Information Systems in Functional Areas

Strategic Sale Order Forecast

Planning

Dispatch Invoicing/

MPS RCCP

A/c Receivable

WO / Sch Creation

Operations Planning

MRP

Purchase

Stores

Receipt Execution

Production

Bill Passing

A/C payable

GL MIS / EIS

EIS

Business Modules in an Enterprise System

Finance
Manufacturing

HR
Production Planning

Quality

Enterprise System Maintenance

Sales &

Materials

Distribution

Finance
Financial Accounting (GL, A/R, A/P, Fixed Asset, P&L, Balance Sheet) Costing (Cost centre accounting, Product Costing, Activity Based Costing) Treasury (Cash, Funds, portfolio management, Risk analysis) Control (Budgeting, MIS, EIS) Scenarios

Manufacturing
Capacity Planning Material Requirement Planning (MRP) Shop Floor Control Engineering Data Management Configuration Management Lot control/ traceability Tooling Lobour Productivity Computer-Integrated Manufacturing (CIM)

Computer-Aided Engineering (CAE) Computer-Aided Design (CAD) Computer-Aided Process Planning (CAPP)

Process Control

Materials Management
Pre-Purchasing Activities Purchasing Vendor evaluation Material Inspection Inventory Management Supplier Bill Passing Tracking of material on-order Reservation Consignment Stocks Stock valuation Perpetual audit

Quality
Quality Planning (Material Specifications, Inspection Planning) Inspection and follow-up action Quality Control (Dynamic sample determination on the basis of history, QC Charts

Sales and Distribution

Customer Data Base Sales Forecast Order Processing Finished Goods Stock (Reservation, Analysis, Valuation, Lot Control) Distribution Requirement Planning (DRP) Despatch (Due Date Monitoring , Pick List) Invoicing (Credit and Debit Notes, Proforma Invoices, Cancellation of Invoices, Discounts) Pricing (Costing, Quotations) Sales Support (Customer Data, Prospect List) Export Sales Force Automation

Human Resources
Personnel (Employee database, recruitment, benefits administration) Organization (Organization Structure, Job Descriptions) Payroll (Salary Preparation, Staff Cost) Time & Attendance (Time Recording, Shift Planning) HRD (Career and Succession Planning, Profile Maintenance, Training Needs assessment, Training Management)

Plant Maintenance
Preventive Maintenance Planning Equipment Tracking Component Tracking Calibration Tracking Warranty Claims Tracking

Enterprise Business Systems

Enterprise Resource Planning (ERP) Supply Chain Management (SCM) Customer Relationship Management (CRM)

WHAT IS ERP?
The techniques and concepts employed for the integrated management of business as a whole from the viewpoint of the effective use of management resources

Information Integration through ERP

Business Planning Finance

Manufacturing

Human Resources

ERP Materials Logistics

Quality
Sales & Distribution

Maintenance

ERP
Traditional applications are functionally oriented and lines of demarcation become barriers to communication

Materials

Production

Marketing

Finance

ERP is business process based and improves communication and accountability

Organization as a stream of Business Processes

AN EXAMPLE: Order Fulfillment Process Order receipt Order Processing Production Planning Material Planning Purchase Order Release Work Order release Production Monitoring Warehousing Despatch Instructions Billing Accounts Receivable

WHY ERP?
All processes are customer focused Everybody in the value chain is fully informed about the process Single repository or information and hence non redundancy Updates across functions maintaining consistency Information access across functions Main Benefits of ERP: Accountability

Responsibility
Communication

What can you expect from ERP?

To enable improved business processes

Cycle time reduction Increased business agility On-time delivery Inventory reduction Order fulfillment improvement Increased flexibility Improved supplier performance Reduction in quality costs Improved resource utility Better customer satisfaction

What more can you expect from ERP?

To provide flexible, integrated, realtime decision support

Improved information accuracy Better decision making capability

Still More
To support business growth requirements

Multiple product lines Multiple languages Multiple currencies

To eliminate limitation of legacy systems

Fragmentation of data and processing inflexibility to change obsolete technologies

ERP Top Players in India

SAP, Business One Oracle Microsoft Dynamics, Navision, Axapta J D Edwards Peoplesoft MfgPro Marshall BaaN MakeESS

For ERP to succeed

clarity of expectations from ERP top management commitment reasonable scope adequate resources the right product the right people for implementation Participation of end users proper communication within the organization steering committee and strong leader balanced team good training sound and appropriate Implementation methodology good monitoring and review mechanism

Trends in ERP
Industry specific versions Additional Features Targeting SME Segment Stratified offerings with reduced functionality Lower Entry Price Faster deployment methodologies Extension to Non-manufacturing Sectors Retail, Utilities, Government, Service Web enabling

Additional Features
Integration with Business Intelligence Systems Supply Chain Management Capability of integration with Electronic Data Interchange (EDI) and Electronic Fund Transfer (EFT) Smooth integration with popular CAD (computer-aided design) packages - BOM Integration with workflow Simulation capability (useful for capacity calculation) Data warehousing and Data Mining

Supply Chain Management

What is a Supply Chain?

Includes all parties involved in fulfilling customer request Includes manufacturers, suppliers, transporters, warehouses, retailers and customers Includes functions such as order receipt, order execution, operations, distribution, finance, customer service.

Role of IT in SCM
IT integrates the internal business functions so that availability of data is current and uniform across the organization. The current data availability ensures control of processes and verification of performance Availability of accurate information across the organization ensured reduction of physical inventories and resource requirements. Redundant physical assets maintained to handle supply chain uncertainties were no more necessary

Benefits of e-SCM
Scalability: 24*7 availability

Capability to handle multiple requests

Reduced interaction cost: Quick and economical search Reduced cost of coordination Aggregate purchasing Living Social deals, Groupon.com, buyasone.com Easy comparison shopping Reduced maverick spending

Benefits of e-SCM Contd.

Level Play: No entry barrier- Ex: Pan.com by . Jayshankar Tiwari who could not probably afford a TV Commercial or a Print Ad, can make small ads thru his website

Economy:

Sourcing at globally competitive prices

Substitution of inventory with information Inventory on road, Inventory is a function of Uncertainity, thus uncertainity reduced due to time;ly information. Inventory also reduces

E-SCM improves supplier performance

Free Flow of Communication
Transparency Accountability

Improved supplier performance

EBG - Electrical Sector

Network Connectivity with :

400 Stockists
(E-enabled)

28 Regional / Branch Offices

600 Vendors
(E-enabled)

4 Factories

9 Godowns

www.LNTEBG.com

B2B Purchase Queries for Vendors

Purchase Orders
Login & Authentication

Goods Receipts
Accounts Details

Selection Criteria : From date -- To date Document number Material Plant

Purchase Order (PO) Query

Orders with schedules Orders awaiting invoice

Closed Orders
Summary : PO number, date, material code, description, rate, qty supplied, qty pending, delivery schedule
Full PO : by clicking PO number in summary

Goods Receipt (GR) Query

Cleared GRs GRs pending for quantity check

GRs awaiting inspection

Summary : GR number, date, PO ref., challan ref., qty supplied, accepted, rejected, VQR
Rejection Details : by clicking on quality lot number

Accounts Query
Open invoices Paid invoices

Bill number, date, PO ref., due date, amount, invoice errors (if any), cheque details for cleared invoices

WE BUY, YOU QUOTE