ERP Modules

What is ERP?
• Software application packages
• Manage business processes and functions
• Supply chain, receiving, inventory, customer orders, production planning,
shipping, accounting, HR
• Allow automation and integration of business processes
• Enable data and information sharing
• Enterprise-wide system
• Introduces “best practices”
Introduction ERP Modules
¡ Cross-functional enterprise system driven by an integrated
suite of software module that support the basic internal
business process of an organization.
¡ The purpose is that of organizing, codifying and standardization
of business process and information or data
Integrated Systems Approach
• Common set of applications/modules
• Usually requires the reengineering business processes
according to ERP package’s underlying business model
(reference model)
• Better alignment
• Limit your customization
• Easier during version upgrades
• Overcomes inefficiencies of independent systems
• Integrated data supports multiple business functions
Why module use
• Cost:
• Cheaper to implement part of system
• Best-of-Breed concept:
• Mabert et al. found only 40% installed system as vendor designed
• Different vendors do some things better
• More fixable less risky
Modules of ERP
The generic ERP package represents the commonly operated business
model of the organization. It is build with function model like :
¡ Finance
¡ Operation Finance
¡ Marketing Marketing
HR
¡ Planning
¡ Inventory
¡ HR ERP

Operation
Planning

Inventory
ERP

Harvard Business Review article: "Putting the enterprise into the Enterprise System" by Thomas H. Davenport
ERP: stakeholders’ view
ERP Finance module
¡ The financial module is the core of many ERP software systems.
¡ It can gather financial
data from various
functional
departments, and
generates valuable
financial reports such
general ledger, trail
balance, as balance
sheet and quarterly
financial statements.
ERP HR(Human Resources) Module
• HR module streamlines the management of human resources and human
capitals.
• HR modules routinely maintain a complete employee database including
contact information, salary details, attendance, performance evaluation
and promotion of all employees.
• Advanced HR module is integrated with knowledge management systems
to optimally utilize the expertise of all employees.
• Produce pay checks and payroll reports;
• Maintain personnel records;
• Pursue talent management,
• Training,
• Time and attendance benefit
ERP HR(Human Resources) Module
ERP Production Module
¡ Evolution of manufacturing requirements planning
(MRP) II into ERP
¡ Process definition with inputs, outputs, by-products
and overheads
¡ Definition of Bill of Material for all products up to any
number of levels
¡ Planning based on customer wise production advice
and sales forecast.
ERP Production Module
ERP Purchasing Module
¡ Purchase module streamline procurement of required raw
materials.
¡ It automates the processes of identifying potential suppliers,
negotiating price, awarding purchase order to the supplier, and
billing processes.
¡ Purchase module is tightly integrated with the inventory control
and production planning modules.
¡ Purchasing module is often integrated with supply chain
management software.
ERP Purchasing Module
ERP Inventory Module
¡ Inventory module facilitates processes of maintaining the
appropriate level of stock in a warehouse.
¡ The activities of inventory control involves in identifying
inventory requirements, setting targets, providing
replenishment techniques and options, monitoring item
usages, reconciling the inventory balances, and reporting
inventory status.
ERP Inventory Module
ERP Sales and Marketing Module
¡ An ERP software sales management module helps businesses to
manage their customer effectively and efficiently further it also
helps the sales management team to understand the targets
that need to be achieve.
¡ Sales module implements functions of order placement, order
scheduling, shipping and invoicing.
¡ Sales module is closely integrated with organizations' ecommerce
websites. Many ERP vendors offer online store front as part of the
sales module.
¡ ERP marketing module along with CRM supports lead generation,
direct mailing campaign and other marketing works. Scheduling of
the promotion is possible using this.
ERP Sales and Marketing Module
ERP CRM Module
 HRD & Payroll
Accounting

Salary Salary

Customer Sales Dept. Purchasing Dept. Supplier

Email, Web, Email, Web,

Telephone, Telephone,
etc Online and etc
real-time

Online Electronic
Accounting
invoicing and invoicing and
payment payment

Business Finished
goods delivery
Production
schedule and
capacity
Product
Costing
Raw material
requirements
Raw material
delivery

Organization Factory

Model
Sub modules of ERP
Business Marketing Production Inventory Finance HR

Forecasting Forecasting Planning Purchase Accounting HR payroll

Planning Planning Order control Inventory Funds mgt. accounting
Goals Sales budget WIP Store B/S processing
Schedule Skill
Order Quality Valuation Attendance
Objective Processing inventory
analysis control
Targets Order execution Scheduling Analysis Analysis
Strategy Delivery invoicing Dispatch Control Control
control Consolidation of
Maintenance Cost Management business
Fixed assets Quality control Accounting Accounting operations
Relative ERP Module Use
(Mabert et al. 2000; Olhager & Selldin, 2003)
Module Use reported - US Use reported – Sweden
Financial & Accounting 91.5% 87.3%
Materials Management 89.2% 91.8%
Production Planning 88.5% 90.5%
Order Entry 87.7% 92.4%
Purchasing 86.9% 93.0%
Financial Control 81.5% 82.3%
Distribution/Logistics 75.4% 84.8%
Asset Management 57.7% 63.3%
Quality Management 44.6% 47.5%
Personnel/HR 44.6% 57.6%
Maintenance 40.8% 44.3%
R&D Management 30.8% 34.2%
ERP Architecture
ERP Architecture
Data Warehouse
• Central repositories of
integrated data from one
or more disparate sources
Data
Warehouse
THANK YOU