The document discusses the key components and functions of an enterprise resource planning (ERP) system. An ERP system manages and integrates all business processes and functions across an entire organization. It includes sub-systems for human resource management, inventory management, purchasing, production planning, quality management, sales and distribution, marketing, and finance/accounting. An ERP system provides a centralized database to manage resources and track materials at all stages of the supply chain and production process.

1.  

2.  BUSINESS-The activities of individuals or groups
that are involved in developing, producing
and distributing the goods
and services.
 It uses resources to produce
goods and services.

3. PRODUCTION PROCESS
MANAGEMENT
PRODUCT AND SERVICES

4. Receive the order
Clerk enters
Finished goods/inventory
Customer Schedules for production
planning
Manufacturing
Production with Purchase
dept
plant maintenance for raw

5. ORDER INVENTORY
MATERIAL MGMT
PRODUCTPLAN
Yes
SALES AND DISTRIBUTION FINANCE/INVOICE
No

8.  Tells entire operation
 Contains business rules to manage the entire supply chain
process
 Doesn’t limit to a single
manufacturing method like
make-to-stock, make-to-order
 SOME SUB-SYSTEM:
o Quality management
o Cost management
o Material and capacity planning

9.  Management of human resources and human capital
 Maintain a complete employee database
o Ex: Attendance, salary details
 Advanced HR module
integrated with knowledge
management to expertise emp
 SOME SUB-SYSTEM:
o Personnel management
o Organizational management
o Payroll Accounting

10.  Level of stock
 Activities-identifying inventory
requirements, setting targets,
monitoring item usages.
 Optimizes all purchasing process
 Main modules- pre-purchasing activities,
purchasing, invoice verification, etc.

11.  Evolution of MRPII to ERP, developed
software for production planning
 Optimizes the utilization of
manufacturing capacity,
components, using
historical production

12.  Provides technical, business reports and various
presentation options.
 Uses:
o To reduce duration & cost
occurred due to damage
o To recognize week points
in technical system

13.  This don’t directly interact with data or
processes of other modules.
 Fulfills the following functions
o Quality planning
o Quality inspection
o Quality control

14.  Procurement of required raw materials.
 Identifies the
o Potential suppliers
o Negotiating price
o Purchase order to customer
 Integrated with inventory
control and production planning

15.  Develop the long-term customer
relationships
 Gain of marketing success
 Supports marketing analytics,
e-mail marketing, etc.

16.  Revenue from sales is life-blood
 Processes- order placement,
order scheduling, shipping
& invoicing
 Integrated with e-commerce
websites

17. Increased efficiency in this is the key factor to ensure
that companies retain a competitive edge, profit,
customer service.
Sales related to:
o Sales queries
o Sales orders
o Delivery/shipment
o Invoicing