ERP Implementation

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ERP Implementation for XYZ Company Presentation by Group 12 Karthic Raja V – 0911097 Premanand R – 0911117 Rudraksha Wadekar Ramrao-0911143 Sunil Kumar - 0911348

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Why SAP R/3 for XYZ? Strategy of XYZ XYZ Bicycles – Business Process Phase – 1: Master Data Setup Phase II : Implementation Implementation problems Customization/Enhancements Learning for ERP Implementation Agenda

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Why SAP R3 for XYZ company ? Source : KPMG Retail Survey SAP R/3 is the World's most-used standard business software for client/server computing Meets the needs of a customer from the small grocer to the multi-billion dollar companies Highly customizable using SAP's proprietary programming language, ABAP/4 R/3 is scalable and highly suited for many types and sizes of organizations General Ledger function in the FI module provides a comprehensive record of all information needed for external financial reporting Accounting data is complete and accurate because the SAP system fully integrates all business transactions that were entered from all the operational areas of a company Management accounting tools in SAP R/3 are cost center accounting, internal orders, product costing, and activity based costing, profitability analysis and profit center accounting R/3 offers multiple currency features and a three-tier system R/3 also provides for a "single data entry point" where the data entered from any location is instantly sent to all other appropriate modules in the ERP system

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XYX Bicycles – Business Process Diagram Source : KPMG Retail Survey

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XYX Bicycles – Materials Management Process Source : KPMG Retail Survey

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Phase I – Master Data Creation Source : KPMG Retail Survey

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Master Data – Material and Vendor Master Source : KPMG Retail Survey Raw  material Code Description GR12_Brakeunit1 Brake Unit GR12_Brakelever Brake Lever GR12_Wheels Wheels GR12_Pedals Pedals GR12_Saddles Saddles GR12_Frame Frame GR12_Gearshifts Gearshifts GR12_Bearing Bearing Semi Finished Good Code Description GR12_Brakesys Brake System GR12_Shiftassm Shift assembly Finished Good Code Description GR12_Normbike Normal Bike GR12_Gearbike Geared Bike Vendor   Code Description(supplier for) GR12VDR1 Single Supplier for all materials

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Phase II –Implementation Source : KPMG Retail Survey

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End to End Cycle – Purchase Order Creation Source : KPMG Retail Survey

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End to End Cycle – Goods Receipt for PO Source : KPMG Retail Survey

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End to End Cycle – Invoice Verification Source : KPMG Retail Survey

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Implementation Challenges Source : KPMG Retail Survey Commodity approach and classification - Commodity approach is a continuous process of cutting cost through critical analysis of spend category, identifying categories to be focused upon, enabling the supplier, renegotiating the prices, bringing in more categories under the fold, setting target for savings 1 Strategic supplier sourcing - Consolidation to one source simplifies the process, saves valuable time, and reduces costs for product search and availability, increasing productivity. Suppliers and Value add Distributors needs to be identified for the categories identified and negotiations with them should be carried on. 2 Centralized Contract - Centralized contracts can be established with the supplier. By doing so the individual plants can be given the freedom to order whenever they require the supplies, but the suppliers should be selected only from the available suppliers in the contract 3 Information Technology and Web enabled Solutions – Helps to reduce the manual aspects of the MRO procurement. The paper based MRO maverick buying can be made automated using IT and web enabled solutions. 4

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Learning Source : KPMG Retail Survey Commodity approach and classification - Commodity approach is a continuous process of cutting cost through critical analysis of spend category, identifying categories to be focused upon, enabling the supplier, renegotiating the prices, bringing in more categories under the fold, setting target for savings 1 Strategic supplier sourcing - Consolidation to one source simplifies the process, saves valuable time, and reduces costs for product search and availability, increasing productivity. Suppliers and Value add Distributors needs to be identified for the categories identified and negotiations with them should be carried on. 2 Centralized Contract - Centralized contracts can be established with the supplier. By doing so the individual plants can be given the freedom to order whenever they require the supplies, but the suppliers should be selected only from the available suppliers in the contract 3 Information Technology and Web enabled Solutions – Helps to reduce the manual aspects of the MRO procurement. The paper based MRO maverick buying can be made automated using IT and web enabled solutions. 4

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Rough Cut Plan – based on Forecasting

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Bill of Materials Creation-Gear Bike

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Work Centre- Brake Assembly

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Routing of Materials-Gear Bike

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Sales Order Processing

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Goods Issue

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THANK YOU