ERP system at PPIC
Presented byWaleed RawhiAhmed Tomeh
Mohamad shtaiwySiham Abu Rabie
Covered Topics
• Project overview.• ERP Requirements.• Current State Analysis.• - Internal processes.• - Sales system.• - Inventory system.
• Suggested improvements.• - Future sales system.• - Future inventory system.
• Recommendations.
• What is ERP?• Project Objectives.• Project Methodology.
Project Over View
What is ERP ?
ERP Modules
Planning
Purchasing
Inventory
SalesMarketing
Financial
HR
commercial software package that promises the seamless integration of all the information flowing through the company–financial,
accounting, human resources, supply chain and customer information”
Benefits of ERP
Integration of a single source of data
A real-time system
Common data definition
Reduced operating costs
Improved internal communication
Foundation for future improvement
Increased productivity
Project Objectives
• Study the current state systems in the company.
• Evaluate current systems and assess them.
• Construct a new systems that the company should have.
• Improve the information flow by 30%.
Methodology
Evaluate current systems.
Construct new systems
Evaluate new systems.
Coding new systems.
• Sales functions.• Inventory functions.• Production functions.
ERP Requirements
Sales Functions
Sales inquiry handling
Margin control
Quotations
Sales Pricing control
Items Prices
Discounts.
Sales contract handling
Long term agreements
with customers
Contracts for new customers
Sales order control
Commissions
Manage sales order, cost
order.
Customer returns.
Sales invoicing
Billing functions
Accounts control
The main system isForecasting system
• Which it is the key in planning issues.
We will discuss later on this presentation
Inventory Functions
Barcode Picking
Groups / Kits / BOM Product List Track stock
levels
Inter Store Stock
TransfersPrice Matrix
Price Movement
Tracking
Stock Adjustments
Supplier Price and Code
Listing
Production functions
Material Planning
Shop floor management
Traceability
Plant maintenance
Labor & material costing
Work center scheduling
• Internal processes.• Sales analysis.• Inventory analysis
Current state analysis
Sales processes
The arrival of an order from the customer
Ensure the availability of stock.
Make Production order.
Feedback from the stores when the order is complete.
Production Processes
Production request
received from inventories.
Production order is
issued.Raw materials
arrival.Production scheduling
Production start.Quality control
approval
Delivery of finished products
to storesDaily reports
Financial manager approval on
accounting system
Inventory Processes
Receipt of raw materials.
Receipt of final product and under processing items
Delivery of raw materials and materials under processing to the production department .
Sales current state analysis
Sales Analysis Methodology
Sales data collection
Products ABC classifications
Forecasting models tests.
Choose the suitable forecasting system.
Three Types of products
• Preforms ( PET )
• Pipes.
• Bottles.
Data Collection for Preforms• Preform Sales at 2012
Data collection for Pipes• Pipes Sales
Data collection for bottles
• Bottles sales
ABC Classification for preforms
AB4 - 30 - Blue
AB2 - 33 - Blue
AB2 - 30 -
Trans.
AB4 - 33 - Blue
AB2 - 30 - Blue
AB4 - 30 -
Trans.
Trans. - 33
AB2 - 15.5
Trans.
AB4 - 15.5 - Trans.
Trans. - 51
Trans. - 23
DB7 - 30 -
Trans.
Trans. - 18
Blue - 18
Trans. - 80
Trans. - 47
DB7 - 33 - Blue
Blue - 47
0102030405060708090
100
Preform Classification
B C
A
A
DescriptionTotal number of
parts
Percentage of
items in the sales
Cumulative usage
value
Percentage of
annual sales value
Cumulative of
annual sales value
A 4 %22 %22 %82 %82
B 4 %22 %44 %13 %95
C 10 %56 %100 %5 %100
Total 18 %100 %100
ABC Classification for Pipes
DescriptionTotal number of
parts
Percentage of
items in the sales
Cumulative usage
value
Percentage of
annual sales value
Cumulative of
annual sales value
A 16 %25 %25 %80 %80
B 16 %25 %50 %15 %95
C 31 %50 %100 %5 100%
Total 63 %100 100%
ABC Classification for bottles
Twissted off - 1.5
L
Trans. - 1.5 L
Trans. - 1 L
Trans. - .5 L
Blue - 1.5 L
Trans. - 1 L - Jar
0102030405060708090
100
Bottles Classification
AB
C
DescriptionTotal number of
parts
Percentage of
items in the sales
Cumulative usage
value
Percentage of
annual sales
value
Cumulative of
annual sales value
A 1 %17 %17 70% %70
B 1 %17 %34 %29 %99
C 4 %66 %100 %1 %100
Total 6 %100 %100
Forecasting systems
• For the current forecasting system we found that there is no accurate forecasting system.
- The company forecasts its sales by the last quantity produced in the last year.
• Which means that all over the forecasted year the quantity remains the same.
Pipes Forecasting ( moving average )
Index
C1
73645546372819101
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
Moving AverageLength 3
Accuracy MeasuresMAPE 81MAD 16327MSD 387347401
Variable
Forecasts95.0% PI
ActualFits
Moving Average for pipe
Pipes Forecasting ( Single Exponential smoothing )
Index
C1
73645546372819101
100000
80000
60000
40000
20000
0
Smoothing ConstantAlpha 0.0985075
Accuracy MeasuresMAPE 78MAD 18372MSD 475925999
Variable
Forecasts95.0% PI
ActualFits
single Exponential Smoothing
Pipes Forecasting ( Naïve forecasting)
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
Actual
Native forecast -ing
Pipes Forecasting
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
ActualNative forecast -ing3 Moving AverageExpenensial smoothing
Date Method of forecast Standard Error Accuracy measure
14 months
From 1/1/2012
To 28/2/2013
Naïve Method _______
Moving Averages 109288.5535MAPE 81
MAD 16327
Exponential Smoothing 179996.6564MAPE 78
MAD 18372
Preform Forecasting ( Moving Average)
Index
C2
73645546372819101
120000
100000
80000
60000
40000
20000
0
-20000
-40000
Moving AverageLength 3
Accuracy MeasuresMAPE 130MAD 20890MSD 751059074
Variable
Forecasts95.0% PI
ActualFits
Moving Average for preform
Preform Forecasting ( Single exponential smoothing)
Index
C2
73645546372819101
125000
100000
75000
50000
25000
0
-25000
-50000
Smoothing ConstantAlpha 0.0766089
Accuracy MeasuresMAPE 140MAD 27394MSD 1082991809
Variable
Forecasts95.0% PI
ActualFits
Single Exponential Smoothing for preform
Preform forecasting
020000400006000080000
100000120000140000160000180000200000220000240000260000
Exponensial
3 Moving Average
Actual
Date Method of forecast Standard Error Accuracy measure
14 months
From 1/1/2012
To 28/2/2013
Naïve Method _______
Moving Averages 109288.5535MAPE 81
MAD 16327
Exponential Smoothing 179996.6564MAPE 78
MAD 18372
Bottles Forecasting (Moving Average )
Index
C3
73645546372819101
150000
100000
50000
0
-50000
-100000
Moving AverageLength 3
Accuracy MeasuresMAPE 26393MAD 24791MSD 1881885206
Variable
Forecasts95.0% PI
ActualFits
Moving Average for Bottel
Bottles Forecasting (Single exponential smoothing)
Index
C3
73645546372819101
125000
100000
75000
50000
25000
0
-25000
-50000
Smoothing ConstantAlpha 0.0455059
Accuracy MeasuresMAPE 5822MAD 16286MSD 1082742561
Variable
Forecasts95.0% PI
ActualFits
Single Exponential Smoothing
Bottles forecasting
12-Jan23-Ja
n3-Fe
b14-Fe
b25-Fe
b8-M
ar
19-Mar
30-Mar
10-Apr
21-Apr2-M
ay
13-May
24-May
4-Jun15-Ju
n26-Ju
n7-Ju
l18-Ju
l29-Ju
l9-A
ug
20-Aug
31-Aug
11-Sep22-Se
p3-O
ct
14-Oct
25-Oct5-N
ov
16-Nov
27-Nov8-D
ec0
20000
40000
60000
80000
100000
120000
140000
160000
180000
Exponensial3 Moving AverageActual
Date Method of forecast Standard Error Accuracy measure
14 months
From 1/1/2012
To 28/2/2013
Naïve Method _______
Moving Averages 235611MAPE 26393
MAD 2479
Exponential Smoothing 350221.7MAPE 5822
MAD 16286
Inventory current state analysis
Inventory analysis methodology
Inventory data collection
Inventory ABC classifications
Inventory model
Implement the model
Three types of inventories
• Raw material inventory.• - Pipes raw material.• - PEX raw material.• - Poly ethylene raw material.
• Finished goods inventory.
• Commercial inventory.
Pipes Raw Material inventory ABC classification
Description Category Cum % of Total Usage
Poly Ethylene RM A 74.59310897
HDPE RM( مجروش ) B 86.52154129
PEX RM B 94.59420105
Black color C 96.42562021
Calcium Carbonate RM C 97.50423181
25برابيش mmتدكيك C 98.49766113
White Catalyst C 98.8875339
Yellow ink solvent C 99.26539379
32برابيش mmتدكيك C 99.53877796
Yellow ink C 99.79359677
Printer cleaner C 100
PEX raw material Classification
Poly Eth
elen RM
HDPE RM( ش
جرو( م
PEX RM
Black c
olour
Calcium Carb
onite Rm
ش را3ب3ي
ب3
25
mmدكيك
ت3
White Cata
lest
Yellow in
k solve
nt
ش را3ب3ي
ب3
32
mmدكيك
ت3
Yellow in
k
Printer
clean
er 0
10
20
30
40
50
60
70
80
90
100
PEX RM Cummulative %
Preform Raw material ABC classification
PET RM Alto Blue -2 Alto Blue -4 Ultra Pure Dasani Blue -793
94
95
96
97
98
99
100
Preform Commulative %
Description Category Cum % of Total Usage
PET RM A 95.67305
Alto Blue -2 B 97.21377
Alto Blue -4 C 98.68748
Ultra-Pure C 99.57653
Dasani Blue -7 C 100
ABC Classification for Poly Ethylene finished product
Description Category Cum % of Total Usage
L.D.B.E Hieden 0509 A 57.24233068
RONFLIX PIPE B99.63213558
Prog RM C99.81606779
118 RM C100
PalPipe 50mm-16 C100
L.D.B.E Hieden 0509 RONFLIX PIPE Prog RM 118 RM PalPipe 50mm-160
102030405060708090
100
Poly Ethylene FP Commulative %
Commercial Pipes Classification
E.F ELbow 20 E.F Reducer 160-110 E.F TEE 63MM SDR11 PN16 TEE90 MM e.f tapping tee 110/32 Te ( Injected) 160mm0
20
40
60
80
100
120
Poly Ethylene Connecters Cumm %
ABC Classification for Poly Propylene connectors commercial.
TRNS 25- 3/4 Male
TRNX 32-1 FE
Elbow 90-25
Elbow 40-90
TRNS 25- 3/4 Female
Elbow 90-32
TRNS 20-1/2 Male
Elbow 90 FE
25 -3/4
Elbow 90
Male 32 -3/4
REDU 50-32
REDU 40-32
REDU 40-25
REDU 40-20
TEE 40-25-40
Elbow 90-63
0
10
20
30
40
50
60
70
80
90
100
Ply Prob. Prices commercial%
ABC Classification for Agriculture connectors commercial
Coupling 75*75
Small Pipe
cleaner
Large Pipe
cleaner
End Cap 20
End Cap 63
End Cap 25 mm
Coupling 32*32
Elbow 20 -1/2
Rec.
Outside head 1/32
End Cap 32
Head Cap 20 -
1/2
Coupling 63*63
0
10
20
30
40
50
60
70
80
90
100
Agricurture Connecters Comm %
ABC Classification of Irrigation Pipes.
Coupling 75*75
Small Pipe cleaner
Large Pipe cleaner
End Cap 20
End Cap 63
End Cap 25 mm
Coupling 32*32
Elbow 20 -1/2 Rec.
Outside head 1/32
End Cap 32
Head Cap 20 -1/2
Coupling 63*63
0
10
20
30
40
50
60
70
80
90
100
Agricurture Connecters Comm%
ABC Classification for Packaging and Filling Inventories
Preform car-ton
40*38*60
Nilon Roll Preform
Carton Layers 1200*1000*
70
Carton Layers 1200*1000
Nilon 107*95 Plaster 132 m Wood Ballet Kargal Ballets Nilon Roll 0
10
20
30
40
50
60
70
80
90
100
Packaging & Filling Comm %
Suggested Improvements• Electronic pick slip report for the
warehouse/ transportation
Suggested Improvements
• ERP system contains two modules , the first one concern with sales.
• The second one concern with inventory.
ERP Sales Module
ERP Inventory Module
Recommendations
Thank you For listening