Post on 06-Mar-2015
Author
Jagan Vidyala
Freelance Consultant and Corporate TrainerORACLE SCM/MFG/ASCP/EAM Suites
10 Yrs of experience in IT consulting in addition to 18 Yrs of domain experience in Manufacturing, Inventory, Global procurement, Sales & Marketing and Turnkey Project execution.
jvidyala@gmail.com
Enterprise Resource Planning
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.
Enterprise Resource Planning
ERP systems attempts to replicate business structure, processes, policies, and procedures. You can’t just install the program on a computer and start business operation immediately. Determine the basic nature of the business
and compare with the software functionality, by carefully setting configuration parameters achieve a system that meets 90-100% of business needs.
Enterprise Resource Planning
Configuration of an ERP system is tricky because many of the parameters interact with each other, one need to understand how the software works before actually have a chance to use it.
Enterprise Resource Planning
The Oracle ERP systems have functionality to support industry standard and best practices. The recommendations of
American Productions and Inventory Control Society (APICS) is well supported by Oracle software.
Oracle Applications Release 10.7 was the first version of Oracle ERP to be accepted
as Y2K-compliant.
Enterprise Resource Planning
ERP systems are implemented by companies for many tangible, intangible, and strategic reasons.
Companies don’t even try to calculate ROI on ERP systems because there are so
many intangible and strategic benefits.
Enterprise Business Suites (EBS)
Supply Chain
Manufacturing
Financial
CRM
HRMS
Oracle Apps – Manufacturing & DistributionSupply Chain - Modules
Inventory (INV)
Purchasing (PO)
Order Mgmt (OM)
Oracle Apps – Manufacturing & DistributionSupply Chain - Modules
Inventory (INV):
Inventory is a physical resource that a firm holds in stock with the intent of
selling it or transforming it into a more valuable state.
Purchasing (PO):
Purchasing is to buy and receive goods and services to meet the needs of
business and customers.
Oracle Apps – Manufacturing & DistributionSupply Chain - Modules
Order Mgmt (OM):
Order management is cornerstone of the customer fulfillment and customer service process. OM is the primary source of demand for goods and services.
Oracle Apps – Manufacturing & DistributionERP Implementation Major Cycles
P2P: Procure To Pay Cycle
O2C: Order to Cash Cycle
Oracle Apps – Manufacturing & DistributionIntegration between Modules
PAYABLES
PURCHASING GENERAL LEDGER
WORK IN PROGRESS
RECEIVABLE
ORDER MGMT
INVENTORY
BILL OF MATERIALMS / MRP QUALITY
MGMT
WARE HOUSE MGMT
CUSTOMERSUPPLIER
Oracle Apps – Manufacturing & DistributionOracle Application Features
In addition to applications, four major topics adds many features and
capabilities to the Oracle ERP system
Workflow Multi-Org System Administration Applications of the vendor in the
‘Co-operative Applications Initiative’ (CAI)
Oracle Apps – Manufacturing & DistributionWorkflow
A workflow is a set of business rules that can:
Create accounting based on your requirements
Route business documents internally for approval
Initiate an outbound and inbound messages
Generate and send notifications to home page
Generate and send email to an email client
Oracle Apps – Manufacturing & DistributionMulti-Organization
Support multiple business units even if they use different ledgers Secure access to data on a single instance
by line of business Define different organization model Sell and ship from different legal entities Procure and receive from different legal entities Produce reports across entities/within a single entity
Oracle Apps – Manufacturing & DistributionSystem Administration
Describe the layers of access control in Security Define Function Security Use Menu and Function Security to modify
responsibility Define Data Security Set Profile Options Define Standard Request Submission
Oracle Apps – Manufacturing & DistributionDaily 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.
Multi-Org Concept
BUSINESS GROUP
OPERATING UNIT
INVENTORY ORG
Multi-Org Concept
BUSINESS GROUP
OPERATING UNIT
INVENTORY ORG
OPERATING UNIT
OPERATING UNIT
INVENTORY ORG
INVENTORY ORG
Multi-Org
US OperationsLedger
Southwest Region
Operating Unit
Western DivisionLegal Entity
Eastern OperationsLegal Entity
Operating UnitInventory Org
Plant 1 Inventory
Org
Northwest Region
Operation Unit
Plant 2 Inventory
Org
Plant 3 Inventory
Org
UK OperationsLedger
UK Division Legal Entity
UK Sales Office
Operating Unit
UK PlantInventory Org
UK Business GroupUS Business Group
ERP – Advantages & Benefits
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.
ERP – Advantages & Benefits
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.