Presentation is loading. Please wait.

Presentation is loading. Please wait.

Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management THIRD AEGEAN INTERNATIONAL CONFERENCE on DESIGN AND ANALYSIS OF MANUFACTURING.

Similar presentations


Presentation on theme: "Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management THIRD AEGEAN INTERNATIONAL CONFERENCE on DESIGN AND ANALYSIS OF MANUFACTURING."— Presentation transcript:

1

2 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management THIRD AEGEAN INTERNATIONAL CONFERENCE on DESIGN AND ANALYSIS OF MANUFACTURING SYSTEMS MAY 19-22, 2001 TINOS ISLAND, GREECE

3 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management a traditional Greek household appliance manufacturer founded in 1865 and named PITSOS which was acquired in 1977 by B/S/H/ (Bosch und Siemens Hausgeraete GmbH) and has been renamed BSP which means: Who are we ?

4 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management BSP has become a modern competence centre for the development and production of cookers and refrigerators for several brands, such as: What are we producing?

5 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Our 62K m 2 production facility is located in Piraeus we produce more than 500.000 appliances per year we employ more than 1000 people we are holding more than 40% of the Greek market we export 60% of our production to nearly 20 countries in Europe and overseas we were able to constantly increase our annual turnover and PBT we deploy modern Quality Management systems such as: ISO9001, ISO14001, and Total Quality Management and are committed to achieve outstanding performance thanks to the diligence of the individual and excellent management. Some inf.'s about us:

6 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management B/S/H/ Corporate Logistics Customer Order Order Confirmation Delivery Note Invoice Customers Order for products, Order for imported goods Distribution order Order Confirmation, Invoice, Inventory Order, Direct loading to Regions Production Plan, Delivery schedule Factories Suppliers E GR D TR

7 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management BSP Logistics Material masters, BOMs, work centers with availability capacity, work plans GR Central Production plan Weekly reqs planning for products Net requirements determination Capacity leveling Transfer of reqs to factory Factory MPS: finished product Weekly reqs planning for products Monitoring MPS result Production Orders Factory MRP: Semi-finished Spare parts customer reqs Monitoring MRP result Requirement planning Production Orders Factory MRP: Purchased parts Spare parts customer reqs Consumption controlled mater. Monitoring MRP result Requirement planning Purchase Orders Delivery Schedules For final products For semi-finished products For purchased parts For final products For semi-finished products For purchased parts

8 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Production quality alone is no longer a decisive competitive advantage. Success is also based on the ability to meet customer requirements for: time volume responsiveness service level Customer requirements in the future will only be met by collaborate relationships among trading partners on joint planning and execution Competitive Criteria

9 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management The Virtual Cooperation P M S Supplier P M S Customer PurchasingManufacturingSales/distrib. Contracts Internet Electronic catalog Check customer's credit and availability of goods Electronic invoice Contracts Business Infrastructure in multiple vendor environment high transaction volumes real-time decisions across the supply chain Improve... Electronic catalog Check customer's credit and availability of goods Electronic invoice Intranet

10 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management boost organizational effectiveness and efficiency improve level of decision making (quality!) flexibility (internal and external) integration of all organizational processes cost reduction along the entire Supply Chain operational data integrity and consistency increase business value added decrease the operations time to market enhance business control and awareness deploy basic infrastructure for extended enterprise and e- business comply with corporate policy and strategy (SAP) Why ERP? Why ERP?

11 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Which ERP (SAP) modules R/3 Client / Server ABAP/4 FIFinancialAccounting COControlling AM Fixed Assets Mgmt. PSProjectSystem WFWorkflow ISIndustrySolutions MMMaterialsMgmt. HRHumanResources SD Sales & Distribution PPProductionPlanning QMQuality Manage- ment PM Plant Main- tenance Introduced: Sales & Distribution Materials Management Production Planning Financial & Accounting Controlling Workflow Quality Management (incoming materiel only) Fixed Asset Management Under Introduction: Human Resources Open: Warehouse Management Plant Maintenance

12 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Application Preconditions 1. Full, unrestricted commitment of the management 2. Financial funds availability 3. Business Processes Reengineering 4. Effective and efficient project management 5. Cooperation with the system provider (supplier) 6. Selection of efficient external consultants 7. Enterprise data reliability 8. Appropriate IS/IT infrastructure (internal) 9. Effective user training 10. Willingness to change culture

13 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Why do Greek enterprises not adopt ERP systems 64% 55% 45% 36% 9% 0% 10% 20% 30% 40% 50% 60% 70% Lack of information k Investment Insufficient HRs for administration Small size of the enterprise Lack in the organization of processes Insufficient technological infrastructure SOURCE: PLANT MGT MAGAZIN, FEBR.-MARCH 2001

14 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Introduction time influence factors coordination with the management SOURCE: PLANT MGT MAGAZIN, FEBR.-MARCH 2001 Appropriate HRs Link to other systems BPR Less than 6 months 52% 6 - 12 months 48% 12 - 18 months BSP 0% more than 18 months 0% Average Introduction time of ERP systems

15 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Critical Introduction Issues 1. Technological: Data transfer from the old system Adaptation to operational requirements (customizing) Adaptation to Greek legal requirements (customizing) Systems response time (load) Integration with other subsystems (interfaces) Hardware Upgrade Job scheduling to avoid lock entries and gain performance Hellenisation User Access Authorizations

16 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Critical Introduction Issues 2. Financial: Introduction cost mainly resulting from : hardware software consulting services intensive user training installation maintenance data transfer and customizing

17 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Critical Introduction Issues No Yes (BSP) User Training Suppliers include user training in installation cost No Yes (BSP) No System Maintenance Suppliers include maintenance in installation cost SOURCE: PLANT MGT MAGAZIN, FEBR.-MARCH 2001

18 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Critical Introduction Issues 3. Organizational: Cultural shock The organization was not prepared to deal with the high degree of interdepartmental process integration Adaptation and redefinition of several operational processes (Business Process Reengineering) Adaptation and redefinition of organizational schemes

19 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Critical Introduction Issues 4. Operational: Error frequency in data entering/processing during the introduction period was extremely high Continuous comparison between physical and system stocks was necessary New material numbering was a source for confusion. Definition & parameterization of master data cannot be taught, but only experienced. No matter how good the level of training, it can not prepare someone for the productive start of the system

20 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management Critical Introduction Issues 5. Human Resources: It became extremely difficult and costly to find and hire personnel with (ERP/SAP) related professional experience and expertise. Great percentage of the existing personnel didnt have any IT system familiarization/competency. Special care had to be taken for these people, to ensure their quick adaptation and utilization in the context of the new system The competency profile of the personnel had to be drastically upgraded.

21 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management The bottom line organization communication Information scheduling forecasting unification soundness transparency control online inf.s direct access on data integration excellent reporting fun motivation personal improvement order discipline know how upgraded services coordination quality speed

22 Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management The bottom line After almost 2 1/2 years of operation with our ERP system, we do not doubt about the correctness of our decision. The successful introduction and ERP-based operation of the company became possible because of : the managements commitment to change culture excellent project management, which was a corporate joint effort the continuously improving user support by our IT department specialists (business analysts ) and last but not least, because of the extraordinary personal efforts and dedication of the key users


Download ppt "Th. Modestou May 2001 ERP system applications on BSPs Supply Chain Management THIRD AEGEAN INTERNATIONAL CONFERENCE on DESIGN AND ANALYSIS OF MANUFACTURING."

Similar presentations


Ads by Google