erp manufacturing

7/28/2019 ERP Manufacturing

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ERP - For

MANUFACTURING INDUSTRY

VELCOMExceed Expectation

VELCOM ERP IT SOURCING PVT LTDAn Independent ERP Consulting & Talent Sourcing Company

MAY20101


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AGENDA VELCOM Introduction

ERP Introduction & Modules

ERP Relevance to Manufacturing Industry

ROI TCO


ERP Project Phases

Success Stories

Question Hour

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ABOUT VELCOM An Independent ERP Consulting & Talent Sourcing Company

VELCOM do not sell or implement any particular ERP and provides neutral &

objective consulting to its customers

More than 1000 person months experience in the ERP related areas Project Audit, Program Management, Project Management, Functional &

Technical Consulting, Talent Sourcing

Ex ertise in various leadin International la ers like SAP Oracle Peo leSoft JD


Edwards, Microsoft among others An extended IT arm for its customers

Help them build their IT roadmap for their long term business objectives

Implement projects in a phased manner based on their business priorities

Board of Advisors from leading Tier I Organizations like IBM, HCL

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ERP CONSULTING PRACTICE - SERVICES

Readiness Audit:

First step in the ERP Project Initiative and includes People Readiness (Management,

Business & IT); Process Readiness (Business Requirements & Data); System

Readiness (Software, Hardware, Bandwidth & others). Goal Setting & Budget Planning:

Help to set the objectives & have a budget planned, to realize the complete benefits

from the ERP Investment. This includes Project Roadmap & Goals; Business


equ remen en ca on; o a os o wners p ann ng.

Product & Vendor Selection:

Includes Product & Vendor - Evaluation & Selection; Contract Management

(including Scope, Schedule, Deliverables, TCO).

Project Orientation Workshop:

Workshop would highlight the benefits that can be achieved by the organization by

successful ERP Implementation and detail the challenges that needs to be managed

during the ERP Project Implementation.

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ERP CONSULTING PRACTICE - SERVICES

Program Management:

Ensure that the Client & Vendor teams function together to achieve the project

objectives. This includes Project Contract Review; Set project objectives; Freeze key

ERP Business Requirements; Review Project Progress and set Action Plan to ensure

Project completion on time & budget; Project Sign-off once the project is

completed

Post-Implementation Audit:


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project Objectives (Plan & Achievement); Audit the Utilization Level of the ERP(Functional, Technical & MIS Fitment; People Usage Level); Draft the Action Plan to

realize complete benefits of their ERP Investment.

Business Process Re-Engineering:

Aims at improving the efficiency & effectiveness of the processes that exist within &across organizations. This includes Process Identify; As-Is (Review, Analyze &

Update); To-Be (Design, Test & Implement).

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What is Enterprise Resource Planning (ERP)?


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ERP is an integrated computer-based system used to manage internal & external resources including

tangible assets, financial resources, materials & human resources of an organization


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ERP MODULES - OVERVIEWFinancials

General Ledger

Fixed Assets

Cash Management

Budget & Forecast

Cost Accounting

Inter-Company & Consolidation

HRMS

Recruitment

Sales & Receivables

Receivables

Invoicing

Order Management

Return Order Management

Pricing & Discounting

Tax

Purchase & Payables

Payables

Invoicing

Order Management

Return Order Management

Pricing & Discounting

Tax

Inventory &

WarehousingStock Keeping Unit & BOM

Substitution & Cross Reference

Item Tracking & Cycle Counting

Logistics In & Out Bound

Multiple Locations

Barcode

Planning

R&D

Production

Production Order

CRM

Marketing Automation


CompensationTraining & Development

Attendance System

Payroll

Capacity PlanningFinite Loading

Demand Planner

RoutingShop Floor Control

Lean Manufacturing

Sales Force AutomationSales Management

Service Management

Email Integration

Add-onsProjects

Quality

Enterprise Asset Management

Balance Scorecard

Travel

Compliance & Governance

Industry Solution

Web PortalEmployee

Customer

Sales Person

Vendor

Consultant

AnalyticsBusiness Analytics

Business Intelligence

Report Builder

AdministrationUser Management

Configuration Tool

Business Connectors

Backup / Restore

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ERP TECHNOLOGY OVERVIEW


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ERP TECHNOLOGY OVERVIEW


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MANUFACTURING INDUSTRY KEY CHALLENGES Achieving Growth & Profitability while meeting customer expectations against

competition

Continually strive for following to grow & be profitable

Reduce Production & Supply chain costs

Improve Process efficiencies & Product quality Satisfy an avalanche of Customer demands & Regulatory requirements

Drive to optimize manufacturing processes in order to increase agility & to

ride the efficiency curve to serve the customer better


Other Key Challenges Better Customer Service

Business Integration

On-time Delivery

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ERP BENEFITS

Automate & Streamline Business Processes with Greater Adaptability

Align key business processes in planning, design, development, procurement, inventory,

manufacturing, sales & delivery

Match overall supply with demand and manage all resources & assets along the entire value chain

Respond quickly to Changing market conditions

Use integrated, real-time sales & operational information to accurately anticipate, plan for & respond

to orders and new demand, as well as reduce forecasting errors

Model production capabilities, quickly share engineering information & adjust product mix for


changes in demand to capitalize on new opportunities

Support compliance with regulatory requirements, including safety & environmental regulations, by

quickly validating manufacturing processes while conforming to individual markets requirements

Decision Making on Strategic Business Insight

Rich out-of-the-box analytical performance measurement tools hone the strategic planning &monitor the overall health of the organization

360-degree visibility on accurate forecasts, effective budgets, proper resource allocation & goals

Combine operation & financial analyses to optimize day-to-day operation

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ERP BENEFITSEnhance Customer Satisfaction

Delivering products on time with high quality

Faster time to market, higher-quality products & accurate information provided to customers

Improve Productivity

Collaborate across business functions to consolidate information, align strategies & standardize

operational processes

Increase information worker productivity through realistic, appropriate business roles

Increase adaptability to process changes by enhancing existing skills & assets with real-time

information


Fuel efficiency & Reduce risk across the entire organization Standardize processes & easily share best practices

Support multiple manufacturing modes & a hybrid or mixed-mode environment

Reduce time across the Order Process Cycle (Quote-Order-Delivery) there by reducing the loss risk

Gain insight into Costs & Process efficiency Analyze & manage production schedules with reporting tools & what-if scenarios, including capacity

loading, shop floor activities & production costs

View real time client, contract & project details for an accurate accounting of profitability

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ERP BENEFITSManage Demand Pro-actively

Trace expected to actual sales & forecast future sales while taking into account seasonal &

promotional effects

Use simulations, demand models & error analysis to determine optimal stock levels for better

profit & operations margins

Expand Sales Success

Monitor market demand & meet margin objectives through effective promotions

Increase capacity to evaluate product turnover in response to campaign & align production &

inventory accordingly


Improve Customer Service

Enhance the security & reliability of deliveries with the global available-to-promise (ATP) view,

which provides delivery alternatives in the event of unexpected disruptions

Automate sales & purchasing processes, track & locate inventory items quickly & help ensure

accurate pricing & discounts to improve customer satisfaction Deep visibility & control over the supply chain, increase order fill rates, reduce risk of stock out or

inventory excess & enhance overall responsiveness to customers

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ERP BENEFITSIncrease Revenue

Higher profit margins by automating & streamlining all business processes resulting in reducedoperations costs through adherence to better business practices

Improved cash flow by more efficient & accurate billing procedures, lower inventory levels & quick

turnaround

New opportunities identified through continuous, real-time monitoring of KPIs

Opening up new sales channels like e-commerce

Reduce Operating Costs

Decreased overall o eratin costs b convertin time-consumin manual rocesses into


automated, streamlined, real-time business process management Lower transportation costs through consolidated orders & combined shipments

Reduced warehouse costs from optimized utilization of resources & assets

Reduced cost of sales from use of profitable sales interaction channels

Sustained cost savings for all spend categories due to a standard approach to both strategic &

operational procurement Reduced IT costs because administration & usability have been improved, fewer interfaces are

used & IT resources have been freed up to focus on value-adding strategic projects

Lowered TCO (total cost of ownership) by leveraging technology for facilitated exchange &

interoperability with non-ERP systems

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ERP BENEFITSIncrease Visibility & Simplify across the Supply Chain Process

Empower users with real-time data through a user-friendly interface & Role centre that provides

access to tasks & critical Business Intelligence data such as KPIs & custom reports

Exchange data across multiple systems & gain visibility into business processes to improve decision

making & control at every level of the supply chain

Connect inventory, production, purchasing & sales processes to gain accurate, real-time view of

the entire supply chain.

Improve collaboration with trading partners with support for a wide range of predefined XML

business documents


Reduce Cost by optimizing supply chain processes

Improve productivity, adapt internal processes quickly to meet new demands & optimize

processes across sites in the supply chain

Better Collaboration with all Supply Chain Partners

Enhance collaboration among departments, customers, suppliers, business partners for asignificant improvement

Integrate partners of all sizes to release data throughout the chain thats accurate, complete &

available up to the minute

Costs reduced, processes speed up & smooth flowing operations throughout the supply chain

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ERP BENEFITSDemand Driven Supply Chain Approach can help

Maintain competitive edge

Integration of supply chain processes with other business processes e.g. Sales & Operations

Respond effectively with a comprehensive, cross-functional view of the company, better

understanding of customer needs through downstream data analysis & effective collaboration

between trading partners

Control & Streamline Inventory

Use powerful inventory management tools to improve forecasting & planning, match supply with

customer demand


Create sales & purchasing forecasts based on specific items & time periods

Meet Complex Inventory requirements

Create multi-dimensional inventory records & track items throughout the supply chain for online

& accurate inventory status

Enhance Material & Product Traceability Implement effective recall procedures & maintain complete forward & backward traceability

of any material

Track materials from purchase through production & sale with lot & location control

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ERP BENEFITSIntegrate Design innovation into Manufacturing

Shorten time to market for product innovation by integrating design & manufacturing processes &

collaborating effectively with suppliers, partners & customers

Support a wide range of Manufacturing processes & Business models

Tailor the solution to serve make-to-stock, make-to-order, assemble-to-order, configure-to-order,

& engineer-to-order environments

Manage items from design through assembly, testing, shipping, installation & maintenance

Meet specific customer needs by configuring build-to-order items easily & effectively

Hel efficientl roduce & deliver roducts that follow custom formulas or reci es & take full


advantage of manufacturing & supply chain capabilities Empower to streamline, monitor & control the entire production cycle

Improve Project management for customized orders

Create estimates & quotes quickly & accurately

Forecast machine & resource requirements for strategic scheduling & precise delivery times byanalyzing project cost & order processing time

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ERP BENEFITSIncrease Productivity with a Role-Based Solution & Centralized Information

Provide empowering self-service & role-specific information that increase user productivity

Personalize portal to meet business users specific needs

Manage centrally the critical documents (e.g.) BOM, routing data, CAD designs, recipes, project

plans & item information

Streamline Integration with Web services

Improve integration within & Outside the organization by using a flexible Web services framework

Maintain high production levels & on-time delivery rates by sharing portal-based, real-time

information about s ecifications, order status & ualit control testin amon ke de artments &


trading partners

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ERP CONSTRAINTS

ERP Customization is limited or expensive

Business Process Re-engineering to fit the "industry standard" prescribed

by the ERP may lead to a loss of competitive advantage

ERP is sometimes too rigid or difficult to adapt to the specific workflow &

business processes

Many integrated links need high accuracy in other applications to work


. .

Once established, ERP switching costs are very high

Resistance in sharing sensitive internal information between departments

can reduce the effectiveness of ERP

ERP once implemented is the lifeline of the business and downtime costs

are very high & impact the business critically

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NUCLEUS RESEARCH ERP ROI SURVEY

PARAMATER SAP ORACLE MICROSOFT AX

Customers Surveyed 21 22 16

Customers % achieved positive

ROI within the payback period

43% -

34 months

65% -

37 months

75% -

23 months

Deployment Size 2-5000 Users 20-3400 Users 35-800 UsersReduced staff cost or

Improved productivity

50% 48% 56%

Improved operation management 30% 39% 75%


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Reduced IT cost - 26% 44%Person-months of internal team

required to deploy ERP

372 81 52

Person-hours of training per user 49 27 29

Average FTEs required for support 33.6 9 2.4

ROI = (Year1, Year2, Year3)/3

Initial Cost

Benefits include Direct cost saving, Productivity & Indirect

benefits. Costs include Software, Hardware, Personnel,

Consulting & Training.


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NUCLEUS RESEARCH ERP TCO SURVEY


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ERP PROJECT PRE IMPLEMENTATION PHASE

Organization Readiness Audit

Key Business Requirement Identification

Project Roadmap - Present & Future

Project Goals

Return On Investment Plan


Total Cost of Ownership Plan

Software & Vendor Selection

Contract Management

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ERP PROJECT IMPLEMENTATION PHASE

Program Management

Project Planning, Staffing & Deliverables

Communication Mechanism

Business Requirement Finalization

Training & Documentation


User Acceptance Testing

Project Sign-off

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ERP PROJECT POST IMPLEMENTATION PHASE

Post-Implementation Review

Action Plan for the Project Implementation done

Plan for Next Project Implementation


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ERP AUTOMOTIVE SUCCESS STORIES INDIA


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QUESTIONS


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erp manufacturing

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