ERP Components

Introduction

ERP software is made up of many software

components. Each component represents

the major functional area of the

organizations.

ERP Components

Components

Financial Management Component

Manufacturing Component

Human Resource Component

Materials Management Component

Production Planning Component

Plant Maintenance Component

Purchasing Component

Marketing Component

Sales and Distribution Component

Components

Financial Management Component

This component is the core of the ERP system.

This gathers financial data from various

functional departments and generates valuable

financial reports such as balance sheet,

general ledger; trial balance and quarterly

financial statements.

Manufacturing Component

This component provides the information

needed for the manufacturing process to

take place.

It contains number of manufacturing

methods, so that the organization can

choose the best which fits for them.

Human Resource Component

This component streamlines the management of

human resources and human capitals.

This component maintains a employee database

containing information about employees contact

information, salary details, attendance,

performance evaluation and promotion details.

This component helps the management to make

use of the employees best talent.

Human Resource Component

Materials Management Component

This component is used to maintain the correct

level of stock in the warehouse.

This helps to do the following tasks.

Identifying inventory requirements

Setting targets

Monitoring item usage

Inventory status report

Production Planning Component

This component provides knowledge for

planning the production process.

For this it uses the previous production

details, stock in hand, materials stock etc.

Production Planning Component

Plant Maintenance Component

This component provides knowledge about

the technical and operational details about

the machineries used for production.

This information helps to reduce the

duration and cost of plant down time.

Purchasing Component

This component streamlines the process of getting

the required raw materials.

It automates the process of identifying potential

suppliers, price negotiation, giving purchase order

and billing process.

This component is tightly integrated with the

materials management and production planning.

Marketing Component

This component shows the correct path for

marketing the product in the highly

competitive market.

This component has number of marketing

methods to implement in different areas.

Marketing Components

Sales and Distribution Component

Revenues from sales are the life blood of any

commercial organization.

This component helps in order placement,

order scheduling, shipping and invoicing.

It is also closely integrated with the

organizations e-commerce web sites.

The End

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