West Factory
CMD Warehouse
Other Branches
Other showrooms
Hardware
Accpac-Head office
ATCO Menu Head Office
Paradox-Warehouse &Showrooms
Gesco – Office 1
DacEasy – Jeddah & Riyadh
Software
Jubail Office
Riyadh Office
Jaddah Office
Actual Sales Process Flow
Sales Order
Financial Credit Control
Invoicing
Product/Service Delivery
Inventory ControlSales Person
Sales and Invoicing
Distribution and
Logistics
Elaborated twice:1. In branch2. In head office
Non Existent because is done post operation.
Elaborated twice:1. In branch2. In head office
Elaborated twice:1. In branch2. In head office
Redundant Time • 70 % of Accountant•50 % of Auxiliary Acc.
Construction Project Lifecycle
Planning
Execution
Estimation
Excel Based. Lacks controls and retro alimentation from executed data.
Done in Primavera but it lacks integration with Estimation and Execution
Done in Accpac and Atco menu. It suffers from the same problems we mention earlier.
Proposed Improvements
New:• IS/IT Organizational structure.• Infrastructure.• Optimizing the ERP systems by eliminating redundant work
and adding control elements.• Construction division automation, integration between
estimation, planning, and execution.• Intranet and Business Intelligence Portal.Under Implementation:• CRM or Sales tracking system.• Tracking system for E&W.• Sales & Distribution system.
Proposed Plan# Pri. Task Est. $$ Lead Time Prereq. Dependency
1 1 IT/IS Organizational Structure 15 Days 0
---Form a competency center in charge of internal software and information systems-------Organanizational chart-------Pay scale?
---Form steering committee made up from different business divisions-------Members nominated by divisions-------Regular meetings
2 1 Infrastructure 3 Months 1--Work with infrastructure and steering committee in prior zing
3 2 CRM or Sales Tracking System 2 Months 1--Implement
14 2 Tracking System for E&W 2 Months
--Implement
5 3 Sales & Distribution System for trading Divisions 3 Months 1--Implement
6 2 ERP evaluation & reimplementation 12-18 Months 0--First option initiate a conversation with Accpac people for possible upgrade 1-2 Months--Look at other products in the market--Make a decision on the way to go--Implement
7 2 Construction Division Integration 12-18 Months 0--Evaluate Estimation, Planning and Execution support software 1-2 Months--Possible Integrations with other softwares--Implement
8 2 Intranet and Business Intelligence portal 1-2 Months 0--Implement as a confidence building measurement
9 XX Others? New Business requirements?
ConclusionERP/IT plays a key role in providing businesses a competitive edge by managing, optimizing, and transparenting organizational activities like:
1. Financial.2. Administrative3. Accounts payable and receivable.4. Payroll.5. Material Management, etc..
Not only does it enhances accountability, responsibility and communication but also it is used as a reporting tool; what have we done? and did we gain or lose money?. Demo