12:50 PM
ERP - A review of System Benefits and Proposed Features
Agenda
Limitations of a manual system
ERP business advantages
Modules covered
Limitations of a manual system
Huge compilation of
valuable data exist in files resulting in:
High cost of maintenance in terms of time
& money
Inability to provide instant results to the
simplest queries
Hence the non-productivity of these
activities
Limitations of a manual system
Inability to efficiently
manage scattered resources
High possibility of Theft
& leakages
Errors in accounting
entries
Reliability of baseline
data
Financial planning becomes
questionable
Inventory management
- Improper material planning leads to
shortages and problems for Production Planning.
- There is low control on process wastages,
material issuances in small quantities and
percentage of ‘extra’ purchases.
- Transparency in procurement can be
questioned in absence of standard rules
Planning for production
- Data from production
floors, inventory is not available in real-time for quick decision making
- Optimized utilization of
available resources becomes a tough challenge
- A large amount of time is
consumed is focusing on ‘how’ rather than on ‘what’ and ‘when’.
Production Floor
Feedback loop most important for:
- Quick decision making
- Enhance occurrences of preventive measures
- Prepare realistic plans
- Enable the organization to be more agile
Human Resources
HR evaluations are hard to
estimate
Optimized employee
management is seldom achieved resulting in delayed decisions and wastage of
valuable resources
Administration
- Less than desired
visibility into processes
- Accurate and critical
information not available in real-time
- A non-efficient information
communication mechanism leads to a nonflexible organization
ERP Business Advantages
- Most important benefit is
the transparency
- Activities are tracked and
logged
- Build-up of organization’s
knowledge repository
- Availability of critical
information without any hassle and delay
- Jobs/approvals/requisitions
etc do not get stuck anymore- they are automatically routed to the
next levels for processing
next levels for processing
- Integrated system leads to
increased control over wastages and leakages
- Accounting activities are
automated, reducing errors and increasing reporting reliability
- Instant increase in
responsiveness to customer
- Reduction in
order-processing lead-times resulting in on-time supplies to distributors
- Real-time view of the
Finished Goods Stock Status
- Visibility across
manufacturing operations
- Increase operational
flexibility by enabling quick decision making, possible through real time
flow of information
flow of information
- Reduce duplication of work
and associated overheads
- Ensure consistency of specs
and thereby reducing reworks/claims/returns/rejections etc
- Optimize production
resources by providing a dynamic, best-in-class planning mechanism
- Provide objective basis for
taking resource acquisition decisions
- Select optimized department
routing for selected batches
- Easily prioritize and
re-plan production batches
- Avoid material stock out
situations thus preventing production shocks
- Provide valuable analysis
of purchasing trends, supplier ratings
- Automatic generation of
PO’s keeping in view pre-set purchase agreements with vendors
ERP - Integrated
System Modules
Order Handling
This module would aid in
generating sales forecasts, create and manage orders and issue order dispatches
and all core documents from the system.
Production Planning
Production planning would
generate production plans for new-batches, provide planning adjustments for
planned batches, release job dispatches for production floor, QC. This module
would also serve as a basis for enterprise capacity planning and procurement of
raw materials.
Materials Management
(Procurement)
Procurement would generate
Purchase Orders, maintain vendors database, contracts and agreement management,
provide purchase histories and reports.
Integrated system
modules
(Inventory Management)
In inventory management, some of the
functionalities would include tracking of material receipt, issuances, returns,
material transfers and provide material availability intimations for sales, QC,
production planning and shop-floor.
Quality Assurance
Quality Assurance module
would ensure enforcement of set quality standards by allowing for incoming
material inspections, in-process and finished goods inspections, raising NCP
intimations to management, recording and maintenance of RM and product-based
inspection results
Financials
Core features offered would
be General Ledger (GL with 7 level COA), Integrated Accounts Receivable and
Payable (AR, AP), Fixed Assets Management and Order Costing
Shop-Floor Control
Functionalities for
production floor would include receipt of material, release of work orders,
entering production confirmations, viewing batch plan, entering re-work
information, raising requisitions and generating core documents from system.
Human Resources Management
The HRM module, a tool for
effective management of HR and associated costs, would allows for time &
attendance management, generating employee payroll, leave & asset
management, performance appraisals, TNA and core system-based documents.
Import/Exports Management
The scope of this module
would cover purchasing against requirement determination/EOQ, payments and
purchase settlements as well as shipment management against Export sale
orders/samples and generation of reports.
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