Erp pavan ppt
- 1. What Is ERP:- ERP is short for enterprise resource planning. Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. ERP software integrates all facets of an operation, including product planning, development, manufacturing, sales and marketing. ERP software is considered an enterprise application as it is designed to be used by larger businesses and often requires dedicated teams to customize and analyze the data and to handle upgrades and deployment. In contrast, Small business ERP applications are lightweight business management software solutions, customized for the business industry you work in.
- 2. CEO Sales Sales reps Back Office Front Office Accounting and IT Warehouse Purchasing Office Manager Business Functions, Departments, Business Processes
- 3. What is a Business Process? A business process is a collection of coherent activities that starts with a trigger and ends with the delivery of one or several products. The products represent a value for the customer of these products. The customer could be an external customer, as well as an internal customer (a department). Services are also considered as products.
- 5. Example of a Process Chart
- 6. MRP (I) Materials Requirement Planning Deciding about material requirement for a production process Using a BOM and the quantity of neede finished products Material requirement leads to purchase proposals and eventually to purchase orders Bike example
- 7. CRM Customer Relationship Management “Know your customer” Registering customer data, purchase behavior, data from external sources Analyzing and combining data
- 8. Modules / Departments Financial Management Sales & Marketing Purchase Warehouse Manufacturing Jobs Resource Planning Service Human Resources Administration
- 9. Departments in the RTC
- 10. Customer Master data Contact data Transaction data Customer Card Customer posting groups
- 11. Payment Terms and Delivery Terms Creditability Creditability as an amount Creditability as a period of time Payment terms: Cash on delivery 7 days 1 month (8 days) Delivery/shipment terms
- 12. Customer Customer (discount) groups Characteristics in common Discounts Per customer Per item Per order E-commerce Web shop Electronic payment B2B and B2C
- 13. The Sales Process (O2C) More: • Blanket orders • Return orders and credit memos Contacting the customer Issuing Sales Quotation Sales Order processing Delivering and Shipping Billing Collecting money
- 14. Delivery and Shipping Warehouse gets assignments (sales orders with today’s delivery date) Picking and packing, then shipping Create shipping documents Postings in the ERP system Logistic Financial
- 15. Billing Creating and sending Sales Invoice Invoice is usually made from data sales order Separation of goods and money streams Prepayment
- 16. Return Orders Items are damages on arrival at customer site Shipping wrong items Customer has ordered too much RMA procedure Destination of returned items Credit memo (sales)
- 17. Discounts and Credit Memos Discounts because of RMA, revenue bonus, correction of mistakes Sales decides upon contents credit memo Credit memo lowers the debt-claim on the customer Detailed checks are necessary
- 18. CRM Customer Relationship Management Relation a company maintains with its customers Register and analyze customer behaviour Enlarge profitability and customer satisfaction Customer pyramid Pros CRM Lower costs by operational efficiency Higher revenue by better segmented market Improved strategy and better measure effects on actions
- 19. Trading Item Master data Item number, -name and short description Base unit of measurement Sizes and weight Replenishment method Safety stock level Costing method Price data (purchase price, COGS, sales price) Product posting group Item vendor Item tracking (serial nrs/lot nrs/expiry date)
- 20. The Purchasing Process (P2P) Also: • Working with blanket orders • Return shipments and credit memos Purchase initiative Request for quotation and vendor selection Creation puchase order Goods receipt Vendor invoice check Vendor payment
- 21. Create Purchase Order Coming from quotation? Purchase order number Order confirmation Planning for the warehouse
- 22. Warehouse Process Sales process and Purchasing process Movements (logistic transportations) Regular checks Stock-taking Separate Goods Receipt Dock Separate Shipping Dock Several warehouses / plants
- 23. MTS Make-to-Stock (COPD1) Produce entirely on stock Customer sales orders do not directly influence the manufacturing process Manufacturing process is based on MPS, which is built on sales forecast from the market Examples: Deep freezers Off-the-peg clothes Sanitary fittings
- 24. MTO Make-to-Order (COPD3) Customer sales order stretches out deep into the production process No stock production Standard materials and standard designs Longer delivery period Example: Computers with limited standard configuration possibilities
- 25. Service Management After Sales Service Warrantly issues Controlling repair and maintenance at customer sites Service contracts Spare parts management
- 26. Analyses Product design Where are components used, comparison BOMs Capacities Work per work center/machine center, Gantt diagram Planning Availability of materials Execution Material shortage list Valuation Production order statistics, cost calculation
- 27. Internal Reporting and BI Internal reporting aims at enterprise management Steering Accountability Reports Lists and documents Account schedules BI Not only from strategic point of view Easy export from Dynamics NAV to Excel (wizards)
- 28. The HRM Process Recruitment and selection Commencement of employment Compention management Assessment Resignation Payroll
- 29. Master Data HRM Name, address, bank account, date of birth, social security number, employment/resignation date, type of albor contract Employee card
- 30. All Process ERP