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AgendaEnterprises Resource Planning (ERP)Supply Chain Management (SCM)Customer Relationship Management (CRM)Call Centre, BPO, KPOInternational Business ManagementTQM – Total Quality ManagementSix Sigma
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Enterprise resource planning (ERP)ERP integrates internal and external management
functions like finance/accounting, manufacturing, sales and service, etc.
Single software solution integrating the different functions and activities
Action taken by one department results in the appropriate follow-up action up and down the line
Customer ordering and delivery where a customer's order moves smoothly from Sales, to Inventory and Warehousing, to Finance, and on to Manufacturing
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Scope of ERPProduction Department: Bills of Material, Scheduling,
Capacity, Workflow Management, Quality Control, Manufacturing Process
Supply Chain Management: Inventory, Order Entry, Purchasing,
Financials: General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets
Projects: Costing, Billing, Time and ExpenseHuman Resources: Human Resources, Payroll Training,
Time & AttendanceCustomer Relationship Management: Sales and
Marketing, Commissions 4
Package ERP Solution Vs Custom Development ERPCustom Development Packaged ERP
Definition: Developed either for a specific
organization or function
Definition: Consolidate all of company's departments
& functions in single computer system
Scope: Usually created for companies, business Scope: ERP packages are made for mass market
Budget: Companies pay for customized software for
budget or project managing
Budget: These are planned for long term and are
budgeted as a part of company maintenance.
Cost: Is one time or as per contract. Generally low. Cost: Cost is one time for installation and
implementation. High
Maintenance: Have to be frequently updated Maintenance: Any change in industry by the ERP
company
Up gradation: In case of up gradation, its very
difficult
Up gradation: Is easy and cost effective
Custom Reports: Custom development is a part of the
contract
Custom Reports: These are generally open source
codes
Technical: They are designed as per specified
hardware or Operating Systems
Technical: These are generally designed to run on
multi-OS, hardware and system
Examples of bespoke software
Websites, Inventory Management, Customer
Management, Employee Management
Examples: SAP, Oracle, Peoplesoft, JD Edwards,
BAAN etc.
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SUPPLY CHAIN MANAGEMENT (SCM)Example - For a large retailer like Supermarkets, it
has many regional distribution centers, a supply chain management system will effective coordinate between suppliers of clothes, paper products and Supermarket's retail stores to reduce the inventory cost
Supply chain execution means managing and coordinating the movement of materials, information and funds across the supply chain.
The flow is bi-directional.
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SCM must address following problemsDistribution Network Configuration: number, location
and network missions of suppliers, production facilities, distribution centers
Distribution Strategy: Operating control (centralized, decentralized or shared)
Trade-Offs in Logistical Activities: Achieve the lowest total logistics cost
Information: Integration of processes through the supply chain to share valuable information
Inventory ManagementCash-Flow
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Customer Relationship Management (CRM)Process used to learn more about customers' needs and
behaviors in order to develop stronger relationships with them
Information about customers, sales, marketing effectiveness, responsiveness and market trends
The overall goals are to find, attract, and win new clients, nurture and retain existing
Tracking and measuring multichannel campaigns - email, search, social media, telephone and direct mail
Metrics monitored include clicks, responses, leads, deals, and revenue
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CRM BenefitsRetaining customers - by excellent customer serviceEnables easier growth, indirectly and directly, for
example by sustaining healthier volumes and margins,
High levels of customer retention via effective customer service also improves staff morale
Focus more on proactive opportunities (growth, innovation, development, etc)
Having a culture of delighting and retaining customers fuels positive publicity and reputation in the media, and increasingly on the web in blogs and forums, etc
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Call CentreA call center is an office where a company's inbound
calls are received or outbound calls are madeCustomer service, sales, and support functionsCall centers have been increasingly popular as
outsourcing increases
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BPOContracting of the operations and responsibilities of
specific business functions (or processes) to a third-party service provider
Back office outsourcing - which includes internal business functions such as human resources or finance
Front office outsourcing - which includes customer-related services such as contact center services
BPO Advantages - Cost reductions, Concentration on core business, Outside expertise, Cater to changing customer demands
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KPOKnowledge-related and information-related work is
sharedHigh-value work carried out by highly skilled staffFocused on knowledge-intensive business processes
that require significant domain expertisePeople with MBAs, and medical, engineering, design
or other specialist business skillsCreate value for the client by providing business
expertise rather than process expertise
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Significance of KPOInvestment research services (equity, fixed income
and credit, and quantitative research)Business research servicesData AnalyticsMarket research servicesValuation and Fairness OpinionsLegal research services (Legal Process Outsourcing)Patent research services
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International Business ManagementProcess of focusing on the resources of the globe and
objectives if the organizations on global business opportunities and threats
Nature of International Business - Variations in political, social, cultural and economic factors
Impact of Culture/Language - Language is an important factor in international business.
Nationalism and Business Policy – Example 'Be Indian and Buy Indian'
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Total Quality ManagementQuality is defined as “the totality of features and
characteristics of a product or service that bears its ability to satisfy stated or implied needs.”
TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement and quality assurance.
TQM takes into account all quality measures taken at all levels and involving all company employees.
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AdvantagesLong-term benefits - higher productivity, higher
moral of personnel, decreasing of costs and increasing of consumers' trust
Avoidance of mistakes allows company to save money and time
Creates atmosphere of enthusiasm and satisfaction with performed job
Uses team style of workMore flexibility in work and collaboration
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Principles of TQMExecutive Management –Should act as the main driverTraining – Employees should receive regular trainingCustomer Focus – Improve customer satisfactionDecision Making – Made based on measurementsMethodology and Tools – Non-conformances are
identified, measured and correctedContinuous Improvement in quality proceduresCompany Culture –Developing employees ability to work
together to improve qualityEmployee Involvement –Pro-active in identifying and
addressing quality related problems17
Six SigmaQuality management initiative that takes a very data-
driven, methodological approach to eliminating defects
Aim to reach six standard deviations from the desired target of quality. Six standard deviations means 3.4 defects per million (99.99966%)
Improve the quality of process outputs by identifying and removing the causes of defects (errors)
Defined sequence of steps and has quantified financial targets (cost reduction or profit increase)
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Approach to Six Sigma - DMAICThe DMAIC project methodology (used for existing
products and processes) has five phases:Define the problemMeasure key aspects of the current processAnalyze the data to investigateImprove the current processControl the future state process
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DMADV or DFSSThe DMADV project methodology, (used for creating
new products and processes):Define design goalsMeasure and identify CTQs (characteristics Critical
To Quality), product capabilities, etc.Analyze to develop and design alternativesDesign details, optimize the design, and plan for
design verificationVerify the design, set up pilot runs, implement the
production process20
Roles in implementationExecutive Leadership - top managementChampions - Responsibility for Six Sigma
implementation across the organization in an integrated manner
Master Black Belts, identified by championsBlack Belts operate under Master Black Belts to apply
Six Sigma methodology to specific projectsGreen Belts are the employees
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