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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