1. ERP Project Activities Skorkovský, ESF MU, Department of Business Economics, version 20160226

2. Your main task (not organised set of processes) Input check Put-away Cross-docking Transfer to Production Consumption registration Production Output registration Inventory value calculation Output check Delivery Load-despatch Production Planning Sales Order Component replenishment Purchase Order Invoicing Payment Finished goods to Inventory Picking from Inventory Reporting Statistics

3. Your main task (organised set of processes) Input check Put-away Cross-docking Transfer to Production Consumption registration Production Output registration Inventory value calculation Output check Shipment Load-despatch Production Planning Sales Order Component replenishment Purchase Order Invoicing Payment from Customer Finished goods to Inventory Picking from Inventory Reporting Statistics Inventory value calculation Inventory value calculation Payment to Vendor

4. Your main task (possible problems, bottlenecks,..) Input check Put-away Cross-docking Transfer to Production Consumption registration Production Output registration Inventory value calculation Output check Shipment Load-despatch Production Planning Sales Order Component replenishment Purchase Order Invoicing Payment from Customer Finished goods to Inventory Picking from Inventory Reporting Statistics Inventory value calculation Inventory value calculation Payment to Vendor

5. Your main task (Search - HOW ??? Measure impacts –HOW ??? and Destroy – HOW ???)

6. Methods (not sorted so far ) Theory of Constraints Critical Chain Drum Buffer Rope Ishikawa Fishbone Diagram (Quality management) Pareto Analysis (ABC and stock) OLAP (On-Line Analytic Processing) Kepner –Tregoe method MaxMax and MaxMin (Hurwitz) ERP Statistics and reporting Little´s law Balanced Scorecard And many, many more…..

7. Finances – how should we look to our shareholders ? Customers – how should we look to our customer ? Processes – at which business processes must we excel ? Learning and Growing – how will we sustain our ability to change and improve ? Project management Theory of constraints Production Critical chain Drum – buffer-rope MRP-MRP- II,JIT,APS Linear programming Cutting, blending Total quality management Pareto, ishikawa Product postitioning Little´s law Boston Matrix Gartner QM Workflow CONWIPLogistics EOQ, ABC Decision making Kepner- Tregoe Hurviwtz Business Intelligence Yield management Prospect theory BS and OM – slide from Balanced Scorecard show (will be presented again in BS context)

8. Simplified diagram of ERP usage ERP Transaction = Entries DB ERP Partners ReportsForms Information (trends) Knowledge of methods for process management and used metrics Decision Enterprise Key knowledge Key decision

9. Purchase Sales Processes ERP Quotes->Net change calculation-> ->Order->Vendor batch tracking e-> ->Input Quality check->Receive, Put-away-> ->Invoicing Orders->Sub-Load and Load-> ->Batch tracking ->Output Quality check->Picking ->Shipment -> Invoicing -> Applying payments

10. Main problem (one of many) We have a huge data quantity..and at the same time a minimum information which could be used for making decision

11. Main problem II (need of reliable data) Wee need finite capacity scheduling (APS) Op1 Op2 Op3 T1 T2 T1+T2=X Opt=Min(X) Op1 Op2 Op3 T1 = 0 T2 = 0

12. Basic problem II. 12

13. Basic problem IV. 13

14. Basic problem (availability of components) V. 14 Op1 Op2 Op3 20 pcs A7 and 20 pcsA8 A0 A1 A2 A3 A4 A5 10 pcs A4 adn 10 pcs A5 (will be delivered in T1+X time ) T1 T0 Lead time A6 A6 A7 A8 Op1 Op2 Op3 X= slack T1 T1+X

15. Basic problem (availability of components ) V. 15 APS result ->18.8.->23.8. a 27.8.->10.9

16. Why we cannot manage it ? Unclear priorities, bad = SOP,… (SOP = Standard Operation Procedures)

17. Reporting (NAV tools or JETs) Reporting 17

18. Main principles (source tables and their entries) 18 Customer Vendor Item Account Dimensions Control parameters ( time, type of products, Costs, Revenue, Area,..) Control parameters ( time, type of products, Costs, Revenue, Area,..)

19. Some chosen analysis Analysis Working capital – setup of the accounting schedule from NAV 19

20. Analysis Working capital – Show of the results from NAV 20 Some chosen analysis

21. Working Capital JETs Working capital – Show of the results from JETs 21

22. Some chosen analysis Inventory Dashboard 22

23. Knowledge of methods, which are necessary for project management and process management Theory of Constraint (will be introduced-72 slides)- seminar work!!!! Critical chain methodology Thinking tools Throughput Accounting ->go to wikipedia Balanced Scorecard (will be introduced) SWOT a Gap Analysis MS Office (Word, Power-Point and Excel) ERP system and its logic (will be introduced- 28 hours) Logistics (part of ERP operations) Finance Management and Controlling (part of ERP operations) Production Management (MRP, MRP-II, JIT and DBR) Market Analysis (part of ERP operations)

24. Knowledge of methods, which are necessary for project management and process management Legal aspects of contracts Cost management Foreign languages Basic knowledge of IT architecture will be introduced Methods used for project management Business Analytics Methods supporting decision making Risk management Basics of marketing Will be shown later

25. The data is not all in the ERP The data is not all in the ERP The tools are rigid and hard to learn The tools are rigid and hard to learn The tools don’t reflect how we work today The tools don’t reflect how we work today They don’t span the continuum of needs They don’t span the continuum of needs Other ERP Business Analytics – some reason why to discuss

26. 26 Sales Order Blanket Sales Order Production Forecats V1 V2 V3 D1D2 13 13 7 23 D1 D2 D3 V1 V2 V3 D1 V1 Purchase Order(s) Statistics,reporting Production Order(s) Planning replenishment and production Demand curves (MPS,MRP.DBR,JIT,LEAN, Conwip, TOC,CC,..) Logistics Quality control (Ishikava, Pareto, …) Balance Scorecard, ERP, Business Intelligence (OLAP),…- Sales Invoice(s) Delivery List(s) Reklamace (8 Reports) Financial budget Financial reporting Zdroje-kapacity Banking Financial management

27. VP, Operations VP, Sales and Marketing CFO CEO “I need to have the right demographic information so I can better target my opportunity prospecting.” Sales Rep Customer Support Rep “I need better access to information to make better decisions on cross-sell and up-sell opportunities.” “I need to know that the people in my organization have the right goals in place to understand and execute on the strategic initiatives of the company.” “I need better visibility into our pipeline performance so I can focus on deals that help me grow business with my most profitable customers.” “I need better visibility into my cost of operations so I can target specific cost reduction opportunities that won’t have a negative impact.” “I need to improve our analytics capabilities so we can understand our current business performance and do a better job of planning for the future." Source: “Creating the Office of Strategy Management” by Robert Kaplan and David P. Norton, Harvard Business School, April 2005

28. Thanks for Your Attention Will be placed on IS.MUNI.CZ in the study materials If everyone pulls at the different end of the rope, than your project results will be a mess… (see rule 99 %)