PRESENTATION
ON
ERP MODULES: TYPES,
FEATURES & FUNCTIONS
Group Members:
Muhammad Aoun Abbas
(Registration No. 5481-FMS/BBA/F18)
Muhammad Tayyab
(Registration No. 5478-FMS/BBA/F18)
Shahzaib Haider
(Registration No. 5471-FMS/BBA/F18)
Hammad Mahmood
(Registration No. 5503-FMS/BBA/F18)
Muhammad Ali
(Registration No. 5477-FMS/BBA/F18)
Content:
ERP Modules Definition
ERP Modules Types
ERP Modules Features
ERP Modules Function
ENTERPRISE RESOURCE PLANNING(ERP)
ENTERPRISE RESOURCE PLANNING (ERP) is a cross-functional enterprise system
driven by an integrated suites of software modules that supports the basic internal
business processes of a company.
ERP software can integrate all of the processes needed to run a company.
ERP solutions have evolved over the years, and many are now typically web-based
applications that users can access remotely.
An ERP system can be ineffective if a company doesn't
implement it carefully.
ERP (Cont.)
The practice of consolidating an enterprise’s planning,
manufacturing, sales and marketing efforts into one
management system.
Combine all databases across departments into a single
database that can be accessed by all employees.
ERP automates the tasks involved in performing a business
process.
TYPES OF ERP MODULES
PRODUCTION PLANNING MODULE
PRODUCTION
PURCHASING MODULE PLANNING MODULE
INVENTORY CONTROL MARKETING
PURCHASING
MODULE
SALES MODULE MODULE
MARKETING MODULE
HR MODULE ERP MODULES
FINANCIAL MODULE HR MODULE INVENTORY
CONTROL
FINANCIAL SALES
MODULE MODULE
PRODUCTION PLANNING MODULE
Production planning optimizes the utilization of :-
a) manufacturing capacity,
b) parts,
c) components and
d) material resources using historical production data and sales
forecasting.
PURCHASING MODULE
It automates the processes of identifying:-
a) potential suppliers,
b) negotiating price,
c) Billing processes, and
d) awarding purchase order to the supplier.
Purchase module is tightly integrated with the inventory control and
production planning modules.
Purchasing module is often integrated with supply chain management
software.
INVENTORY MODULE
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.
SALES MODULE
Revenue from sales are live blood for commercial
organizations.
Sales
module implements functions of order placement, order
scheduling, shipping and invoicing.
Salesmodule is closely integrated with organizations
ecommerce websites. Many ERP vendors offer online
storefront as part of the sales module.
FINANCIAL MODULE
Bothfor-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.
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.
MARKETING MODULE
ERP marketing module supports
a) lead generation,
b) direct mailing campaign and more.
FEATURES OF ERP MODULE
The following is a list of the most important ERP features most commonly found in an
ERP software system:
Integration
Automation
Data analysis
Reporting
Customer relationship management
Accounting
Tracking and visibility
Integration
Integration
ensures the numerous capabilities offered by ERP systems
work together harmoniously.
ERP provides a fully-integrated, intuitive platform through which you
can analyze, monitor and conduct the majority of data-driven tasks.
Working from a single source of information reduces the discrepancies
between your teams along with the associated errors and costs.
Integration
also allows your business to work with multiple
components at once.
Automation
When someone asks, “What does ERP do?” the answer will likely always include
automation. This ERP capability automates common tedious tasks including order
entry, payroll, accounting, invoicing, reporting and more. Automation cuts down the
many hours your staff would typically spend on these processes, allowing them to
focus on more important assignments. Optimizing your employees’ time ensures
more effective workdays.
Automating your processes can also reduce human error. When your employees are
spending the majority of their day repeating the same task over and over, they’re
bound to make a mistake or two. Automation allows data to be sent from one part of
the system to another, without any chance of error. Even small errors can end up
costing your business, so why not eliminate them where possible?
Data Analysis
Since an ERP is already collecting and processing data from all your
business functions, it makes sense to capitalize on that information
through analysis. This enables users to reflect on the effectiveness of
certain tasks, in addition to providing forecasts for future business
decisions.
ERP analyzes data relating to all business operations, including client
data, production statistics, sales data and much more. Data analysis
offers easy access to vital business data and gives you the tools you
need to track organizational productivity and efficiency.
Reporting
You can think of ERP reporting capability as the tools needed to
convey analysis to an end user. These tools often include
customizable dashboards, Gantt charts, pie charts, bar graphs and
other visual representations. Many systems also allow users to
restrict access to reports, protecting valuable company information.
ERP provides detailed reports that are intuitive, actionable and
relevant. Thus, ERP’s reporting capabilities help you target your
business’s weaknesses, ensuring stronger performance over time.
Customer Relationship Management
Customer relationship management (CRM) software is beneficial for a
couple reasons. Second, CRMs within an ERP centralize customer
information, allowing for quick access when working with other parts
of the system. For instance, an integrated CRM enables users to access
billing information and customer addresses when processing shipments.
Inaddition to contact management, CRM tools also handle marketing
automation, sales pipeline activities and lead management. ERP’s
customer service management capabilities make it easy to improve
long-term customer retention.
Accounting
Financialmanagement is one of the most important functions in
any business. ERP systems help manage processes like accounts
payable, accounts receivable, fixed-asset management, risk
management and tax management. There are many systems
available that can also manage multiple currencies and tax
regulations if you regularly do business outside of your country.
ERP platforms provide exceptionally strong tools to manage
every aspect of sales and revenue for your business.
Tracking And Visibility
Many ERP systems today have the technology to track finished products
as well as raw materials from manufacture to delivery. This level of
visibility allows users to understand and foresee issues such as delays
and stock outages.
In addition to tracking tangible objects, ERP allows users to track
information. ERP systems provide a multitude of tools to track different
sets of information. Sales are often tracked in CRM tools, staff
productivity may be tracked in an HR module and production statistics
can be found in manufacturing analysis tools.
Components of ERP Software
ERP programs are commonly known as business management
software. They involve a host of applications that work together
to:
Gather data
Store it for future reference
Manage and sort the information for easier access
Interpret the data for use by the business
Primary Functions of ERP
ERP provides a host of services for companies trying to improve how efficiently
they operate. The systems are constantly being updated by the proprietors to offer
the speediest and most reliable services.
As the name suggests, ERP’s primary goal is to manage the various resources within
the company to make sure they are being utilized in a cost-effective way. It is also
designed to make sure that all resources are being used efficiently.
ERP works particularly well for tracking and managing things such as a company’s
capacity for production, cash levels, raw materials at its disposal, payroll
information, and purchase orders.
Flow of Information
ERP softwarecovers a lot of different areas within a company – accounting, sales,
purchasing, manufacturing. One of the most important needs it addresses is the need
to communicate all pertinent information to the many departments that may require
the data.
The software, being continuously updated and watched in real-time, ensures needed
information is accessible by each appropriate department. Or, accounting may need
to know the status of payroll and business commitments that are lined up to keep the
company’s cash flow up to date.
ERP software can also pass the information along to outside stakeholders.
ERP in the IT Industry
ERP systems and software are an industry unto themselves, located
at the heart of the technology space. Because of ERP systems
efficiency, success – and therefore, desirability – it is an industry
worth several billions of dollars today.
Investments in information technology boast the distinction of being
the category responsible for the largest expenditures within the U.S.
Within the past decade specifically, ERP systems skyrocketed in
terms of use and, therefore, began to dominate the IT sector.
ADVANTAGES OF ERP
Optimization of business processes.
Accurate and timely access to reliable information.
The ability to share information between all components of the
organization.
Elimination of unnecessary operations and data.
Reduction of time and costs of litigation
DISADVANTAGES OF ERP
ERP consultants are very expensive take approximately 60% of
the budget.
The success depends on the skills and experience of the
workforce, including education and how to make the system
work properly.
Resistance in sharing internal information between
departments can reduce the efficiency of the software.
The systems can be difficult to use.
Conclusion
Thank
You
