Enterprise Resource Planning
1 What is ERP?
1.1 Department structure
It all starts at the sales department. (= Front office process)
“A need of requirement”
The sales person talks to the customer (“What do you want?”)
Pre-sales (= Selection process: You could still leave the shop)
↓ Parties agree? Yes?
Sales Order (= Transaction process: There is no way back, you signed the contract)
↓
Check availability (The company will check immediately the availability)
↓
2 options
The “bike” is available in whs The “bike” is not available in whs
Available
Pick & Pack (They pick the “bike” and wrap it in a box)
Post Goods Issue (Scan it out of the whs and ship it to the customer) Change of ownership
Send invoice
Receive payment
1
,3-way match
Documentation (Guy behind the counter is talking to costumer = Sales Department)
Physical (Logistic guy that wrapped up and shipped = Logistics)
Financial (Guy who makes an invoice = Financial)
Not available
We are going to make it
↓
Do we have all the parts?
↓
2 options
Yes No
↓ ↓
Start production! Buy parts/raw materials
Conclusion: There are a lot of departments involved
Sales
Logistics
Finance
Purchase
Production
2
, 1.2 Practical problems?
Solution
ERP system
How?
Contract in computer
o Customer, type of good
Automatic search in stock
Automatic calculation deliver date
o Based on availability & production line
Automatic order parts
o Via system, vendor system, parts system
Automatic start of production steering
Automatic stock keeping
Enterprise Resource Planning
↓ ↓ ↓
For copanies people + materials Plan the sequence better
Some implications
Segregation of duties
Everybody has access, but based on your login & password they make sure that people can’t
change your entered data. They will see what you have done, but they were not be able to change it.
The company have also be sure that there are 3 different people (documentation, physical, financial)
for the different steps, so they can avoid fraud. TO AVOID rol based portals
3
1 What is ERP?
1.1 Department structure
It all starts at the sales department. (= Front office process)
“A need of requirement”
The sales person talks to the customer (“What do you want?”)
Pre-sales (= Selection process: You could still leave the shop)
↓ Parties agree? Yes?
Sales Order (= Transaction process: There is no way back, you signed the contract)
↓
Check availability (The company will check immediately the availability)
↓
2 options
The “bike” is available in whs The “bike” is not available in whs
Available
Pick & Pack (They pick the “bike” and wrap it in a box)
Post Goods Issue (Scan it out of the whs and ship it to the customer) Change of ownership
Send invoice
Receive payment
1
,3-way match
Documentation (Guy behind the counter is talking to costumer = Sales Department)
Physical (Logistic guy that wrapped up and shipped = Logistics)
Financial (Guy who makes an invoice = Financial)
Not available
We are going to make it
↓
Do we have all the parts?
↓
2 options
Yes No
↓ ↓
Start production! Buy parts/raw materials
Conclusion: There are a lot of departments involved
Sales
Logistics
Finance
Purchase
Production
2
, 1.2 Practical problems?
Solution
ERP system
How?
Contract in computer
o Customer, type of good
Automatic search in stock
Automatic calculation deliver date
o Based on availability & production line
Automatic order parts
o Via system, vendor system, parts system
Automatic start of production steering
Automatic stock keeping
Enterprise Resource Planning
↓ ↓ ↓
For copanies people + materials Plan the sequence better
Some implications
Segregation of duties
Everybody has access, but based on your login & password they make sure that people can’t
change your entered data. They will see what you have done, but they were not be able to change it.
The company have also be sure that there are 3 different people (documentation, physical, financial)
for the different steps, so they can avoid fraud. TO AVOID rol based portals
3
