ERP samenvatting boek ppt PDF

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Samenvatting ERP...

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INTRODUCTION: what are business processes?.........................................................................2 1.1.

Definition............................................................................................................................2

1.2.

Processes............................................................................................................................2

1.3.

Process configuration..........................................................................................................3

1.4.

ERP......................................................................................................................................4

SALES PROCESS...........................................................................................................................5 2.1.

Introduction........................................................................................................................5

2.2.

Selection process................................................................................................................5

2.3.

Order to cash process.........................................................................................................6

PURCHASE PROCESS...................................................................................................................8 3.1.

What is the interest of purchasing in a company?..............................................................8

3.2.

Basic steps in the purchase process....................................................................................8

3.3.

Goods and services (p. 166)..............................................................................................10

3.4.

Matrix (to read p. 167 – 190)............................................................................................10

3.5.

Special situations (to read p. 190 – 199)...........................................................................10

S&OP PROCESS.........................................................................................................................11 4.1.

Marketing.........................................................................................................................11

4.2.

The S&OP process.............................................................................................................11

4.3.

After the S&OP process....................................................................................................14

PRODUCTION PLANNING PROCESS...........................................................................................15 5.1.

Overview...........................................................................................................................15

5.2.

Independent demand and forecast consumption.............................................................15

5.3.

Tuning of processes with ERP: MPS vs. BtoB bs. ROP vs. Kanban......................................17

5.4.

Tuning of processes (mostly) outside ERP: Kanban...........................................................17

5.5.

Available...........................................................................................................................18

5.6.

Selection of replenishment method.................................................................................18

5.7.

MRP & CRP.......................................................................................................................18

PRODUCTION PROCESS.............................................................................................................19 6.1.

Overview production process...........................................................................................19

6.2.

Release production order.................................................................................................19

6.3.

Preparation.......................................................................................................................19

6.4.

Stage and change over......................................................................................................20

6.5.

Produce.............................................................................................................................20

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6.6.

Complete..........................................................................................................................20

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ERP 1. INTRODUCTION: what are business processes? 1.1.

Definition

All organisations use business processes to organise and streamline activities. Obviously those organisations need to take the necessary decisions and apart from this, you need to communicate with customers and suppliers, and even more intensely within the company internally. Now, all of these activities, decisions and communications only make sense when they add value (=> the customer is prepared to pay money for something). Preferably we have these activities, decisions and communications streamlined in the best possible way. Lastly such a process needs to be repeatable and robust. Process innovation and process improvement are two separate dimensions in the change of your process from its current to its new state.  

Innovation: this is thorough and structural change in the way in which you work. Innovation refers to a new technology or new working style. Improvement: Now we speak of efficiency and effectiveness. By improvement we mean a positive effect with at least one of them and preferably both  Efficiency: use the means to a good end  More results, same means / same results, less means  Effectivity: improve the results as such to better fit your customer’s expectations  More efficiency leads to more effectiveness / more efficiency and yet loss of effectiveness / more effectiveness without efficiency change

1.2. -

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Processes

1.2.1. Most widely used processes Sales process: to structure the interaction with the customer. The objective is to dissipate orders from customers and deliver and invoice them => make profit Purchase process:  In a company that produces goods a planning department will determine what, how much and when goods need to be bought and produced  Goods = warehouses. Receiving what the company ordered and delivering what the customer ordered are important operational activities in warehouses  Production process that transforms raw materials into semi-finished and finally a finished product, ready to deliver to the customer. HR-process: having the right people at the right place is a major concern for a human resources department that recruits and retains people. Also training and development are part of the HR-process.

1.2.2. Transaction follows selection Almost all processes consist of following two parts: the selection process followed by the transaction process. -

In the selection process we select counter party, product, location, timing, price, … with which we will execute the transaction. (selection process = preparation for the transaction) The transaction process refers to transactions that occur in real life or exchange between two parties

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Every transaction is registered n ERP that actually serves as an online transaction processing tool (OLTP). After several years the company wishes to analyse these data and find new opportunities. This is done with an online analytical processing tool (OLAP). 1.2.3. Process consists of three sub-processes Any business process can be broken down into three sub-processes: the physical (post goods issue), documentation (sales order) and financial (invoice) sub-processes. => to make a correct process analysis or verify an existing analysis on completeness -

1.2.4. Front and back-office processes The front office deals with every contact with the desired outside world: customers => aimed at creating added value for the customer The back office really coordinates all contacts with other partners, who are needed to realize the processes in order to meet the customer needs => meant to provide the front office with everything that will be sold there

1.3.

Process configuration

Very organically you can imagine any organisation as a micro cosmos of people you may group together in departments. Everybody has a supplier and a customer. That micro cosmos is what we know as a process. 1.3.1. A box full of building blocks You can view a process as the result of pilling up building blocks of tasks You can view a process as a result of piling up building blocks of tasks and decisions: the traditional communication model ad infinitum. Actors communicate with each other in a network. This happens in a particular sequence: from supplier to customer when you deliver (transaction). But obviously from customer to supplier to determine what you want (selection) and best case scenario is that you process will always work, even when a building block is omitted or eliminated . This means that improving a process means that you: 1. know how the process works 2. understand how processes can be improved using an improvement method 3. apply the change in a concrete situation The improvement methods that we use are VSM and BPMN. Both aim at process improvement by eliminating waste and improve the desired outcome. -

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Using VSM will reveal how long a product stays in our process. We want to shorten this as much as possible. It may be clear that when a process runs faster, we will consume less capital to keep it running With BPMN we look at the interaction between actors and the decisions that need to be made.

With both methods we describe the current situation and look for opportunities to improve it.

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1.3.2. Continuous improvement Once you follow the path of controlled process change by means of projecting, you will uncover that there will always be more opportunities of improvement that you can handle at once. You will need to split the project in separate phases, where each phase has a specific objective. This phased improvement is also known under the term continuous improvement. And continuous also means keep sufficient pace in you change process. At a given moment you will have to move and change your process. Are you front runner, then you will quickly pick up the trail of a new trend (innovation). But most probably the change will shake up your process so that you are in for efficiency changes later on (improvement). In all these cases we speak of continuous improvement. And these improvements are fundamental for the survival of your company in the long-term. Detecting in time the required changes and implementing in time these changes in your processes belong to the domain of continuous improvement. 1.3.3. Segregation of duties As a company you split the responsibilities and duties in your company up in roles, so that not one function can hold contradictory roles. SOD specifies that at least three individual and separate persons are required to complete a transaction.

1.4.

ERP

1.4.1. History of ERP (to read p.27 – 31) 1.4.2. Trust is good, control is better: financial integration We already know that in each selection and transaction process a clear link to the financial side of things is made. In an ERP-system this usually occurs through use of a table of date in which the link is made => financial integration How does such a table of financial integration work? There are two parts: firstly we determine the counter party for which we want to book something. Secondly we determine the nature of the booking. -

Cost item: an item that represents a pure additional cost or additional earnings (e.g. transport) Service item: an additional services which is rendered to the customer (e.g. service cost per order change)

1.4.3. Data. Data? Data! Usually a separate team or department will be in charge to create the date: Master Data Management. The MDM department exists as a separate department in many companies, yet it can be seen as a part of a department or in any other configuration.

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2. SALES PROCESS 2.1.

Introduction

In the selection process we evaluate possible opportunities that we hope to make more concrete and bring to orders

2.2.

Selection process

=> market to order process 2.2.1. Generate leads The main occupation of a sales organisation is finding opportunities in a focused way with the best chances of success. Marketing looks for growth potential and defines the opportunities of reaching that growth. Through market research a new range of specific customers of complete customer segments that we do not serve, can be identified. Going over to sales, we find that a lead is a possible customer, who is or is not aware of our organisation. Creating awareness is a combined effort of marketing and sales. => We merely generate leads to find the right customers who can consume the forecast by generating sales orders. 2.2.2. Opportunities Market research may generate a list of possible leads that marketing and sales will browse and evaluate to find the best opportunities. These opportunities are your possible customers. Any lead you may want to pursue in this way will have to be qualified and quantified. Creating awareness is the next step in the process. Awareness can mean one or more activities such as create company leaflets, company presentation, advertising and promotional material, tailor made events, even price positioning in the market. Goal: to receive an inquiry => an inquiry = a customer’s request to a company for information or quotation in respect to their products or services without obligation to purchase. 2.2.3. Quotations / proposals The request for a quotation or proposal will reach the sales department. => the quotation presents the customer with a legally binding offer to deliver specific products or a selection of a certain amount of products in a specified timeframe at a predefined price. 2.2.4. ERP and master date in the Market-to-order process The M2O-process creates a lot of master date in ERP. We still do not have a transaction, since no delivery of goods or services has taken place yet. The customer expects that a swift and accurate delivery takes place. We want to support this and therefore all supporting date to kick off the production and logistical processes right after the sales order is available, should be in ERP at the moment the sales order is entered. The sales order will be delivered in the transaction process Order to Cash.

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2.3.

Order to cash process

It is the Order-to-Cash process (O2C) that guarantees that the first delivery to the new customer runs smoothly. O2C also wants to ensure correct deliveries of new products in existing markets and all repeat sales to new and existing customers will be managed by this process. => customer service: delivery on time + delivery full quantity will be measured in the KPI On Time Delivery (OTD) 2.3.1. OTD Customer service is measured with OTD. This can be calculated in several ways, but usually as follows: the actual delivery time is on or shortly before the desired delivery moment expressed by the customer. 2.3.2. CODP CODP = customer order decoupling point Given the customer service level, you can fulfil it by choosing the right CODP. Choosing the CODP equals choosing activities that the supplier executes within the customer order lead time. And this lead time is exactly the time between the date on which the order is sent by the customer and the desired delivery date that will be confirmed to the customer. There are several COD points. The most widely used are MTS and MTO. So we must decide whether we already produce goods and place them on stock in the warehouse even before we have a customer order, so before the customer order lead time even has started (MTS). Or only start producing with all subsequent activities after having received a customer order (MTO). => MTO is more steps than MTS: planning, purchase and production 2.3.3. O2C in MTS environment 2.3.3.1. Order entry and verification The first order may be generated out of a quotation or contract of the customer that we have seen in in the M2O-process. => communication between customer and supplier: send a signed quotation by mail, via fax, hand it to the sales representative or make and EDI-order (= electronic data interchange) Entering an order into ERP can be done either manually or electronically. Whenever we enter a sales order, it is either linked to an existing customer or to a customer that needs to be created as master data. This is also a kind of segregation of duties: the master data are created by one group of people and used by another. The order entry admin will merely attach the correct customer to the order. Credit check: whenever an existing customer did not pay the orders that were delivered before or a new customer has been awarded a negative point out of a financial analysis, then the credit worthiness can be limited or even suspended. And ERP blocks the entry of new sales orders for these customers => done by the customer accounting department Next to the credit check there is also an SPL-check (= sanctioned party list). -

Parties: legal entities or natural persons Sanctioned: a party with whom you are allowed to execute transactions (white list) or are not allowed to execute transactions (black list)

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2.3.3.2. Order confirmation Confirming an order to the customer is a non-event. It means that there may be no more source of discussion or conflict in the confirmation. It must meet expectations of both customer and supplier. Confirmation is a separate status of the sales order in ERP. The status is reached when the confirmation is sent to the customer. The confirmation turns the order into a commitment of the supplier towards the customer. => it is now a two sided fixed transaction The order date in ERP is the date on which the order was entered and in most cases also confirmed to the customer. 2.3.3.3. Pickpack and delivery After order confirmation the lead time starts ticking. Here we have to execute several steps to allow the order to reach the desired destination in time. Picking and packing are the first activities. The pick date is the date by when the goods should stand ready for loading onto transport. Now the transport time starts. This transport time ends when goods have been delivered to the customer, preferably before the requested delivery date. Delivery scheduling: -

MTS (Made To Stock): already produce and keep in stock => backward scheduling MTO (Made To Order): start producing after receiving the order => forward scheduling

2.3.3.4. Invoice After the warehouse and transportation activities, the invoice will be made. The fiscal administration accepts invoices as proof of income generated out of delivery of services and goods. 3 way-match: control mechanism allowing us to invoice only what has been ordered and has been or will be delivered The billing document is created by copying date from the sales order and / or delivery document. The billing process is used to generate the customer invoice. It will update the customer’s credit status 2.3.3.5. Payment Payment terms are speci...