PRESENTATION OF

ANALYSIS THE IMPLEMENTATION OF ERP

IN RMG SECTOR
Introduction:

ERP solution in Bangladesh RMG sector is obviously an important criterion nowadays. The international
balance of payment of Bangladesh is dependent of RMG sector growth. As such the transparency &
accountability are prime concerns. ERP modules can work in such manner that entire RMG sector is fully
integrated to this business intelligence software which not only produce report, status but also generates real
time scheduling & feedback of each segments individually, jointly & multi-tasking deliberations.
Definition of Enterprise Resource Planning (ERP) :

ERP (Enterprise resource planning) can be defined as a software solution that addresses the enterprise needs
taking the process view of the organization, to meet the organizational goals tightly integrating all functions of
an enterprise It is an industry term for the broad set of activities supported by multi-module application software
that help a manufacturer or other business manage the all the parts of its business. ERP facilitates integration of
company-wide information systems with the potential to go across companies.
Figure1.1 Components of ERP
The History of ERP:
  ERP has evolved from legacy implementation to more flexible tiered client-server architecture.

Table1: The Evolution Of ERP From 1960s To 2000s

Timeline System Description
    Inventory Management and control is the combination of information technology and
    business processes of maintaining the appropriate level of stock in a warehouse. The
 1960s  Inventory Management activities of inventory management include identifying inventory requirements,
& Control setting targets, providing replenishment techniques and options, monitoring item
usages, reconciling the inventory balances, and reporting inventory status.

    Materials Requirement Planning (MRP) utilizes software applications for scheduling

    production processes. MRP generates schedules for the operations and raw material
 1970s Material Requirement Planning purchases based on the production requirements of finished goods, the structure of
(MRP) the production system, the current inventories levels and the lot sizing procedure for
each operation.

    Manufacturing Requirements Planning or MRP utilizes software applications for

  Manufacturing Planning (MRP II) coordinating manufacturing processes, from product planning, parts purchasing,
1980s inventory control to product distribution.

    Enterprise Resource Planning or ERP uses multi-module application software for

    improving the performance of the internal business processes. ERP systems often
 2000s   integrates business activities across functional departments, from product planning,
 Enterprise Resource Planning (ERP) parts purchasing, inventory control, product distribution, fulfillment, to order
tracking. ERP software systems may include application modules for supporting
marketing, finance, accounting and human resources
Material Requirements Planning (MRP):
Material Requirements Planning (MRP) is a computer-based production
planning and inventory control system. MRP is concerned with both production
scheduling and inventory control. It is a material control system that attempts to
keep adequate inventory levels to assure that required materials are available
when needed.

 Master production schedule (MPS)

 Bill of material records (BOM)
 Inventory status records / file ( ISF)
MRP Calculations:

The following Calculations are made by the MRP programs.

• Gross Requirements - This is the estimated requirements for the item described.
• Scheduled Receipt – This indicates when the item becomes available for use, from a
previously released order.
• Projected On Hand – This is the number of unites to be available at the end of each time
bucket based on the balance of requirements and receipts.
• Net Requirements – If the projected on hand is negative it is called a net requirement and
means there will not be enough of this component to produce the quantities required to meet
the master production schedule.
• Planned Order release – The planned order release (POR) row indicates when an order should
be released to ensure that the projected on hand figure does not become negative.
The Limitations of MRP :

You will either get reports out of the box that do what you want, hire the software vendor to create a custom
solution, pay third party vendors to create something, or you'll become very good at manipulating the data
outputs you receive. This is a factor behind the rise of data repositories and data analysts who combine all of the
data coming from various systems to present the combination of information management needs to make correct
decisions as quickly as possible.
Given how few full-scale MRP and ERP solution providers there are, you have little choice as to who you will
use. This is especially true if you’re looking for MRP or ERP systems that are already compatible with your
payroll or Human Resources tools. There is a good chance you’ll have to tailor your manufacturing processes to
fit the ERP software instead of tailoring the software to fit your processes. SAP’s manufacturing modules, for
example, are complex and hard to use for shop floor data management.
Not every MRP system can track pre-built kits and partially built assemblies. Tracking these partially built
assemblies and assembled kits as another part number adds to the workload of manufacturing planner.
Few ERP systems can perform product verification of as-built assemblies against as-designed assemblies.
When you rely on a single mission-critical ERP system, a software glitch or system outage cripples the entire
organization.
Manufacturing Resourcing Planning (MRP II):

MRP II is a computer-based system that can create detailed production schedules using real-time data to
coordinate the arrival of component materials with machine and labor availability. MRP II is used widely by
itself,
Key Takeaways -
• Manufacturing Resource Planning (MRP II) is an integrated information system used by businesses.
• MRP II is an extension of materials requirement planning (MRP).
• Both MRP and MRP II are seen as predecessors to Enterprise resource planning (ERP).

MRP II is an extension of the original materials requirements planning (MRP I) system. Materials requirements
planning (MRP) is one of the first software-based integrated information systems designed to
improve productivity for businesses.
By the 1980s, manufacturers realized they needed software that could also tie into their accounting systems and
forecast inventory requirements. MRP II was provided as a solution, which included this functionality in
addition to all the capabilities offered by MRP I.
Manuel Procurement Process:

It's the series of processes that are essential to get products or services from requisition to purchase order
and invoice approval . Although we use procurement' and purchasing' interchangeably, they slightly differ from
each other.
1. Process:
The list of rules that need to be followed while reviewing, ordering, obtaining, and paying for goods/services.
Checkpoints/steps increase with the complexity of the purchase.
2. People:
These are stakeholders and their specific responsibility in the procurement cycle. They take care of initiating or
authorizing every stage of the process. The number of stakeholders involved is directly proportional to the risk
and value of the purchase.
3. Paper:
This refers to the paperwork and documentation involved in every stage of the procurement process flow, all of
which are collected and stored for reference and auditing reasons.
Procurement Process Flow:
To keep the procurement management process fair, transparent, and efficient, a good understanding of the procurement process flow is key. Although the procurement process of
organizations differs from each other, the flowchart below sums up the important steps in a procurement process.
Why Should You Automate Your Procurement Management Process:?

A solid procurement software can streamline the cluttered procurement process and keep it transparent. No
information is lost and stakeholders can raise, approve, or reject items on time. A streamlined procurement
process offers better control over every stage of the procurement lifecycle.
Furthermore, an efficient procurement automation software:
• Minimizes the chaos made by paperwork
• Shortens the procurement lifecycle
• Reduces human dependency intervention and errors
• Lessens the workload of all stakeholders
• Keeps the process accurate and consistent
• Injects transparency into the process flow
• Sticks to the predefined procurement cycle
ERP Procurement Process:

ERP supports the procurement process by –

 Supporting the execution of the process
Documents can be quickly and easily created and stored in the system.
 Capture and store data
For example all stock levels and supplier information displayed on purchase requisition screen all forms (goods
receipt, purchase order, invoice) held on database for checking .
 Help monitor performance
Automatically generate exception report if problem occur provides a variety of reports in response to queries.
Implementing ERP:

I have been heading an ERP implementation project in a reputed RMG Exporter group in Bangladesh. According to my view a
few points need to be pondered on the vendor selection as follows,
1.List of already implemented sites with the customer's feedback.
2.Modules to be incorporated
3.Financial data integration method
4.User friendliness
5.Database and interface platform
6.Disaster recovery method.
7.Data Security
8.Easy adaptation with the change in the middle of production
9.Data retrieval speed.
10.Online/On-site Support
11.HW and SW System requirement
12.Application and Database Licensing structure
13.Scope of customization
14.User connectivity method
15.Service level agreement (SLA)
16.Annual maintenance fees
17.Cost of ownership.
THANK YOU SO MUCH

FOR YOUR PATIENCE