erp modulus
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By :Rajnikant GeorgePuspendra Pal SinghRashmi Kala Tirkey
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ERP is enterprise resource planning. It Is cross-functional enterprise system driven by anintegrated suite of software module that support
the basic internal business process of anorganization.
The purpose served by an ERP system is that of
organizing, codifying and standardization ofbusiness process and information or data
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The generic ERP package represents thecommonly operated business model of theorganization. It is build with function model like :
Finance Materials Marketing
Sales Personnel
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ERP
Inventory
Planning
sale
Finance
HR
Operation
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All kind of organizations small scale, large scaleorganizations benefit from the implementation ofERP financial module. The financial module is the
core of many ERP software systems. It can gatherfinancial data from various functionaldepartments, and generates valuable financial
reports such general ledger, trail balance, asbalance sheet and quarterly financial statements.
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Human Resources is another widely implemented ERP module. HRmodule streamlines the management of human resources andhuman capitals. HR modules routinely maintain a completeemployee database including contact information, salary details,
attendance, performance evaluation and promotion of allemployees. Advanced HR module is integrated with knowledgemanagement systems to optimally utilize the expertise of allemployees.
produce pay checks and payroll reports; maintain personnel records; pursue Talent Management, Training, Time and attendance benefit
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In the process of evolution of manufacturing requirements planning(MRP) II into ERP, while vendors have developed more robustsoftware for production planning, consulting firms haveaccumulated vast knowledge of implementing production planningmodule. Production planning optimizes the utilization of
manufacturing capacity, parts, components and material resourcesusing historical production data and sales forecasting. Process definition with inputs, outputs, by-products and overheads Definition of Bill of Material for all products up to any number of
levels Planning based on customer wise production advice and sales
forecast.
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Purchase module streamline procurement ofrequired raw materials. It automates the processesof identifying potential suppliers, negotiating
price, awarding purchase order to the supplier, andbilling processes. Purchase module is tightlyintegrated with the inventory control andproduction planning modules. Purchasing module
is often integrated with supply chain managementsoftware.
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Inventory module facilitates processes ofmaintaining the appropriate level of stock in awarehouse. The activities of inventory control
involves in identifying inventory requirements,setting targets, providing replenishmenttechniques and options, monitoring item usages,reconciling the inventory balances, and reporting
inventory status. Integration of inventory controlmodule with sales, purchase, finance modulesallows ERP systems to generate vigilant executivelevel reports.
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Sales module implements functions of orderplacement, order scheduling, shipping andinvoicing. Sales module is closely integrated with
organizations' ecommerce websites. Many ERPvendors offer online store front as part of the salesmodule. ERP marketing module along with CRPsupports lead generation, direct mailing campaign
and other marketing works. Scheduling of thepromotion is possible using this.
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CEOBusiness head
Marketing Production Procurement FinanceHR&
admist.
sales
Planning
Accounts
Inventory
Dispatching of goods
& billing
Customer
Customer
order
Bill and goods
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Business sales Production materials Finance Personnel
ForecastingPlanning
Goals
Objective
TargetsStrategycontrol
Fixed assets
Forecasting
Planning
Sales budget
Order
Processing
Order execution
Delivery
invoicing
Maintenance
Planning
Order control
WIP
Quality
Scheduling
Dispatch
Quality control
Purchase
Inventory
Store
Valuation
Analysis
Control
Cost
Accounting
Accounting
Funds mgt.
B/S processingSchedule
Analysis
Control
Management
Accounting
HR payroll
accounting
Skill
Attendance
inventory
analysis
control
Consolidation
of business
operations
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Cost:
Cheaper to implement part of system
Best-of-Breed concept:
Mabert et al. found only 40% installed system as vendordesigned
Different vendors do some things better
More fixable less risky
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Module Use reported - US Use reportedSweden
Financial & Accounting 91.5% 87.3%
Materials Management 89.2% 91.8%
Production Planning 88.5% 90.5%
Order Entry 87.7% 92.4%
Purchasing 86.9% 93.0%
Financial Control 81.5% 82.3%
Distribution/Logistics 75.4% 84.8%Asset Management 57.7% 63.3%
Quality Management 44.6% 47.5%
Personnel/HR 44.6% 57.6%
Maintenance 40.8% 44.3%
R&D Management 30.8% 34.2%
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State electricity boards (SEB) are responsiblefor providing electricity to the people;
The government of India has amendedelectricity supply act 1948 and the Indianelectricity Act, 1910 to facilitate the privatesector participation and enacted electricityAct 2003 from June 2003;
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Information technology is widely acknowledged tobe crucial for efficient operation and management
of all industrial system. This is equally true of the power utilities, which
need to handle a large amount of information fortheir efficient operation.
The entire gamut of the operation in the powersector will resolving around better availability ofquality power and efficient mangt of energy.
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Stage I
Billing (including CRM)
Finance & account
Meter data management
MIS
Stage II
(preventive) maintenance management
Material management
Project
Human resource
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Billing(including CRM)The module should support collections with
functionalities like maintaining credit profile,checking deposit and enhanced quality ofconsumer service.
New connection handling DisconnectionMeter reading Energy auditBilling VigilanceCollection theft
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Finance & accountsGeneral ledger
Asset accountingAccounts payableTreasury and cash managementCost accountingAccount receivable
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Meter data management : the system shouldbe able to capture details, energy withdrawn
at various level.Central databaseDistributed data collection
Data analysis
MIS: As integrated solution module rolledout the data entry of basic might reduce andthe MIS system should basic data from the
system database.10/16/2013
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Maintenance management: the system should help inpreventive , proactive and breakdown maintenance. The
system should track all assets and functionality for
maintenance planning .Recommend scheduleForecast maintenanceForecast resource requirement costing
Component equipment and toolsMaintain bills of materials and vendor detailsCost management
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Human resources : The objective of the HRM module isto manage entire life cycle of an employee in an
organization.Employees information and organizationstructure detailsRecruitment & selectionManpower planning
Leave managementTrainingPerformance appraisal managementSeparation
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Thank you
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