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VI. ERP SYSTEMS

To designate parameters and indicators is a good precondition for realization of the strategic purposes of the company. But it is insufficient. Having set the task, it is necessary to manage its performance. Here the formation and implementation of a company’s budgetary policy is in the basis of pyramid layer so-called business processes of the company. Business processes are automated by ERP (Enterprise Resource Planning) system. Actually, it is not necessary to have ERP system for the pyramid to work. An accountant, considering the accounts, can develop the report which will reach the top level and present the way, where the company is directed to. All questions are in a degree of delay of such kind of information. “Just in Time” management should be operative; it should provide fast reaction to what’s happening. Namely for this purpose the ERP system is necessary, which (unlike MRP class systems) is planning resources within the company: procurement, production, finances, logistics, warehousing, sales, and so on.

As mentioned, the ERP system automates business processes, thus promoting achievement of the strategic purposes of the company, what can not be told, for example, about accounting system that gives the information only about "a bit" of the company, not providing to follow the implementation of company strategy as a whole.

WHAT PROBLEMS CAN SOLVE ERP SYSTEMS

1. Creation of the integrated information control system:

  • ERP systems do not work with production directly (they are not automated control systems of technological processes), but deal with a model of technological process
  • Optimization of material, financial, and document flows on the basis of the essential information entered on workplaces
  • The planning and management of all activity of the industrial enterprise, which is presented in one system, starting with purchase of raw material and finishing on a shipment of the goods to the consumer
  • The information is entered into the system once in that division of the company, where it arises, stored in one place, and repeatedly used by all interested divisions (units, departments, etc.)
  • Administrative costs are reduced and the problem of integration of the data is being eliminated.

2. Implementation of effective planning and management methods of ERP system allows:

  • To adjust quantity of stocks, eliminating their deficiency and deterioration, and by that considerably reduce the expenses immobilized in stocks and warehouse costs
  • To reduce a work-in-process, however the production is planned only on the basis of demand for final production, thus job is initiated proceeding from the date to which the client order should be executed
  • To estimate feasibility of incoming orders from the point of view of enterprise capacities availability
  • To decrease expenditure and time spent on production following the optimization of business processes
  • To follow actual productivity of each production unit, comparing it with scheduled productivity, and to update production plans “on-the-fly”
  • As a result of reduction of a manufacturing and performance cycles to react the demand more flexibly
  • To improve service to customers as consequence of duly execution of deliveries
  • Cost saving and finally recover the capacity.

3. Increase of a company’s investment appeal:

ERP systems make a company’s business more transparent and raise investors’ trust in it.

OUR SERVICES FOR ERP SYSTEM

KMC has the qualified staff for application of ERP projects. Our consultants have the highest level of professional understanding of all system components. The portfolio of consulting services will enable to answer all your requirements and inquiries.

Projects that have being developed by KMC experts are aimed to provide sufficient informational support for customers’ management to make the proved operative and strategic decisions directed on increase of efficiency and profitability of the business.

The KMC portfolio of ERP services includes:

  • The analysis of existing business logic and a control system
  • Consulting on selection of a software product
  • Development, application, and maintenance of ERP system
  • Estimation of IT investment efficiency
  • Analysis and reorganization of a document flow


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