ERP Components

Introduction

• ERP software is made up of many software

components. Each component represents the major

functional area of the organizations.

ERP Components

Components

• Financial Management Component

• Manufacturing Component

• Human Resource Component

• Materials Management Component

• Production Planning Component

• Plant Maintenance

Component

• Purchasing Component

• Marketing Component

• Sales and Distribution

Component

Financial Management Component

• This component is the core of the ERP system.

• This gathers financial data from various functional

departments and generates valuable financial reports

such as balance sheet, general ledger; trial balance

and quarterly financial statements.

Manufacturing Component

• This component provides the information needed for

the manufacturing process to take place.

• It contains number of manufacturing methods, so that

the organization can choose the best which fits for

them.

Human Resource Component

• This component streamlines the management of human

resources and human capitals.

• This component maintains a employee database containing

information about employees contact information, salary

details, attendance, performance evaluation and promotion

details.

• This component helps the management to make use of the

employees best talent.

Human Resource Component

Materials Management Component

• This component is used to maintain the correct level of

stock in the warehouse.

• This helps to do the following tasks.

• Identifying inventory requirements

• Setting targets

• Monitoring item usage

• Inventory status report

Production Planning Component

• This component provides knowledge for planning the

production process.

• For this it uses the previous production details, stock

in hand, materials stock etc.

Production Planning Component

Plant Maintenance Component

• This component provides knowledge about the

technical and operational details about the

machineries used for production.

• This information helps to reduce the duration and

cost of plant down time.

Purchasing Component

• This component streamlines the process of getting the

required raw materials.

• It automates the process of identifying potential suppliers,

price negotiation, giving purchase order and billing

process.

• This component is tightly integrated with the materials

management and production planning.

Marketing Component

• This component shows the correct path for marketing

the product in the highly competitive market.

• This component has number of marketing methods to

implement in different areas.

Marketing Components

Sales and Distribution Component

• Revenues from sales are the life blood of any

commercial organization.

• This component helps in order placement, order

scheduling, shipping and invoicing.

• It is also closely integrated with the organizations e-

commerce web sites.

The End

…… Thank You …..