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.