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Enterprise Resource Planning

ERP
AMMAR,BILAL,TOQUEER &FARHAN

Definition of ERP

ERP is defined as an integrated, multidimensional

system for all functions based on a business model for planning, control & global optimization of entire supply chain by using IT technology. . ERP is basically a software suit that integrates the whole enterprise, covering the entire internal supply chain from vendors & suppliers to customers.

NEED OF ERP IN INDUSTRY


ERP covers the techniques and concepts employed

for the integrated management of business as a whole with objectives of effective use of management resources to improve the efficiency of the organization.

Tangible Benefits

Greater and effective control on accounts payable . Reduction in paperwok. Improved cost control Quicker response and follow up with customers Availability of timely accurate information. Better monitoring and quicker resolution of queries. Quick response to change in business operations and market consumption. Improved business processes providing a competitive advantage. Improved supply demand linkage with remote locations and branches in other countries. Unified customer database usable by all applications. Single write, multi read data.

Intangible Benefits
Improved customer service and satisfaction

Increased flexibility in operations


Improved resource utility, reduced quality cost and

information accuracy. Improved decision making processes availability of online information

due

to

ERP IN TEXTILES
Textile

manufacturing revolves around three entities customers, banks and suppliers. A customer gives a sales order to the company and this forms the basis for production planning. Raw material is purchased and dispatched to the mills. Receipts and payments are made through banks. Before the ERP development, most of the work was done manually resulting in inaccuracies both incorrect and missing entries.

With the new system, the group wanted to maintain

its procedures. ERP has enabled accountability, accuracy, and transparency without breaking the existing workflow.

FOR TEXTILES:

ERP

facilitates a company wide integrated information systems covering all functional areas such as manufacturing sales and distribution accounts Payables & receivables inventory management human resources etc.

steps in development of an ERP software package


1.Defining the problem:It includes feeding of data (i.e. specifications of input and output processing requirements).Thus to design such a system one requires to know various parameters of textile. Fiber module Yarn module

Technical parameters like yarn count, strength,

weight, twist, quality ratio, breaking strength. Purchasing Module procurement of required raw materials. It automates the processes of identifying potential suppliers, negotiating price, awarding purchase order to the supplier, and billing processes.
Inventory Control Module The activities of inventory control involves in identifying inventory requirements, setting targets ,monitoring item usages, reconciling the inventory balances, and reporting inventory status.

ERP Sales Module Revenues from sales are live blood for commercial

organizations. Sales module implements functions of order placement, order scheduling, shipping and invoicing. Finance module:- How the finance comes and how it is been utilized. Total flow of money (Cash/Bank) and total expenditures will be reflected here. HR module:- HR modules routinely maintain a complete employee database including contact information, salary details, attendance, performance evaluation and promotion of all employees.

Designing the programme


The first step is to input incoming orders, check the

feasibility of requested dates for delivery, suggest possible delivery, allow orders to be accepted via internet, order taking, booking of stocks. Second step is article coding (giving codes to different end products). Planning is next step Next step is checking of product manufacturing

Debugging ; It is the procedure of correcting the

errors. Testing:- Checking of correction of individual programme as well as complete system. Documentation :- It gives full description of package and details for executing the system. Maintenance :- It is the preservation of complete package. Redesign:- Extension and changes as per the requirements of individual situation.

Datatex has created TIM a specialized ERP

(Enterprise Resource Planning) product addressing the information requirements of all segments of the textile .

Benefits of TIM

Information integration with unique database.


Business process streamlining. Optimal use of manufacturing resources. Monitoring of profit margins. Quick response Improved customer service. Higher quality, less waste. Reduction of work in process and inventory. On time deliveries.

TIM consists of the following integrated functional

modules: Sales: for order acceptance, shipping, and invoicing, Planning: for optimizing and scheduling of production orders Manufacturing: for the management of the production cycle, including dye-house management, and quality control Inventory & Purchasing: for the optimization of reordering, stock control, and valuation policies Costing: for the monitoring and control of standard and actual costs.

SALES
COBRA/TRP: (for stock manufacturing) VIP: (for order-driven manufacturing) COPS: manages the entire order cycle from acceptance and entry to picking list, packing list, shipping and invoicing. TPM: (for third-party manufacturers) ECHO: the e-business module which allows orders to be accepted via the Internet.

PLANNING
COBRA/TRP:

working from a given budget and production plan, calculates material and capacity requirements necessary for the completion of the specified processes. VIP: checks stock availability and manufacturing capacity allocating and scheduling resources to the critical production steps. DISPO: launches production orders and identifies divergence of orders being processed from planned production schedules.

TEXTILE MANUFACTURING
DISPO: allows planning, launching and tracking of

production activities across the whole textile production cycle. CATS: handles fault reporting and mapping, optimizing the cutting of pieces at each inspection table, recording quality and rectification details for each piece.

INVENTORY AND PURCHASING


MASH: manages and evaluates raw materials and

finished products in terms of inventory levels, requisitions and allocations MRS: defines purchasing and stock policies by specifying minimum inventory levels, re-order quantities and replenishment times. SRS: allow authorized personnel to enter purchase requisitions. SOS: handles purchasing up to the issuing of the order and the checking of purchase invoices.

COSTING
MAIS: calculates standard costs (direct costs or full

costs) for all articles, calculates contribution margins and indicates the production mix required to maximize profitability MACO: calculates actual production costs and indicates divergence from standard costs.

ERP IMPLEMENTION
Umble and Umble describe 10 categories of ERP

implementation failures which area as follows: Poor leadership from top management Automating existing redundant or non-value-added processes Unrealistic expectations, Poor project management In adequate education and training Trying to maintain the status quo

Mismatch between the system capabilities and the

organizations processes and procedures Inaccurate data Implementation viewed as an IT project Significant technical difficulties.

ERP System
Web Interface

Supplier, Customers, Employees

REFRENCES
APICS Dictionary Ninth Edition (1998). APICS. Falls Church,

VA, USA. Hodge, George (2000). "Taxonomy of Information Systems for Textiles". 80th World Conference of Textile Institute, Manchester, England, April 16-19, 2000. APICS (2002) ERP Scorecard APICS Performance Advantage June pp.59-65. Hodge, George (2000). Directory of Manufacturing Planning and Control Software for the Textile and Apparel Industry, Falls Church VA: APICS 2000, stock number 01176

REFRENCES
Umble, E.J. and M. M. Umble (2002). Avoiding ERP

Implementation Failure I.ndustrial Management. January/February pp.25-33. Home Fashions leaders hone internal investment and global options Bobbin June 2000 pp. 62- 63 Taking the pulse of ERP Modern Material Handling February 2001 pp. 44-51. http://www.sap.com/sweden/pdf/BWP_Textiles_Integrate.p df http://www.missaha.com/search/business/enterpriseresource-planning/index.html http://www.datatex.com/index.htm

Thank you
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