UNIVERSITY OF MUMBAI’SUNIVERSITY OF MUMBAI’S

ALKESH DINESH ALKESH DINESH MODY INSTITUTE MODY INSTITUTE

FOR FOR FINANCIALFINANCIAL & MANAGEMENT & MANAGEMENT

STUDIESSTUDIES

1

NAME OF THE STUDENTNAME OF THE STUDENT ROLL ROLL NOSNOS

SIGNATURESSIGNATURES

AHSAN KHAN 4343

AJAY DHUTAWALE

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ARUN IYER 28

ANAS KHAN 47

SHAHBAAZ KHAN 522

SYBMS SEM V

Submitted to :- Prof. SANJIV THAKUR SIR

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Contents

• Jit 1• Jit 2 • Erp • drp • Vendor management

What is DRP ?

Distribution resource planning (DRP) is a method used in business administration for

planning orders within a supply chain. DRP enables the user to set certain inventory

control parameters (like a safety stock) and calculate the time-phased inventory

requirements. This process is also commonly referred to as Distribution Requirements

Planning

Emergence of Distribution Resource Planning

The need for more detailed distribution planning led to the emergence of distribution requirements

planning (DRP) during the 1970s.

DRP is a widely used and potentially powerful technique for helping outbound logistics systems

manage and minimize inbound inventories.

This concept extended the time-phase order point found in material requirements planning (MRP)

logic to the management of channel inventory.

By the 1980s DRP had become a standard approach for planning and controlling distribution

logistics activities and had evolved into distribution resource planning.

The concept now embraces all business functions in the supply channel, not just inventory and

logistics, and is termed DRP .

DRP is usually used with an MRP system, although most DRP models are more

comprehensive than stand-alone MRP models and can schedule transportation. The

underlying rationale for DRP is to more accurately fore-cast demand and then use

that information to develop delivery schedules. This way, distribution firms can

minimize inbound inventory by using MRP in conjunction with other schedules.

Logistical Benefits of DRP

Conclusion

DRP provides inventory and distribution plans to meet product demand forecasts . It

can manage the process of matching the company’s inventory to customers orders m

so that it will never have to worry about having the wrong inventory in the wrong

plave at the wrong time after all its all about the timing

Meaning of JIT (Just In Time)

JIT is a Japanese management philosophy, which has been applied in practice since the

early 1970s in many Japanese manufacturing organizations. It was first developed and

perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of

meeting consumer demands with minimum delays.

Ethical concept of JIT by Japanese:

Motivation of workers

Inspiration of the team work

Opportunity to all the employees

Benefits to the workers

Correction Repair or work

Motion Any wasted motion to pick up parts or stack parts. Also wasted walking

Overproduction Producing more than is needed before it is needed

Conveyance Wasted effort to transfer materials, parts, or, finished goods into or out of storage , or between process

Inventory Making excess inventory of raw materials parts in process or finished goods

Processing Doing more work than is necessary

Waiting Any non-work time waiting for tools & supplies and parts,etc

Types Of Waste

Elements of JIT System

1.Continuous improvement

2.Attacking fundamental problems-anything that does not add value to the product

3. Devising systems to identify problems

4.Good housekeeping-workplace cleanliness and organization

5.Set up time reduction-increases flexibility and allows smaller batches

6.Ideal batch size is 1 item per batch, i.e. single piece flow

Benefits of JIT Systems

Reduced space requirements.

Increased product quality and reduced scrap and rework

Reduced manufacturing lead times.

Greater flexibility in changing the production mix.

Smoother production flow with fewer disruptions.

Worker participation in problem solving.

Summary of JIT I

It can be said in summary that JIT is the management philosophy, which

emphasizes on the waste elimination as well as vendor integration to create

certainty in the material planning process, which ultimately results into no

inventory; and hence inventory control means to follow JIT.

JIT II

The new basis of competition in many industries is time-based. This means that

the focus is on reducing lead time by speeding up the design of new products or

responding more quickly to customer demand for existing products.

The practice of JIT II links engineering, planning, and purchasing departments and

bridges the inter-organization gap between customer and supplier.

JIT II Purchasing

In a JIT II relationship, a supplier's sales representative works full-time in a customer

firm while being paid by the supplier. The customer serves as the host organization,

and the supplier representative-referred to as an in-plant representative, or

“in-plant”functions as an employee of the customer's purchasing department, attending

planning meetings and determining material needs. The in-plant is then authorized to

purchase materials from the supplier for the customer.

ADMINISTRATIVE BENEFITS OF JIT II

Efficient administration of the purchasing function is reducing lead times in JIT II

companies.

Having an in-plant on-site provides the customer with continuous supplier support.

Essentially, the supplier is always available and has a real-time awareness of customer

needs.

The levels of customer service and efficiency that are achieved are greater than those in

firms where off-site representatives serve the account.

The time required to contact a supplier is minimized .

What is A Vendor?

“A vendor can be any person, organization or software development company that is providing services or products on behalf of a covered entity.”

• Maintaining good relations.

• Professional and personal relations.

• Mutually beneficial.

• Strategic importance

• Long term.

TYPES OF VENDOR:-

Primary Vendor(s) –

Refers to the direct contractual relationship between a consulting vendor and the end client.

A typical vendor management program will have a number of primary vendors, but there can be one primary vendor who can then use sub-

vendors.

Sub-Vendor(s) – Those staffing firms that work through a primary vendor.

The Successful Vendor Selection Process

Strategies to Strengthen Vendor Relations

• Share Information and Priorities

• Balance Commitment and Competition One of the goals in vendor management

• Allow Key Vendors to Help You Strategize

• Build Partnerships For The Long Term

• Seek to Understand Your Vendor's Business Too Remember, your vendor Negotiate to a Win-Win Agreement

• Come Together on Value Vendor management is more than getting the lowest

What is Enterprise Resource Planning (ERP)?

• ERP is an enterprise-wide information system designed to coordinate all the

-Resources,

-Information,

• Activities Needed To complete business processes such as;

-Order Fulfillment

-Billing.

What is erp ?

ERP (enterprise resource planning) is an industry term for the broad set of activities that helps a business manage the important parts of its business.

The information made available through an ERP system provides visibility for key performance indicators (KPIs) required for meeting corporate objectives.

ERP software applications can be used to manage product planning, parts purchasing, inventories, interacting with suppliers, providing customer service, and tracking orders.

ERP can also include application modules for the finance and human resources aspects of a business. Typically, an ERP system uses or is integrated with a relational database system

Why ERP Came?

• ERP has become a powerful tool in hands of management for effective use of resources and to improve the efficiency of an enterprise.

Why ERP?There are several reasons why a company will consider the Implementation of a New Backbone Business System:

ERP serves and supports multiple business functions

ERP systems allow companies to better understand their business.

ERP enhancing management decision making

ERP helps in improving profitability of the company

ERP helps to cope up with new production requirements

Why ERP?(continued)

Reduce Costs – How will ERP Help?

Enable Reduced Resource Requirements due to:

ERP involves less paper work

ERP Provides a means to supply chain management

ERP provides instant access with latest information

Continued……!

Reduce Costs – How will ERP Help?

Enable Reduced Resource Requirements due to:

ERP provides rapid transfer of information

ERP Reduces Cost

On Demand Reports

How ERP Systems Works?

• Implementation done by consultants

• Integration of all information

• Integration involves all the processes and enhancing the process to current business scenarios.

• Hardware and software both constitute integration

• ERP delivers a SINGLE DATABASE that contains all data for the software module

ERP PACKAGES

I. SAP AG•   is a German global software corporation that provides enterprise software applications and

support to businesses of all sizes globally.,

• SAP is the largest enterprise software company in the world (as of 2009). The company's best known products are its SAP Enterprise Resource Planning (SAP ERP) and SAP Business Objects software.

II. ORACLE

• Oracle Corporation is an American multinational computer technology corporation that specializes in developing and marketing hardware systems and enterprise software products – particularly database management systems.

•  it has enlarged its share of the software market through organic growth and through a number of high-profile acquisitions. By 2007 Oracle had the third-largest software revenue, after Microsoft and IBM.

Companies before ERP

Full of paper work

An example …,

Transfer to Finance

Department

Transfer to Manager

Transfer to Accounting Dept.

Transfer to Accounting dept

Companies after ERP Implementation

Less paper work and more use of technology

ERP SOLUTIONS

PRODUCTIVIT

Y

COST

QUALITY CUSTOMER

SATISFACTI

ONMARKETSHARE

PROFIT

Benefits of ERPI. Operational Benefits

Reduces processing cycle . Access to multidimensional Information. Effective Cost control Increase Productivity

II. Business Benefits

Higher profit & improved Return on Investment (ROI) Better utilization of Resources' due to easy to control Better customer service

III. Management Benefits

Helpful in decision making Secured Information Less Number of Employees

Disadvantages

• Expensive to install and Run

• Initially can be difficult to use

• Customization in many situation is Limited