CONTENTS PART I INTRODUCTION

1. 2. 3. 4. 5. 6.

Overview of Enterprise ERP : Introduction Basic Concepts of ERP Justification of ERP Investments ERP : Risks ERP : Benefits PART II ERP WITH DIFFERENT TECHNOLOGIES

7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

ERP and Different Technologies ERP and Business Process Reengineering ERP and E-Commerce ERP with Business Intelligence ERP and Business Process Reengineering ERP and Data Mining ERP and Data Warehousing ERP and Online Analytical Processing ERP and Product Life Cycle Management ERP with Customer Relationship Management ERP with Supply Chain Management ERP Security and Advanced Technologies PART III ERP BUSINESS MODULES

19. 20. 21. 22. 23. 24. 25. 26. 27.

ERP Packages and Different Business Modules Manufacturing (Production) Human Resources Finance Marketing Materials Management Quality Management Sales and Distribution Plant Management PART IV IMPLEMENATION OF ERP PART V ERP IN ACTION PART VI ERP MARKET

28. 29. 30. 31. 32. 33.

ERP Marketpalce SAP AG Oracle PeopleSoft JD Edwards QAD Inc.

34. 35. 36. 37.

SSA Global Lawson Software Epicor Intuitive

PART VII ERP PRESENT AND FUTURE SCENARIOS 38. 39. 40. 41. 42. 43. Turbo Charge ERP System Enterprise Application Integration E-Business and ERP WWW, Internet, ERP Transition to Entire Enterprise ERP and Total Quality Management (TQM) Future Trends in ERP ANSWERED PAPERS OF DIFFERENT UNIVERSITIES APPENDICES ERP Case Studies Index

Part I

Introduction Overview of Enterprise ERP : Introduction Basic Concepts of ERP Justification of ERP Investments ERP : Risks ERP : Benefits

Chapter 1

OUTLINE OF ENTERPRISE
Key Points:

Objectives:

INTRODUCTION CONCEPT OF BUSINESS FUNCTIONS AND BUSINESS INTEGRATED MANAGEMENT SYSTEM GOALS OF AN ENTERPRISE SUMMARY QUESTIONS REFERENCES

To introduce the concept of an enterprise To discuss with business functions and business processes To describe integrated business management system To focus on the goals of an enterprise

Expected Outcome: Understand what is an enterprise and how it works Understand the concept lies behind business functions and business processes Visualize integrated management system and goals of an enterprise

INTRODUCTION Concept of an Enterprise An enterprise, as a single entity, is having a group of resources for achieving a common goal. The resources are man, money and materials. In conventional approach, an organization or company is subdivided into different departments based on their activities. There are various departments in an organization like production department, human resources department, sales and distribution department, purchasing department, finance department, Research and development department etc. These departments are categorized into their own objectives and responsibilities, which is parallel to the organizations mission as per their point of view. These departments act in an isolated way having their own data analysis and storage. So, these data report and analysis are open to the higher management only. As a there is no communication among departments of the enterprise, the departments are unaware of the activities and objectives of each other. According to the definition of an enterprise, we have seen that there is a group of resources to achieve a common goal. But, here, the departments are doing their own businesses instead of following the common goal. This is happening because the departments are unaware of the others activities. So, in any cases, departmental tricks end up to conflicts. Lets say sales department will try to fulfill the customer need; so, they take some surveys on the customer needs. As per the need the department will go for changing varieties of products time to time. Where as, the production department have an eye on not changing the varieties of products to diminish production expenditure. Unless and until the departments have a transparent picture about the goals of each other, conflicts will arise and, ultimately, that will hamper the growth of overall organization. In an enterprise, the organization is treated as system as a whole and the departments are as subsystems. There is a central repository where all information regarding all departments resides. So, all information is available to all departments as per their need which leads to transparency. CONCEPTS OF BUSINESS FUNCTIONS AND BUSINESS PROCESSES To manufacture a product to sell of the product have to face some functional area of actions such as production, material management, human resources, finance and accounting, sales and marketing etc. Each and every functional area has dedications to various business functions and tricks with in it. In earlier and conventional business systems, the activities of one functional area are not closely related to nay other functional area i.e. one business functional areas information system has no crash on other business functional areas. Now a days, business function concept is going to obsolete. Rather than using business functions, organizations have started to use the concepts of business processes. A business process is nothing but a compilation of business activities and tricks that takes various inputs and generates output which is basically what customer need. Business processes give the managers a better approach to observe their organization from customers view point.

Fig. 1. Organization having no communication among departments Lets say, a customer needs to buy software from a software firm. So, from customers perspective, the important things are details about the software, right requirements are fulfilled by the software or not, the associated software and tools needed to build the software have original licenses or not, scope the software, installations and proper user guide, servicing and maintenance by the IT firm etc. Now, the customer is not concerned and bothered to what are the company principles, who have worked for the software and, how much the efforts needed to collect the raw materials i.e. the tools etc. The customer wants delivery of a good product in a competitive price, at an early date with out any hurdle.

Fig. 2. An organization having well communication among each other The key difference between business function and business process is to implement a particular task a process slashes transversely more than one business function. Lets assume a desktop is damaged at the period of delivery. The customer service is concerned here to take the out of ordered item, check the severity of harm, replace and repair the same. So, its a business function. Now, the repair and replacement of the item is a business process which has various functions and steps to follow. The customers look for the way of buying and ultimately getting the product. So, the managers are now following a strategy as if they are in the position of a satisfied customer. Form customers view, they treat the product. To give entire satisfaction of a customer, its very essential for an organization to integrate its functional and operational areas. Lets say, a sales person of a company should have a prior knowledge of latest products, facilities and features the products provide, price of the product, how it is better than other products in market etc so that the sales guy can give the information to the customers. So, an efficient and effective data sharing among function domains of a company leads to more and more proficient business process. Information systems are designed now such a way that right data are shared in a timely manner to the several business functional areas. Rather these Information systems are rightly called Integrated Information System. INTEGRATED MANAGEMENT INFORMATION

An information system brings into being Information using input data, then process, then output. In general an information system consists of three attributes: human resources, processes, and data. The human resources i.e. people processes to transform data into information. In recent scenario, the concept of information system becomes a little change. According to todays information system, we can define it as, it is an organized collection of people, software, hardware, networking and communications and data that brings together, assembles and renovates an organization. MIS i.e. Management Information System produces information products that fulfills day to day decision making necessities of the top management. As per managers previous specifications, these systems generate charts, reports, graphs etc. So, the predefined and advanced information gratify managers needs at any operational level. But, these information systems perform their responsibilities with in a boundary of their departments. So, the employee belongs to a department is completely unaware of what is going on to the other departments. To remove these discrepancies, the senior management publishes some reports of individual reports and descriptions, which is circulated to all the departments. But, the problem is these reports and statements can not pull out the real, needful view of the departments. So, this is one negative aspect of the MIS. One more shortcoming is the system results as per the functionalities added at the time of generating the system. So, these systems will provide the information that was indicated at the time of designing of the system. Now, if there needs information which will be the output of say, two departments or, the results are not shown in descriptions and reports that cannot be displayed by the system. The reason behind these drawbacks is nothing but the isolated approach of the departments. For example an inventory management system is dedicated to storage, where as an accounting management system is to handle finance. So, the departments are not integrated. As a consequence, if a manager or employee needs a data resultant from those departments, that are not possible to deliver by the system. Here the way is only to collect individual reports and descriptions from the departments, then pick and combine the necessary and desired data. In todays business world the most important resource is data. So, if the organization does not follow an effective way to provide the decision makers the right information in right time, then they cannot give the right way out that may be deficient in increasing the success rate. The information must have the characteristics like its accuracy, its relevancy to the decision maker, timelessness of getting the information whenever its needed. So, it will be better for an organization to provide right information to its employees, by which they can give better output in right time. In todays competitive business world, time is too short to change the market trends. And to endure in this scenario, right relevancy of right information should be available to the departments or, employees in right time. GOALS OF AN ENTERPRISE The desires of managers, stakeholders, stockholders are the outgrowth of domain of business planning, human resources planning, and strategic planning and performance measurement etc. The goal of any organization depends on the strategic planning and implementation of efforts. So, organizations need to set up a framework structure strategically to get noteworthy success. The framework should have: 1. Vision of reaching to a certain position in upcoming future 2. Mission i.e. objective, in which path the organization is moving 3. Value to give shape to the action points 4. Goals with action plans in a rigorous basis Vision of reaching to a certain position in upcoming future

Vision is nothing but an avowal concerning what the enterprise wishes to turn into. Enterprise should echo with all stuffs and employees of it and facilitate them to feel swollen with pride, thrilled, and part of a family. Vision widens the organizations potentials and reflection of itself. Not only that it shapes and directs the future of an organization. Mission i.e. objective, in which path the organization is moving Mission is the precise reflection of what an enterprise works on. It depicts the dealings the enterprise is in. Each stuff and employee of an enterprise should be able to express this mission, as the members of the organization are the backbone of it and they should know why the organization exists now. Value to give shape to the action points Values are most important traits or qualities that are taken worthwhile. Values correspond to an individuals uppermost priorities and extremely detained driving forces. Value statements delineate how the employees in an enterprise would like to conduct and perform with each. The statements are basically regarding how an enterprise will add value to the customers, suppliers, and the in-house group of people. Value statements illustrate events that are the living enactment following the elementary values held by individuals in an enterprise.Values of each of the individuals in enterprise workplace channelizes together to shape the corporate culture. Goals with action plans in a rigorous basis After developing the strategic framework, an enterprise should turn its concentration to go for goals that will make possible to accomplish each of strategies as well as meet the client deliverables. Goals of an enterprise should be i. Very exact and detailed i.e. it states what is to be achieved and up to what extent ii. Assessable i.e. the members of enterprise should know the judgment of achieving success or failure and whether it has been gained or not iii. Feasible i.e. the aim to do should be agreed to the members who are involved with a particular task. They should have a transparent view of the goal Practical and the target should be in a timely manner i.e. the obstacles to get the goal succeed should be identified and assessed. And, the managers should have a look whether the stuffs have the necessary skills and performance to achieve the goal in time.

iv.

SUMMARY An enterprise, as a single entity, is having a group of resources for achieving a common goal. The resources are man, money and materials. In conventional approach, an organization or company is subdivided into different departments based on their activities. These departments are categorized into their own objectives and responsibilities, which is parallel to the organizations mission as per their point of view. These departments act in an isolated way having their own data analysis and storage. So, these data report and analysis are open to the higher management only. Unless and until the departments have a transparent picture about the goals of each other, conflicts will arise and, ultimately, that will hamper the growth of overall organization.

In an enterprise, the organization is treated as system as a whole and the departments are as subsystems. There is a central repository where all information regarding all departments resides. So, all information is available to all departments as per their need which leads to transparency. To manufacture a product to sell of the product have to face some functional area of actions such as production, material management, human resources, finance and accounting, sales and marketing etc. Each and every functional area has dedications to various business functions and tricks with in it. Now a days, business function concept is going to obsolete. Rather than using business functions, organizations have started to use the concepts of business processes. A business process is nothing but a compilation of business activities and tricks that takes various inputs and generates output which is basically what customer need. Business processes give the managers a better approach to observe their organization from customers view point. An information system brings into being Information using input data, then process, then output. In general an information system consists of three attributes: human resources, processes, and data. In recent scenario, the concept of information system becomes a little change. According to todays information system, we can define it as, it is an organized collection of people, software, hardware, networking and communications and data that brings together, assembles and renovates an organization. Information systems should be designed such a way so that exact & accurate data can be shared among different functional areas in a timely manner. These systems are integrated information system. The goals of an enterprise generally are: 1. Vision of reaching to a certain position in upcoming future 2. Mission i.e. objective, in which path the organization is moving 3. Value to give shape to the action points 4. Goals with action plans in a rigorous basis

QUESTIONS 1. Define Enterprise. 2. What are the key roles of an enterprise? 3. What is Business Function? 4. What is Business Process? 5. Discuss the differences between Business Function and Business Process. 6. To succeed in competitive business world their needs exact relevant data in time. Justify it. 7. Why Integrated Management System is essential from business perspective? 8. Can it be said i.e. ERP helps managers in better decision making? Justify. 9. What are the key objectives of an enterprise? REFERENCES Journal References: 1. Enterprise Resource Planning Systems: A research Agenda, Majed Al Mashari, Industrial Management & Data Systems,2003 Website References: 1. http://en.wikipedia.org/wiki/Business_process

Chapter 2

ERP: INTRODUCTION
Key Points: Objectives: To introduce the concept of ERP and its evolution To discuss with MRP, Closed Loop MRP, MRP II and transition to ERP To describe the reasons of growth of ERP in recent market scenario To focus on the successful ERP implementation Expected Outcome: Understand basic concepts of ERP with its evolution Understand the transition from different phases into ERP Be aware of the concept lies behind ERP, its growth and successful implementation INTRODUCTION ERP EVOLUTION MATERIALS REQUIREMENTS PLANNING (MRP) CLOSED LOOP MRP MATERIALS REQUIREMENTS PLANNING II (MRP II) ENTERPRISE RESOURCE PLANNING (ERP) REASONS OF GROWTH OF ERP ADVANTAGES OF ERP WHY ERP NOW WAY TO IMPLEMENT SUCCESSFUL ERP SUMMARY QUESTIONS REFERENCES

INTRODUCTION

ERP stands for Enterprise Resource Planning i.e. a determined term that in reality attempts to incorporate all departments and functions across a company onto a single sign on system. ERP serves company- wide integrated information systems covering all functional areas. It performs core corporate activities and increases customer service augmenting corporate image. ERP follows the concepts to utilize management resources in an effective manner and grow proficiency of enterprise management as well. ERP packages are basically software packages that coves all the business functions. Previously ERP packages focused on for the most part manufacturing industries and they wrap the core business domains like financial services, accounts, production, sales management etc. But, in recent years, the key focal point of ERP is not only surrounding the manufacturing industries; it is now implemented to different types of industries which make possible ERP as a broader and global height. The notion of ERP is to flow all the departments of an organization into a single computerized application which provides all the functionalities as per need. Not only that ERP software facilitates a degree of interoperability to different departments of an organization as because, from a single database different departments can share and communicate with each other. So, ERP software is targeted to automate numerous business processes of an enterprise from production planning to deployment to the clients following an integrated way to diminish the complexity of communication among different wings of the enterprise. ERP is rightly called as information backbone that hits each and every domain of business and value-chain.

ERP EVOLUTION:
In mid 1970s, basically for manufacturing industries, the basic thought of production management and control was based on MRP i.e. Material Requirements Planning. Bill of Materials (BOM) is the stage stating the purchase order management which employs parts list management and parts development. MRP II was developed to obtain demand and time phasing of the demand into the planning development. It utilizes software applications for coordination with manufacturing processes, from production planning, parts purchasing, inventory control to product delivery. ERP, developed from earlier MRPII systems, were also integrated with financial accounting applications, human resources management functions, management accounting functions, distribution management functions etc to provide a complete global solution to an enterprise for managing their inventory, cash and resources. Lets come to a brief detail.

MATERIAL REQUIREMENTS PLANNING (MRP)

Materials requirements planning is a system which helps out an organization with in depth planning, development and inventory control of its production. Materials Requirements Planning (MRP) is a methodology for materials planning developed in the 1970's making use of software. The core aspects of MRP are the establishment of material requirements by means of the bills of bits and pieces, and time-slicing of necessities. MRP draws demand for components, materials, subassemblies, etc., from demand for and production schedules of parent items. MRP counterbalances replacement orders (purchase orders or production schedules) relative to the date when replacement is needed.

Data essential for MRP

Data acquired from MRP Planned orders: replacement orders to be Demand for each and every released in future product. Notice of order release: planned orders Lead times for all production Accomplishment notices: notices to pick up the completed products, components pace, or cancel orders, or to change order and raw materials numbers or due dates Lot sizing strategy for each part Reports to Priority: Data regarding which Opening inventory orders should be provided according to priority secured stock requirements Inventory standing data Any orders previously placed Performance reports like inactive items, although not arrived yet genuine lead times, delayed orders, etc.

MRP system is dedicated to meet three aims concurrently:

Make sure that materials and product is available and delivery to clients. Keep up the lowest possible level of inventory. Do plan manufacturing events, deployment of various schedules and pay of.

Requirements
o o o o

Developed Bill of Materials (BOM) Perfect, well-managed Master Production Schedule (MPS) to go for MRP Software for exploding BOMs Hardware speed and records competence

Key MRP Inputs

o Master Production Schedule (MPS) o fine managed Build Plan

Bill of Materials Parent/child dealings Single level vs. multi-layer Structured for manufacturing

o o o

On hand inventory (available to use) Material as per order (from supplier) Planning issues

Lead time Algorithm or rule for lot size Optional adjustments(safety stock, safety time, Yield, Shrinkage etc)

CLOSED-LOOP MRP
includes tools for planning plan priority, precedence and competence

 maintains both planning and implementation focuses beyond material planning by allowing for total sales and operations planning, build schedules (master scheduling) and demand management (e.g. forecasting) The diagram below signifies Closed loop MRP:

MRP II MANUFACTURING RESOURCE PLANNING Straight development and extension of closed-loop MRP Improved sales & operations planning on a detailed level Financial interfaces that allow to translate the operating plan (in pieces, pounds, gallons, etc.) into financial terms (dollars) Simulations the ability to ask what-if questions

MRP II is an enhancement that asks for to address some of the shortcomings of MRP. It includes all essentials of MRP. It

is based on the Bill of Materials (BOM), uses a Master Production Schedule (MPS) as its initial point and uses the three stages like Explosion, Netting and Offsetting to produce the initial schedule.

However MRP II includes four key developments from MRP:

1. Feedback

MRP II includes responses and feedbacks from the very little area to the giant area to judge the progress e.g. from shop floor on how the work has stepped forward, to all layers of the agenda by which the subsequent development can be reorganized at a regular basis.
2. Resource Scheduling

There is a scheduling competence contained by the system which ponders over the resources, i.e. the plant and equipment required to exchange raw materials into already completed products. The key advantage of this development is the plan. This plan can be kept to the shop floor and a report can be generated by every operation; which provide a very tighter control over the plant.
3. Batching Rules

Batching rules can be built-in; certainly they need to be whether resource scheduling is to happen. A good number of software packages suggest various batching rules. Lets have a look on the following batching rules:

'Lot for Lot' states batches that relate the orders. If an enterprise has a plan to produce 10 products named ProductA and, 20 products named ProductB; then the batches will be matched as per the requirement. 'EBQ' is the abbreviated form of Economic Batch Quantity. The batch size is planned by an algorithm or formula that diminishes the cost through equilibrium of established cost adjacent to cost of the stock. 'Part Period Cover' states building batches whose size wrap a undeviating period of demand. Lets say, a requirement policy of certain period can be an instance of one batch.

4. Software extension programs

There are some software programs that is included as a collection of MRP II. These are designed again for help in scheduling procedure. The leading of them is Rough Cut Capacity Planning (RCCP), a primary and initial effort to match the order shipment to the capability existing, by calculating the load for each resource. Following this way, overloads can be identified and an approach can be taken to achieve a balance of order load and resources.

ENTERPRISE RESOURCE PLANNING (ERP)

ERP is an abbreviated form of Enterprise Resource Planning. ERP is a way to amalgamate the information, records and processes of an enterprise into a single sign on system.

The term ERP refers to how a huge enterprise plans to employ and manage enterprise wide resources. Previously, ERP systems were used in giant industrial organizations. However, the implementation of ERP has enhanced and is tremendously wide-ranging. Now ERP refers to any type of corporation, no issue what type of industry it is. ERP is a determined term that in reality attempts to incorporate all departments and functions across a company onto a single sign on system. ERP serves company wide integrated information systems covering all functional areas. It performs core corporate activities and increases customer service augmenting corporate image. ERP systems envelop an extensive range of functions and integrate those very different functions into one unified warehouse or storage. For illustration, functions or departments like Human Resources (HR), Customer Relations Management (CRM), Supply Chain Management (SCM), Manufacturing functions, Financials and Storage Management functions are all single sign on or, stand alone applications. Executing a solution in enterprises permits organizations to get rid of standalone computer systems in finance, manufacturing, HR and the warehouse. The solution substitutes them with a software application with individual sub components for each section. The main divergence is that now finance can glance into the warehouse section and check if the pending orders have been processed in time or not. This lets interdepartmental supervising of business processes at the same time as allowing the management to associate reports so as to offer a transparent view of the enterprise as information is being used from across all sections and departments of the organization.

REASONS OF GROWTH OF ERP: Enterprise Resource Planning is undoubtedly a hot cake in todays business world. The fore-future analysts forecast more than 30% growth rate of ERP in forthcoming five years. The question is why so many companies are replacing their business systems into ERP. Yes, definitely there are some reasons of tremendous growth rate of ERP market and ERP vendors: 1. Improvement of business performance Reduction of cycle time Inventory diminish Business suppleness high-rise incorporate Customer order information and stock customer history permit Marketing and Management to supervise and examine all phases required to offer he clients with better services 2. Business growth requirements support New business trend of production New Clients Global requirements like multiple geographic zones, the languages followed, their currencies

3. Integrated, real time decision support and flexibility Improvement of interaction with all associated departments throughout the enterprise 4. Limitations of legacy system elimination disintegration of data dealing out Technology may not support Any modification rigidity Issue of century dating 5. Advantages of untapped small & mid size enterprises Augmented functionality at a logical cost Client server and open systems technology Vertical market solutions

6. Only one solution makes a better approach to project management 7. Let users restricted and monitored right of entry to data across the organization as per needs. This is a trend to all types of companies are joining to move their business to be handled by ERP. And ERP vendors are shifting the focus from giant Fortune 1000 enterprises to various small and mid size companies. The future business world will be busy with market share and acquisitions for strategic advantages. Then, the enterprise with better products and services at an affordable price will come out as a market leader.

ADVANTAGES OF ERP: Installation of ERP has many folded advantages. The enterprise will posse improved data integration, better efficiency in decision making, quick response to client need and a lot of advantages. Moreover, the enterprise will grow more with better commercial business image, goodwill in market, customer satisfaction etc. Lets have a discussion with the advantages of ERP: Business Integration of business components and technologies Flexibility Better analysis and planning competence Usage of ultra modern technologies Business integration of Business Components and Technologies In ERP systems the key characteristic is Business Integration. The concept of integration is manly for building a strong communication with ERP and related business components. The information systems of some conventional enterprises were with an objective of optimizing autonomous business functions in business units (BU). And, as per as the communication and information integration is concerned, the

way of these optimization is literally weak and backdated. With a particular approach in big companies it is seen that the timing system of system construction mismatches for a particular product and departments; and they goes disconnected sometimes. As a consequence, shifting from old product to new product becomes hectic. But, in ERP packages, the business function related information is updated automatically while a business transaction happens. So, its like real time system i.e. the enterprise can clutch the business at real time and carry an assortment of administrative decisions in a timely manner.

Flexibility To adapt with globalization of an enterprise, flexibility is the most significant point. To set up the enterprise at the midst of a global point, there are so many diversions in terms of environments like language, currency, economic balances etc. They are covered into one system and functions i.e. a package that can be implemented automatically and manage different locations also. Here is the need of flexibility. Better Analysis and Planning Competence One more advantage is better analysis and planning capabilities. By letting allinclusive and integrated management to data, it is possible to exploit various Decision Support Systems (DSS) and simulations. As it is possible to maintain flexibility and real life data filing and thorough study of data from different ends, they can provide the right information as per the requirements of the decision makers. Usage of ultra modern technologies Usage of ultra modern technology is one more advantage of ERP. The vendors of ERP have a realization of growing according to the growth of Information Technology. They squeeze their developments with latest technologies coming day by day. The vendors adapt their systems compatible to the modern technologies to get advantages from them. The quick cope up with technologies like Client server model, open systems, Computer Aided Acquisition and Logistics, E-Commerce and ebusinesses etc. makes flexible to be adapted with the changes in future business surroundings. So, at the time of system maintenance and customization the incorporation of ultra modern technologies can be accomplished.

WHY ERP NOW

There are so many application packages developed to manage enterprises and have good feed record of selling. Now, the issue is: where are the key differences of ERP packages and conventional packages or applications. In response, we see, ERP packages deserve not only separate individual business functions like Human Resources or Inventory Control; but also the overall total business operations necessary to an organization. The focus of ERP packages is from small and mid size organizations to giant enterprises. And, ERP packages are self-possessed with a exceedingly flexible decentralized catalog and an Information System connected by a network.

ERP packages have multi-lingual and multicurrency competence that symbolizes universal adaptation. Now a days, scenario has come, when companies irrespective of their size and market share are doing business world wide, the globalization of administration is accelerating with global adaptation of enterprises information systems are also speeding up.
WAY TO IMPLEMENT SUCCESSFUL ERP

Gap Analysis is the most crucial stage for successful ERP implementation. Gap Analysis is a footstep of negotiating enterprises requirements and functions that are processed in ERP packages. While a project is running, a team is there to perform it. And, there are separate viewpoints of team members. It is effective to hire or invite consultants with huge experience in package implementation. For System Integration with ERP packages, such consultant can be offered as a role of Coordinator. This consultant, as an unbiased individual, will be responsible to resolve conflicts and gear up the project ahead. There should be a clear picture of the missions & visions of an enterprise to its associates i.e. management along with resources and employees. Next is the way of decision making and involvement of management in the project. Then the important one is to select experienced consultants and integrators. Now the major concern is that there are very few experienced consultants; but, they generally have to handle so many projects. So, the paramount approach to have a solution is to pick employees with skill, commitment and functional knowledge, so that they can streamline themselves to work with external consultants. Benefit will be of the enterprise itself, because when the external consultants and integrators are not available, enterprise can continue with their own internal consultants i.e. its own trained employees. To select a flawless package and to implement it, one has to gather and take hold of extensive knowledge, exact information, handling important functions and make available the functions into modules. That will diminish customization at the time of implementation, which leads to elimination of extra work and cost along with efficient implementation of project.
SUMMARY

ERP is the abbreviated form of Enterprise Resource Planning. ERP is determined that in reality attempts to incorporate all departments and functions across a company onto a single sign on system. ERP serves companywide integrated information systems covering all functional areas. It performs core corporate activities and increases customer service augmenting corporate image. ERP packages are basically integrated software packages that support concepts of ERP. The Scope of ERP is incorporate Information for Finance, let inter-departmental process monitoring and generating reports, incorporate Customer Order Information and stock Customer History, Standardizing Information for HR, permit Marketing and Management to supervise and examine all phases required to offer the clients with better services, let users restricted and monitored right of entry to data across the organization as per needs, better consumer service etc. There are lots of myths regarding the concepts, infrastructure, implementation & practice of ERP like ERP makes employees jobless, Management is solely responsible to ERP,

ERP slows down the organization, ERP is very expensive, Enterprises can succeed without ERP etc. If we go to the origin or evolution of ERP, We get concepts of MRP which was maintained in 1970s.MRP i.e. Material Requirement Planning uses software applications for production processes. MRP creates schedules production requirements of finished products, structure of production system, lot sizing process etc. Then, the concepts of MRP II come in 1980s. For co-ordination of manufacturing process from product planning, purchase, inventory control to ultimate deployment of product to the customer, MRP II was developed. Finally n 1990s, ERP comes as a market leader with incorporation of various modules like financial accounting functions, Human Resources Management functions, management accounting etc. There are so many reasons of the growth of ERP like enabling improved business skill, support business growth, flexible, real time decision support, diminishes of problem in legacy systems etc. Here we have signified over expectations and the way of successful ERP implementation.
QUESTIONS 1. Define ERP and its usage.

2. What are the common myths about ERP and, where is the standing of those myths in light of practical implementation? 3. Discuss history and evolution of ERP. 4. What is MRP? What is its usage? 5. Discuss Closed loop ERP. Explain its differences with MRP. 6. Explain MRP II. 7. Explain what is meant by ERP. 8. What are the reasons for growth of ERP? 9. Discuss the advantages of ERP. 10. Explain the road-map of successful ERP Implementation.

REFERENCES: Journal References: 1. ERP Demystified by Alexis Leon

2. Enterprise Wide Software Solutions: Integration Strategies and Practices by Sergio Lozinsky 3. Manufacturing Planning and Control: Beyond Mrp II by Paul Higgins, Le Roy Roy, Liam Tierney, P. Le Roy Website References:

1. http://amor.cms.hu-berlin.de/~spiekers/ITSD_VL11_2007.pdf 2. http://www.abouterp.com/overviewerp/Road_map_erp.html 3. http://www.seminarmarketingpro.com/images/pemeco_erp.pdf

4. http://ezinearticles.com/?ERP-Applications:-Myths-AndMisconceptions&id=386721

Chapter 3 BASIC CONCEPTS OF ERP Key Points:

Objectives: To introduce with the business path followed by firms and ERP fits how much with it To discuss with the value created by ERP To describe the importance of ERP in an organization Expected Outcome: Understand how ERP fits with the business avenues followed by firms Understand the value that is created by ERP into an organization Be focus on importance of ERP in an organization INTRODUCTION HOW ERP FITS TO THE BUSINESS PATH FOLLOWED BY COMPANIES VALUE CREATION BY ERP HOW MUCH ESSENTIAL IS ERP TO A COMPANY SUMMARY QUESTIONS REFERENCES

INTRODUCTION In competitive market scenarios, an organization is to deliver best quality product on time, every time at best affordable cost. And, ERP is the efficient application software where the said objectives get achieved. The key functionality of ERP is that being a processes and modules, it integrates all the business functions and departments through out the whole organization in to a single sign on computer system. As ERP uses a single storage, it lets the all departments to communicate each other by sharing information. ERP is a solution, aiming to reengineering of enterprises, uses separate business computing approaches to integrate an organizations different wings and departments. ERP provides its business solutions to every step in IT processes from estimations, optimizations of software to maintenance and service & support. There stay some dependencies on enterprises size and environment which differs implementing ERP i.e. architectural issues, customization concerns,

right way of installations, complexity intensities will be the parameters to check and implement right ERP solution. ERP provides efficient usage and management of required resources i.e. mainly man, money, material. For every resource, ERP decides the exact requirement i.e. what, how many and when resource is needed to fulfill a particular task. And, this approach ideally makes an enterprise in growing more. Now we will be with discussions on the issues below: 4. How ERP fits to the business path followed by companies? 2. How much essential is ERP to a company? 3. Value creation by ERP

HOW ERP FITS TO THE BUSINESS PATH FOLLOWED BY COMPANIES Companies need to calculate and settle down whether their business path fit in to standard ERP package. Then comes ERP package implementation and sign offs. The companies avoid implementing ERP projects of million dollars as because; the ERP software may not bear one of their significant business functions. To pass up this problem, there are two options: 1. The companies can streamline the integral business process which will be accommodative to the ERP software, which is nothing but come out from so called business ways and handshaking with everlasting ERP package. 2. ERP software can be customized and upgraded in such a way that the software will able to fit with the integral business process. But, this way, if followed, will slow down the entire project. Not only that, it may generate critical bugs in to the system. And, if the customization does not fit with, then again a new version of ERP software needs to get installed. Move to ERP is a bottleneck to most companies because of price tags. There are so many cost concerns like budget of software, consultations, process rework, and integration phase and hell lot of issues. ERP: VALUE CREATION ERP creates value by changing the fundamental nature of enterprises with a lot of ways. In Legacy system it is seen that they are not incorporated throughout several numerous areas or functional areas. As a result same data is present several times in various locations and that is not there in real-time. This scenario leads to presence of asymmetric information among different functional groups and top administration. Enterprise Resource Planning software offers enterprises transaction processing models that have an integration with other tracks and activities of it like, human resources, production planning, research & Development, materials management etc. ERP systems present incorporation crosswise various locations and functional domains by implementing typical firm processes and single warehouse that holds entire firms data. ERP systems as a consequence led to improved management and better decision making capabilities that manifest extensive assortment of metrics like raw materials, production in process and already finished products i.e. decreased inventory, accelerating financial closings etc. ERP changes the base of an organization by creating its value in many ways, like: a. Integrating all the different activities and domains of an organization

b. c. d. e.

Enforce to follow the best possible practices Maintains International Organizational standards Provide online and real-time data Provide intra-enterprise and inter-enterprise communication and collaboration

Integrating all the different activities and domains of an organization ERP is nothing but a planning philosophy which has attempts to integrate all business processes and business functions of an organization into a single sign on (SSO) system. Basically, before implementing ERP systems in organizations, each department had their own dedicated computer system to maintain that very department only. But this situations provide poor communications and growth cross wide the organization as a whole. But, ERP communicates all the business functions integrated i.e. ERP deserves the ability to update information among related process and functions in an automated way. Lets say, we need to update some data in a particular position of Material Management module, so, that update will effect on each and every places, that leads the managers to take better decisions and handle problems in better manner . Enforce to follow the best possible practices There are thousands to best possible practices integrated to ERP. Their best practices are used for uplifting the ways of business. When implementation of ERP is done for an organization there stays an enforcement of changing the way of business and take on most efficient ways that will provide better accomplishment of desired goals and make organization competitive. Maintains International organizational standards ERP systems facilitate organizational standards across the different locations with standard business processes in line with to some extend more efficient process. For this streamlining of business processes an organization can focus on a single and efficient impression to competitive market. AS a result, if an organization has multiple numbers of branches in multiple locations, a common and same view is presented to the outer world. Provides online and real-time data If we eye on legacy systems, plentiful data is kept in paper and pencil, which is delivered to another organization or same organizations different part. There the data aggregated and pass it through a computerized system. So, here the online users cannot get data online because, to have the said process implemented, it takes huge time. Where as, in ERP systems, numerous data are collected from the source and then placed into computer directly. So, the data remain online and real-time. Provides intra-enterprise and inter-enterprise communication and collaboration ERP facilitates intra- enterprise communication and inter-enterprise communication both. Basically, interlocking processes lead the functions and locations into communication which leads to collaboration. As in ERP single repository is used, the communication between each and every location and function with required information can be possible efficiently. For collaboration and communication perspective, ERP systems facilitate information backbone to different enterprises also. If we review the market scenario, it is seen that the major companies open their databases to their collaborated firms or partners to get business needs and data. Here ERP is a better solution as because ERPs single database can be used by the partner firms.

HOW MUCH ESSENTIAL IS ERP TO A COMPANY ERP is referred to as back office software because the upfront selling business is not handled by ERP; it offers efficient software solution to automate the business requirements as per customer needs. So, basically ERP transforms the business path of organizations. Enforcement to organizations to change ERP enforces organizations to get changed by providing competitive environment and creating value. Strategically implemented ERP system helps to be ahead of all competitors; reason is the tools provided by ERP are indispensable for enterprises to counter in a quick manner. The competitors have no options to go for suit while the organizations implement ERP. Enforcement to business partners to become competitive Needless to say when an organization becomes ERP implemented, it becomes more efficient to automate business processes and transforms organizations to be more agile and more nimble. Organizations that have implemented ERP systems can increase better business process and this proficient high-rise enforces business partners to implement ERP systems in their organizations also to maintain the pace. Thus, implementations of ERP systems give pressure to the partners to get adopted as well as adapted with ERP. Effect to all over organizations Irrespective to the range, growth, nature of business, business path and so on; all the organizations almost affected by ERP as by increasing efficiency it creates competitive environment to the organization. ERP streamlines rigorously with day to day changes, mechanize business ways and operations to serve customer need in a better approach. In current world wide business market scenario giant MNCs to small and medium sized business (SMB) organizations are using ERP. ERP increases profit to consultancies Various ERP services are provided by the consultancies and the services are like going to right ERP package, ERP implementation, support after implementation, business process reengineering etc. These consultancies gather extreme expertise and skill with each and every ERP implementation. Lets say, an organization implements ERP successfully to make it more competitive to the market. So, the fellow competitors can be advised to choose the same software and consulting band to successfully implement it. So, the firms are progressively growing by providing consultancies maintaining the pace with the growth rate of ERP packages. Enforcement of Best Practices in organizations Best practice in business processes means improving business skill to get sustainable outcome i.e. achieving level best service with respect to a reasonable cost effective implementation. ERP systems also follow best practices in their business processes. For instance, we can see mySAP.com as SAPs best practices i.e. best practice to do business. Contextually, mySAP.com has incorporation of thousands of best practices. These best practices provide enterprises a result oriented practice to get rid of conventional prototype method. Besides, these best practices in documented in cooperation with business as well as technical viewpoint. Potential to Client Server Computing Initial days, ERP packages have only option to get installed in mainframe platform. But, in 90s market produced client server concept over existing mainframe. Client server oriented solutions were produced with hell lot of advantages. But, get these advantages from client server concept,

there were very few corporate application softwares; rather no such softwares. ERP made itself possible to get advantage of client server approach as first eligible corporate software oriented back office solution. Enforces enterprises a high budget for ERP implementation ERP implementation cost covers software, hardware, consultation services, post implementation support and so on. As ERP implementation cost focuses its effect to certain extend on an enterprises revenues, right approach and right ERP package needs to get installed and implemented. Reason is there are so many instances of wrong and unsuccessful ERP implementation that led to bankruptcy to organizations or lose of revenues or they became out of business.

SUMMARY The key functionality of ERP is that being a processes and modules, it integrates all the business functions and departments throughout the whole organization in to a single sign on computer system. As ERP uses a single storage, it lets the all departments to communicate each other by sharing information. ERP is a solution, aiming to reengineering of enterprises, uses separate business computing approaches to integrate an organizations different wings and departments. ERP provides its business solutions to every step in IT processes from estimations, optimizations of software to maintenance and service & support. The companies can streamline the integral business process which will be accommodative to the ERP software, which is nothing but come out from so called business ways and handshaking with everlasting ERP package. ERP software can be customized and upgraded in such a way that the software will able to fit with the integral business process. But, this way, if followed, will slow down the entire project. ERP changes the base of an organization by creating its value in many ways, like: Integrating all the different activities and domains of an organization, enforce to follow the best possible practices, maintains International Organizational standards, provide online and real-time data, provide intra-enterprise and inter-enterprise communication and collaboration. ERP offers efficient software solution to automate the business requirements as per customer needs. The importance of ERP implementation is : enforcement to organizations to change, enforcement to business partners to become competitive, effect to all over organizations, ERP increases profit to consultancies, enforcement of Best Practices in organizations, potential to Client Server Computing, enforces enterprises a high budget for ERP implementation.

QUESTIONS 1. How ERP fits to the business path followed by companies? 2. ERP value creation: Discuss. 3. Why ERP is essential to an organization? REFERENCES Journal References: 1. Hammer, M., Champy, J.A., Reengineering the Corporation : A Manifesto for Business Revolution, HarperCollins, 1993. 2. Koch,C., The ABCs of ERP : Getting started with Enterprise Resource Planning, http://www.cio.com/research/erp/edit/erpbasics.html

3. Uday, K., Are you getting the most from your ERP? Express Computer Online, April2002. 4. Wheatley, M., ERP Training Stinks, CIO, June 2001. Website References: 1. http://www.intelligententerprise.com/db_area/archives/1999/991 307/erp.jhtml 2. http://sontecorp.com/index2.php?option=com_content&do_pdf= 1&id=51 3. http://www.unctad.org/en/docs/ecdr2002_en.pdf 4. http://www.erpfans.com/erpfans/erpdefinition/erp008

Chapter 4 ERP IMPLEMENATION

Key Points:
Objectives: To introduce with the approaches to ERP Implementation To discuss with the bottle necks, challenges and issues in ERP Implementation To describe Customization in ERP To visualize success factors and strategies of ERP Implementation To understand the phases of ERP Implementation Expected Outcome: Understand the organizational, business, technological perspectives of ERP Implementation Understand the approaches to ERP Implementation Be focus on lifecycle of ERP Implementation including the success factors and strategies INTRODUCTION APPROACHES : ERP IMPLEMENTATION ERP IMPLEMENTATION: DIFFERENT PERSPECTIVES CUSTOMIZATION ERP IMPLEMENTATION : SUCCESS FACTORS STRATEGIES : ERP IMPLEMENTATION STEPS IN ERP IMPLEMENTATION SUMMARY QUESTIONS REFERENCES

INTRODUCTION Successful ERP implementation can improve an enterprise a drastic change into its business processes. But when it fails to implement successfully, gigantic efforts and capital will be in vein. A recent study states that for implementing ERP the firms give some reasons. The focal basis is to get the common IT platform. Other reasons are like lessening of operating costs, visibility of data, process improvement, better rate of responsiveness to clients, strategic decision making improvement. Moreover, before year 2000 many firms thought of implementing ERP for resolving Y2K compliance. The protocols to do business are redefined in recent market situations. The emerging business concepts and new business goals materialize to change the demands towards organizations. And from that need the organizations need to extend up the understanding of the implementation process of IT systems. Changes in organizations are constraints to the new or extended

technologies. So, to get complete acquiesce an integrated work process should be implemented. Literally the implementation is nothing but the installation of software and hardware. Implementation of ERP systems is a distinct mechanism spanning from selection of systems all the way through the configuration and working out in anticipation of going to live. Now the system is functioning. In true sense, this is the vision of ERP implementation from vendors and consultants standpoint. From organizations viewpoint, implementation is a rigorous learning wherever organizational processes supported by ERP systems are progressively streamlined with commercial objectives. An accepted truth, got from hell lot of surveys, is that ERP implementation never ever is on time, with in financial plan, and meeting the preferred commercial result.

APPROACHES: ERP IMPLEMENTATION Three approaches to ERP implementation are: BIG BANG, LOCATION-WISE, MODULE WISE approaches. While an enterprise takes a resolution to execute all significant as well as relevant modules simultaneously, then the approach is BIG BANG approach which will lend a helping hand to the enterprise to obtain the all advantages of the ERP system. Reason is every single one obligatory section or unit to focus on the business processes are integrated and incorporated in this approach. In contrast, in BIG BANG approach, there stay major risks of failing of systems because; in ERP implementation the organization as a whole is getting totally replaced with a standalone integrated system. Some organizations favor this approach as new-fangled dealing processes can be incorporated in addition to distill existing structure from end to end installation of integrated system. Location -wise approach facilitates the enterprise to diminish the cost and expenditure of the project including risk factors. This approach is effective in a particular location like, a specific SBU (Small Business Unit). The total period of the project will be less to some extend as because the replacement of the new system is done for a specific location or part of an organization. The benefit of this approach is an organization can implement the new system for a particular division and get feedbacks which is reflect to whole organization. By which they can come to a decision i.e. the implementation is at all necessary or not for the organization as a whole. So, on the basis of small implementation, the further investment to ERP project is determined. The organization does analysis on the existing system, project duration, requirements and cost. Then it determines to have a specific module say CRM, MM or Finance etc. that go well with the organization. In this way, each and every module is taken for ERP implementation.

ERP IMPLEMENTATION: DIFFERENT PERSPECTIVES

In ERP implementation we will discuss on several viewpoints like organizational, business and technological. Organizational Viewpoint: ERP system implementation is a basically organizational development rather than technical and methodological development, because, the system is more and more concerned with people, than process. A broader picture of implementation process of ERP is presented as the implementation from organizational

perspective. ERP plays a part to an organization as a reactor, it offers its skills and competencies to the existing system; as a consequence the organization transforms into a new-fangled, unparalleled enterprise. So, in this approach before implementation of ERP and post ERP implementation generate a hell and heaven divergence s in organizations.

Business Viewpoint: Two options are there in ERP implementation: one is ERP implementation leads to change the techniques or processes of an organization partially; another one is it guides to an entirely innovative dealing with organization. While we see the ERP implementation from business perspective, it comes clear that several processes are boosted up with the implementation and that leads to an easy approach to get the complexity of system. Not only that, ERP implementation also acts as a torchbearer to Business Process Reengineering. ERP constantly moves forward an enterprise with several radical changes. This change management may be complicated to the organizations, and these changes are repeatedly mistreated or ignored by the companies at the moment in time of ERP implementation. When an implementation of ERP is done with an organization, the organization has some missions and visions which should be matched with the ERP system. So, the system should be well planned, strategically designed and built as per the missions and visions of the organization. Technological Viewpoint: There stay so many technological challenges while implementing ERP. The technological issues in respect to ERP implementation is supposed to contribute an improved understanding of complications in ERP implementation. The challenges are basically architecture related, infrastructure based, customization related, configuration and overall the system. Technological perspective will detail on the total system including its architecture, infrastructure, configuration and customization of the system. And then it shows how to organize the implementation prior to the system is into operation.

CUSTOMIZATION:
To fine-tune ERP software fit into the enterprise, customization is the most elementary approach. Normally an ERP team should modify the base foundation of the system by no means and also avoid further radical approaches like creating interfaces to legacy systems etc. Extreme structures of customization are critical as well as significant as because whenever they do changes those changes, the system stays not like a packaged solution which leads the organization beyond the benefits it deserves. Moreover technical changes are expensive too and they are truly complex is development or customization along with they need thorough testing. Additionally, the team is required to put into execution and implement again them for each and every module (package) release that raises long-standing maintenance expenditure. When draft creation is ready, customization stage comes up. In blueprint creation phase generally set of problems exists. So, through customization basically the organizations are permitted to customize the delivery of ERP environment to a good extent to meet the business needs.

After the blueprints creation, the customization phase of the ERP platform begins. Through the customization, procedure, corporations are allowed to customize the deployment of the ERP platform to a sufficient level of detail, in order to meet their specific business needs. As in the blueprints creation stage, a number of problems exist here as well. A limited amount of available project time is again the big issue. Problems that may occur can be summarized thus: During the customization stage, consultants are tailoring the system according to the blueprints, while employees keep conducting their usual business tasks. As it is the case, consultants are a unique source of information regarding the ERP platform, mainly due to their experience. It would be best for employees to have the chance to take full advantage of them.

Chapter 5
DFFERENT ERP MODULES: A COMPERATIVE STUDY

Key Points:
Objectives: To introduce with the business path followed by firms and ERP fits how much with it To discuss with the value created by ERP To describe the importance of ERP in an organization Expected Outcome: Understand how ERP fits with the business avenues followed by firms Understand the value that is created by ERP into an organization Be focus on importance of ERP in an organization INTRODUCTION FUNCTIONAL MODULES OF ERP SOFTWARE ERP PRODUCTION PLANNING MODULE

ERP Purchasing Module ERP Inventory Control Module ERP Sales Module
SUMMARY QUESTIONS REFERENCES

FUNCTIONAL MODULES OF ERP SOFTWARE

ERP is finished up with several software modules. Common ERP modules embrace modules for product planning, parts and material purchasing, Human resources, marketing, inventory control, tracking of customer order, financial management, product

distribution, accounting. Enterprises over and over again be choosy and execute the ERP modules those are both cost-effectively and technically feasible.

ERP Production Planning Module Production Planning aids an enterprise plan construction with the most favorable utilization resources that are mostly available. Material Requirement Planning is prepared with the base of production recommendation created by the department of sales. Viability of production is assessed by means of particulars like availability of raw material and time to procurement of the materials, presence of machine along with its competence. Production agenda is produced for each and every machine wherever the scheduling is prepared in an optimized approach on the basis of the production priority. So, Production-Planning offers potentials for planning, implementation, excellence of execution and safeguarding and maintenance. Production Plan is persistent founded on Resource Planning module, Sales department and Planning for operations along with the market demand of the manufactured product. Main features of Production Planning:
Definition of Processes through inputs, outputs, side-effects and visual projections of the processes. Go for the plan on the basis of the advices and forecasts of customer in respect to production and sales. Description of Bill of Material (BOM) for every single one product up to any level. Material requirement planning (MRP) is based on competence of machine and accessibility, efficiency of machine, availability of raw materials, lead time that offers reasonable production. Opportunity is there to withdraw production plan and preparation to modify and revolutionize input constraints or factors, construction precedence, amount by means of spanking new production process.

Planning to production with respect to the machines having optimal utilization or deployment of all obtainable resources such as raw and unprocessed materials & machines. Creation of production agenda or schedule for the machines with detailed inputs and desired outputs. Rigorous psychoanalysis of machine competence, effectiveness and utilization. MRS can be generated automatically and purchase requisitions on finalization of plan can be prepared effortlessly. For production, preserving quantity Choice to formulate and create daily basis plans for production For production job orders can be automatically generated.

ERP Purchasing Module Purchasing module of ERP systems streamlines collection of obligatory raw materials. This module mechanizes the methods of spotting prospective providers or suppliers, negotiating and bargaining cost, letting purchase order on the way to the suppliers, and billing or invoicing processes. Purchasing module of ERP systems is snugly integrated and associated with supply chain management, production planning and inventory control modules. The objective of purchasing module is the availability of required raw material maintaining right quality and quantity in exact instance with appropriate cost with smooth and flat performance of enterprise. Features of purchasing module: Purchase and process cycles are streamlined in Purchasing module of ERP Systems Purchasing module provides database for suppliers, subcontractors or service providers in a detailed manner. On the basis of MRS, automatically fires purchase requisitions Captures required raw material Keeps evidences or proofs of payment in terms of purchase order Collects suppliers quotations Authorization of payment order Eye on quality and inspects goods or products Tally payment order amendments with respect to amendment history Cancellation and closing of orders Checks validity of quotations Schedules to deliver in manifold approaches Provides Management Information System (MIS) for evaluating vendors on the basis of cost, quality and instant deployment Manifold indents for more than one items in a single purchase order Concepts of subcontracting i.e. creation of process orders

Processing of purchase order Concepts of value and significance supported approval and consent of indents Flexible in producing purchase order in domestic and overseas currencies both. Entry of purchase order along with purchased item specifics and other particulars such as taxes, concessions and discounts, surcharges etc. Provides bills while entry is made Provides reports for tracking of orders Having entire functionality in trading in by means of managing customer particulars, purchase bill or invoice to import, several concerns to import

ERP Inventory Control Module Inventory module of ERP Systems assists processes of handling the suitable point of stock in storage or warehouse. The tricks behind inventory control engages in making out prerequisites of inventory, goal setting, offering replacement methods and alternatives, keeping an eye on product article usages, unification of inventory balances, and placing appropriate reports on inventory standing as an instance. As there stays an assimilation of inventory control module with several other ERP modules like purchase, sales, finance modules, it lets ERP systems to produce precise corporate standard reports. ERP inventory module wraps the entire stock allied functions with in an enterprise. Generally Stock management and valuation activities shape the backbone of every business organizations. They generally take huge time and lot of all types of resources. The batch wise stock of each one item is preserved and assortments of MIS (Management Information System) are offered to track stock movement.

Fig: ERP Inventory module

Fig: ERP Inventory module

Features of Inventory Module:

Inventory module states the users about the current standing i.e. status of quantity of items in hand, already reserved items, items ordered by customer, discarded or imperfect items, or renewable items through online. Categorization and cataloging of items in multiple levels On the basis of QC factors (Quality Control factors) quality control Handles Rejection or refusal of Materials Ships the discarded materials to subcontractors Investigation and scrutiny that facilitate in keeping up optimum stock levels Allows rigorous Physical proof of stock Lets reallocation of stock on which repetitive work needs to be done Works on Various warehouses or branches or regional offices irrespectively Ease of transfer of Stock receipts from other warehouse in context to legacy Multiple components of measurement Rotate items in terms of Production Planning Handles non-stock low significant items such as stationary Track the inventory lot wise from shop at market to main warehouse. Measures Stock estimation in LIFO (Last In First Out) / FIFO (First In First Out) / weighted average Allows demand of Material i.e. bits and pieces from various requirement regions In receipt of material adjacent to trade order dealing out, material constraint, subcontracting, gate way and item production take over Consolidation of all warehouses at any position in hierarchy of organization

ERP Sales Module ERP Sales module practices roles like placement of orders, setting up schedule for order, delivery i.e. deployment and finally invoicing. Sales module is strongly coupled with ecommerce and e-business related websites of organization. Several ERP vendors put forward and suggests online stockpile as integral component of ERP sales module. Marketing module of ERP, together with Capacity Requirements Planning (CRP), holds up generation of lead, straight and undeviating mailing movement and additional jobs interrelated to marketing.

Fig: ERP sales module

Customers inquiry

Quotation of supplier

Order placed by customer

Product shipping/deployment by supplier

Billing / invoice is given to customer

MM (Materials Management)

FA (Financial Accounting)

Fig: Flowchart of Sales and distribution module

Features of sales and marketing module:

Grips the activities and actions before sales (pre-sales) and sales of organization. Keeps entire stock-to-dock track of sales order processing cycle Thorough catalog for clients and consumers, commercial associates, dealers, retailers with inclusion of concerned bank, TDS particulars, contact details along with utmost limit of credit. Study and assessment of Marketing and get a survey report to guesstimate various products demand to get ready an effectual business plan. History and narration of Order amendment.

Agreement and consent of several orders in addition to invoices. Order arrangement in excess of time and keeping track of release and deployment agenda. Tracking of order all the way through status standing and business deal report. Set targets for executives related to deal. MRP based processing of orders. Creation of proof of purchase i.e. invoice sales receipt robotically generated in Finance module. Formation of production recommendation to sketch intended for production on the basis of sales order. Sales return track. Groundwork of dispatch recommendation and suggestions. Be flexible to delineate customer-specific charges intended for products and referred to customers particular part no.

Multiple deployment of products adjacent to only single Sales Order Multiple shipping site or location for customers and clients Total export records and documentation basically for export based enterprises. Detailed Excise i.e. episode no. allied in the midst of excisable product items. Enquiries or questions from would-be and on hand clients. Involvement of clients and consumers to Business Executives and Business associates pro tracking. Various kinds of orders may be formed to go well with diverse requirements of customers. Invoice in support of servicing for whichever services provided to customers. Order calculation on the basis of charge obtainable, reductions, excise, several taxes etc. References and adjustment along with improvement to quotations through entire reference history Management Information System (MIS) to evaluate and scrutinize sales development to plan and predict sales. Shift stock among storehouses for the companies having their units in multiple locations. Detailed Letter of credit for alliance by means of sales orders. Refusal statement for rejecting prepared next to purchases through excise concern. Through internet CRM (Customer Relationship Management) amalgamation queries in addition to sales orders on network via customers. Introducing the identical scenario keen on ERP subsequent to validation.

ERP Financial Module Both for-profit organizations and non-profit organizations benefit from the implementation of ERP financial 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 balance sheet, general ledger, trail balance, and quarterly financial statements. ERP HR Module HR (Human Resources) is another widely implemented ERP 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.

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