ERP = Connected Enterprise
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- Jemimah Murphy
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1 USING TECHNOLOGY TO IMPROVE PRODUCTIVITY & REDUCING COST IN BUSINESS ERP? An integrated business automation application that any industries can use to collect, store, manage and analyse data from business operations for a sustained profitable growth. ERP = Connected Enterprise
2 An Ideal ERP Characteristics An integrated system for Smart Industries. Operates real time & support industry best practices. Uses a common database to supports all applications including Android, ios. System with elaborate application & data integration.
3 Why ERP?
4 ERP : facilitates information flow between business functions 9 Customer Feedback 1 2 Customer Sales Order Business Intelligence Procurement e-commerce 3 Production & Costing Customer Service 8 Enterprise Asset Management and others 4 Distribution 7 HR & Payroll 6 5
5 Benefits Help Focus on Excellence in every department. Avoids Duplication of Entries-Save Man Hours. Gives an EDGE over competition by focusing on productivity, efficiency & performance. Provides transparency & Real-time data to take right business decisions at right time. Replaces diverse systems with uniform & integrated workflow.
6 Benefits Helps Monitoring Control on Pattern, Die & Tool Life utilization. Notification on Equipment, plan preventive Maintenance schedule to avoid Breakdown. Helps to focus on Repair History, Maintenance cost, Maximizing Asset utilization & Productivity.
7 Benefits Design, deploy and optimize manufacturing process to check on costing. Helps focus on achieving quality benchmarks for international standards like ISO, APQP, SPA, MSA, 8D, 5S Audit etc. Improve forecasting, using historical data to plan business better. Accurately Control Financials including cash flow & fund flow (incl. Budget Vs Actual, analysis).
8 Benefits Support Lean Manufacturing for Releasing Hidden Capacity & improve operational efficiency Support the manufacturing process with book tallied costing. Automated Machinery output should be in sync with ERP. Energy efficiency should be monitored & reported via ERP to management.
9 Challenges in Implementing ERP ( & how to overcome ) Customization of Unique demands (Selecting the right ERP Vendor) Re-engineering business processes (Meticulous Planning & Motivated Team) Switching cost from existing application (Calculating ROI, Few Indian ERPs work on 12 month ROI) Overcoming internal resistance (Motivated Team & Awareness Program ) Training manpower while continuing business (Extensive Support from ERP Vendor)
10 Modern trends in ERP Applications Flexible ERP which can use ios, application level. Web-enabled ERP - cloud services for small enterprise. Social ERP Ex: Tweet-for-a-taxi, connecting FB comments to customer feedback.
11 How an IDEAL ERP should be?
12 ERP Corporate Legal Entity 1 Legal Entity 2 Legal Entity n Unit 1(Manufacturing) Unit 2 (Distribution) Unit n (Manufacturing /Distribution) Warehouse Procurement/Finance/Sales Work Center/Process/ Production Line W1 W2 Wn Purchase Sales Finance Work Center 1 Work Center n Work Center n
13 Web Enabled Manufacturing Unit 1,2 n Branch Office 1,2..n Employee Portal Application Server Data Center Database Server Firewall Router Internet / VPN / RF / Lease line Supplier Portal Customer Portal Analytical Database Remote Users Corporate Office Executive Management System Dashboard/KPI s
14 Anywhere Office (Cloud Support) Web User Web Operation DB Meta Data Analysis Web User Database server Operation DB Data Warehouse Summary Data Reporting Mining Application User Flat Files Purchase Sales Application User Application Server
15 Cash Forecasting Accounts Receivable Inflow Outflow Accounts Payable Purchase Requests Sales Order Cash Budget Purchase Order Opportunities Purchase Receipts Manual Entries Payroll Cash Flow Daily Weekly Monthly Manual Entries
16 Paperless Office
17 Workflow Based Approvals Reject Notification Sample Purchase Order Notification PO Entry Return Forward for Review Return PO Review End (Rejected) Forward for Approval Reject PO Approval Buyer End (Approved) Supplier
18 Integrated Business Process Customer Schedule MRP Planned Order Release Purchase Request Subcontract Request Prod. Plan & Execution Purchase Order Subcontract Order Loop Process 1..n Gate Entry Outside Inside / Outside Inside GRN Subcontract Order Proc. Cmpltn. Record Quality Inspection QC Accepted RM/BO Stores Accepted/ Rejected Rejected Rejection WH Is Last Process No Bill Booking Origin from Production Yes Yes Subassy/FG Receipts Payment Stocks Picking & Shipping FG Receipts / FG Stock AR Receipts CRM Invoices General Ledger Journals AR Documents
19 Operational Reports Finance Cash On Hand Cash at Bank Stock as on Date Pending Payments as on Date Pending Receivables as on Date Budget Vs Actual as on Date P & L, Income Statement as on Date Cash & Fund Flow Purchase Pending Orders Pending Materials Followup Quotation and Price Finalization Price Fluctuation Monitoring Vendor Rating Payment Followup Sales Pending Orders Due Schedule Vs Dispatch Inventory Stock on Hand Pending Material Issue Stock Re-order Level Shelf Life item expiry GRN Day Book Productivity Productivity Daily & Monthly (Actual Qty) Productivity Report Daily / Shift Wise Productivity B/A Idle Hours - Daily Productivity Before / After Idle Time - Daily
20 Shop Floor Reports Costing Cost Sheet - Summary Cost Sheet Production Order Process wise Cost Element Details Cost Sheet Details Cost Sheet Process wise Details Material Shortage Summary Production Details Processwise Production Yield % Details Production Process Details Datewise Others Resource Usage Details Idle Hours - Monthly Idle Hours Daily Shift wise Furnace Log Daily Tonnage Production Plan Vs Actual Daily Production Rejection
21 MIS Reports General Ledger Yearly Budget Vs Actual Analysis Monthly Budget Vs Actual Analysis Operating Expenses Report Comparative P & L and Balance Sheet Monthly Profit & Loss Ratio Analysis Account Payable AP - Aging Analysis (INR) AP - Aging Analysis (FC) Discount Analysis Payable Analysis Letter of Credit - Issued List Bank Guarantee Receipts List Account Receivable AR Aging Analysis INR & FC Receivable Analysis Discount Report Interest Report Letter of Credit Receipts List Bank Guarantee - Issued List Payment Analysis Cash Management Collection Analysis Area Wise, Territory Wise, Subterritory Wise, Country Wise Cash & Bank Balances Status
22 MIS Reports Cash Management Cash Forecasting Analysis Daily, Weekly, Monthly Cash Forecasting Vs Actual Analysis Daily, Weekly, Monthly Fixed Asset Fixed Assets Summary Fixed Assets Depreciation Summary Purchasing & Subcontracting Monthly Purchase Analysis Supplier-wise, Product-wise, Buyer-wise, Class-wise Yearly Purchase Summary Yearly Purchase Value Diff. Currency Monthly Purchase Analysis Supplier-wise, Product-wise, Buyer-wise, Class-wise Purchasing & Subcontracting Yearly Purchase Summary Yearly Purchase Value Difference Currency Yearly Purchase Unit-wise, Sub Group-wise, Subclass-wise Monthly Purchase Statement MIS Purchase Control Chart Monthly Purchase Statement (Supplier-wise) Inventory Department wise Material Consumption Monthly Raw Material Consumption Monthly Packing Material Consumption Monthly Consumables Consumption Inventory Aging Analysis (Fast Moving/Slow Moving) Stock As on Date Analysis
23 MIS Reports Inventory Stock As on Date Analysis Stock Summary By Warehouse Stock Summary By ABC Class Quality Monthly Purchase Rejection (PPM) By Supplier, Item Monthly Subcontract Rejection(PPM) By Supplier, Item, Process Monthly Shop Floor Rejection (PPM) Item, Process, Machine PPM Target Vs Actual Open NCR Report Process Capability Study Analysis Quality Gauge Calibration Analysis Supplier Audit Analysis SPC Shop Floor Production Plan Vs Actual Monthly, Weekly, Daily Idle Time Analysis Productivity Analysis Utilization Rate Analysis Efficiency Analysis Monthly Production Analysis Production Plan Vs Dispatch Analysis Melting Loss Analysis Pareto Analysis
24 MIS Reports Sales Order Sales Order Booking Analysis Area-wise, Territory-wise Sub-Territory-wise Customer-wise, Salesperson-wise Product-wise Sales Analysis Area-wise, Territory-wise Sub-Territory-wise Sales Return Analysis Area-wise, Territory-wise Sub-Territory-wise, Customer-wise Salesperson-wise, Product-wise Sales Order Net Sales Analysis Area-wise, Territory-wise, Sub-Territory-wise Customer-wise, Salesperson-wise, Product-wise Profit Analysis Area-wise, Territory-wise Sub-Territory-wise, Customer-wise Salesperson-wise, Product-wise Despatch Plan Vs Actual Analysis (Ontime, Late, Early) Production Vs Dispatch Analysis Human Resources Monthly Headcount Report Salary Cost Analysis-Department-wise
25 MIS Reports CRM Enquiry s Analysis Feasibility & Regret Analysis Pending Quotation Order Lost Analysis Area, Territory, Segment-wise Market Share Analysis Marketing Opportunities List Quotations List Open APQP Projects List Customer Support Customer Complaints Analysis
26 Statutory Reports TDS PF Form TDS 16 Employee Provident Fund Challan TDS Tax Challan ITNS281 Employee PF Yearly Contribution PF Form 12 A TDS Tax Challan ITNS281 Professional Tax PF Form 6 A Professional Tax CPF Recovery Statement PF - Form 5 Others PF - Form 10 Form 9 (Revised) ESI Factory Employee Wage Slip ESI Act Form No. 7 Leave Register Form XVI ESI Challan A/C No. 1 Muster Roll ESI - Form 6 Sales Tax Excise Annexure I Annexure IA Annexure II Annexure III Annexure IV - Export Annexure IV Import Form I RG23A Part I RG23A Part II RG23C Part I Part II RG1 Service Tax Annexure 19 Part I, II,III, IV, V Annexure 63 ER -1
27 General Accounts Accounts Cash Financial An Ideal ERP Architecture Ledger Payable Receivable Sales & Distribution Quality Control ecture Planning & Manufacturing Cost Management Purchase Order Inspection Routing Manufacturing Resources Planning(MRP-II) Process Inventory Control Subcontract SPC Auditing MSA Bill of Materials Shop Floor Demand Management Manufacturing Schedule Management Gate Entry Management Master Production Schedule Taxation Transportation Management Material Requirement Planning Fixed Assets Sales Order Operational Job Order Batch ABC Contract HR & Payroll C R M Marketing Customer Support Budgeting Planning Loan Mgmt. Campaign Field Service Static Recruiting Portfolio Orientation Training & Dev. Appraisal Leave Mgmt. Medical Business Trip Ticketing Lead Opportunity Quotation AMC/ Warranty Mgt. Flexible Service WO Mgt. Rolling Self Services Govt. Relation Payroll Other Modules Plant Maintenance Engineering Project Management Cane Management Fleet Management Workflow Mgt. Activity Mgt. Notification MIS Reporting
28 Inventory Management
29 Process Costing
30 To Summarize on Ideal ERP Scalable from 5 to 500 users (unlimited users). Swift & committed implementation. Reliability on Build, Implementation & back-up Support. Focus on Best Practices for Strengthening the Industry. Enhancing Managerial Effectiveness by Connectivity to plant floor information.
31 To Summarize on Ideal ERP Support multiple Indian Tax Laws with one touch info. Provision for Enterprise centric customization & user friendly application. Customizable MIS Reports : as needed by senior management. Should support book-tallied costing.
32 An Ideal Implementation Awareness Programme Preliminary Analysis & Strategy Formulation
33 ERP Implementation Tracker A B C D E F G H I J K L 1 2 PROJECT TRACKER Date Dept. Task Task Details Responsibility Plan Start Due 14-Jul-14 All Project Kick-off 14-Jul Jul-14 All All General General Software vendor-customer Project Kick-off Meeting Implement Project Tracker Revised Implementation Plan Both S/W vendor S/W vendor Plan End Due 14-Jul Jul Jul Jul Jul Jul Jul-14 Actual Start Actual Date End Date 15-Jul Jul Jul Jul Jul-14 Status Comments Corrective action Overview Completed on Jul-14 All General Standard ASIS Study Document S/W vendor 14-Jul Jul Jul Jul Jul-14 All Mark eting General Process Study Standard Flow Chart Marketing and Sales Process Study S/W vendor S/W vendor 14-Jul Jul Jul Jul Jul Jul Jul Jul-14
34 At What cost? Should be a comprehensive end-to-end business solution at : Ideal investment (ROI 12 months)
35 ERP! From Management Perspective What should they get?
36 Management Portal : Dashboard
37 Management Portal : Dashboard
38
39 Order Booking
40 HR & Payroll CRM (Pre & Post sales) Budgeting Engineering Tool Room Management Plant Maintenance Finance Sales & Distribution Quality Control Planning &Manufacture Cost Management An Ideal ERP Architecture Accounts Payable Accounts Receivable Cash Management Fixed Assets Taxation Purchase Order Sales Order Inventory Control Subcontract Transportation Management Inspection SPA Auditing MSA Routing Bill of Materials Demand Management Master Production Schedule Material Requirement Planning Manufacturing Resources Planning(MRP-II) Shop Floor Manufacturing Schedule Process Batch ABC Accounting General Ledger Planning Recruiting Portfolio Orientation Loan Mgmt. Leave Mgmt. Training & Dev. Ticketing Medical. Marketing Static Flexible Business Trip Appraisal Self Services HR Intelligence Payroll Govt. Relation Customer Support Rolling Notifications Workflow Management Activity Management Business Intelligence SMS, & Pop-Ups
41 Business Integration via ERP allows the machine & human resources to : * Systematically exchange intelligence * Respond with speed & superior performance which will help create
42 On his Dream of 10% + growth in Indian manufacturing sector, on a sustained basis Our Prime Minister requested International Industry Leaders to : Come, Make in India
43 And we Industries can say, We will.
44 Thank you Presented by: Appu Director Customer Relationship Roadmap IT Solutions Private Limited Pondicherry, India
Professional Edition Enterprise Edition. Yes Yes. Yes Yes. Production Yes. No No No No No No No. Plant Maintenance Service Management.
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