Business Modules of an ERP Package Kar

8/3/2019 Business Modules of an ERP Package Kar

http://slidepdf.com/reader/full/business-modules-of-an-erp-package-kar 1/27

BUSINESS MODULES OF AN ERP

PACKAGEA Presentation By

Karthick S



WHAT IS BUSINESS?

Not just buildings, machinery or money. Business is people who voluntarily come

together because they can do much moreworking together than they could work alone.

There are also people who work on their ownknown as Entrepreneurs.

Land, labor and capital when combined in arational way becomes productive.

ERP Systems help the management by makingthe planning process more productive andefficient.



CHAPTER OBJECTIVES

ERP packages contain different modules.

In this chapter we will see some of themost common available in almost all

packages. ERP is different and capable of producing

dramatic results in the integration andautomation of various business functions.

They send and receive data acrossdepartmental barriers.

ERP reduces response and reaction timeswhich is automation of various procedures

and tasks.



MANAGEMENT COMBINES THE BUSINESS

RESOURCE TO PRODUCE GOODS

Natural Resources + Human Resources+ FinancialResources

Management

Production Process

Product And Services



IN A NON ERP SITUATION!

Company receives a purchase order Order entry clerk enter the order details Order details passed on to the finished goods

inventory section Inventory clerk will check whether the items ordered

are available or not. If items are available, the distribution department is

notified, they will pack the item and send it to the

customer. If the item is not in stock then the production planning

department is notified, which in turn schedules theitem for production.



The manufacturing department receives theproduction plan and checks whether all theitems required to make the in the inventory.

If not, the purchasing department is asked toprocure raw materials.

If the materials are available, then the

production department in association with theplant maintenance sets up the machines forproduction.



IN AN ERP SITUATION

Order processing in

an ERP System



44

ERP Modules

Figure 12.1Figure 12.1



ERP SYSTEM

Same activities happens differently in an ERPSystem.

As soon as order entry clerk, enters the order into thesystem, the system clerk checks the inventory

records, and finds out whether the items areavailaible or not. If the items are available, procedures are triggered

automatically that will inform the people in the salesand distribution department and finance department.

The information will contain the details of the itemsshipped, the most economic route to the customerand so on.

System will trigger the procedures in the financial

module so that invoices are sent to the customer.



The information is transferred electronicallythrough electronic data transfer andpayments received through Electronic Funds

transfer. If items are not available, then the production

planning module makes a productionschedule which is available to the production,material management and plant maintenanceso that everybody is prepared to start theproduction schedule.



FUNCTIONAL MODULES OF

ERP SOFTWARE



ERP SYSTEMS – BUSINESS ENVIRONMENT

ERPSystem

HRManagement

ProductionPlanning

PlantMaintenance

Sales andDistribution

MaterialsManagement

Qualitymanagement

Manufacturing

FinancialManagement



ERP MODULES

All ERP packages contain many modules. Thenumber and features of the modules vary with theERP packages. Some of the most common modulesavailable in almost all packages are:

1. Finance 2. Plant Maintenance 3. Quality Management 4. Material Management, etc

5. Inventory Management 6. Manufacturing and production planning 7. Sales and distribution



1. FINANCE MODULE

The entire concept of information technology is based on the

premise that providing the right information, to the right people,at the right time can make a critical difference to theorganization. Much of this key information could be taken fromthe financial data. But merely having the financial data is notenough.

You need a set of processes and views of your data thatprovided up-to-the minute financial information in exactly theform you need it to make that critical difference and help withthat critical decision.

Accounting software needs access to information in each area

of organization, from R&D and market research throughmanufacturing, distribution and sales. Financial solution mustprovide the management with information that can be leveragedfor strategic decisions, in order to achieve comprehensiveadvantage.

This section provides an overview of the financial solutions inmost the ERP packages. In today’s business enterprise, you



And you need to know that this same ‘today’s’ data represents

every segment of your organization's activities, whether yourenterprise stretches across a room or around the globe. This is

essential, because the most efficient way to get our enterprise towhere you want it tomorrow is to know exactly where it is today.

What ever be the financial goals of the organization, thefinancial application components of the ERP solutions workhand-in-hand to improve the bottom line.

This is true because the financial functioning is tightly integratedacross all business areas and all geographic areas. This tightintegration includes all the other different modules, frommaterials management to human recourses to logistics.

The Finance modules of the most ERP systems provide

financial functionality and analysis support to thousands ofbusinesses in many countries across the globe. These ERPsystems include not only financial application components, butalso Human resources, Logistics, Business workflow and linksto the internet.



PLANT MAINTENANCE MODULE

The achievement of world class performancedemands delivery of quality products expeditiouslyand economically. Organizations simply cannotachieve excellence with unreliable equipment. The

attitude towards maintenance management haschanged as a result of quick response manufacturing,Just-in-time reduction of work in process inventoryand the elimination of wasteful manufacturingpractices.

Machine breakdown and idle time for repair was oncean accepted practice. Times have changed. Todaywhen a machine breaks down, it can shut down theproduction line and the customer’s entire plant.



The preventive Maintenance module provides an integratedsolution for supporting the operational needs of an enterprise-wide system. The plant Maintenance module includes an entirefamily of products covering all aspects of plant/equipmentmaintenance and becomes integral to the achievement ofprocess improvement.

The major subsystems of a plant Maintenance module are: Preventive Maintenance Control Equipment Tracking

Component Tracking Plant Maintenance Calibration Tracking Plant Maintenance Warranty Claims Tracking



MATERIALS MANAGEMENT MODULE

The Material Management module optimizes all purchasingprocesses with workflow-driven processing functions, enablesautomated supplier evaluations, lower procurement andwarehousing costs with accurate inventory and warehousemanagement and integrates invoice verification. The mainmodules of the Material Management module are:

1. Pre-purchasing Activities 2. Purchasing 3. Vendor Evaluation

4. Inventory Management 5. Invoice Verification and Material Inspection. Pre-purchasing Activities



This system supports the complete cycle of bidinvitation, award of contract and acceptance ofservices. The pre-purchasing activities includemaintaining a service master database, in whichthe descriptions of all services that are to beprocured can be stored. The system also keeps aseparate set of service specifications that can becreated for each concrete procurement project orproposed procurement in the purchasing

document. Sets of service specifications mayinclude both items with services and items withmaterials.

When creating such specifications, the user doesnot have to list individual services manually.

Instead, the data is simply copied from the masterdata. Use of this technique means that data onlyhas to be entered once. The manual entry effort isreduced to a minimum.



There are two ways of entering servicespecifications-planned and unplanned. Plannedservice specifications mean that service whose

precise nature and intended scope are alreadyknown at the beginning of a procurement project. Purchasing - Purchasing is a very important

component of the Material Management module.The Material Management module is fullyintegrated with other modules in the system. Itsupports all phases of material management:materials planning and control, purchasing, goodsreceiving, inventory management and invoiceverification. Good communication between allparticipants in the procurement process is

necessary for purchasing to function smoothly. Purchasing communicates with other modules in

the system to ensure a constant flow ofinformation.



HUMAN RESOURCE MANAGEMENT: (HRM)

Human resource management is an essential factorof any successful business. The competitiveenvironment of the next millennium, with its economicand technological challenges, with effect the HRdepartment in the same way it wills all the other areasof your enterprise. In short HR manager mustcontinually review and optimize their businessprocess.

The human resource management system has to

be adaptable to company – specific requirements,and should constantly grow with increasing HRrequirement. It should cover all the function requiredin business practice.



SALES AND DISTRIBUTION MODULE

Increased efficiency in sales and distribution is a key factor toensure that companies retain a competitive edge and improveboth profit margins and customer service. In helping business to‘beat them on delivery’, the sales and distribution module of manyERP vendors offer a comprehensive set of best-of breedcomponents for both order and logistics management.

Many of these systems are tightly integrated with the DistributionRequirement Planning (DPR) engine of the ‘for just-in-time.’deliveries. This integration enables the mapping and supply ofsingle-site or multi-site organizations and the definition ofrelationships in a company’s internal supply chains.

Developing precise logistics planning for just-in-time deliveries,this system can also generate replenishment orders by usingdefined warehouse requirements.



PURCHASING MODULE

It enables a company to make the correct purchasedecision about quality and price, where quality refers tosupply lead-time as well as to the (to be purchased)product itself. Purchase Order Management, includes on-line requisitioning, Centralized contract management,

just-in-time schedules and vendor management. The purchase contract information is made available to

the people in the purchasing department. This informationwill help in supplier selection and provide an insight as towhich suppliers can supply items with the right

specifications, in the shortest period of time. The systemwill have facility to generate purchase contracts.Sophisticated vendor management tools allow companiesto check the reliability and performances of vendors.



INTEGRATION OF ERP, SUPPLY CHAIN

MANAGEMENT, CUSTOMER RELATIONSHIP

APPLICATIONS

ERPSystems

Supply chainmanagement

Supply chainexecution

Supplierrelationship

ExtendedFinancial

Management

BusinessIntelligence

BusinessAnalytics

ProjectManagement

ServiceManagement

CustomerRelationshipManagement



SAP, THE MARKET LEADER

SAP offers the various functions as shown inthe diagram.

Similarly almost all the major vendors offer

the host of technologies of the organizationto their ERP offerings.

Business Modules of an ERP Package Kar

Documents

Transcript of Business Modules of an ERP Package Kar