Enterprise Resource Planning, Business Process Re-engineering, &

Total Productive Maintenance

Presented by

- Rajesh Singh

- Prakash Rauniyar

- Pinju Chaudhary

- Lidar Shrestha

- Anjana Maharjan

Facilitated by

- Mr. Rajendra Pokhrel

Contents to be Discuss

• Enterprise Resource Planning (EPR)

• Trends in ERP

• Advantages and Disadvantage of ERP

• Business Process Re-engineering (BPR)

• Process of BPR

• Total Productive Maintenance (TPM)

• Importance of TPM

• Types of TPM

Enterprise Resource Planning (ERP)

• Business Management Software

• Track business resources: cash, raw material, production capacity

• Track status of business commitment: orders, purchase, orders & payroll

• It has potential to reduce transaction costs and Increase the speed & accuracy of information.

• It integrates varied organizational system and facilitates error-free transaction & production.

ERP continue…

• Collect, store, manage, and Interpret data.

• Which Includes:• Product planning, Cost & Development

• Manufacturing or Service Delivery

• Marketing & Sales

• Inventory Management

• Shipping & Payment

Trends on ERP

• Mobile ERP

• Cloud ERP

• Social ERP

• Two-tier ERP

Advantages of ERP

• ERP can improve quality and efficiency of the business.

• ERP supports upper level management by providing information for decision making.

• ERP creates a more agile company that adapts better to change.

• ERP can improve data security.

• ERP provides increased opportunities for collaboration.

Disadvantages of ERP

• Customization is problematic.

• Re-engineering business processes to fit the ERP system may damage competitiveness or divert focus from other critical activities.

• ERP can cost more than less integrated or less comprehensive solutions.

• High ERP switching costs can increase the ERP vendor's negotiating power, which can increase support, maintenance, and upgrade expenses.

• Overcoming resistance to sharing sensitive information between departments can divert management attention.

• Integration of truly independent businesses can create unnecessary dependencies.

• Extensive training requirements take resources from daily operations.

Business Process Re-engineering (BPR)

• Originally pioneered in the early 1990s,

• Business process redesign, business transformation or business process change management

• Business Management Strategy

• Focused on analysis and design of workflow and business processes

• Re-engineering is fundamental rethink and radical redesign of business process to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service & speed.

• Process implies on strong emphasis on how work is done within an organization.

An example of a business process: Credit card approval in a bank.

• An applicant submits an application. The application is reviewed first to make sure that the form has been completed properly. If not, it is returned for completion. The complete form goes through a verification of information. This is done by ordering a report from a credit company and calling references. Once the information is verified, an evaluation is done. Then, a decision (yes or no) is made. If the decision is negative, an appropriate rejection letter is composed. If the decision is positive, an account is opened, and a card is issued and mailed to the customer. The process, which may take a few weeks due to workload and waiting time for the verifications, is usually done by several individuals.

Objective of BPR

• Customer focus

• Speed

• Compression

• Flexibility

• Quality

• Innovation

• Productivity

Steps in BPR

• The Envision stage: the company reviews the existing strategy and business processes and based on that review business processes for improvement are targeted and IT opportunities are identified.

• The Initiation stage: project teams are assigned, performance goals , project planning and employee notification are set.

• The Diagnosis stage: documentation of processes and sub-processes takes place in terms of process attributes (activities, resources, communication, roles, IT and costs).

Steps in BPR continue…

• The Redesign stage: new process design is developed by devising process design alternatives and through brainstorming and creativity techniques.

• The Reconstruction stage: management technique changes occur to ensure smooth migration to the new process responsibilities and human resource roles.

• The Evaluation stage: the new process is monitored to determine if goals are met and examine total quality programs.

Total Productive Maintenance (TPM)

• Total Productive Maintenance (TPM) is a maintenance program which involves a newly defined concept for maintaining plants and equipment.

• TPM goal is to increase production while, at the same time, increasing employee morale and job satisfaction.

• Adoption of life cycle approach for improving the overall performance of production equipment.

Importance of TPM

• Avoid wastage in a quickly changing economic environment.

• Producing goods without reducing product quality.

• Reduce cost.

• Produce a low batch quantity at the earliest possible time.

• Goods send to the customers must be non defective.

Types of TPM

• Breakdown maintenance

• Preventive maintenance• Periodic maintenance ( Time based maintenance - TBM)

• Predictive maintenance

• Corrective maintenance ( 1957 )

• Maintenance prevention ( 1960 )

Conclusion

Above mentioned ERP, BPR, and TPM these are the Organizational tools that are used to increase the production and service at reduction cost matching the same standard of quality in lesser time.

Any Queries?