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ERP for
Manufacturing
Organizations
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Types of resources
Peoplepower
Materials
Money
Time
Knowledge
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For information to be useable
it must be
Correct
Current
Consistent Clear
Complete
Available
Secure
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Evolution of Logistical Systems
OrderPoint
MRP
MRP II
ERP
CRM/ SCM
Computing Complexity
1950 1965 1980 1995 2000
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Order Processing - Process
IntegrationOrder entry
Productionorder
Materialrequirements planning
Invoice
Accountsreceivable
Storage/Delivery
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Integration
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Simply put, an ERP System is.. An IT based transaction processing system
Integrated information management and retrieval Covers strategic and operational requirements of
the business
Finance
Manufacturing
SalesMaterials
HR
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What do ERP systems cover ?
MarketingMarketingManufacturingManufacturing
MaterialsMaterials
DistributionDistribution
FinanceFinance
EngineeringEngineering SalesSales
Human ResourcesHuman Resources
Planning andPlanning and
ExecutionExecution
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Business and technical
advantages of using ERPs Implements best-of-class practices and provides
benchmarking opportunities
Enables easy scale-up of operations
Enables real-time data creation by the persons actually
responsible for it Pushes the latest data to the operational-level personnel for
better and faster decisions
Integrates organizational data into a single, comprehensivedatabase
Provides correct and up-to-date online data and populates
the warehouse for analysis and reporting
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Benefits of ERP
Information integration Reduction in cycle time
Improved resource utilization
Better customer satisfaction
Improved supplier performance Increased flexibility
Reduced quality costs
Better analysis and planning capabilities
Improved information accuracy& decision making capability Use of latest technology
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How does ERP create value?
Integrate the organizations activities
Force the use of best practices
Enable organizational standardization
Eliminate information asymmetries
Provide online and real-time information
Allow simultaneous access to the same data for planningand control
Facilities intra-organization communication Enable inter-organization collaboration
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Risks of ERP
People issues
Internal staff adequacy
Project team Training
Employee re-location and re-training
Top management support Consultants
Discipline
Resistance to change
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ERP Implementation
Standard ERP ( directly using all featuresthat has come with the product)
Customization as per our requirement
( using special programs written by us, using
our logic) , then integrating with the ERP
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ERP implementation- the hidden costs
Training
Customization
Integration and testing
Data conversion
Data analysis ERP consultants
Brain drain (Employee turnover)
Continuing maintenance
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Different phases of ERP implementation
Pre-evaluation screening
Package evaluation
Project planning phase Gap analysis
Reengineering
Customization Implementation team training
Testing
Going live End-user training
Post-implementation (Operation & Maintenance)
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Organization of the implementation team
Chief executive officer
Executive committee
External consultants
Project manager
Project management team
Work teams or implementation teams
Technical support team Administrative support team
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Implementation issues
Project size
Lengthy implementation time
High initial investments
Unreasonable deadlines
Insufficient funding Interface
Organizational politics
Configuration difficulties
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Before you LEAP
Assembling the participants Feasibility study review
Project mission and vision statements creation
Determination of organizational structure
Determination of the modules to be implemented Creating the core team
Establishing the training needs
Establishing the data conversion/migration strategy
Establishing interfaces
Determining work estimates
Cost of Consultants
Calculation of implementation time
Identifying constraints
Establishing polices and guidelines
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ERP Implementation (Transition) Strategies
Transition strategies
Big bang strategy
Big bang variants
Phase implementation
Parallel implementation
Process line transition strategy
Hybrid Transition strategy Choosing a strategy
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ERP and Related Technology
Business process reengineering
Business Intelligence
Data warehousing
Data mining
On-line analytical processing
Product life cycle management Supply chain management
Customer relationship management
Geographical information systems
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Business Intelligence
Introduction Reasons for business intelligence
Benefits of BI
Factors influencing Business Intelligence
Business intelligence technology
Techniques for integrating business intelligenceinto business processes
Business intelligence and ERP
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BPR-The different phases
Phase 1:Begin Organizational Change
Phase 2:Build the reengineering organization
Phase 3:Identify BPR Opportunities
Phase 4:Understand the Existing process
Phase 5:Re-engineer the process
Phase 6:Blueprint the New business system Phase 7:Perform the Transformation
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Thank You
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