Transcript ERP Implementation Fundamentals

Enterprise Requirement Planning
Business Intelligence
Erwin Moeyaert
Belgium
Agenda
 What is an ERP System ?
 Demo
 What is Business Intelligence ?
 Demo
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What is ERP
 Facilitates Company-wide integrated Information Systems
Covering all functional Areas.
 Performs core Corporate activities and increases customer
service augmenting Corporate Image.
 Organizes & Optimizes the data input methodologies
systematically.
3
The Current Scenario
 Islands of information
 Difficult to get timely & accurate information
 Heterogeneous Hardware & Software platforms &
practices
 Poor connectivity between different organizational
locations
 Sticking with obsolete technology
 Resist to change
 Lack of proven man-power to develop integrated
software
4
Why ERP
 For Management – to know what is happening in
the company
 One solution for better Management
 For cycle time reduction
 To achieve cost control & low working capital
 To marry latest technologies
 To shun the geographical gaps
 To satisfy the customers with high expectations
 To be Competitive & for survival
5
Definition Of ERP
Software solution that addresses all the needs of an
enterprise with the process view of an organization
to meet the organizational goals and integrate all
the functions of the enterprise
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Evolution of ERP
1960’s - Systems Just for Inventory Control
1970’s - MRP – Material Requirement Planning
(Inventory with material planning & procurement)
1980’s - MRP II – Manufacturing Resources Planning
(Extended MRP to shop floor & distribution Mgnt.)
Mid 1990’s - ERP – Enterprise Resource Planning
(Covering all the activities of an Enterprise)
2000's – ERP II – Collaborative Commerce
(Extending ERP to external business entities)
2010 ERP via Internet facilities
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ERP – Expectations
Integrating all the functions
Integrating the systems running in all the locations
Transparency of information using a single
data source across the organization
Software must be responsive
Modular
Flexible
Easy to add functionalities
Provide growth path
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Integration of Information Systems
IS messages
IS messages
Manufacturing
 Local
purchasing,
invoice verification
 Inventory management
 Internal sales, shipping
and billing
 Profit/loss
 Capacity utilization
Head Quarters
 Information
Systems:
 Project Mgmt
 Inventory
 Purchasing
Sales
 Budget
 Cash Management

Marketing/Sales
 Sales,
shipping
and billing
 Purchasing of
trading goods
 Inventory
Management
 Customer service
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Changes of Customer Information
Change customer
master data
Please Accept my
new order for 1000
more sets
Customer
Representative
Increase
credit limit
Launch
Workflow
Schedule
customer
visit
Prepare
production
Credit Manager
Product Manager
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Sales Manager
Supply Chain
 Raw Materials Suppliers
 Processing Plants
 Assembly Plants
 Service Centers (warehouses)
 Retail outlets
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Integrated Supply Chain
Control
Finance
Capital
Procurement
market
Costs
Purchasing
Machines
Profit/Loss
Production
Operating resources
Balance sheet
Sales.
Human resources
Managing Resources
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Subsystems of ERP
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Financial Accounting
Logistics and Warehousing
Sales & Marketing
Purchasing
Accounts Payable/Receivable
Bill Of Materials
Master Scheduling
Materials Requirement Planning
Capacity Requirements Planning
Shop Floor Control
Human Resources
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Accounting
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General Ledger
Financial Reporting
Costing
Budgeting
Accounts Payable
Accounts Receivables
Controlling
Investment Management
Cash Management
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Accounting Processes
 Operational management level
 Production of transactions
 Paychecks, invoices, checks,
purchase orders
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Management Control Processes
 Budgeting
 Analysis of allocations, expenditures, revenues
 Cash management
 Cash flow analysis
 What-if analysis
 Capital budgeting
 Investment management
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ERP Financial Accounting Module
 External reporting
 Set by general accounting standards
 Legal requirements
 Includes accounts receivable subsystem
 Interfaces with cash management
 Monitors accounts and updates, handles payments,
creates due date lists
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Management Accounting Modules
 Information
on variances between planned and actual data
 Key activities
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Cost center accounting
Internal orders as a basis for collecting and controlling costs
Activity-based costing of business processes
Product cost controlling for profitability analysis
Profitability analysis by market segment
Profit center accounting of individual areas of organization
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Sales and Marketing
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Lead tracking
Sales forecasting
Customer management
Sales Order management
CRM – Customer Relationship Management
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Sales Process
 Sales orders.
–
Direct sales.
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Pre-sales.
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Rate applications: prices, discounts and price limit controls.
–
Reserves of goods in warehouse for unprocessed orders.
 Delivery note.
–
Automatic creation from pending order lines.
–
Automation of the outgoing orders (according to stocks, with rules of priority
by expiry, location, etc).
 Invoicing process for all types of invoicing:
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immediate,
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delivered goods, order completely delivered.
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Periodically, (weekly, fortnightly, monthly).
 Reports of orders, sales order supplied, delivery notes, invoices, orders not invoiced,
details of invoicing
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Customer Relationship Management
 Provides sales force with management tools
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Sales activity
Sales and territory management
Contact databases
Leads generation and monitoring
customer visit reports
Knowledge and information resource management
CRM data accessible through data warehouse
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List of vendors
Enterprise
Database
Update vendor
list/rating
Purchase order
Product data
-----------------Purchase order
Received orders
Products
Price
New order
Invoices
Invoice, Dispatch
Update record
Order released /Pending
Shipments
Inventory
Receipt/Pending Payments
Statements
/Invoice
Payable vendor receipt
Purchase
order
Filled orders
Payment data
Vendor list
Payments
Update dues/payable
Payables
……………etc
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Warehousing
 Warehouses and storage bins
 Stock products in multiple units
 Personalized product attributes in the warehouse (color, size, quality
description, etc.).
 Lot and serial numbers.
 Restocking control.
 Traceability configurable by product
 Movement among warehouses.
 Physical inventory.
 Inventory planning.
 Continuous inventory.
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Production Management
Some of the major sub-systems of the production module are: Material and capacity planning
 Quality management
 Cost management
 Configuration management
 Engineering data management
 Engineering change control
 Tooling
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Production Planning and Manufacturing
Processes
 Operational-level processes
 Daily activities
 Purchasing
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Receiving
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Inspection of delivered products and processing
Quality control
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Acquire correct quantity of raw materials and supplies
Monitoring of receivables and identification of unacceptable deliveries
Monitoring quality of production goods
Inventory management
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Maintains appropriate levels
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Material Resource Planning
 Processes:
 Identify stock needed
 Calculate lead time for stock
 Determine safety stock levels
 Assign most cost-effective order quantities
 Produce accurate purchase orders
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Capacity Planning
 Evaluation of production capacity against production goals
 Requires manufacturing order information
 Creates time-phased plans for product and production
area
 Production scheduling
 Estimates human resource needed
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Human Resources
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Recruiting
Compensation
Assessment
Development and Training
Planning
Payroll
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ERP HR Modules
 Components
 HR Management
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Personnel records
Resumes
 Benefits administration
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Links employee data to actual benefits
Allows selection from group of benefits
 Payroll
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Paychecks, tax reports, accounting data
 Time and labor management
 Employee/Manager self service
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Travel reimbursement
Personnel data and benefits changes
Training class
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Advantages Of ERP
Advantages Of ERP Package
Highly Graphics based User Interface.
 Zero Down time/ planned down time.
 Readymade solutions for most of the Problems.
 Only Customization required.
 Integration of all functions ensured.
 ROI earlier than the software developed in-house.
 Easy enterprise wide information sharing.
 Suppliers and Customers can be on-line communication.
 Knowledge transfer between industries guarantees innovation.
 Automatic adaptation to new technology.

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Embrace
New Technologies
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Internet/Intranet enabled
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Electronic Data Interchange
Transporters
EDI
Banks
Customs
Electronic Data Interchange
Vendors
Retailers
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Data Warehousing
Business Intelligence
Mountains of Data

From Operational Systems

ERP (Enterprise Resource Planning)

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Customer Relationship Management
(CRM)
Web Sites
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Sales/Order
Inventory
Orders
Click-stream
External sources ( Nielsen NIS…)
What is BI?
The process by which an organization
manages large amounts of data, extracting
pertinent information, and turning that
information into knowledge upon which actions
can be taken.
Benefits of BI
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Improved performance based upon timely and
accurate information
Elimination of guesswork
Expedited decision making
Early visibility of changes:
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Customer buying patterns
Supply chain activity
Financial arrangements
“Single Version of the truth”
Accurate, timely data available to all levels of
the organization
To Note:
Although we call it Business Intelligence, the
concepts and techniques are applicable to
almost any organization including those in
health care, biotech, education, government
…
BI Activities
BI applications include the activities of:
 decision support,
 query and reporting,
 online analytical processing (OLAP),
 statistical analysis,
 forecasting, and
 data mining.
BI Users

There are many different users who can
benefit from business intelligence

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Executives
Business Decision Makers
Information Workers
Line Workers
Analysts
General View BI Actions
Data Acquisition
and
Integration
Source Data
Operational
Application
Data
Warehouse
Storage
Group
ODS
Use
r
BI
Reporting
Predefined
Reports
ADS
Data
MART
Public
Folders
Interactive reports
Data Quality
Repository
Metadata
Repository
OLAP
Data
Quality
Database
Metadata
Databas
e
Data Flow from Transaction to Warehouse
Simplified
Structure
Necessary for
Fast, Powerful
Reports
2 - Data transfer from
transaction system to data
warehouse via ExtractTransform-Load (ETL) Tool (i.e.
Talend)
1 - Data Input via
Applications to
transaction
databases
3 - Data Output
via Business
Intelligence
Tool
(OLAP,Jasper
Reports)
Some Components In The BI Toolkit
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Reports (Example)
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Cubes (Example)
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Multi-dimensional, allowing the user the view the data from multiple angles
Interactive, giving the user the ability to change what is viewable on the fly
Charts & Graphs (Example)
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Commonly needed data can be structured in a set of pre generated reports
made available to large numbers of users
Flexibility can be given to users through ad-hoc querying and filters
Graphical Representation of data
Commonly used in presentations and statistical analysis
Dashboards (Example)
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Actively updating graphical displays that provides business users with updates
on key metrics
Some dashboards provide drill through capability, allowing users to start with
summary data and dive in to the details
Report Example
Cube Example
Chart/Graph Example
Dashboard Example
Multi-Dimensional Databases
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Measures
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Any quantitative expression
Some are designated as Key Performance Indicators (KPI)
Appropriate to the business process.
Dimensions
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How we describe the measures:
Product/Customer/Region/Time
These are the “By’s
“What were our Customer Sales by Product Line by Region by
Quarter for the past two years?”.
Multi-Dimensional Databases
OLAP

What is OLAP ?
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On-Line Analytical Processing
Ad-hoc reports
Slice & Dice
Drill-down (hierarchies)
Drill-through (details)
OLAP: An Example
Products
Strong Cola
January
Paper Towel
Beef Stew
February
February
March
$6,745
“For Beef Stew,
show me the
margin for
February”
April
May
Units
Sales $
Cost
Measures
Margin
Margin
Time
BI Future
 One of the fastest growing segments of IT
 Less likely to be outsourced
 May exist in business units rather than IT
 Knowledge/understanding of the organization is
the key
Jobs
 Economical Jobs

Data Analyst

Business Analyst

Functional Analyst

Marketing Analyst
 IT Jobs

Report Developer

Data Modeler

ETL Developer

Data Architect

Data Warehouse Designer

Data Warehouse Developer

Data Warehouse Administrator

Database Administrator
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