Sushil S Mundada

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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AdvantagesBased on Data: In Six Sigma, decisions are made

based on empirical evidenceProven Success: Beginning with Motorola, large

companies have successfully rolled out initiativesSustainable Solutions: The DMAIC and DMADV

processes are specifically designed for sustainable solutions

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