What Is ERP:-

ERP is short for enterprise resource planning.

Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. ERP software integrates all facets of an operation, including product planning, development, manufacturing, sales and marketing.ERP software is considered an enterprise application as it is designed to be used by larger businesses and often requires dedicated teams to customize and analyze the data and to handle upgrades and deployment. In contrast, Small business ERP applications are lightweight business management software solutions, customized for the business industry you work in.

CEO

Sales

Sales reps Back Office Front Office

Accounting and IT

Warehouse

Purchasing

Office Manager

Business Functions, Departments, Business Processes

What is a Business Process?

A business process is a collection of coherent activities that starts with a trigger and ends with the delivery of one or several products.

The products represent a value for the customer of these products. The customer could be an external customer, as well as an internal customer (a department).

Services are also considered as products.

Example of a Process Chart

MRP (I)

Materials Requirement PlanningDeciding about material requirement for a production

processUsing a BOM and the quantity of neede finished productsMaterial requirement leads to purchase proposals and

eventually to purchase orders

Bike example

CRM

Customer Relationship Management“Know your customer”Registering customer data, purchase behavior, data from

external sourcesAnalyzing and combining data

Modules / DepartmentsFinancial ManagementSales & MarketingPurchaseWarehouseManufacturingJobsResource PlanningServiceHuman ResourcesAdministration

Departments in the RTC

Customer

Master dataContact dataTransaction dataCustomer CardCustomer posting

groups

Payment Terms and Delivery TermsCreditability

Creditability as an amount Creditability as a period of time Payment terms:

Cash on delivery 7 days 1 month (8 days)

Delivery/shipment terms

CustomerCustomer (discount) groups

Characteristics in commonDiscounts

Per customer Per item Per order

E-commerce Web shop Electronic payment B2B and B2C

The Sales Process (O2C)

More:• Blanket orders• Return orders and credit memos

Contacting the

customer

Issuing Sales Quotation

Sales Order processing

Delivering and

ShippingBilling Collecting

money

Delivery and ShippingWarehouse gets assignments (sales orders with today’s

delivery date)Picking and packing, then shippingCreate shipping documentsPostings in the ERP system

Logistic Financial

Billing

Creating and sending Sales InvoiceInvoice is usually made from data sales orderSeparation of goods and money streamsPrepayment

Return Orders

Items are damages on arrival at customer siteShipping wrong itemsCustomer has ordered too much

RMA procedure

Destination of returned itemsCredit memo (sales)

Discounts and Credit Memos

Discounts because of RMA, revenue bonus, correction of mistakes

Sales decides upon contents credit memoCredit memo lowers the debt-claim on the customerDetailed checks are necessary

CRM

Customer Relationship ManagementRelation a company maintains with its customersRegister and analyze customer behaviourEnlarge profitability and customer satisfactionCustomer pyramid Pros CRM

Lower costs by operational efficiency Higher revenue by better segmented market Improved strategy and better measure effects on actions

Trading Item

Master data Item number, -name and short description Base unit of measurement Sizes and weight Replenishment method Safety stock level Costing method Price data (purchase price, COGS, sales price) Product posting group Item vendor Item tracking (serial nrs/lot nrs/expiry date)

The Purchasing Process (P2P)

Also:• Working with blanket orders• Return shipments and credit memos

Purchase initiative

Request for quotation and

vendor selection

Creation puchase order Goods receipt Vendor invoice

check Vendor payment

Create Purchase Order

Coming from quotation?Purchase order numberOrder confirmationPlanning for the warehouse

Warehouse Process

Sales process and Purchasing processMovements (logistic transportations)Regular checksStock-taking

Separate Goods Receipt DockSeparate Shipping Dock

Several warehouses / plants

MTS

Make-to-Stock (COPD1)Produce entirely on stockCustomer sales orders do not directly influence the

manufacturing processManufacturing process is based on MPS, which is built on

sales forecast from the marketExamples:

Deep freezers Off-the-peg clothes Sanitary fittings

MTO

Make-to-Order (COPD3)Customer sales order stretches out deep into the

production processNo stock productionStandard materials and standard designsLonger delivery periodExample:

Computers with limited standard configuration possibilities

Service Management

After Sales ServiceWarrantly issuesControlling repair and maintenance at customer sitesService contractsSpare parts management

Analyses

Product design Where are components used, comparison BOMs

Capacities Work per work center/machine center, Gantt diagram

Planning Availability of materials

Execution Material shortage list

Valuation Production order statistics, cost calculation

Internal Reporting and BI

Internal reporting aims at enterprise management Steering Accountability

Reports Lists and documents Account schedules

BI Not only from strategic point of view Easy export from Dynamics NAV to Excel (wizards)

The HRM Process

Recruitment and selection

Commencement of employment

Compention management Assessment Resignation Payroll

Master Data HRM

Name, address, bank account, date of birth, social security number, employment/resignation date, type of albor contract

Employee card

All Process ERP

Thank You……………

Pavan Kumar Gupta