Download - Pre Final ppt 4 Lean ERP
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PRESENTED BYBINNI M
Roll No: 06
MBA(IB), SMS-CUSAT
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IntroductionERP and Lean Manufacturing
Reducing Waste
Continuous ImprovementSales and Customer Services
Opportunities
Order less Manufacturing and KanbanCollaboration
The World is getting Leaner
Conclusion
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Lean is an approach that identifies the
value inherent in specific products, identifies the
value stream for each product, supports the flowof value, lets the customer pull value from the
producer, and pursues perfection. It is through
this holistic, enterprise-wide approach to lean
implementation that the theory extends beyondfunctional strategy to a broader supply chain
strategy employed by the company.
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ERP emphasizes organization,
discipline, and control
Lean emphasizes processsimplification, elimination of waste,
synchronization, uniform plant load,and continuous improvement.
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ERP systems are the central nervous system of theorganization.
Opportunities for improvement and for measuring
progress of efforts to reduce and eliminate waste. Documentation allows organizations to clearly see what
happens today and provides the mechanism forimplementing new and more efficient procedures
ERP systems also provide the ability to model and testalternatives so-calledwhat-if? scenarios
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ERP is local link to trading partners - allow for
the elimination of waste and delays in the supplychain
Supply chain planning and managementsystems can ensure the right inventory is in theright place at the right time
Transportation management systems select themost cost-effective mode
Customer Relationship Planning (CRM), Supplier RelationshipManagement (SRM), Supply Chain Management (SCM) provide
a source of information for mapping out Lean strategies
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Lean is not a one-time project, nor is it evercomplete.
Improvements are made and the changes entered into
the systems files. Comparative measurements document the effect of
the changes on lead-times, costs, and efficiency. After the initial objectives are achieved, the system
captures the input needed for the next round ofimprovements; the definitions within the systemidentify current activities and offer a place to startidentifying and eliminating waste.
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Enterprise systems today offer Business Intelligencecapabilities as either a standard feature or as an
optional add-on. Gathers information from throughout the enterprise
(from ERP, CRM, procurement systems, supplychain systems, etc.)into a central analytic
workspace Tools within the BI applications monitor key
performance indicators and can automatically alertmanagement to any changes (good or bad) in any of
the hundreds of measurement areas
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TRANSACTIONS
Sales queries, quotation queriesSales ordersOutline agreements, contracts,
scheduling agreementsDelivery/ShipmentInvoicing/BillingAfter Sales Support
BASIC FUNCTIONSInquiry Handling
Quotation preparation & processing
Contract/order management
Monitor Sales transactions
Checking Availability
Scheduling Delivery
Pricing/Invoicing/Billing
Credit Limits
Documenting
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Master-Data Management To maintain information about products, customers, raw materials, suppliers etc.
Order Management Usually includes sales order management & purchase order management and supports
the entire sales and purchase processes from start to finish.
Sales Order Management: 1) Most important point of contact with the customer.
2) Streamlines order entry procedures to manage productsranging in complexity (standard stocked items toengineered to order).
3) Creates on-line, available-to-promise calculations.
4) Evaluation of sales performance through extensive report
capabilities.5) Electronic Data Interchange (EDI) streamlines
communication.
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Warehouse Management: Inventory Planning
Inventory Handling
Intelligent Location Assignment
Inventory Reporting
Inventory Analysis
Lot Control
Distribution Data Collection
Shipping: Monitoring Dates of Orders due for delivery
Creating and Processing deliveries
Planning & monitoring work lists
Packing Deliveries
Billing: Issuing of invoices, issuing of credit & debit memos, canceling billing transactions, giving
rebates, transferring billing data to accounting.
Pricing: Maintains prices of various items, details of quantity discounts, discounts offered to different
customer categories.
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Sales Support: Valuable information about customers, sales prospects, competitors and their products
can be shared between sales staff & staff in sales offices.
Transportation: Control and monitor transportation process (out bound shipment/in bound shipment)
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Aim:Using Lean principles, reach beyond the walls ofthe plant and office.
Demand side
Better the forecast, the better you are able to plan andproduce what customers want, with minimal inventoryand expediting.
Therefore mine the information and knowledge thatresides with sales people, distributors, agents,representatives and customers.
Electronic collaboration tools that are built into sales andoperations planning (S&OP) applications make it easyfor trading partners to contribute to forecast accuracyand ensure better service and delivery performance fromsuppliers.
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Demand side (Continued) After the system completes the basic forecast
from statistical calculations, participatingpartners can make adjustments and suggestionsthat reflect what they know about futuredemand, industry trends, demographics,upcoming sales activities and competitiveactions.
The resulting forecast can then be measuredagainst actual sales to refine the process in thefuture.
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Supply side:Vendors benefit from tighter ties tomanufacturer
Electronic communication of purchase orders, changes,releases, and payments
Processes faster, more detailed, and not subject tohuman errors, messy or illegible faxes, or lost paperwork.
Vendors respond with electronic acknowledgements,shipment notification, electronic invoicing, and
coordination Full participation on design to better utilize the talent,
materials and capabilities of the supplier in developing andproducing better products at lower costs.
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Today electronic tools, as included in the leading enterprise softwaresystems, have made Lean techniques practical and valuable in allkinds ofmanufacturing and beyond to
Distribution
Retail Service industries General business.
While Lean ideals are based on simple manual techniques andprocedures, enterprise systems are an important mechanism forextending the basic procedures into
complex situations demanding environments and the wider world of constant changing requirements and needs.
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The cultural and managerial elements of Lean are wellsupported by the functions and facilities within enterpriseinformation systems:
employee involvement quality at the source team responsibility flexible workforce employment stability system and process thinking procedural discipline open communications continuous improvement continuous learning
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Enterprise systems are communication vehicles,making information available throughout theenterprise and coordinating activities to avoidwasteful overlap, omissions, and miscommunications.
Outside of the factory, systems enable lean principlesto be applied to administrative, maintenance, service,engineering, distribution etc.
Lean can transform yesterdays business practicesinto tomorrows industry leadership. Goodenterprise system support is an essential componentof virtually any Lean initiative.
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THANKYOU