Oracle Supply Chain management ERP Introduction

Introduction to ERP, which is a preliminary introduction to Oracle Supply Chain Management course.

1. Jagannath Vidyala
welcomes
All the Participants
to the ERP Overview Session

2. Agenda
1.Introduction
2.Awareness on ERP for better prospects.
3.What is ERP?
4.Why ERP is needed?
5.How ERP defines any process simple and easy?
6.Manufacturing processes
7.Procurement Process
8.Inventory Process
9.Integration between business functions
10.Benefits of ERP Software

3. Introduction
to
Enterprise Resource Planning
Introduction & Overview

4. Introduction to ERP
•Enterprise Resource Planning
Enterprise Resource Planning (ERP) is an exercise that focuses on
optimizing the way things are done internally. It attempts to
integrate all departments and functions across a company onto a
single computer system that can serve all those different
departments' particular needs.
ERP – Enterprise Resource Planning
•Planning Resources for effective Utilization
–Man
–Money
–Machinery
–Materials
•Integrating all the Departments
–Inventory, Purchase, Production, Sales, Accounts etc.,

5. ERP Evolution
1970’s MRP
Inventory and process time reduction with new production planning systems
1980’s MRP I
Greater reductions due to the integration with Accounting and Human
Resource Systems
2000 ERP Extended or ERP II
Focused on clients, optimizing the whole business network, including
suppliers and clients
1990’s MRP II
Focused on clients, Real time transactions, Asset management

6. Oracle
People Soft
Siebel
JD Edwards
Microsoft
Baan
SAP
Main ERP Players

7. What is ERP?
ERP is a software solution, which
 Facilitates company-wide integrated
information sharing, covering to all
functional areas
 Addresses the Enterprise's needs, taking a
process view of the whole organization
 Enables Enterprise-wide goal congruence by
integrating functions under a common platform
 Utilizes a single integrated database to aid in
data integrity, single holistic views and therefore
improved service.

8. What is ERP?
 ERP is a software system that is often referred
as the backbone for the entire business.
 These systems have lots of brains (process
logic), muscle (business transactions), and heart
(business policy).
 The software communicates (as a nervous
system) across business functions.
 ERP systems attempts to replicate business
structure, processes, policies, and
procedures.

9. Why ERP is needed?

Reduced cycle time

Customer focus

Sharing information across the enterprise globally

Resource planning

Integration of manufacturing

Efficiency in distribution

Financial applications

Messaging and electronic mail

Document management and database systems

Internet technology and data warehousing

10. Why ERP is needed?
 The ERP systems have functionality to support
industry standard and best practices
(APICS).
 ERP systems are implemented by
companies for many tangible, intangible,
strategic benefits and hence don’t even try to
calculate Return On Investment (ROI).

11. Manufacturing Functional
Foundation Applications
Oracle Bills of Material
and Engineering
Oracle Master
Scheduling / MRP
Oracle
Inventory
Oracle Cost
Management
Oracle Quality
Oracle Work
in Process
Oracle Order
Management
Oracle
Purchasing

12. Inventory Process
Internal
Shipment
Receive Deliver
Inspect
Transfer
Shop Floor
Inventory
Supplier
Shipment
Expense
Inventory
Order Entry

13. Purchasing Process
Create
requisition
AutoCreate
Purchasing
document
Send to
supplier
Receive
goods
Approve
requisition
Approve
document

14. Order to Cash Lifecycle
Bank
ReconciliationInvoice
Pick
Release
Book
Orders
Receiving
Payment
Enter and Price
Orders
Receivables
Ship
Confirm
Order Management
AutoInvoice
Cash Management
Shipping Execution

15. Example –Before ERP

16. Example With ERP

17. Oracle Apps – Manufacturing & Distribution
Integration between Modules
PAYABLES
PURCHASING
GENERAL
LEDGER
WORK IN
PROCESS
RECEIVABLE
ORDER
MGMT
INVENTORY
BILL OF
MATERIAL
MS / MRP
QUALITY
MGMT
WAREHOUSE
MGMT
CUSTOMERSUPPLIER

18.  Independent of the nature of the Industry
 Easy Access to Information
 Integration of the cross functional business
processes
 Integration of Database, Application and People
 Consolidation of data in a single database
 Alignment with the best practices of the industry
 Efficient reporting facility
 Improve workflow and efficiency
 Improve control and program alerts
Benefits - ERP

19. Benefits - ERP
 Reduce the amount invested in inventory.
 Improve worker productivity.
 Reduce processing cost per business
transaction.
 Reduce the time to perform a financial close
and prepare statements.
 Reduce procurement costs.
 Install systems with vendor-supported
maintenance.
 Improve the scalability of business systems
to support future growth.
 Upgrade systems to support globalized
transactions.

20. Benefits - ERP
 Accuracy in reporting business Info.
 Replace legacy systems and install new or
improved business processes.
 Integrate and standardize processes among
business units and trading partners in supply
chain.
 Improve system performance, reliability, and fault
tolerance.
 Improve Order management, customer service
and on-time delivery.

21. Aerospace & Defense
Automotive
Chemicals
Consumer
Communications

Energy
Engineering & Construction
Financial Services
Government
Healthcare
High Technology
Higher Education

Industrial Manufacturing
Life Sciences
Professional Services
Retail
Travel & Transportation
Utilities
Any where - ERP

22. Develop
Market
Sell
OrderPlan
Procure
Make
Fulfill
Service
HR
Finance Projects
Maintain
All All Information in One Place in One Place

23. OracleOracle eBusiness ApplicationseBusiness Applications
Finance
Self-Service Applications
Business Agents (Alert)
Workflow
EDI Gateway
Business Intelligence
Discoverer
Human Resources
Payroll
Training/Benefits
Sales & Marketing
Service
Interaction Center
E-Commerce

Inventory
Purchasing
Order Management
Configurator
Advanced Planning
& Scheduling
Projects
Project Billing
Projects Time & Expense
Project Connect
Engineering
Bills of Material
Master Scheduling / MRP
Capacity
Work in Process
Cost Management
Quality
Projects
Human
Resources
SCM
Information
Technology
Manufacturing
CRMGeneral Ledger
Receivables
Payables
Assets
Cash Management
Financial Analyzer
Treasury

24. Oracle Apps – Manufacturing & Distribution
Daily Business Intelligence
Daily Business Intelligence is an integrated reporting
and analysis application that enables senior managers
and executives to see relevant, accurate, and timely
information using self-service dashboards.

25. People
•Global Services Consultants
–Understand Customer Business Processes
–Understand Existing Systems
–Analyze Infrastructure Needs
–Have good understanding of ERP built-in Functionalities
–Good Understanding of Software Licensing needs
–Ability to do Gap Analysis
–Preparing Project Plan
Global Service Consultants are like an Engine for ERP Implementation

26. People
•Functional Consultants
–Supply Chain Management
•Good Understanding of the business functions like
Order Management, Procurement, Inventory, Costing,
Shipping Execution, Advance Pricing, Vendor Mgmt., ASCP and
Customer Needs and fulfillments.
–Manufacturing
•Good Understanding of Manufacturing functions like
Bills of Material, Work in progress, and Quality.
People deliver solutions to meet Customer business Functions

27. People
•Functional Consultants
–Finance Management
•Good Understanding of the business functions like
General Ledger, Accounts Receivables, Accounts Payables, Cash
Management, Fixed Assets, Order Management, Purchasing,
Inventory, iProcurement,
People deliver solutions to meet Customer business Functions

28. People
•Business Leaders or Customer Business Leaders
–Project Sponsors
–Regular follow up on implementation status
•Business Super Users
–Module Leaders from the customer standpoint
–ERP owners for individual business functions
•Business Users
–People who enter Transactions
–People who run the customer business processes
People deliver solutions to meet Customer business Functions

29. Conclusion
•Enterprise Resource Planning is the end result of thirty
years of trial and error, innovative thinking and
leveraging of computer technology.
•The business concepts embedded in it have and will
continue to produce tremendous competitive advantage
and economic benefit to the manufacturing industry.
• A sizable amount of time and dedication as well as
commitment from all user levels in an organization is
required for setting ERP up and running.
•ERP is the right tool for the years ahead.