ERPEvolution 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 Data & Communication Flexibility Designed for all types of business Worldwide Usage Interactive Processing Open System .Expectations from ERP GENERIC BENEFITS: Integration . 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 . S. Data is entered once European reports are generated for subsidiaries following local rules Results are converted and consolidated to U. firm .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. but price is relative. now worldwide Support for international transactions and multinational firms Runs on multiple database and hardware platforms Can handle large and small companies Expensive.SAP Based in Germany. 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 . financial.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. and resource management Earned value calculation Project information system . schedule. revenue. 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 . or EDI). bills are generated automatically (mail. 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. fax.SAP Logistics Service management Integration Customer installed base administration Service contract management Call management Billing Service information system When the clerk enters a sale. . 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 . Sub-ledgers are defined for important accounts Simple example Accounts payable Manufacturing User-defined etc.SAP Integration Financial general ledger holds all base totals. 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 . family details such as sex.HUMAN RESOURCES Personal Information Define Organizational setup Department. qualifications.categories. religion Maintaining complete service record Process placement transaction such appointments. Increment. Promotions. mother tongue. Transfer.grades and position Maintaining complete employee information including name. blood groups. address. Lay-off etc Access all information on-line . Confirmation. Suspension. HUMAN RESOURCES Human Resource Development Education and Training Career Planning Promotions and Transfers Performance appraisal Awards and Disciplinary actions . cancellation and encashment. Interface with Attendance Machine Generate absenteeism. carry forwards etc Automatically create leave cards Process leave transactions such as leave applications. . late coming. early going and unauthorized absence reports.HUMAN RESOURCES Leave and Attendance Define various types of leaves and rules related to entitlement. Pay sheet Register. Loans. 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.HUMAN RESOURCES Payroll Comprehensive Payroll Structure. Cash & Bank statements. PF statements and ESI statements . recovery statements such as LIC Premium. Advances etc. HUMAN RESOURCES Payroll Print TDS certificates Print all statutory reports such as Form #A. Form 6A etc. wage revision or attendance . Calculate Bonus/Ex-gratia easily Automatically calculate Income Tax Pay arrears of any period due to price index change. 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 . Cheques. cash books and other day books . 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. Ledgers and Sub Ledgers . Debit Notes.General Ledger Print Payment Advices. General Ledger Generate four level grouped trial balance instantly Generate Cost Allocation and Analysis Report quickly Find Account’s position from balance to transaction using drill down queries Generate Closing Entries automatically Generate Profit and loss a/c and balance sheet . GL A/c and Analysis heads Budgets may be fixed or variable Generate Budget provisions and Budgets v/s Actual report .Budgeting Define budget for Cost Center. 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 . refund fixed deposits Calculate periodic interest And TDS Generate Interest cheques and advices Generate TDS certificates Handle brokerage payments .Fixed Deposits Record receipt of fixed deposit Renew . 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 . Custom and Excise Rules for each items (as applicable) Create vendor item catalog Send request for Quotation to vendors .Purchasing Define Payment Terms and Standard purchase Terms Define sales tax rules. 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 . XYZ./Lot no.Inventory Control Enter all stores transaction online Track all material by Batch No. Generate stock ledger instantly Value inventory based on several methods Print Excise Challans on removals Create various analysis report (ABC.VED) .FSN. Quality Control Define comprehensive Quality Control specifications for each item Access GRN’s 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 . Actual .t Plan Track plans vs.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. 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 . Yield variance report. Batch costing report and WIP report . manpower utilization report.Operations Management Print batch tickets for completed batch Generate various Production report including capacity utilization report . Distribution Planning Define each product and its complete details such as pack size. 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 . weight etc Group products by Product Group for planning. 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 . transfer note . depot stock.Sales Create sales invoice . 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 .