Domain Knowledge

Domain Knowledge is the knowledge of a particular industry

domain

Domain knowledge is the knowledge about the environment in which the business organizations operates, and it encompasses the understanding of the industry dynamics, history, sectors and segments, business model, competitive landscape, value chain, customers, supply chain, challenges and the industry specific strategies of the target enterprise.

Domain knowledge is necessary because it provides the ability to make good judgments and quick decisions and empower the users to deal with complex business situations.  For implementing e-commerce project it is necessary to learn about the business that you are trying to automate on the internet.  Gaining understanding of the industry means a smarter analysis, clearer logic underlying business decisions, closer attention to key dimensions of implementation and operation, and more disciplined performance management.

On the lighter side, here is a joke:

Get Domain expertise

Get Domain expertise

There was a family with one kid. One day the mother was out and dad was in charge of the kid, who just turned three.

 
Someone had given the kid a little ‘tea set’ as a birthday gift and it was one of her favourite toys. Daddy was in the living room engrossed in the evening news when kid brought Daddy a little cup of ‘tea’, which was just water. After several cups of tea and lots of praise for from father for such yummy tea, kid’s Mom came home.
 
Dad made her wait in the living room to watch the kid bring him a cup of tea, because it was ‘just the cutest thing!!’
 
 
Mom waited, and sure enough, the kid comes down the hall with a cup of tea for Daddy and she watches him drink it up, then she says to him, ‘Did it ever come to your mind that the only place that baby can reach to get water is the toilet??’
….Mothers know!
 
Moral Of The Story:  Domain knowledge is very important!  Else your project may fail.

Communicating between end-users and software developers is often difficult. They must find a common language to communicate in.  It is necessary to learn the jargon (vocabulary)  to communicate effectively.   The consultant may play an important role to bridge the gap between business executives and software engineers.

Examples of Domain Knowledge that may require for a project in the respective business category.
  • Automotive Domain.
  • Banking Domain.
  • Education Domain.
  • Engineering Domain.
  • FMCG Domain.
  • Retail Domain.
  • Telecom Domain.
  • Travel Domain.

In ERP / e-commerce project, domain knowledge is knowledge about the environment in which the target system operates. Domain knowledge is important, because it usually must be learned from software users in the domain (as domain specialists/experts), rather than from software developers. Expert’s domain knowledge is transformed in computer programs and active data, for example in a set of rules in knowledge bases, by knowledge engineers.

Year ends on March 31 – Are you ready?

Due priority should be given by all stakeholders on 31 March 13 in India

Financial Year in India

Financial Year in India

Year-end procedure.

In India, the accounting year is April to March. Accounting year 12-13 has ended on 31st March 2013. Important procedure is given below to plan the ‘year ending’ in ERP.  Due priority should be given by the stakeholders.  There are two kinds of closing balances that needs to be focused:

  1. Accounts closing balance: Debtor and Creditors / Assets and Liabilities.
  2. Closing balance of stock.
  • For efficient supply chain management it is necessary to record physical stock of all locations such as depot, warehouse, godowns  stores, cold storage (if any), CFA, distributors, and so on.

It is important to note that both inventory and accounts are tightly linked in ERP.  FAQ: “Can we enter creditor / debtor balance and closing stock, later?” The answer is NO.

Step-by-step procedure to GO LIVE is as follows:

1. Before doing anything take backup. Copy on once writeable CD; take the backup media to another location (different building).
2. Task: Enter closing stock for Inventory items.
3. Count stock. This exercise should be done very carefully. This is important for ‘going-live’.
4. Enter the closing stock, as on the cut-off date, from that date onwards, ERP will prepare the inventory related books, as well as accounts books, automatically.
5. E.g. closing balance as on March 31, mid night is opening balance for April 01.

6. Task: Enter ALL items in the item master.
It is strongly recommended that for EACH location stock balance be taken. E.g. stores, rejection location, scrap location, WIP (work-in-process), third-party (subcontractor location), etc.
7. Task: Take location master printout (excel sheet showing all locations) from the ERP (not from Tally). The list will also show names of subcontractor locations.
8. Bought out items, raw material, consumables, spares, etc. Items that are supplied by vendors (supplier).
9. Sub-assemblies, semi-finished goods, factory made item, etc. This may include items that are received from third-party, if it is semi-finished goods. (WIP).
10. Finished Goods, (FG or product that usually appears in the sales invoice).

11. Task: Prepare the Item list using ERP software instant excel sheet option. You can prepare category, sub-category wise, separate list. Give to concerned person to take physical stock (count) and write on the excel sheet itself, put date and sign. This is strongly recommended to avoid confusion of item code / description.
12. Use this list (hard copy) to enter closing stock figures in ERP.
13. From that moment onwards, every transaction must go through ERP.
14. Depending on your judgement  estimate time required to do the physical count and the exercise to enter the data in ERP. This will depend on number of persons allocated for the task.
15. During the stock taking activity, there should be NO material movement. All goods inward and sales issue has to be suspended. For instance some companies would like to do this exercise on 1, 2 and 3 April and start the year on 4 April 08. Some companies stop the manufacturing activity on 30 and 31 Match.

16. You may find items that are physically present but not in the list – enter in the item master and enter closing balance.
17. Account Closing Balance are required for the following:

  • Debtor (customer),
  • Creditor (vendor, service provider, and third-party) balance pertaining to 11-12 balance will be carried forward automatically.
  • Pass JV (cr. Note or debit note if necessary to get the correct balance). Make sure the bank-reconciliation exercise is done well in time for ensuring correct ‘Trial Balance’ statement in ERP.

18. In case you have already gone “Live”:
Count physical stock for each item and write on the excel sheet printout, next to ERP stock statement (book stock) figure. Ideally, both should be same. If not write the difference (plus or minus). You will have to get explanation from stores-in-charge and pass SAN (stock adjustment note) to get the book stock same as physical stock.
19. You may find item that are shown as stock in hand but there is no such item. Check that there is no confusion in item name. Any case one must reconcile the stock.

20. You will have to do this exercise for each location. Especially stock lying with the third-party (if any).
21. Print separate list for FG, WIP, Stores items, consumables, packing material, etc. from ERP software.
22. You will need people so plan in advance, inform your team (staff), this is not one or two persons task. More people are required depending on number of location, size of the inventory, and so on.
23. At the time of login, into the ERP, select appropriate year (the first screen where you give log in name and password).
24. New document number series will start from the New accounting Year – e.g. April 1, 2012.
25. ERP System will allow you to enter 11-12 transactions even in April 2010, (for this select year 11-12). Finally, when the audited Balance Sheet is available one can make a “closing JV (Journal Voucher). This may be sometime in April / May 12. Whereas the current year (11-12) transaction can be entered from 1st April itself (these will be in new document series).
26. Cut-off date is ‘as on’ date in the Closing Balance data entry screen.
27. In item ledger and item stock statement ‘From’ date should NOT be less than Closing Balance, date that is used for entering closing balance.
28. User must press ‘enter’ key after entering the closing balance stock.
29. Once closing stock is entered, user should check, and if mistake is found, then enter again; this will over-write previous figure. Once all closing balance is checked, printed and confirmed then REMOVE access to the closing Balance menu-using user manage. No one should enter again cl. Bal. because this is one time exercise.
30. Only after disabling, the cl. Bal. menu user should be allowed to enter inventory transactions.

31. Closing balance Rate or value:

  • While entering stock closing balance, user also should enter rate. This is required to calculate the value.
  • For item that are purchased from outside – pl. enter the Weighted Average Rate (WAR) rate (weighted average rate), or last purchase Rate, if WAR rate is not available.
  • For all factory made items – SFG (Semi-Finished Goods or sub-assemblies) or FG (Finished Goods)– user should enter ‘cost rate’.

Video lecture (excerpts) about the year ending.


Case study video clip:
Marico, ITC, Emami. “Emami’s recent investment in I. T. has ensured finalization of its balance sheet in a record 35 days against the 60-day norm”.

Hope you are ready to embrace the New Year with more confidence and financial discipline that is so important in the competitive world.

I will appreciate your comments / feedback.

Crossword Puzzle # 01 – ERP – focusing on ERP related topics

Are you an ERP expert?   Solve this Crossword.

Crossword Puzzle ERP

Crossword Puzzle ERP

  • Across

3.     PRO Module

5.     Manufacturing Module

6.     Nervous System on Computer (Hint: Digital) (3 Words)

7.     Account Module

8.     Revenue Module

11.   Inventory control Module (2 Words)

  • Down

1.     Measure for errors (2 Words)

2.     Purchase Module

4.     This chip replaces bar code

9.     List of items Module

10.   Government dues Module

  • Crossword Puzzle ERP created by Jyotindra Zaveri – ERP consultant and trainer.

  • Click here to see the solution.
  • Your feedback will be appreciated.  Hope you will share with Like-minded people!

Wired or UN-Wired Business? Go Mobile

Web based / Mobile Application – Wired or UN-Wired Business?

Use mobile based or tabs based Apps and business management software for efficient business management.

Achieve the leading edge in this highly competitive market.

Use ERP on Android / Windows / iPhone based Apps

You want productive employees and they want the freedom to use mobile applications to get their work done.

Business on the Go

Business on the Go

Go Mobile Business advantage:

  • Already implemented business solutions to manage inventory, pre-sales, sales, sales and distribution, warehouse management, purchase, and many other areas of operation.
  • Specialist in Enterprise Software solution with a proven track-record.  Option of cloud based database so no need for in-house Server. 
  • Option of cloud based database so no need for in-house Server. 
  • Specializing in understanding business requirements, identify bottle-necks and stream-line business process to push the report on the mobile directly to users– for efficient management.   Option of linking payment gateway if required.   Software will be optimized to operate on Smartphone or Tabs.
  • Pre-sales and Sales modules supports discounts (document level or line level).
  • Warehouse module / Depot / CFA / Super Stockiest business logic deals with issues such as goods allocation, picks and put-away, shipping, physical control, etc.
  • QR Code or Bar code integration.
  • Go Mobile requires permanent connection to a hot spot / WiFi / 3G.
  • For marketing and effective branding option of linking your operations with other digital platforms such as Facebook / Twitter, etc.
  • Solution on HTML5 compatible web browsers such as iOS (iPhone and iPad), Safari, Chrome, Firefox, Opera, etc.  Can use on desktop or laptop.

Give your team the software they need to handle key tasks and make decisions in real time, anywhere and any-time with the mobile / tab based software for businesses.

  • Mobile device and ERP system provides stores managers with a real-time view on their existing stock status.
  • Ability to receive and issue goods in an integrated fashion.
  • Ability to transfer stocks between locations.
  • Extends the reach of Material Management system anywhere any-time.
  • Real-time MIS (information system ) for manufacturing and inventory visibility.
  • Improve productivity and effectiveness of field sales team.
  • Lower cost of sales by eliminating inefficient paper-based processes.
  • Ability to analyse individual and team performance within and across sales teams.

Case Studies:  Fifteen success stories of system already implemented by Zaveri http://www.dnserp.com/erp_success_story.htm

What do you say?  I will appreciate your comments.

Additional resource to learn ERP

Join ERP Groups on Facebook and LinkedIn and Follow on Twiiter

Join ERP Groups on Facebook and LinkedIn and Follow on Twitter

Connect and regularly access to get many valuable benefits that these sites provides.

Learn CRM, Supply chain management and Enterprise Resource Planning software.  This web sites are good reference for various key functions managers, such as accounts, purchase, sales, production, etc.  It is not just additional resource but also a companion sites for corporate commandos.

Join Facebook ERP group

Let us discuss ERP, any ERP.

https://www.facebook.com/groups/discuss.erp Join Facebook Group ERP

http://www.facebook.com/dnserp Like Facebook Page ERP

Join ERP LinkedIn group

Join ERP LinkedIn group

http://linkd.in/lFj98r Join LinkedIn Group ERP, E-business Forum

Follow @followERP on Twitter

Follow @followERP on Twitter

http://www.twitter.com/followERP Follow

ERP training videos

Subscribe. ERP training videos on YouTube. Over 100 K video views.

http://www.youtube.com/dnserp  Subscribe

Follow on Scribd - ERP PowerPoint presentations.  Over 100 K reads.

Follow on Scribd – ERP PowerPoint presentations. Over 100 K reads.

http://www.scribd.com/elesson Follow

Follow on slideshare.  ERP presentations with videos

Follow on slideshare. ERP presentations with videos

http://www.slideshare.net/jzaveri Follow Presentations with YouTube video

Created for e-Learning by Jyotindra Zaveri, ERP Consultant & Trainer. 

Connect and regularly access to get many valuable benefits that DNS provides.  Do not forget to subscribe to his blog to get automatic email whenever we publish new post.  If you Like it Share with other.  

  

ERP Lecture in Germany

ERP Lecture in Germany by Zaveri

International Faculty

I am glad to inform you that I was invited to give a lecture on the subject of ERP in Germany.  It was a great experience to discuss with German students.

Here are the glimpse of the ERP lecture:

The presentation that I used for my lecture at the university is also published on this blog.  Here is the link  https://dnserp.wordpress.com/erp-presentation-32-erp-modules

I will appreciate your feedback.  If you Like it Share it.

Year ends on March 31- Due priority should be given by all stakeholders

Year-end procedure.  In India, the accounting year is April to March.  Accounting year 09-10 has ended on 31st March 2010.  Important procedure is given below to plan the ‘year ending’ in ERP.  The following procedure for ERP rollout is very important.  Due priority should be given by the stakeholders.

The procedure will vary depending on your current status as follows:

1.    ERP status is ‘go live’.  Users are online and entering transaction in real-time.  The closing stock was already entered.

2.    ERP is being implemented.  Conference Room Pilot (CRP) run is done.  You have to  decide on the cut-off date.  You may think of considering 31/03/2012 as cut-off date, or any suitable date.  The day after the cut-off date, users go online.  That is ‘Go live’, and embraces New Year 2012-2013 with more accuracy in inventory management and tighter discipline.   There are two kinds of closing balances that are required:

Accounts closing balance:  Debtor.  Creditors.  Closing balance of stock.

It is important to note that both inventory and accounts are tightly linked in ERP.

·         FAQ: “Can we enter creditor / debtor balance and closing stock, later?”  The answer is NO.

1.    Before doing anything take backup.  Copy on once writable CD; take the backup media to another location (different building).

2.    Task:  Enter closing stock for Inventory items.

3.    Count stock.  This exercise should be done very carefully.  This is important for ‘going-live’.

4.    Enter the closing stock, as on the cut-off date, from that date onwards, ERP will prepare the inventory related books, as well as accounts books, automatically.

5.    E.g. closing balance as on March 31, mid night is opening balance for April 01.
6.    Task: Enter ALL items in the item master.
It is strongly recommended that for EACH location stock balance be taken.  E.g. stores, rejection location, scrap location, WIP (work-in-process), third party (subcontractor location), etc.

7.    Task: Take location master printout (excel sheet showing all locations) from the ERP (not from Tally).  The list will also show names of subcontractor locations.

8.    Bought out items, raw material, consumables, spares, etc.  Items that are supplied by vendors (supplier).

9.    Sub-assemblies, semi-finished goods, factory made item, etc.  This may include items that are received from third party, if it is semi-finished goods. (WIP).

10.  Finished Goods, (FG or product that usually appears in the sales invoice).

11.  Task: Prepare the Item list using ERP software instant excel sheet option.  You can prepare category, sub-category wise, separate list.  Give to concerned person to take physical stock (count) and write on the excel sheet itself, put date and sign.  This is strongly recommended to avoid confusion of item code / description.

12.  Use this list (hard copy) to enter closing stock figures in ERP.

13.  From that moment onwards, every transaction must go through ERP.

14.  Depending on your judgment, estimate time required to do the physical count and the exercise to enter the data in ERP.  This will depend on number of persons allocated for the task.

15.  During the stock taking activity, there should be NO material movement.  All goods inward and sales issue has to be suspended.  For instance some companies would like to do this exercise on 1, 2 and 3 April and start the year on 4 April 08.  Some companies stop the manufacturing activity on 30 and 31 Match.

16.  You may find items that are physically present but not in the list – enter in the item master and enter closing balance.

17.  Account Closing Balance are required for the following:
• Debtor (customer),
• Creditor (vendor, service provider, and third party) balance pertaining to 11-12 balance will be carried forward automatically.
• Pass JV (cr. Note or debit note if necessary to get the correct balance).  Make sure the bank-reconciliation exercise is done well in time for ensuring correct ‘Trial Balance’ statement in ERP.

18.  In case you have already gone “Live”:
Count physical stock for each item and write on the excel sheet printout, next to ERP stock statement (book stock) figure.  Ideally, both should be same.  If not write the difference (plus or minus).  You will have to get explanation from stores-in-charge and pass SAN (stock adjustment note) to get the book stock same as physical stock.

19.  You may find item that are shown as stock in hand but there is no such item.  Check that there is no confusion in item name.  Any case one must reconcile the stock.
20.  You will have to do this exercise for each location.  Especially stock lying with the third party (if any).

21.  Print separate list for FG, WIP, Stores items, consumables, packing material, etc. from ERP software.

22.  You will need people so plan in advance, inform your team (staff), this is not one or two persons task.  More people are required depending on number of location, size of the inventory, and so on.

23.  At the time of login, into the ERP, select appropriate year (the first screen where you give log in name and password).

24.  New document number series will start from the New accounting Year – e.g. April 1, 2012.

25.   ERP System will allow you to enter 11-12 transactions even in April 2010, (for this select year 11-12).  Finally, when the audited Balance Sheet is available one can make a “closing JV (Journal Voucher).  This may be sometime in April / May 12.  Whereas the current year (11-12) transaction can be entered from 1st April itself (these will be in new document series).

26.  Cut-off date is ‘as on’ date in the Closing Balance data entry screen.

27.  In item ledger and item stock statement ‘From’ date should NOT be less than Closing Balance, date that is used for entering closing balance.

28.   User must press ‘enter’ key after entering the closing balance stock.

29.  Once closing stock is entered, user should check, and if mistake is found, then enter again; this will over-write previous figure.  Once all closing balance is checked, printed and confirmed then REMOVE access to the closing Balance menu-using user manage.  No one should enter again cl. Bal. because this is one time exercise.
30. Only after disabling, the cl. Bal. menu user should be allowed to enter inventory transactions.
31. Closing balance Rate or value:
• While entering stock closing balance, user also should enter rate.  This is required to calculate the value.
• For item that are purchased from outside – pl. enter the Weighted Average Rate (WAR) rate (weighted average rate), or last purchase Rate, if WAR rate is not available.
• For all factory made items – SFG (Semi-Finished Goods or sub-assemblies) or FG (Finished Goods)– user should enter ‘cost rate’.

For additional information study The Sarbanes–Oxley Act of 2002

The bill was enacted as a reaction to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of affected companies collapsed, shook public confidence in the nation’s securities markets.

In India PWC and Satyam is recent examples of accounts manipulation.

Replacing ERP Software?

Are you planning to change your ERP vendor?

ERP Implementation tips

ERP Implementation tips

Replacing system management software is like visiting a medical clinic for injection, painful but necessary.  First, try to get upgraded version if any, from your existing ERP vendor.  Probably this means more investment, but worth considering.  Once you rule out this option, and decide to look for new ERP software, consider the following points:

  1. Once again define the new requirements, this time make a function wise list.  For instance, accounts, material, sales, and so on.  It is important to do the ABC analysis, A essential list, and C is wish list.  Remember if everything is A, you will have to pay for the customization, so let go of some point as wish list.  Share the list with the new ERP vendors, and try to match.  Here the trusting the new ERP partner is important that you want the truth.
  2.   Do some business process improvements.  Do not (do not, no this is not a spelling mistake, just to emphasise) automate without improving your existing methods.  Chances are you will automate the mistakes; this means ERP will do mistakes faster.  This exercise is called BPR (business process re-engineering).  All the problems with the existing system are in fact opportunities for improvement.  Ensure that you are aware of the issues, and that the new ERP software system will help resolve them.  Learn more about BPR here  http://www.dnserp.com/b__p__r_.htm.
    Do some BPR before ERP

    Do some BPR before ERP

  3. Stay focused in defining the scope.  Module wise write down master, transactions, and reports.  Again, do ABC analysis of the same.  See sample scope given here http://www.dnserp.com/dns_scope.htm.  FAQ: Can I change the scope?  Ans: Yes, but after discussing with the ERP supplier and before starting to implement.
  4. Select your task force.  Motivate them, yes allocate a budget.  Offer incentive.  Involve key people at the start.  Write important milestones.
  5. Size of the ERP company is not that important, small or big, what is important is how important it is for them to make your ERP a success.
  6. Arrange for a demo with your own inputs and try to match the report – at this stage without customization.  About eighty percent of your requirements should be met.  So prepare your own data to input for the demo run.
  7. Brainstorm with your senior management to identify potential reasons of failure, and take steps to guard the same to reduce risk.
  8. Assign one (or better two) main ERP coordinator/s, dedicated resource/s.  Consult domain expert and other consultants such as tax, ISO, 6-sigma, etc.  Ensure their valuable time is available.  Study http://www.dnserp.com/implement_erp.htm.
  9. While evaluating make sure the implementer/s are also interviewed and their time is committed.
  10. ERP implementer and ERP coordinator team should have project management skill.  Ask ERP vendor to show their track record of other similar size ERP success story, I mean show the document that was used to track ERP project management in the past.

Hope you will find this ERP tips useful and will share with others, by using the social icons given below.  Let us know your comments, add point that we might have missed out, your feed back will be appreciated. 

SAP ERP Modules

SAP ERP Software intro

SAP ERP Software intro

SAP ERP Modules introduction: This short presentation introduces SAP ERP modules – FI CO HR BW QM MM PS PP SD.

Enterprise Resource Planning software is a software to manage business that links business processes automatically.

Meet today’s challenges in finance with industry-leading financial management software in SAP ERP Financials. Complete, industry-specific, scalable and global – SAP ERP Financials enables your teams to address changing financial reporting standards, improve cash flow, and manage financial risks.

*SAP logo belongs to SAP.  This is reproduced here for education and training purpose only.

Click here to learn about other MNC ERP software packages such as Microsoft Dynamics, Oracle, etc.

I like the punch line of SAP “The best-run businesses run SAP” – what do you say?

Visit to the money factory, Washington D.C., USA

How Americans make money?

money manufacturing

BEP

US Bureau of Engraving and Printing (BEP), Washington D. C., USA.
Tour report of visit to factory that is manufacturing American currency!  The world’s leading securities manufacturer.
Located in the heart of the Nation’s Capital, the BEP’s Washington, DC Tour and Visitor Center is a great place to learn all about U.S. paper currency.  We were excited to see millions of dollars being printed, as we walked along the viewing gallery above, overlooking the production floor.  An hour’s experience includes an introductory film and a gallery tour of the production process.
Money factory visit

Engraving and printing

We could get lots of information about how money is made (Pun intended).   Once inside, there was information about the institution and its services, such as coin engraving and money printing, among the designing of the money and other additional solutions.  We saw the printing Intaglio press right from the blank paper (raw material) to quality assurance check, to cutting, automatic packing and so forth.  It was truly an unforgettable experience of a life time, to see millions of dollars being staked right in front of us.  We also learnt about the history of money, how to recognize fake money, and the main differences with real bills (money).

US dollar printing pressA few questions were asked to our tour guide: Q – why it is necessary to print millions of dollars every day?  Ans – 90% – 95% money is given to bank in exchange of soiled or spoiled notes.
Q – What do you do with the damaged notes?  Ans – The serial number is deleted from the database, the damaged notes are then shredded.  The shredded paper is sold back as souvenir in the exhibition gallery (at the exit), then he said “we make money out of the shredded money” and we smiled.   Here is a picture showing the outer core of a candle, contains approximately $500 in real shredded U.S. Currency, bought from the Bureau of Engraving and Printing.
If you are in Washington DC, you should plan a visit (early morning), to educate yourself about the advancements and history of our currency.  You will get rare chance to see the BEP’s business in a manner many people would never be able to experience.
Candle made out of dollar bills

Damaged notes are shredded

The mission of the Bureau of Engraving and Printing (BEP) is to design and manufacture high quality security documents that deter counterfeiting and meet customer requirements for quality, quantity and performance. As its primary function, the BEP prints billions of dollars – referred to as Federal Reserve Notes – each year for delivery to the Federal Reserve System.  The Federal Reserve operates as the nation’s central bank and serves to ensure that adequate amounts of currency and coin are in circulation. The BEP also advises other Federal agencies on document security matters. In addition, the BEP processes claims for the redemption of mutilated currency. The BEP’s research and development efforts focus on the continued use of automation in the production process and counterfeit deterrent technologies for use in security documents, especially United States currency.

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