Enterprise Resource Planning

By

Ashish Barapatre (13034)

• ERP is a set of tools and processes that integrates department and functions across a company into one computer system.

• ERP runs off a single database, enabling various deptts to share information and communicate with each other.

• ERP system comprise function specific modules designed to interact with other modules, e.g. accounts receivable, accounts payable purchasing etc.

• ERP is an enterprise reengg. solutions that uses new business computing paradigms to integrate IT processes across co’s divisions and departments.

ERP

Evolution of ERPTimeline System Description

1960s Inventory Mgmt & control

It’s a combination of infr. tech, and bus processes of maintaining the appropriate level of stock in a warehouse.

1970s Material Req. Planning Utilizes s/w applications for scheduling production processes.

1980s MRP II Utilizes S/w applications for coordinating mfg processes.

1990s Enterprise Resource Planning

Uses multi module application s/w foe improving the performance of internal bus, processes.

Components of ERP

• Customer Relationship Management (CRM) - Sales Force Automation, Quoting & Estimating, Order

Entry

• Manufacturing - Forecasting, Material & Production Planning (MPP), Shop Floor Control, Routings,

Capacity Planning & Scheduling, Purchasing, Lot/Serial Control, Inventory, Workflow

• Supply Chain - Demand Planning, Purchasing, Supplier Management.

• Financials - Costing, Accounts Receivable (AR), Accounts Payable (AP), General Ledger (GL)

• Human Resources - Labour Collection, Payroll, Benefits

• Business Performance Management (BPM) - Business Intelligence (BI), Multi-Entity Consolidation,

Corporate Governance, Reporting

How ERP is Different Then other Systems.• Integrated modules

• Common database

• Update one module, automatically updates others

• ERP systems reflect a specific way of doing business

ERP system Works

• Click to add text

Employees

Managers andStakeholders

CentralDatabase

ReportingApplications

HumanResource

ManagementApplications

FinancialApplications

ManufacturingApplications

InventoryAnd SupplyApplications

HumanResource

ManagementApplications

ServiceApplications

Sales andDelivery

Applications

Sales ForceAnd CustomerService Reps

Customers Back-officeAdministratorsAnd Workers

Suppliers

Benefits of ERP Systems

• Scalability

• Improved reporting

• Data quality

• Lower cost of operations

• Business analytics

• Reduced complexity

ERP Characteristics• Flexibility

• Modular & Open

• Comprehensive

• Beyond The Company

• Best Business Practices

LIST OF ERP VENDORS

Techlogix helps Nestlé innovate in Milk Production Planning

• Nestlé Pakistan operates the biggest milk collection operation in Pakistan

• Nestlé milk is collected from an estimated 190,000 farmers spread out over the provinces of Punjab and Sindh

•I t produces a full range of dairy products including milk, powdered milk, cream, tea whiteners and yoghurt

• The demand for milk products is relatively constant throughout the year

• But milk production varies very significantly from season to season

• The content of milk obtained from farmers also varies

• Nestlé is faced with the problem of managing its production capacity in the most efficient way based on both major supply side constraints and demand side variations

• Nestlé was unable to automate its highly complex milk production planning process

Challenges

• Minimizing milk wastage

• Producing some material which will be used as stock for future months when fresh milk supply is insufficient

• Efficiently using imported material

• Generating import requests in case of material shortage well in time

• Efficiently using available plant capacity for bulk production

• Efficiently using available line capacity for packaging

• Plant and Line capacities and their maintenance schedules

• Raw material availability and stock expiry dates

• Nestlé has implemented SAP as its ERP but complexity of the milk production planning problem was not captured in the ERP

• The manual planning: a process with multiple known flaws

• Production planning is done each month, the activity had to be repeated each month and consumed a significant portion of the

month to complete.

Solution• Techlogix designed and delivered a web application built on the Microsoft .Net stack which would invoke a simulation engine

as a separate OS process

• Each process took in metadata as input and ran an iterative algorithm to produce a production plan along with variety of

reports

• The reports helped the planner visualize different aspects of the production plan

• The production planning algorithm is the core of the solution has two distinct aspects: planning and scheduling

• The planning aspect of the algorithm uses fresh milk quantity, raw material stock quantity, and other inputs to optimal

production of bulk material

• This quantity is handed over to the scheduling algorithm which attempts to schedule production on plants within specified

capacities

• If required production capacity is not available, the planning algorithm adjusts production and attempts a reschedule

• The algorithm generates reports that allow a production planner to view productions in terms of bulk produced, plant and

line capacities used and other relevant parameters

Thank You