ERP Ecosystems

ERP Ecosystems

ERP Ecosystems

Enterprise Resource Planning (ERP) systems are core enterprise software and structure key processes for customers, suppliers, employees, products and services. ERPs have main processes and many supporting processes. Integrating and tuning these areas improves coordination and company performance.

"Enterprise system software is a multibillion-dollar industry that produces components supporting a variety of business functions. IT investments have become the largest category of capital expenditure in United States-based businesses over the past decade." - Wikipedia

Key ERP processes with Lean and Six Sigma methods and techniques:

Technical areas in a typical ERP "Order to cash (O2C)" / "Sell" process:

Parent Customer, Customer, Sales Hierarchy, Sales Person, Product Hierarchy, Product, Sales Order (SO) Header, SO Status, SO Item, SO Item Status, Delivery Header, Delivery Item, Billing Header (Invoice), Billing Item, Accounting Header (Payment) and Accounting Item.

Steps in the Six Sigma DMAIC methodology:

ERPs, supporting applications and external data integrated together are full of raw and calculated numbers to measure process performance.

Waste reduction minimizes variability in business, production and logistics processes. Examples include, product defects, orders on credit hold too long, orders shipped early or late, back orders, out-of-stock material, customer satisfaction, process measures and many more.

"We focus on all aspects of Lean and Six Sigma with speeding process time and reducing wait time being important. When time is measured, organizational efficiency and effectiveness increases, speeding operations across the Enterprise. Well known and structured processes are necessary."

Jerry Millsap, Alexicon Founder, Lean Six Sigma Black Belt

ERP ecosystem - key processes

All areas above are handled with "clear visibility" through process-based structures, data models and applications. These methods and improvement techniques are geared toward boosting company performance with efficient and effective use of ERP, surrounding applications, other data sources and analytics.

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