ERP & it's modules
ERP & It’s MODULES
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Introduction
· Enterprise
Resource Planning or ERP is a process which attempts to consolidate all of the
company’s department and functions into a single computer system that services
each department’s need.
· It is also a
cross functional enterprise system driven by an integrated suite of software
module that supports the basic internal business process of an organization.
· The main aim of
ERP is to organize, codify and standardize the business process and
information.
Modules of ERP
1.
Production Planning Module
a. Optimize the
utilization of manufacturing capacity
b. Utilize the historical
production data and sales forecasting to improve the production process.
c. Increase the
utilization of parts, components and material resources.
2.
Purchase Module
a. It streamline
the purchase of required raw material.
b. Automates the
process of identifying the
i. Potential
suppliers
ii. Awarding
purchase order
iii. Billing process
c. This module is
tightly integrated with Inventory control, SCM and production planning.
3.
Inventory Control Module
a. Facilitates the process
of maintaining the actual level of stock in a warehouse.
b. It involves the following activities
i. Identifying the
inventory requirements
ii. Setting targets
iii. Providing replenishment
techniques
iv. Monitoring item
usages
v. Reconciling the
inventory balances
vi. Reporting
inventory status
c. This module is tightly integrated with sales,
purchase & finance modules.
4.
Sales Module
a. It implements
the function of
i. Order placement
ii. Order scheduling
iii. Shipping
iv. Invoicing
b. The main thing
to remember is that revenue from sales is live blood for commercial organization.
c. This module is closely
integrated with E-commerce websites.
5.
Financial Module
a. It gathers the
financial data from each functional department.
b. It generates
valuable financial reports such as
i. Balance sheet
ii. General ledger
iii. Trail balance
iv. Quarterly
financial statement
c. This ERP module
is for both for Profit and non-profit organizations benefit.
6.
HR Module
a. It streamlines
the management of Human Resources and Human Capitals.
b. This module
routinely maintains a complete employee database including
i. Contact
information
ii. Salary details
iii. Attendance
iv. Performance
evaluation
v. Promotion of all
employees
Benefits of ERP
1.
Complete visibility inside all the process, across
various department of an organization.
2.
Automatic and coherent workflow.
3.
It is a modulator software, so its organization
choice to implement few or more numbers of modules.
4.
Improves information access.
Limitations of ERP
1.
Cost of ERP software planning, testing, customizing
and implementing is too high.
2.
Too little customization may not integrate the ERP
system with the business process.
3.
And too much customization may slow down the project
and make it difficult to upgrade.
4. Introduction of new IT infrastructure may results in the additional indirect cost.
V Video description
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