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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