The document is a presentation on Enterprise Resource Planning (ERP) systems given by Mihir Solanki. It discusses the key modules of an ERP system including order processing, financial, manufacturing, materials management, quality, and human resources modules. It also addresses ERP's present and future directions, limitations, integration with supply chain and customer relationship management, role of ERP in e-commerce and e-business, and the evolution to ERP II systems using the internet. The presentation provides an overview of the functionality and importance of ERP systems for managing business operations and integrating across organizational functions and with external partners and customers.

1. Seminar (2730001)
Semerstr-3
Presented by
MIHIR SOLANKI
(140110746005)
SEMINAR (ERP) - MIS- 140110746005 1
G.H.Patel college of
Engineering & Technology
Mechanical Engineering
Department
Enterprise Resource Planning
Seminar-05

2. SEMINAR (ERP) - MIS- 140110746005 2
OUT LINE
1) ORDER PROCESSING CYCLE
2) FINANCIAL MODULE
3) MANUFACTURING MODULE
4) MATERIAL MANAGEMENT MODULE
5) QUALITY MODULE
6) HR MODULE
7) ERP IT’S PRESENT & FUTURE
8) LIMITATION OF ERP SYSTEMS
9) ENTERPRISE APPLICATION INTEGRATION (EAI)
10) ERP & SCM INTEGRATION
11) ERP & e-BUSINESS
12) ERP- WORLD WIDE WEB-ERP-II
13) FUTURE DIRECTION AND TRENDS IN ERP

3. IN STOCK ??
FG INVENTORY
NO
PRODUCTION
PLANNINGMATERIALS MANAGEMENT
PRODUCTION MAINTENANCE
ADMINISTRATION
FINANCESALES & DISTRIBUTION
ORDER
PROCESSING
CYCLE
ORDER
YES
SEMINAR (ERP) - MIS- 140110746005 3

4. FINANCIAL MODULE
 People and business have unlimited wants and needs money, but regardless individuals
and business size have limited funds , as a result FINANCIAL MANAGEMENT need to
involve in efficiently raising and using fund.
 It gathers financial data from several departments and generates valuable financial
reports such as balance sheet, general ledger, quarterly financial statements and
provide in from that makes critical difference to to take strategic decisions.
SUB SYSTEM OF ERP FINANCE MODULE
FINANCIAL ACCOUNTING
GENERAL LEDGER
ACCOUNTS- RECEIVABLE/PAYABLE
LEGAL CONSOLIDATION
FIXED ASSET ACCOUNTING
INVESTMENT
MANAGEMENT
INVESTMENT PLANNING
BUDGETING
SIMULATION & CALCULTION
FORECAST
CONTROLLING
OVERHEAD COST CONTROL
ACTIVITY BASED COSTING
PROFITABILITY ANALYSIS
TREASURY
CASH MANAGEMENT
TREASURY MANAGEMENT
MARKET RISK MGMT.
FUNDS MANAGEMENT
SEMINAR (ERP) - MIS- 140110746005
4

5. GENERAL LEDGER
PURCHASING
VENDOR (PAYABLE) CONSUMER (RECEIVABLE)
SALES (ORDERS & BILLS)
FIXED ASSET EMPLOYEES ( SALARY & WAGES)
FINANCIAL MODULE COMPONENTS
SEMINAR (ERP) - MIS- 140110746005 5

6. SEMINAR (ERP) - MIS- 140110746005
MANUFACTURING MODULE ( PRODUCTION)
 Manufacturers must respond quickly & effectively to customer demand
 Manufacturing module must integrate technology with business processes to create
effective solution
 Manufacturer satisfy customer in 2 ways 1) Make to buy 2) Make to stock
MANUFACTURING
MODULE
FUNCTION
STRATEGIC
(VISION)
REDUCE
TIME TO
MARKET
EFFECTIVE
BUSINESS
PROCESS
TECTICAL
(MISSION)
IMPROVED
INVENTORY
TURNS
EFFECTIVE
PLANNING
IMPROVE
CUSTOMER
SATISFACTION
OPERATIONAL
QUICK RESPONSE TO
PROCESS
VARIABILITY
SHORT
CYCLE
TIME
6

7. SEMINAR (ERP) - MIS- 140110746005
MANUFACTURINGMODULES
SUBTYPE
SHOP FLOOR CONTROL
MAERIAL & CAPACITY PLANNING
QUALITY MANAGEMENT
JIT/REPEATITIVE PLANNING
COST MANAGEMENT
ENGINEERING DATA MANAGEMENT
CONFIGURATION MANAGEMENT
ENGINEERING CHANGE CONTROL
SPECIALIZATION/ LOT CONTROL
TOOLING
D
E
G
R
E
E
O
F
C
U
S
T
O
M
I
Z
A
T
I
O
N7

8. SEMINAR (ERP) - MIS- 140110746005
MATERIALS MANAGEMENT
8
Why…??
The material management module optimize all purchasing process with automated supplier
evaluation, lowers procurement, lower warehousing costs with accurate inventory,
warehouse management and invoice verification.
PRE
PURCHASING
INVENTORY
MANAGEMENT
VENDOR
EVALUATION
INVOICE
VERIFICATION
PURCHASING
REQUIREMENT
CALCULATION
REQUISITION
FOR
QUOTATION
QUOTATION
EVALUATION
VENDOR
SELECTION
CONTRACT
COST
ACCOUNTING
SYSTEM
FINANCIAL
ACCOUNTING
MONITORING
DELIVERIES
BASESD ON
CRITERIA
EVALUATION
(PRE SET OR
CUSTOMISED)
PRICE
QUALITY
DELIVERY
SERVICE
SUPPORT
REPLACEMENT OF
RETURNS
AUTOMATIC
UPDATION OF
INVENTORY
FROM R/M TO
F/G
CREDIT MEMO
AVOID
DUPLICATION
MATERIAL
INSPECTION
PERTAINING TO
ORDER

9. SEMINAR (ERP) - MIS- 140110746005
9
QUALITY MANAGEMENT
Why ..???
 Quality assurance is no longer viewed in terms of inspection and elimination of defects
alone, instead integration of quality management is essential
 According to ISO, ERP system helps to intergrade existing system with quality
management system
Joseph Juran :
Quality does not happen by
Accident; it has to be planned.
QUALITY
MANAGEMNT
MODULE
QUALITY
CONTROL
QUALITY
INSPECTION
QUALITY
PLANNING
IDENTIFY CUSTOMER REQUIREMENT
OPTIMIZE PRODUCT OR PROCESS
AUDIT , PERIODIC REVIEW
BRING PROCESS IN CONTROL
MAKE EFFORTS TO CONTROL CHRONIC WASTES
QUALITY BREAKTHROUGH IMPROVEMENT
PROJECT BY PROJECT IMPROVEMENT

10. SEMINAR (ERP) - MIS- 140110746005 10
HUMAN RESOURCE MANAGEMENT
As firm goes globalize it need to understand country specific requirements of employees
Need to provide medical benefits, education for children, Heath care etc.
Modules:
1) Personnel Management : HR master data,
Personnel administration
Recruitment
Travel management
2) Organizational Management: Job description
Personnel cost planning
3) Payroll accounting: Multi currency capability
International solutions
4) Personnel Development : career & succession planning
Qualification assessments
Additional Training
Event Management

11. SEMINAR (ERP) - MIS- 140110746005 11
ERP- PRESENT & FUTUTRE
LIMITATIONS OF ERP SYSTEM
1) Managers can not generate custom reports or queries without programmer.
2) ERP system provides current status only , no past record
3) Data in ERP is not integrated with other division system & external intelligence
EAI (Enterprise Application Integration)
In Global competitive and dynamic business environment application such as supply chain
management(SCM), customer relationship management(CRM), supplier relationship
management(SRM), Business Intelligence(BI), Integrated Collaboration environment have
become imperative.
EAI is the process of linking these application in order to realize financial and operational
competitive advantage.

12. INTEGRATION OF ERP, SUPPLY CHAIN AND CUSTOMER RELATION MANAGEMENT
SUPPLIER
SIDE
CUSTOMER
SIDE
ERP
BUSINESS
OPERATIONS
CUSTOMER
RELATION
MGMT.
SUPPLIER
RELATION
MGMT.
SERVICE
MGMT.
PROJECT
MGMT.
BUSINESS
ANALYSIS
BUSINESS
INTELLEGENCE
FINANCIAL
MGMT.
SC
EXECUTION
SC
MGMT.
SEMINAR (ERP) - MIS- 140110746005 12

13. SEMINAR (ERP) - MIS- 140110746005 13
ERP AND E-COMMERCE & E-BUSINESS
E- COMMERCE is set of business activities involving consumers, service providers ,
manufacturers and intermediaries Who uses computer network (INTERNET) for
conducting there business.
OBJECTIVE
 Bring organization closer to the ACTUAL customer
 Providing the customer with the products and services much FASTER and LESSER cost
 improve customer response time ( Through effective communication & technological
advancement)
DIFFERENCE ( TRADITIONAL /e-COMMERCE)
Traditionally information conversion is done through phone, mail (Post), or through
direct personnel contact, while in E-commerce information is converted through
communication network (AUTOMATION).

14. SEMINAR (ERP) - MIS- 140110746005 14
ERP, INTERNET AND WWW - ERP II
Why …???
 The reason why ERP-II come into existence was need to look at a way to give customer
and partners access to scheduling, delivery, inventory, manufacturing, invoicing and
planning information and integrate SCM with SRM and CRM
 ERP essentially requires integration with other business technologies to deliver the
productivity improvements and remain in competition
 Organizations which evolve ERP at its full potential need to extend ERP application to
Internet and WWW is next logical step
 ERP-II forms basis for E-business and collaborative commerce

15. SEMINAR (ERP) - MIS- 140110746005 15
ERP-II
MOBILE EMPLOYEES
SALES
EXECUTIVES
MANAGERS
ORGANIZATION’S PORTAL & WEBSITE
SRM CRM
BUSINESS
INTELLIGENCE
BUSINESS
ANALYTICS
ORGANIZATION
SUPPLIER
CUSTOMER
INTERNALEXTERNAL

16. References
• ERP Demystified , Second addition by Alexis
Leon
• “ERP Systems – Using IT to gain a cometetive
advantages; Shankarnarayan S.
16