ERP & it's modules

ERP & It’s MODULES

Description also available in video format (attached below), for better experience use your desktop.

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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