Erp introduction


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Erp introduction

  1. 1.  ERP – Enterprise Resource Planning is a business application that integrates all business processes in an organization.  ERP provides an integrated view of various functions that helps in effective use of management resources to improve the efficiency of an enterprise.
  2. 2.  Enterprise is a group of people with a common goal and certain resources at its disposal to achieve that goal  Enterprise is divided into different units based on the functions they perform  Enterprise must act as a single entity
  3. 3.  Improves productivity of processes & personnel  Lowering the cost of products and services purchased  Inventory reduction  Lead time reduction  Reduced stock obsolescence  Eliminate duplication and unnecessary paper work  Order fulfillment improvement  Better analysis & planning capabilities
  4. 4.  Increases organizational transparency and responsibility  Accurate and faster access to data for timely decisions  Improved customer response  Saves enormous time and effort in data entry  More controls there by lowering the risk of mis-utilization of resources  Uniform reporting according to global standards  Improves Company’s Image
  5. 5. • ERP means more work and procedures • ERP will make many employees redundant and jobless • ERP is the sole responsibility of the management • ERP is just for the managers/decision makers • ERP is just for the ERP implementation team • ERP slows down the organisation • ERP is just to impress the customers • ERP will take care of everything without doing anything
  6. 6. 1960s : Inventory Management Systems 1970s : Material Requirement Planning (MRP) 1980s : Manufacturing Resource Planning (MRPII) 1990s : Enterprise Resource Planning (ERP) 2000s : Web Enabled ERP
  7. 7.  Functional fit with company’s business processes  Degree of Integration  Flexibility & Scalability  Complexity  User Friendliness  Ease of implementation  Amount of Customisation  Technology  Security  Local Support  Availability of upgrades  Vendor’s Track Record
  8. 8.  Cost of ERP Software License  Cost of other Softwares  Training Cost  Implementation Support Cost  Customisation Cost  Maintenance & Support Cost  Hardware Cost  Networking Cost
  9. 9. 1. SAP R3 2. SAP Business One 3. Oracle Financials 4. Oracle eBusiness Suite 5. Oracle JD Edwards 6. Oracle Peoplesoft 7. Microsoft Dynamics 8. Epicor
  10. 10. • Online transaction processing • Rule based & Parameterised • Document routing and authorization • Drill down queries • Customizable Documents & Reports • Multi-currency support • Strong access control • Scalable and Fast ERP Features
  11. 11. Business Process Reengineering (BPR) Data Warehousing Data Mining On-line Analytical Processing ERP Related Features
  12. 12. ERP Modules Manufacturing Financials Human Resource
  13. 13. Financial Modules Financials Accounts Payables Accounts Receivables Bank Reconciliation General Ledger Fixed Assets Fixed Deposits Taxation Budgeting
  14. 14. Manufacturing Inventory Control Material Requirement Planning Process Modelling Quality Control Production Planning Purchasing Manufacturing Modules Production Management
  15. 15. Manufacturing Sales Distribution Planning Excise/Cenvat Finished Goods Inventory Exports Management Marketing Manufacturing Modules
  16. 16. H. R. Modules Human Resources Personnel Information Human Resource Development Payroll Administration Leave & Attendance
  17. 17. General Ledger  Define Accounts charts as per your requirement  Define cost center charts with budgets  Enter vouchers on-line  Route vouchers for approval  Online posting of vouchers in G/L and sub- ledgers  Maintain all books of accounts  Generate Balance Sheet and Profit & Loss Account
  18. 18.  Access comprehensive vendor information  Process invoices with online matching with Purchase Orders & Goods Receipt Notes  Post valuation of G.R.N. online into materials system  Make payments as per due date Accounts Payables
  19. 19.  Enter/Import passbook online and match with bank book  Create commission/interest vouchers while entering passbook  Generate bank reconciliation statement  Calculate Interest for the given period Bank Reconciliation
  20. 20.  Excise  VAT  Sales Tax  Service Tax  Income Tax  T.D.S. Taxation
  21. 21.  Record comprehensive details of each asset  Record additions, transfers and retirement of assets  Track an asset by asset number, description, location etc.  Maintain books of depreciation as per company law as well as IT rules Fixed Assets
  22. 22.  Calculate depreciation for part of the year based on number of days or half yearly period  Post depreciation entries to G/L  Capitalize revenue expenditure on assets  Track insurance policies and claims  Track third party maintenance contracts Fixed Assets
  23. 23. Manufacturing Inventory Control Material Requirement Planning Process Modelling Quality Control Production Planning Purchasing Manufacturing Modules Production Management
  24. 24. Manufacturing Sales Distribution Planning Excise/Cenvat Finished Goods Inventory Exports Management Marketing Modules
  25. 25.  Define Daily, Monthly or Annual Production Plans  Carry out BOM explosion for the production plan  Generate Materials Requirement Plan based on Production Plan  Generate MRP Plan on Daily, Weekly or user defined period basis  Create purchase requisitions based on MRP Plan Material Requirement Planning
  26. 26.  Manage Vendor database  Create vendor-item catalog  Send request for quotation to vendors  Enter quotations received and perform comparative analysis  Approve quotations for purchases  Create purchase orders online based on requisitions as well as MRP Plan Purchasing
  27. 27.  Create delivery schedule releases and send to vendors  Reschedule deliveries  Create P.O. amendments  Vendor performance ratingbased on quality and delivery  Fully integrated with Accounts Payable Purchasing
  28. 28.  Define Multiple stores  Enter all stores transactions online  Stores transaction include - Goods receipts from suppliers - Returns to suppliers - Issue to Production - Issue to others - Finished Goods receipts from production Inventory Control
  29. 29. - Returns from customers - Inter-store transfers - Other misc. transactions  Update stock transactions online to stock ledger  Generate stock ledgers & statements  Update overhead costs on receipts  Value inventory based on several methods - FIFO, Standard Rate, Weighted Average Rate  Create various analysis reports (ABC, XYZ, FSN) Inventory Control
  30. 30.  Define QC specifications (including assay, Loss on Drying and standard test procedures for each item  Access G.R.N.’s awaiting QC online  Allot testing to analysts based on work load  Generate QC register for items/batches to be analyzed  Update test results online and match with standards to approve or reject material  Print Test Certificates Quality Control
  31. 31.  Define Production facilities in terms of production centers, production stages etc.  Define manpower assigned for each production stage/machine  For each product, define Process Bill including  sequence of manufacturing operation  machines used for each operation Process Modelling
  32. 32.  inputs, outputs, yield, time, and manpower for each operation  measurements required to be taken  test requirements  standard operating procedures Process Modelling
  33. 33.  Create Production Plan based on Distribution Plan  Project gross raw material requirement  Assess plan feasibility with respect to capacity and manpower currently deployed  Analyze capacity utilization w.r.t. Plan  Analyse manpower utilisation w.r.t. Plan  Track Plan vs. Actuals Position  Automatically roll over unrealized Plan Production Planning
  34. 34.  Create New Batch Record  Generate Stores Requisition for raw material for batch order  Enter Batch Details (Operation wise)  Access Process Bills Details including Standard Operating Procedures on-line  Generate intimations for Q.C. for testing intermediate and finished goods Production Management
  35. 35.  Print Batch Tickets for completed batches  Generate - Various Production Reports - Capacity Utilization Reports - Manpower Utilization Reports - Yield Variance Reports - Batch Costing Reports - W.I.P. Reports Production Management
  36. 36.  Group products by product groups for planning, reporting and analysis  Group marketing areas by Zone, Regions and Territories  Define Depot wise Sales Forecast  Create Depot Distribution Plans based on sales forecast and inventories held  Create Depot despatch schedules from Distribution Plan and Production Plan Distribution Planning
  37. 37. Marketing & Sales  Maintain comprehensive customer’s information  Process request for quotations and generate quotations  Process Sales orders  Create sales invoices, depot stock transfer notes  Track Daily Stock and Sales  Fully integrated with Accounts Receivables
  38. 38. Exports Management  Maintain Standard Input/Output Norms  Process export licenses such as DEPB, DFRC, Advance License etc.  Generate complete pre-shipment and post-shipment export documentation
  39. 39. Human Resource Modules Human Resources Personnel Information Human Resource Development Payroll Administration Leave & Attendance
  40. 40.  Define Organizational setup  Define Comprehensive positions profile  Define Skills repository  Maintain Employee information  Maintain Service records  Process Change requests  Access Career History online Personnel Information
  41. 41.  Education and training  Career planning  Succession planning  Promotions and transfers  Performance appraisal  Awards and recognition  Disciplinary actions  Asses training requirements  Plan training calendar  Arrange training for employees and update results Human Resource Dev.
  42. 42.  Define leave rules  Create leave cards  Perform leave transactions such as - - Leave application - Leave cancellation - Leave encashment  Access leave card and leave information online Leave Management
  43. 43.  Define shifts and holidays  Define Department wise shift plan  Interface with attendance recording machine  Post attendance data on muster  Authorize overtime  Generate absenteeism, late coming, early going and unauthorized absence reports Attendance Management
  44. 44.  Define Category wise payroll rules  Define Income Tax rules  Import attendance data into payroll  Payroll Processing  Arrears Payments  Compliance with Income Tax, TDS,PF, ESI  Integrated with General Ledger Payroll Administration