ENTERPRISE RESOURCE PLANNING

An integrated software application to bring together all the functions of an organization for optimum utilization. Optimization of entire supply chain . Information is entered and stored in single shared database for all functions depended directly or indirectly on it. Information is available in all necessary forms which can be accessed , throughout the system. ERP enables an enterprise to balance its resources such as manpower, machines,materials,money,methods and marketing.

ERPII ENTERPRISE SYSTEMS

Inter-organizational capabilities. Integration with SCM,SRM,CRM,ELM,PLM,EAM. ERP-II is equipped with corporate performance management, business intelligence and warehouse etc. Modularity facilitation Real time transactions tracking. Business process re-engineering. Standardizing systems and procedures across the enterprise.

Contd.

Transparency. Business networking. Best global management practices. Global information systems infrastructure

INDUSTRY SOLUTIONS FINANCE COSTING & CONTROLLING MATERIAL MANAGEMENT PRODUCTION PLANNING QUALITY MANAGEMENT PLANT MAINTENANCE ASSET ACCOUNTING HUMAN RESOURCE CENTRAL ENTERPRIS E DATABASE REPORTS MANAGEMENT SERVICE MANAGEMENT PROJECT SYSTEMS SALES & DISTRIBUTION COUNTRY SPECIFIC SOLUTIONS

FUNCTIONAL MODULES OF ERP SYSTEMS

TISCO

Established in 1907 by J.N. TATA. TISCO is Asias first and Indias largest integrated Steel company. TISCO has implemented ERP-SAP R/3 along with MES to transform itself to meet challenges of rapidly growing global economy. From production driven to customer driven company. TISCO has greatly enhanced its value chain in process, products and performance. TISCO caters huge national and international customers from different industries.

NEED FOR ERP SYSTEM

IT systems used were just replication of manual systems. Systems were disintegrated and worked as individual entities. Applications were based on different technologies. Interaction between different systems was cumbersome and exchange of data was unreliable. Data redundancy. No in-built integrity check for various data sources. Response was limited to constant changes in marketplace.

Contd.
Analysis revealed integration of manufacturing process with various other functions was the weakest link in the value chain of TISCO. Future functionality implementations. Modularity characteristics. Cost , operational time, value delivery process ,customer interactions and overall better comprehension of industry.

PROCUREMENT

TECHNOLOGY

HUMAN RESOURCES

INFRASTRUCTURE

RESEARCH & DEVELPOMENT

MANUFACTURING

DISTRIBUTION (OUTBOUND LOGISTICS)

SOURCING (INBOUND LOGISTICS

MARKETING & SALES

SERVICES

VALUE CHAIN BEFORE ERP

PROCUREMENT

TECHNOLOGY HUMAN RESOURCES

ERP

INFRASTRUCTURE

CUSTOMER SOLUTION FOR PLANNING AND SCHEDULING

ERP

RESEARCH & DEVELOPMENT MANUFACTURING

DISTRIBUTION (OUTBOUND LOGISTICS)

SOURCING (INBOUND LOGISTICS)

MARKETING & SALES

SERVICES

VALUE CHAIN AFTER ERP

ERP-MES integration

Manufacturing scheduling for large integrated steel plant ,a challenge. ERP alone cannot counter the production process. Implementation of MES to provide information for optimization of production activities from order launch to finished goods. MES guides, initiates, responds to, and reports on plant activities as they occur in real time. An important result of responding to rapidly changing conditions coupled with reduction of non-value added activities.

Contd...
MES improves the return on operational assets and ontime delivery. Inventory turns ,gross margins and cash flow performance are improved. Mission critical information about production activities across ERP and SCM . ERP enriched with vital information like costs, cycle times, throughput and other production performance data. SCM is enriched with information like actual order status, production capacities and capabilities.

30 Earnings per Share

25

20

Value

15

10

90

Asset Turnover
80 70 60 50

Value %

40 30 20 10 0

Return on average capital employed 100

90
80 70

60 Value %
50 40

30
20 10

BENEFITS REALISED

INTANGIBLE BENEFITS

Complete transparency in customer ledgers, orders,stock ledgers, dispatches and credit lines. Customer centric facilitation. Marketing and sales decision are now made on basis of online data. Lead time reduction. Inventory management efficiency. Efficient Contingency plans .

TANGIBLE BENEFITS
Labour cost reduced from $200 per tonne in 1998 to $140 per tonne in 2000. Outstanding overdue brought down from Rs.5170 millions to Rs.4033 millions by 2000. Inventory carrying cost reduced from Rs.190 per tonne to Rs.155 per tonne. As online data is continuous available , a reliable and quicker trend analysis for efficient decision making process. Auditorial benefits.

XML PA

XML PA

XML PA

Accounting & Finance

Warehouse & Commercial

ERP
Fixed Assets module Production Module

PRASER

PRASER

PRASER
XML INTERFACE

CM U R A

CM U R A AGENCY

CM U R A

Employment Availability

Machines Availability

Material Availability

SERVICE MODULE

SCM

CRM

PLANT AUTOMATION BASED ON DISTRIBUTED SYSTEMS

Mass customization at the cost of mass production. Mass customization to be flexible, fault tolerant, real time information system combined with dynamic scheduling. Modularity requirements. Interactions between suppliers,firms and customers Mass customization is demand driven. Derived time reduction by use of SMED. Separate development of each module. Reliable interfaces.

HOW THE SYSTEM WORKS?

Hierarchical structure with 3-layers.

ERP Top layer. MES and SCADA-middle layer. CONTROL DEVICES-Bottom layer

Document control,data collection,product tracking and genealogy,performance analysis provides current production situation to the ERP. Maintenance management-periodic and preventive. SCM provides information for the inventory and materials for the product.

Contd
MES functionality replacements by CMU-Cooperative manufacturing unit. Three types of CMUs

Manufacturing Logical SCADA

Communication of CMUs is established by resident agentsRA, an autonomous programs. Network of CMUs distributes manufacturing and also knowledge and data integration. RA defines the functionalities and machine capabilities of CMUs it represents to the entire network through a look up service

Contd.

PnP-plug and participate enhances real time data. One product One agent. pure product orientation. Operations and scheduling.

Thank You