konsep dan penerapan enterprise resource … dan penerapan enterprise resource planning (erp) ......

Konsep dan Penerapan

ENTERPRISE RESOURCE PLANNING (ERP)28 Oktober 2017

Versi: 1.0

Presented to:

Ikatan Alumni Polman Bandung dan IKAME POLMAN

28 Oktober 2017

ERP Introduction 2017

Brand Name mention in this presentation is registered trademark:

✓SAP is registered trademark belong to SAP AG

✓Oracle is registered trademark belong to Oracle Inc.

✓Dynamix is registered trademark belong to Microsoft Inc.

Most of explanation refer to package ERP Solution rather than in house development

Disclaimer


By following this session, hope audience can get better knowledge about:

Definition of ERP

How ERP Can be Valuable for Company

ERP Components

ERP Journey

Key Success Factors and the challenges

Session Objectives


ERP Definition

Component of ERP

ERP Journey

ERP Challenges

The Agendas


ERP Definition and Benefit


ERP Intro: https://www.youtube.com/watch?v=NmGB9QqEnVg

Modern Warehouse technology: https://www.youtube.com/watch?v=cLVCGEmkJs0

Start the video

ERP Definition

https://www.youtube.com/watch?v=NmGB9QqEnVg

https://www.youtube.com/watch?v=cLVCGEmkJs0


Manufacturing and ICT Evolution – The History

ERP Definition

1913’s Inventory Control: EOP, EOQ

1960’s Material Req Planning (MRP) Production Scheduling

1980’s Mfg Resource Planning (MRP-II). Scheduling, Purch, BoM, Contract

1990’s ERP. Enterprise Wide Planning, incl Finance, HR, Mtc, Purch. Sales

2000 Collaboration SCM, CRM, etc

201x

E-commerce

B2B, B2C

The Dream:

• Survive in more competitive world

• Increase Margin

• Better Planning and Forecast

• Less Inventory

• On time Delivery to Customer

• Cash flow improvement

• Etc.

Cloud(www….com)

Web based Main Frame DOS/Green

Screen

Windows

GUIY2K Client

serverPaper based

Born in Manufacturing Company


Enterprise Resource Planning (ERP), what is it?

✓ Enterprise: Enterprise Level/Corporate Wide

✓ Resource: all necessary things that involve in production process

• Material : raw, WIP, Finished goods

• Man : people in every roles

• Machine : production facility, supporting equipment, tools, etc.

• Money : capital in every currency and forms

• Method : procedure, guidance, etc.

✓ Planning: Step before execution

Definition of Enterprise Resource Planning (ERP)

ERP Definition

• Enterprise wide production planning that involve all of functions within company

• Integrated business application that connect entire functions within company in one single data base


How Global Company Works?

ERP Definition

US HQCorp Plan, Corp Fin,

Sales Control

Indo: Prod & WH Facility

India: HR and Payroll

SG: Logistic Center

FG

Movement

Accros the

globe

China: proc control


Delivery

Master Data

Customers

Vendors

Material

Bill of material, CAD

Work plan, plant maintenance plan, inspection plan, CAP

Work center

Production resources and tools

Rough-cut planning profile

Equipment

Document

Classification

WORKFLOW Word processing MAIL Communication TELEFAX, EDI, Internet

Product costing Shipping, billing, transport

Inspection lot

Inspection order

Sales On Demand

Customer orderprocessing

Customer requirements

Production Plan

Quality Mgt

Order:- Creation- Release- Confirmation

Shop floor control Capacity leveling

CAP

Repair

MaintenancePlant Maintenance

Inventory managementGoods receiptMaterial valuation

Invoice verification

Warehouse management

Plannedorders

Openingperiod

Demand management

Materials planning

Rough-cut capacityplanning

Direct requisition

Network

Projects

Project system

Profit planning

SOPPlanned requirementsForecasts

Sales planning

Purchasing

Enterprise Wide Involvement in Manufacturing Planning

Inventory & Purchasing

ERP Definition


Manufacturing Flow - Sample

ERP Definition


At The End: Financial Reports

Bank

Accounting

Inventory

Accounting

Accounts

Receivable

Asset

Management

Accounts

Payable

Closing

Operations

General

Ledger

Sales &

Distribution

Cost Center

Accounting

Materials

Management

Financial

Accounting

Profit Center

Accounting

Product

Costing

Controlling

Internal

Order

Profitability

Analysis

Quality

Management

Production

Planning

Income

StatementChallenges:• How Accurate?

How Fast?

ERP Definition


Centralized System, Single database for all users

Integrated functions and business processes. Created Output become input for the next

Update one business process will effect others

Data flow across the functions

Common definitions best practice

ERP systems reflect a specific way of doing business

What makes ERP different?

ERP Definition

New Words:

Business Process, Functions, Data, Best Practice


ERP Core Module: One Database for All Modules

Customer Master Data

Sales Processing

Shipping

Billing

Pricing / Conditions

etc

FI

Acc

AM

PS

WF

IS

MM

HR

SD

PP

QM

PM

Material Master Data

Inventory Transaction

Warehouse Management

Purchasing Master Data

Purchasing Transaction

etc

MRP

Production Master Data

Capacity Planning

Master Production Scheduling

Shop Floor Control

Product Costing

Etc

Production Mgt

Inspection Planning

Inspection Process Guides

Quality Notifications

Certifications

Plant Maintenance Master Data

Maintenance Planning

Order Processing

Service Management

Structuring Technical Systems

Organization Structure

Personnel Administration

Time Management

Payroll and Compensation

Personnel Development

etc

Overhead Cost Management

Cost Center Planning

Accounting, Reporting

Cost Object Controlling

Product Costing

Internal Orders

Etc.

Project Structuring

Project Reporting

Project Planning

Project Budgeting

Project Execution

Project Closing

Project Mgt

Finance Master Data

Accounts Receivable

Accounts Payable

General Ledger Accounting

Cash Management

etc

Harvesting

Payroll

Estate Admin

Traksi

Quality Mgt

Maintenance Mgt

Plantation Mgt

Human Resource Mgt

Inv & Purchasing MgtSales & Mkt Mgt FinanceMgt

Cost Accounting Mgt

ERP Database

ERP Definition


ERP

Sls

Inv

Prod

FICO

HR

Purc

PrjcAsset

IS

QltyMtc

Sup

plier/V

en

do

rCu

sto

me

r/U

ser

ERP Collaboration Solution

ERP Definition


Bring best practice to you

Improved control, efficiency, and Effectiveness

Improved quality of planning

Speed up providing data for decision making

Increase company performance

Better manage business risk

Will help in expand the market

Benefits of ERP

ERP Definition


The Power of Data:

ERP Definition

Pabrik B

Bangrkut!

Kena PHK Nih!!

Kena PHK Nih!!

Mall A Bangkrut! Mall B Bangkrut!

Pabrik A

Bangkrut!

KENAPA????Daya Beli Menurun?? Pindah Pola Belanja??

Jadi Banyak Yg Menabung???

Bagaimana Menganalisanya???

ABAIKAN POLITIK!

PUNYA DATA????

SPEAK BY DATA!!!

KENAPA???? Daya Beli

TURUN???


How Can We Make High Quality of Decision?

ERP Definition

Bottom up Decision Making

Top Down Decision Enforcement

Mandatory Requirement:

✓ Data Quantity

✓ Data Quality

✓ Data Validity

✓ Data Timing


ERP Journey


WHY DOES

COMPANY NEED

ERP?


Transform or Die

ERP Journey

Average Lifetime of S&P 500 Companies

• Can we survive??• How compete we are??


Top pressures forcing transformation

ERP Journey

• Need for innovation82%

• Operational efficiencies and reduced costs77%

• Effective management of capital to increase returns74%

• Mitigating or reducing risk72%

Source: Forbes


Continuous Improvement

ERP Journey

#1 Dream

Company Strategic Plan/SWOT

Analysis

IT Strategic Plan

Solution/Product Selection

Implementation

Solution Operation

Evaluation

IMP

LEM

ENT

: TO

P D

OW

N

AP

PR

OA

CH

BO

TTO

M U

P E

VA

LUA

TIO

N

ERP Adoption is Investment. Successful of

implementation is measured by achievement of

the target


No Other Option: Change is a MUST

ERP Journey

• You are the player not process owner

• Follow the system based on your role

• System decide by defined process

• System decrease discrecy to the lowest level

• Not follow the system: out of the business

Koq Mbak nya ga ada???

Koq ga bisa?? Kartu Kredit gw

Limitnya 100jt???


ERP Component


Licenses

✓ Initial licenses

✓ Yearly annual technical support for bug fix and enhancement

Implementation Service

✓ Kick off to go live consultant investment

✓ After go live support investment

✓ Yearly consultant support and maintenance

Hardware/Infrastructure Investment

Internal Cost

✓ Time spending

✓ Extra effort during implementation

✓ Potential slow down operation during implementation process

Invest on ERP

ERP Components


Several Brand Name of ERP Package

ERP Components


Knowing your Business Process

ERP Components

Company XYZ is Manufacturing Company

Functions

• Key points:• Functions is not equal with Org Structure• One division/department may play for more than 1

functions• Completeness but not redundant• Consist of processes

Sales marketing Finance

Procurement Production Maintenance

Corp Plan

ETC

Procurement Function consist of the following process:

• Vendor Registration process• Non Inventory Item Registration process• Purchase Request process• Purchase Order process• Purchase Control process• Invoice from Vendor process• Etc

Process:• Serial activities begins with a business goal or objective and ends

with the achievement of that goal.• Has correlation with other process: out put from other process

as an input, the output will become input the next process• Process Owner define process flow and KPI• Process User, use process in day to day activities• Process executed by player across the functions


Component of Business Process – Purchase Order Creation (Sample)

ERP Components

Purchase Requestprocess

Fill In PO FormApprove PO

Form

First Level Approval

Second Level Approval

Sent to Vendor and Follow-up

SOP/Guidance/Regulation

In put/Out

Put

Pla

yer

Purch

Officer

Purch

SPV

Purch

Mgr

T-1 T-2 T-3 T-4

Static & Dynamic

data


Sample screen – Actual Using ERP

ERP Components

Static Data

Dynamic Data

Screen belong to SAP ERP


ERP Infrastructure

ERP Definition

Information and Communication Technology (ICT)

One World borderless

One Database for all

Access data anytime anywhere

Faster Data Processing

Easy to connect all stakeholder


New Trend in the Industry: Company focus as much as they can to their business. Let IT company take care their infrastructure

Change CAPEX to OPEX: Invest to Subscription base

Money invested to something directly improve core business

Decrease Over Head Cost

High Scalability

Cloud Computing/SaaS

ERP Definition


On Premise vs SaaS (Software as a Service)

Cloud Computing/SaaS in IT

ERP Definition


IMPLEMENTATION METHODOLOGY


Step-by-step deployment of ERP Solution: not just install, but Implement

Top Down Approach not Bottom Up

Sometime is costly and time consume then, Quick win is best approach

“Adopt as much as possible standard ERP to gain best practice and minimize system customization”.

Phased or Big Bang

Stakeholder:

✓ Top Management

✓ Project Management

✓ Experienced Application Consultant

✓ Business Process Owner and End User

✓ Subject Matter Expert for specific business process

✓ Developer and Infrastructure Engineer

Never stop when finished, but continues to the next cycle for continuous improvement

ERP Implementation - Introduction

Implementation


High Level Implementation Methodology

Implementation

Support Services

Consulting Services

Education Services


Phase-1 Project Preparation

Implementation

1

Key Tasks Deliverables

Objectives

To provide initial planning and the preparation of the implementation project. This phase will help to identify the

overall strategies to be adopted throughout the project, as well as to establish a detailed work plan for designing

and implementation of the ERP system.

▪ Define the project plan

▪ Clarify the scope of the implementation

▪ Defining overall project schedule

▪ Establishing the project organization

▪ Review hardware and network requirements

▪ Define Project Standard & Procedure

▪ Create and Issue Project Charter

P

▪ Project Plan

▪ Project Schedule

▪ Project Organization Structure

▪ Project Standard Documents

▪ General Workshop

▪ Project Kick-Off

▪ Server Sizing

P


Phase-2 Blue Print

Implementation

2


Objectives

To design full model and blueprint of business process scenarios to be in scope and mapping to ERP functionalities

and best practices.

▪ Identify all business process and scenarios.

▪ Identify all organization elements and roles

▪ Identify all reports, interfaces, data conversions

and enhancements requirements

P

▪ Complete Business Blueprint encompasses

definition of Reporting Requirements and any

required interfaces, non-standard reports, and

business processes necessary

▪ Application Model with Best practices solutions

suitable with the requirements

▪ Technical Landscape and architecture design

P


Phase-3 Configuration

Implementation

3


Objectives

To implement business process requirements and blueprint by configuring the ERP Standard functionalities and

transactions.

▪ Configure ERP Modules to meet business blueprint

requirements

▪ Develop reports, conversion, interface and

enhancement program

▪ Conduct unit and integration tests and ensure the

readiness of the prototype system

▪ Develop authorization matrix

P

▪ Configured ERP system

▪ Working Conversion program

▪ Working Interface Programs

▪ Report programs

▪ Test results

▪ System configuration documents

▪ Authorization matrix

P


Phase-4 Final Preparation

Implementation

4


Objectives

To complete the final preparation (including testing, end user training, system management and cut-over activities),

to finalize your readiness to go live. The final preparation activity should also serves to resolve all crucial open

issues

▪ Conduct user acceptance test (UAT)

▪ Conduct key user training

▪ Develop presentation materials

▪ Develop business process documentation

▪ Develop detail cut-over planning

▪ Perform cut-over to production environment

P

▪ User testing sign-off

▪ UAT sessions and testing scenarios

▪ Key-user training sessions and documentation

▪ Detailed cut-over planning documentation

▪ Business process documents

P


Phase-5 Go live and Support

Implementation


Objectives

To move from pre production environment to live production operation.

▪ Provide production support for one month and

first month end closing

▪ Validate live business process result

▪ Close the ERP implementation project

P

▪ Production support team

▪ Implementation project closing signed-off

P

5


Best fit (Product and Consultant) selection in the begining

Top Down Approach: Strong commitment and leadership from Top Management as Project Sponsor, ensure commitment of all project team

Timely decision making to meet agreed project schedule

Business Process Owner has Strong Knowledge and Authority in his/her area

Stability project team members

Consultants qualification

Change Management approach

Minimal changes to agreed project scope

Minimal software customization outside those agreed to in the project scope

Implementation Critical Success Factor

Implementation


Challenges in using ERP

Garbage in – Garbage Out

Change Management/habit

Miss on step, stuck all of the process

The Higher security/procedure, the less freedom

Need continuous improvement:

▪ Train new user

▪ Fit with technology changes

▪ Fit with business evolution

▪ Fit with change on organization structure

Implementation

ERP Introduction 2017Olson: ERP 2