BPCS Diagnostic Review and Assessment

Overview

Your job is to provide a stable, well understood and effective business system for your customers, your Users. Several elements of today’s business climate are conspiring to make this job more difficult.

  1. Changes to Business Imperatives – today’s management demands more aggressive and short term return for their investments. Gone are the requests for 2-5 year ROI, let’s hope for 6 months.
  2. Loss of Key Experienced Personnel – many of your original “super users” have left, changed jobs or retired. In their place are talented individuals who have been trained to execute specific tasks, but without the depth of knowledge required to respond to new and unplanned business needs and opportunities.
  3. Gradual Erosion of System Integrity – a minor change to bill of material maintenance leads to poor MRP results, in turn to dismissal of MRP as a useful tool. An assumption by a new accounting clerk creates an out of balance GL. No intentional sabotage, but the damage is done. Even worse, the source of the problem can be difficult and time consuming to diagnose and fix.
  4. Planned and Unplanned Changes to Supply Chain Requirements – customer demands for reduced lead times and enhanced communication of product availability
    has placed increased pressure on production schedules and materials planning. Current processes may be unable to respond to this pressure.

These are the types of symptoms that we’ve identified – and resolved – during our diagnostic reviews. Resolution has ranged from minor procedural changes and retraining to full reimplementation or system upgrade to ERPlx.

Your business requirements, and your resources, have changed a great deal since your original implementation. The IBS Diagnostic review is designed to work with you to identify the best way to apply available BPCS tools – Manufacturing, Supply Chain and Financial – to manage your business successfully - today.

A typical Diagnostic review will address one or more of these business areas – targeting those processes that require – or provide – system data and generated outputs. The following sections define these specific processes.

Manufacturing Diagnostic Review

Manufacturing Data Master Files:

Review content and use of data files, to verify consistency with standard BPCS files and uses. Identify areas of concern and any
implications for planning, shop floor control, costing or other system applications

  • Item masters
  • Bills of material
  • Process routings
  • Work center and department masters
  • Facility planning data

Planning:

Analyze the current flow of demand and supply data, to identify any missing or disconnected elements.

  • Demand planning - Incorporation of forecast, distribution and Customer demand into overall demand estimates
  • Master Scheduling - Finished goods planning and planning of major subassemblies
  • Material Requirements Planning - Planning of minor subassemblies and fabricated or purchased components and materials
  • Capacity Management - Comparison of available vs. required labor and/or machine capacity
  • Other site specific requirements

Shop Floor Scheduling and Control:

Define and analyze current methods of communication and feedback between the shop floor and shop scheduling, as well as inventory control and accounting.

  • Shop order release and initial dispatch (Includes prior review of capacity and materials, as well as potential lot identification and assignment)
  • Material allocation and issue. Includes several factors:
    • Potential for lot control and traceability, as well as implications to shop order material control, allocation, issue
    • Material allocation and/or backflushing options, including “point of use” and kitting
    • Material issue options
  • Shop order reporting:
    • Operation completions
    • Time reporting
  • Shop order completion and close
  • Other site specific requirements

Purchase of manufacturing components and materials:

Evaluate the ability of current purchasing procedures to support frequent changes and requirements in the production schedule.

 

Supply Chain Diagnostic Review

Supply Chain Data Master Files:

Review content and use of data files, to verify consistency with standard BPCS files and uses. Identify areas of concern and any implications for the order to invoicing business cycle as well as other system applications and system parameters

  • Item master
  • Customer master
  • Address master
  • Pricing and Promotion master files
Customer Order Management:

Analyze the current flow of order data, to identify any missing or disconnected elements including areas for improvement.

  • Order processing - customer specific requirements, organizational requirements, user specific setup, entry validation
  • Order Picking - analyze and validate the process
  • Pick Confirmation – analyze and validate the process
  • Ship Confirmation – analyze and validate the process
  • Customer Drop Shipments - validate setup and processing
  • Other site specific requirements
Resupply Order Management:

Analyze the current flow of data to identify missing or disconnected elements.

  • Customer setup for warehouse relationships
  • Address master setup
  • System parameters
  • Resupply specific transactional setup for inventory management as well as finance
Billing:

Analyze the current flow of data to identify missing or disconnected elements including areas for improvement. Also, analyze and validate system parameters.

Promotions and Deals:

Analyze and validate pricing strategy setup as it relates to Sales Order Processing, Accounts Receivable, Billing, CEA and Sales Analysis.

  • System parameter setup
  • Customer order processing for pricing
  • Validation and analysis of
    • Customer Master
    • Pricing and Promotion master files
    • Charge and allowance files
Inventory Management:

Define and analyze current methods of communication and feedback between customer order management, as well as inventory control and accounting.

  • Material allocation and issue. Includes several factors:
    • Potential for lot control and traceability, as well as implications to customer order allocations
    • Material allocation requirements for customer orders
  • Other site specific requirements
Purchasing Management:

Evaluate the ability of current purchasing procedures to support frequent changes and requirements in regards to Customer Order management.

Sales Analysis:

Evaluate reporting requirements and insure that current setups can support these requirements.

Financial Diagnostic Review

Financial Data Master Files:

Review content and use of data files, to verify consistency with standard BPCS files and uses. Identify areas of concern and any implications in the setup of Models and Events and the use of Reason Codes and Macroable Events, as well as other system applications and system parameters.

  • CEA files
    • Segments
    • Period Master
    • Ledgers/Books/Journal Sources
    • Models
    • Events
    • Macro’s/Aliases
    • Sub-system Event Determination
  • Vendor files
    • Vendor Master
    • Vendor Terms
    • Bank Master
  • Customer files
    • Customer Master
    • Customer Terms
CEA:

Analyze the current Ledger setup and the Financial Reporting Requirements, to identify any missing or disconnected elements including areas for improvement.

  • ATP (Advanced Transaction Processing) - validate the integrity and completeness of all BPCS sub-systems, including Inventory and Costing. In addition, review customer specific requirements, organizational requirements, user specific setup, entry validation
  • BTP (Batch Transaction Processing) - validate the integrity and completeness of all non BPCS sub-systems
  • General Accounting – analyze and validate the closing process, including the Period Master and Events Processing
Vendor Transaction Management:

Analyze the current flow of invoice data, to identify any missing or disconnected elements including areas for improvement.

  • 3 Way Match - customer specific requirements, organizational requirements, user specific setup, entry validation
  • Expense Invoices - analyze and validate the process
  • Recurring Payments – analyze and validate the process
  • Payment Process – analyze and validate the process
  • Other site specific requirements
Cash Management:

Analyze the current flow of cash receipts data, to identify any missing or disconnected elements including areas for improvement.

  • Customer Payments - customer specific requirements, organizational requirements, user specific setup, entry validation
  • Write-off’s - analyze and validate the process
  • Credits and Deductions – analyze and validate the process

Guidelines and Assumptions

  1. Above is based on reviewing one instance of BPCS (Data Environment)
  2. All interviews will be handled in one specific site
  3. Review process will commence and conclude with an on-site meeting with Client management committee, to provide:
    • Initial direction and identification of interview candidates
    • Definition of current issues and priorities
    • Presentation of findings and recommendations

Total Investment

 

Segment Interview Days Report
Preparation and
Presentation
Manufacturing 2 1.5
Supply Chain 2 1.5
Financial 2 1.5
Total: 6 4.5

This investment is based on a high level review of the system intended to provide a strategic review identifying “What” needs to be accomplished but not necessarily the “How “ to accomplish it.


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