ERP

Evolution of ERP
1960s - Materials Requirements Planning (MRP I) Late 1970s To Early 1980s - Manufacturing Resource Planning (MRP II) Today Enterprise Resource Planning (ERP) system
Customers
M R P

Customers
E R P

Customers

Vendors

Vendors

Vendors
ERP Stage 2

MRP

MRP II

ERP Stage 1

Perception of ERP
ERP system has following technical enhancements: Graphical User Interface (GUI) Relational database Use of 4th Generation languages Use of Computer Aided Software Engineering (CASE) tools in development Client / Server architecture Open system portability

Expectations from ERP

GENERIC BENEFITS: Integration - Data & Communication Flexibility Designed for all types of business Worldwide Usage Interactive Processing Open System

Expectations From ERP

Availability of the best International Practices Availability of International Expertise to address issues On-line Service Support Scalability of Functionality Phenomenal Computational Power Excellent Data Transfer Facility

Expectations from ERP

TANGIBLE BENEFITS:

Increase in Sales Increase in Productivity Reduction in Purchase Cost and Purchase Lead Times Reduction in Inventory Levels Reduction in Overheads

Expectations from ERP

INTANGIBLE BENEFITS:

Faster Response to Customer Needs Increased Accountability throughout the Organization Improved Resource Utilization Improved Information Accuracy Availability of Time Quality of Work and Work Culture Do the Things Right the First Time Improved Co-ordination between Departments

Critical Success Factors

Top Management Vision Top Management Mission Top Management Commitment Spare the Un-sparable resources to the Core Team Complete Empowerment of the Core Team members Capability of HANDLING Complete Empowerment Adequate infrastructure Organization Culture :Caring, Sharing & Learning Environment

Critical Success Factors

Performance Measure Performance targets Appropriate Technology: LAN, WAN, H/W Correct ERP Package Selection Experienced Consultants Ownership Team Spirit: One for All & All for One (Complementing & Supplementing)

ERP Components Hardware

Software Networking: LAN & WAN Change Management Challenges :

Organization Structure Organization Processes Training

Strategic Information Flow

Data Management

Implementation Methodology

ERP Solution

Enterprise Resource Planning

Integrated systems Examples

International environment

SAP PeopleSoft Oracle Financials Accounting Purchasing HRM Investment management

Basic features included

Multiple currencies Multiple languages Procedures and practices Follows local (national) rules Follows consolidation rules Example

U.S. firm with European subsidiaries. Data is entered once European reports are generated for subsidiaries following local rules Results are converted and consolidated to U.S. firm

SAP

Based in Germany, now worldwide Support for international transactions and multinational firms Runs on multiple database and hardware platforms Can handle large and small companies Expensive, but price is relative.

Financials Logistics Human resource management

SAP Financials

Financial Accounting

General ledger Accounts receivable/payable Special ledgers Fixed assets Legal consolidation

Treasury

Investment Management

Investment planning/budgeting/control Depreciation forecast/simulation/calculate

Overhead cost Activity based costing Product cost Profitability analysis

Cash management Treasury management Market risk management Funds management

Executive information system Business planning and budgeting Profit center accounting Consolidation

Enterprise Control

Controls

SAP Logistics

Purchasing Materials management Manufacturing Warehousing Quality management Plant maintenance Service management Sales Distribution

Product data management

Master data management Design and change process Product structure Development projects Sales activities Sales order management Shipping and transportation Billing Sales information system

Sales and distribution

SAP Logistics

Production planning and control

Project system

Production planning Material requirements planning Production control and capacity planning Costing Order information system Shop floor information system

Work breakdown structures Network planning techniques, milestones Cost, revenue, financial, schedule, and resource management Earned value calculation Project information system

SAP Logistics

Materials management

Purchasing Inventory management Warehouse management Invoice verification Inventory controlling Purchasing information system Quality planning Quality inspections Quality control Quality notifications and certificates Quality management information system

Plant maintenance

Quality management

Structuring technical systems Maintenance resource planning Maintenance planning System for technical and cost accounting data Maintenance information system

SAP Logistics

Service management

Integration

Customer installed base administration Service contract management Call management Billing Service information system

When the clerk enters a sale, bills are generated automatically (mail, fax, or EDI). Sales and revenue are instantly updated in financial and control modules. The sales information system and EIS provide various up-to-date views and reports.

SAP HRM

Personnel management

HR master data Personnel administration Information systems Recruitment Travel management Benefits administration Salary administration

Payroll accounting

Gross/net accounting History function Dialog capability Multi-currency capability International solutions
Shift planning Work schedules Time recording Absence determination Error handling

Time management

Organizational management

Organization structure Staffing schedules Job descriptions Planning scenarios Personnel cost planning

SAP HRM

Personnel development

Other features

Career and succession planning Profile comparisons Qualifications assessments Additional training determination Training and event management

SAP Business workflow Internet scenarios Employee self-service

SAP Integration

Financial general ledger holds all base totals. Sub-ledgers are defined for important accounts

Simple example

Accounts payable Manufacturing User-defined etc.

Manufacturing uses an item from inventory The quantity on hand is updated The inventory value is automatically changed

All transactions automatically flow through

On any sub-ledgers On the general ledger

Including currency conversions Special rules can be defined

Reports are generated in any currency New orders and payments can be generated through EFT.

Supply Chain Management

Design feasibility & production costs Design & Engineering Designs and Quality product planning planning & monitoring Vendors Manufacturing Marketing Quality control & Custom orders Customers

planning & monitoring

Distribution Purchasing Demand-pull Mass Customization Just-in-Time partnerships & joint development Administration & Management

Quick Response partnerships & joint development

HRM

Accounting

Finance

MIS

Purchasing/Logistics
Buyer
Suppliers

Identify product features

Provide product details Request for Proposal Evaluate suppliers Negotiate contract Identify exact items and costs Correct errors Receive products Match receipts against order Return items Pay supplier

Negotiate contracts Verify orders and times Correct errors Schedule delivery Monitor shipments Handle returns Monitor payments

CASE ERP

PROGEN ERP of Progen ERP Systems MODULES

Human Resources Financial Manufacturing

Front End /Back End Visual Fox

HUMAN RESOURCES (Module)

Personal Information Human Resources Development Leave and Attendance Payroll

HUMAN RESOURCES

Personal Information

Define Organizational setup

Department,categories,grades and position

Maintaining complete employee information including name, address, qualifications, family details such as sex, blood groups, mother tongue, religion Maintaining complete service record Process placement transaction such appointments, Confirmation, Promotions, Transfer, Increment, Suspension, Lay-off etc Access all information on-line

HUMAN RESOURCES

Human Resource Development

Education and Training Career Planning Promotions and Transfers Performance appraisal Awards and Disciplinary actions

HUMAN RESOURCES

Leave and Attendance

Define various types of leaves and rules related to entitlement, carry forwards etc Automatically create leave cards Process leave transactions such as leave applications, cancellation and encashment. Interface with Attendance Machine Generate absenteeism, late coming, early going and unauthorized absence reports.

HUMAN RESOURCES

Payroll

Comprehensive Payroll Structure, which lets you define payment and deduction elements and various rules Enter one time payment and deductions Enter Fitments or promotions / increments Process payroll and print reports such as Pay slips, Pay sheet Register, Cash & Bank statements, recovery statements such as LIC Premium, Loans, Advances etc. PF statements and ESI statements

HUMAN RESOURCES

Payroll

Print TDS certificates Print all statutory reports such as Form #A, Form 6A etc. Calculate Bonus/Ex-gratia easily Automatically calculate Income Tax Pay arrears of any period due to price index change, wage revision or attendance

FINANCIAL (Module)

Currency Management General Ledger Budgeting Accounts Payable Account Receivables Bank Reconciliation Sales Tax

TDS Fixed Assets Fixed Deposits

Currency Management

Define currency Enter daily exchange rates Fully EURO compliant

General Ledger

Define Accounts Chart Define cost center charts with budgets Define Analysis charts Multiple accounting periods may be opened simultaneously Enter voucher online Full multi currency support in vouchers Online posting of vouchers in General ledgers and Sub ledger

General Ledger

Print Payment Advices, Cheques, Debit Notes, Credit Notes and Vouchers online Automatic generation of debit and credit entries base of information entered in the voucher Automatic calculation of exchange gain/ loss for foreign currency transactions Generate bank book, cash books and other day books , Ledgers and Sub Ledgers

General Ledger

Generate four level grouped trial balance instantly Generate Cost Allocation and Analysis Report quickly Find Accounts position from balance to transaction using drill down queries Generate Closing Entries automatically Generate Profit and loss a/c and balance sheet

Budgeting

Define budget for Cost Center, GL A/c and Analysis heads Budgets may be fixed or variable Generate Budget provisions and Budgets v/s Actual report

Accounts Receivables

Access complete customer information Create sales Vouchers automatically form sales invoice generate G/L entries Create Receipt Vouchers on settlement of bills Track receivables by Party/Due Date Generate Age wise analysis for any period Send reminder letters for paymants due Track party wise receivables from balances to transactions using drill down queries

Bank Reconciliation

Enter Pass-Book on-line and match with Bank Book Create commission /interest vouchers while entering in the pass book Generate Bank Reconciliation Statement Calculate interest for any period

Sales Tax

Generate Purchase Register Generate Sales Register Track sales Tax Forms to be issued Generate sales Tax Forms issue register Track Forms to be received form buyers

TDS

Calculate TDS on payments Generate TDS register Record deposits of TDS Challans in bank Generate and issue TDS certificates Generate annual returns Record TDS on receivables Track certificate to be received

Fixed Assets

Record comprehensive details of each asset Record additional transfers and retirement of assets Track assets by asset number ,description location Maintain books of depreciation as per company law as well as Income Tax rules Post depreciation entries in GL Capitalize revenue expenditure on assets Track revaluation of assets

Fixed Deposits

Record receipt of fixed deposit Renew , refund fixed deposits Calculate periodic interest And TDS Generate Interest cheques and advices Generate TDS certificates Handle brokerage payments

Manufacturing

Engineering Material Requirement Planning Purchasing Inventory Control Quality Control Modvat Process Modeling

Manufacturing

Production Planning Operations Management Distribution Planning Finished Goods Inventory Sales Excise

Engineering

Define units and conversion rule Define items and detail properties Define Bill of Material for each product

MRP

Define Production Plan Carry out BOM explosion for the plan and generate material requirement Generate MRP on any interval and create Purchase Requisition based on MRP plan

Purchasing

Define Payment Terms and Standard purchase Terms Define sales tax rules, Custom and Excise Rules for each items (as applicable) Create vendor item catalog Send request for Quotation to vendors

Purchasing

Each quotation received and perform comparative analysis Approve quotations for purchase Create PO online based on requisitions Suspend , cancel or close PO Create Deliver schedule releases Create PO Amendments Track Amendment history Assess vendor performance

Inventory Control

Enter all stores transaction online Track all material by Batch No./Lot no. Generate stock ledger instantly Value inventory based on several methods Print Excise Challans on removals Create various analysis report (ABC, XYZ,FSN,VED)

Quality Control

Define comprehensive Quality Control specifications for each item Access GRNs awaiting QC online Access Test Intimations for production Generate QC register for item/batches to be analyzed and print Sampling Slips Update test results online and match standards to approve or reject material

Quality Control

Print test certificates Post accepted / rejected quantities in stock ledger online Tack rejections by vendors as well by items Full compliance with FDA Rules

Modvat

Automatically post entries in RG23 Part 1 Update Modvat availed in RG23 Part 2 Expunge modvat availed on removals Print RG23A/C Part I & Part II registers

Process Modeling

Define production facilities in terms of Production Center, Work Center and Machine Define manpower assigned for each work center / machine

Process Modeling

For each product define Process Bill

Sequence of manufacturing operations Machine used for each operation Inputs , outputs yield time and manpower for each operation Measurement required to be taken Test requirements (if any) Standard Operating Procedure

Production Planning

Create Production Plan based on Distribution Plan Project gross raw material requirements Assess plan feasibility with respect to capacity and manpower currently deployed Analyse capacity utilisation w.r.t Plan Analyse manpower utilisation w.r.t Plan Track plans vs. Actual

Operations Management

Define work calendars for production centers Create Batch Orders for execution Generate Machinery Load Schedule and Manpower requirement Schedule Automatically generate Stores Requisition for raw materials for a batch order

Operations Management

Enter Batch Details (operation wise) including

Inputs and outputs at each operation Measurement taken Test results for outputs (if required) Operation start time and finish time Stoppages (if any) with reasons

Generate intimations for QC for testing of intermediates and finished goods

Operations Management

Print batch tickets for completed batch Generate various Production report including capacity utilization report , manpower utilization report, Yield variance report, Batch costing report and WIP report

Distribution Planning

Define each product and its complete details such as pack size, weight etc Group products by Product Group for planning, reporting and analysis Group marketing areas by zone, regions and territories Define depot wise sales forecast Create depot distribution plan based on sales forecast and inventory held Create depot Dispatch Schedules form Distribution Plan and Production Plan

Finished Goods Inventory

Enter all stores transactions online Track stocks Batch wise with manufacturing date and expiry date details Print stock Statements and Stock Ledger instantly with ultra fast processing engine Print Excise Bond Stock Statement

Sales

Maintain finished products price list Comprehensive Pricing Model lets you

Define state wise sales tax trade discount,retailers margins Automatically calculate net trade price and assessable rate (for Excise) Define free quantities under schemes Create state wise price lists for various states for items with uniform MRP

Sales

Maintaining extensive customer information Process requests for quotations Process sales orders Create dispatch orders from sales orders Create dispatch orders from depot dispatch schedule

Sales

Create sales invoice , depot stock, transfer note , excise gate pass Print sales register Print daily stock & sales statement Print various other reports Full integrated with A/c Receivables

Excise

Maintain P.L.A A/c Post Debits in PLA or RG23 part II on preparation of Excise Gate Passes Print PLA Register Print RG23 A/c part II register Print Periodic RT-12 Return

System Requirements

Network Server

Intel PII based with min 128 MB ram

Network Operating System

Windows 2000 server Windows NT server Novell Netware Linux

System Requirements

Networking

Fast Ethernet based

Desktop Operating System

Windows 2000 Professional Windows 98 Windows 95