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Samenvatting ERP
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IntroductionEnterprise Resource Planning
Story of bicycle shop
Different departments of the company: 3 big circles on the sheet
o Sales department
Here it start: what do you want?
We call this Front Office process: in direct contact with customer
We come to an agreement
This is a selection process: you could walk away
o Purchase dep
Step 2: you have a contract: sales order
This is a transaction process: you are connected now so no way back
It is in the system now
o Check availability
Bicycle is available
Company will pack it and ship it: pick and pack
Next step: shipping: post goods issue
Invoice will be sent and you have to pay
3 departments needed for this simple process: sales, logistics
and finance
3-way match: when you make order with company, the same
things will have to be delivered.
o Documentation need to match the delivery (post goods
issue)= fysical, and needs to match the invoice= finance
Is not available
We need to construct a bicycle
Do we have the parts?
o Yes: start production
Go immediately to production circle
o No: buy parts from supplier
Go to purchase circle (before production)
More parties involved: sales production/purchase, logistics and
finance
Practical problems
o A lot of communication that can go wrong
o Solution? ERP
o HOW?
Contract in computer
Automatic search in stock
Automatically calculation delivery date
Automatic order parts
Auromatic start production
Automatic stock keeping
,
Hearth of the company
o 3 operational
Small circles
o Supporting processes
Big circles
SOD: segregation of duties
o We need to make sure that everybody has an own login with his own
responsibilities. This is linked to 3-way match. This 3 steps has to be done by 3
different people so everything is correct.
o Why not by the same person. Example: you work in a car company as
logistics. You want a car and if you are able to go in the sales part of the
system, fraud could be made. It is to minimize Fraud
Master data management
o We need to keep control of this data. Bank details, sales details. Also to
minimize fraud.
BIG DATA
o All data of company in 1 system.
Introduction book
Definition
In all organizations we use business processes to organize and streamline activities
We need to take necessary decisions
We need to communicate with customers and suppliers and even more intensely
with the company internally
This only makes sense when they add value
These activities, decisions and communications needs to be streamlined in the best
possible way
Process needs to be repeatable; whenever you repeat the same activities, decisions
and communications, you end up with the same valuable result for the customer
Process needs to be robust; needs to continue well even when someone or some
system drops out
‘Get your ducks in a row’: a depaertement is not an end in itself, but just as good a player as
any in the process, in which also other departments play crucial roles; warehouse,
accounting, production, sales,…
the sales process is not only ran by the sales department
, Process innovation<>process improvement
Innovation: this is a structural change in the way you work. Innovation refers to a
new technology or new working style. For example: a new ERP package in the
company
Improvement: we speak of efficiency and effectiveness. By improvement we mean a
positive effect with at least one of them and preferably both
Processes
Sales
Purchase
Planning
Warehouse
Production
Process consists of three sub-processes
Any business process can be broken down into three sib-processes. We mean the physical,
documentation and financial sub-processes. The combination of these 3 make up the
complete process
Physical: reason why we organize activities. This generates costs and should be
optimized. Transaction process and sometimes selection
Financial: we want to accept what has been decided or committed to before.
Selection and transaction
Documentation/informational: we only want to receive what we have ordered.
Selection and transaction
Front and back-office processes
Front office: deals with every contact with the desired outside world: customers!
o Showroom or sales department, receptionist, other staff who come in direct
contact with customer. Aimed at creating value for the customer.
Back office: coordinates all contacts with other partners, who are needed to realize
the process in order to meet the customers needs.
o Verifying availability of a product, calculating profit margin, . the customer is
not involved so back office.
Back office is meant to provide the front office with everything that will be sold there.
Process configuration
How do you build a process? How to determine begin and end point of a process?
We use certain methods and gain insight and oversight into an existing situation (As Is, or
Current State). When analyzed properly you can indicate what needs to be done to make the
process more efficiently or produce more effectively. Possibly you discover an innovation.
Once you have chosen, then you need to determine where the impact of that improvement
or innovation will be visible. The result will be a new situation that you gladly will want to
realize (To Be or future State)
A box full of building blocks
You can view a process as the result of piling up building blocks of tasks and decisions = the
traditional communication model ad infinitum (sender, message and receiver)
Continuous improvement
Most important process in your company.
Segregation of duties
Explained above in own summary
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