Pre Final ppt 4 Lean ERP

8/7/2019 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

Pre Final ppt 4 Lean ERP

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