The document discusses the modules that make up an Enterprise Resource Planning (ERP) system. It describes the main ERP modules as production planning, purchasing, inventory control, sales, marketing, finance, and human resources. Each ERP module mimics a major functional area of an organization and aims to consolidate departments and functions into a single system. The document provides details on the purpose and functions of the main production planning, purchasing, inventory control, sales, finance, and human resources modules.

1. ERP MODULES
Prepared by:
Mohammed S. Kazi

2. ENTERPRISE RESOURCE
PLANNING
Enterprise Resource Planning or ERP
is actually a process or approach which
attempts to consolidate all of a
company's departments and functions
into a single computer system that
services each department's specific
needs.

3. MODULE STRUCTURE
ERP software is made up of many
software modules.
Each ERP software module
mimics a major functional area of
an organization.

4. VENDORSCUSTOMER
SALES
INVENTORY
PRODUCTION
PLANNING
SHOP
FLOOR
EXECUTION
FINANCE
HR
ERP FLOW

5. ERP
MODULES
PRODUCTION
PLANNING
MODULE
PURCHASING
MODULE
INVENTORY
CONTROL
SALES
MODULE
MARKETING
MODULE
HR
MODULE
FINANCIAL
MODULE

6. PRODUCTION PLANNING
MODULE
 In the process of evolution of manufacturing
requirements planning (MRP) II into ERP, while
vendors have developed more robust software
for production planning, consulting firms have
accumulated vast knowledge of implementing
production planning module.
 Production planning optimizes the utilization of
manufacturing capacity, parts, components
and material resources using historical
production data and sales forecasting.

7. 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.

8. INVENTORY CONTROL
 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.
 Integration of inventory control module with sales,
purchase, finance modules allows ERP systems to
generate vigilant executive level reports.

9. SALES MODULE
 Revenues from sales are live blood for
commercial organizations.
 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 storefront
as part of the sales module.

10. 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 as
balance sheet , general ledger, trail balance,
and quarterly financial statements.

11. 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.

12. MARKETING MODULE
 ERP marketing module supports lead
generation, direct mailing campaign and
more.

13. ADVANTAGES OF ERP
 Complete visibility into all the important
processes, across various departments of an
organization.
 Automatic and coherent workflow from one
department/function to another, to ensure a
smooth transition and quicker completion of
processes.
 Since ERP is a modular software system, its
possible to implement either a few modules (or)
many modules based on the requirements of an
organization. If more modules implemented, the
integration between various departments may
be better.

14. ADVANTAGES OF ERP
 Improves information access and
management throughout the enterprise.
 Improved cost control.

15. DISADVANTAGES OF ERP
 The cost of ERP Software, planning,
customization, configuration, testing,
implementation, etc. is too high.
 Too little customization may not integrate the
ERP system with the business process & too
much customization may slow down the
project and make it difficult to upgrade.
 There maybe additional indirect costs due to
ERP implementation – like new IT infrastructure,
upgrading the WAN links, etc.

16. DISADVANTAGES OF ERP
 Choosing the right ERP package is not
easy. The selection process starts with an
identification of system scope, business
objectives and business processes.

17. SAP ERP MODULES
SAP has a number of application modules in
the package. Some of them are:
 Financials
 Controlling
 Investment management
 Treasury
 Integrated Enterprise management
 Sales and distribution
 Production planning and control.

18. THANK YOU!