ENTERPRISE RESOURCE PLANNING (ERP) BY:- AMIT KUMAR BINDAL ASSOCIATE PROFESSOR

Transcription

1 ENTERPRISE RESOURCE PLANNING (ERP) BY:- AMIT KUMAR BINDAL ASSOCIATE PROFESSOR

2 What is Enterprise Resource Planning (ERP)? How ERP systems are implemented within companies? Companies before ERP Systems EMU Real Case Example Companies after ERP Systems EMU Real Case Example Sap Program Structure in Printing Process E.M.U. ERP Systems ERP Software Companies Istanbul Fast Ferries (IDO) Uses SAP How Engineers benefits from ERP systems? SAP shareholders

3 COMPUTER INTEGRATED MANUFACTURING - CIM "CIM is the integration of total manufacturing enterprise by using integrated systems and data communication coupled with new managerial philosophies that improve organizational and personnel efficiency."

4 SUBSYSTEMS OF CIM OPERATION: CAD/CAM (Computer-aided design/computer-aided manufacturing) ERP (Enterprise resource planning) CAPP, (Computer-aided process planning) CNC (computer numerical control) machine tools DNC, direct numerical control machine tools FMS, flexible machining systems ASRS, automated storage and retrieval systems AGV, automated guided vehicles Robotics Automated conveyance systems Computerized scheduling and production control CAQ (Computer-aided quality assurance) A business system integrated by a common database. Lean Manufacturing

5 WHAT IS ENTERPRISE RESOURCE PLANNING (ERP)? ERP is an enterprise-wide information system designed to coordinate all the resources, information, activities needed to complete business processes such as; order fulfillment billing.

6 HOW ERP SYSTEMS WORKS? A typical ERP system would use multiple component of computer software and hardware to achieve integration ERP delivers a single database that contains all data for the software module

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9 SOLUTIONS OF ERP Financial Management Inventory Management Purchasing Sales Management Production Planning Advanced Visual Planning Manufacturing Management

10 HOW ERP SYSTEMS ARE IMPLEMENTED WITHIN COMPANIES? ERP Software Companies start analysing the prospective company(s), identifing their individual needs. Setup of ERP systems For Mid-size companies 5-12 months Large Companies 6-18 months

11 COMPANIES BEFORE ERP SYSTEMS

12 EXAMPLE OF MMU Comp. Engineering Faculty wants to buy a new Printer. For this reason HOD / Secretary gives a purchasing order by filling purchasing order forms. Next slide shows how this purchasing request process flow was working before ERP systems.

13 NEW PRINTER PURCHASING PROCESS 1. Purchase order form for a new printer 2. Head of Department Confirmation- Faculty Head 3. Purchase order document sent to M.M.U. Account Office 4. Account Office Secretary sents the purchase order to the Responsibles 5. Purchase order- Responsible personal Confirmation 6. Purchasing department- Manager Confirmation 7. Transfer to Finance Department Secretary for processing 8. Finance Department Responsible s Confirmation 9. Transfer to Rector s Office 10. Rector s Secretary- Confirmation 11. Confirmation Transfer, to Purchase Department Secretary 12. Purchase Responsible personal commends with Purchase:

14 Example: Before ERP Systems Transfer to Accounting Office Secretary s New printer application

15 COMPANIES AFTER ERP SYSTEMS

16 EXAMPLE M.M.U. COE FACULTY Industrial Engineering Faculty wants to buy a new HP Printer. For this reason HOD / Secretary gives a purchasing order with using M.M.U. Online ERP systems. Next slide shows the purchasing order process flow with ERP Systems.

17 M.M.U. AFTER ERP SYSTEMS SECRETARY REQUEST OF NEW HP PRINTER SAP SYSTEM ONLINE HEAD OF DEPARTMENT CONFIRMATION CONFIRMATION SAP SYSTEM ONLINE PURCHASEING MANAGER FINANCIAL ACCOUNTING SAP SYSTEM ONLINE PURCHASE RESPONSIBLE SAP SYSTEM ONLINE FINANCE DEPARTMENT CONFIRMATION SAP SYSTEM ONLINE RECTORS OFFICE CONFIRMATION PURCHASE OF NEW HP PRINTER SAP SYSTEM ONLINE PURCHASE DEPARTMENT

18 In this real case there the benefits of the ERP systems Online Data Flow decreases the process time Fast & Online Confirmation Less Paperwork No need for folder storage Database Security Less Employee needed Easy Financial Management Better Inventory Management

19 6.00cc SAP ERP SYSTEMS ORACLE 10.2 MM MODULE FI MODULE CO MODULE AA MODULE FM MODULE Material Management Financial Management Controlling Operations Asset Accounting Funds Management

20 WHAT IS SAP MM? SAP MM (MATERIALS MANAGEMENT) SAP MM is a module is used for Procurement Handling and Inventory Management. The module has two important master data - material and vendor. Broadly, the various levels that can be defined for a SAP MM implementation are: Client, Company Code, Plant, Storage Location, Purchase Organization.

21 MATERIAL MANAGEMENT (MM) LOGICAL STRUCTURE supplier Distribution vendor production customer

22 SAP FICO FINANCIAL ACCOUNTING (FI) MODULE The SAP FICO module includes 2 major categories; Financials (FI) Controlling (CO) FI (Financial Accounting) module includes; Accounts payable Accounts receivable General ledger

23 CONTROLLING (CO) MODULE The CO (Controlling) Module has multiple configuration steps that must be followed for complete implementation of this module. Cost Center Order Management Commitment Mgt Profit Analysis Acty-Based Costing

24 ERP SOFTWARE COMPANIES & MARKETSHARES Others ; 59 SAP; 15,6 Peoplesoft; 4,9 Oracle ; 4,8 Baan; 3 CA; 3 JDE; 2,2 SSA; 2,1 GEAC; 2 IBM; 1,8 JBA; 1,7 Software Market Share SAP 15.6 Peoplesoft 4.9 Oracle 4.8 Baan 3.0 CA 3.0 JDE 2.2 SSA 2.1 GEAC 2.0 IBM 1.8 JBA 1.7 Others 59.0

25 ISTANBUL FAST FERRIES (IDO) USES SAP SOFTWARE A STUDY

26 ISTANBUL FAST FERRIES (IDO) Annually 91 million passanger Annually 5,5 million vehicles Dailly 1,200 navigation capacity 90 Ships 82 Terminals 3,200 personel 314 Million YTL endorsement

27 SAP Systems arranges relationship between; shipping conditions, route determination, shipping point, employee conditions, fuel supply, maintenance Combine these variables in order to determine optimal transportation mode and service levels.

28 CONTROLLING MODULE (CO) IDO passanger can send SMS to IDO SAP system and get the information about shipping route times. This process is a service of Controlling Module.

29 SAP SYSTEM s first step PM MM MODULE CO-CCA MODULE FI MODULE Plant Maintanance Material Management Controlling Operations Financial Management FI-AA MODULE Asset Accounting FM MODULE Funds Management HR-PA Human Resource- Professional Association

30 PM - PLANT MAINTENANCE Equipment and Technical Objects (PM-EQM) Preventive Maintenance ( PM-PRM) Maintenance Order Management (PM-MOM) Work Clearance Management (PM-WCM) Information System (PM-IS) Workflow Scenarios (PM/CS)

31 SAP SYSTEM 2nd step TR-CM TR-TM HR-PD CO-PA WF Data Adjustment in Cash Management Treasury Management Human Resources Performance Evaluation Profitability Analysis Work Flow

32 BENEFITS OF SAP SYSTEM Increased efficiency of whole system, Prevented from the same procedures repetition, Easy access of any information from the huge databank, Easy tracking and control of past transactions, Standardization of transactions and information security, and Measurable timing of transactions and delagation.

33 HOW CAN ENGINEERS BENEFIT FROM ERP SYSTEMS?

34 USESFUL SAP MODULES FOR ENGINEERS MM- Material Management Better Procurement Handling Orginized Inventory Management Easy Purchase Organization Faster Storage Location PM Plant Maintenance Maintenance Order Management Equipment and Technical Objects Coordination Preventive Maintenance Workflow Scenarios Work Clearance Management

35 MM Information System MM

36 MATERIAL MANAGEMENT SYSTEM IS FEED BY THE INFORMATION THAT COMES FROM; - PURCHASING INFORMATION SYSTEM AND, - STOCK CONTROL

37 Production Finance / Management - ERP ERP Solutions and software are comprehensive, which covers almost everything that you need to run effective manufacturing starting from the employee entry inside the gate to final product to customer. Handles Customer Complaints Production & Quality Control Finance HR Sales & Marketing Purchase Inventory Documentation Tax & VAT Management

38 Production ERP is classified into following Modules Purchase Management ERP Sales Management ERP Inventory Management ERP Production Management ERP Finance & Accounts Management ERP CRM (Customer Management ERP)

39 SAP Packet Providers

40 SAP Packet Providers