ERP systems

Enterprise Resource Planning systems

What is ERP?

Enterprise Resource Planning or ERP is actually a process or approach which attempts to consolidate all of a company’s departments and functions into a single computer system that services each departments specific needs. It is, in a sense, a convergence of people, hardware and software into an efficient production, service and delivery system that creates profit for the company.

ERP software is made up of many software modules. Each ERP software module mimics a major functional area of an organization. Common ERP modules include modules for product planning, parts and material purchasing, inventory control, product distribution, order tracking, finance, accounting, marketing, and HR. 

What functional areas does ERP system cover

Production PlanningManufacturingDistribution and TransportationFinanceHuman ResourceProject

Production Planning

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

Material requirement planning: MRP based on machine capacity and availability, machine efficiency, raw material availability

Production plan for machines with optimum utilization of all available resources like raw materials and machines

Option to revoke production plan to change input parameters/ production priority/ quantity using fresh production advice

Generation of production schedule for machines detailing inputs and outputs

Analysis of machine efficiency and utilization

Automatic generation of MRS and purchase requisitions on finalization

of plan

Generation of process requisition for processes that have to be subcontracted

Reserving quantity for production

Automatic generation of job orders for production

Option to make daily plans for production

Manufacturing

Sub-modules in Manufacturing:

Product structures

Routings/Work centers

Formula/Process

Work orders

Shop floor control

Repetitive module

Quality management

Distribution and Transportation Distribution Requirements

Planning Invoicing Lot Control Packing Control Public Warehousing Purchase Control Sales contracts Sales Control Transportation Fuel Control Transportation order Control Transportation Order Planning

Finance

General Ledger

Multiple currency

Accounts receivable

Accounts payable

Cost management

Cash management

Fixed assets

Human Resource

Personnel Management

Organizational Management

Payroll System

Time Management

Personal Development

Project

Project Budget

Project Definition

Project Estimating

Project Invoicing

Project Monitoring

Project Planning

Project Progress

Project Requirements Planning

TENDENCIES : Cloud ERP

©Copyright. Hurwitz & Associates. Source: The Compelling TCO Case for Cloud Computing in SMB and Mid-Market Enterprises. 2012.

Upfront Costs Licensing fees: free.

Customization, training, data migration, and configuration.

Ongoing costs Paying the provider for as long as your contract lasts.

Ease/Speed of Implementation Implemented in just a few hours; customizations, training, and data migration can take

weeks or months.

Customization Single tenant allows a customer to gain access to the source code.

Support Customer pays for support

New Features and Updates Without a schedule of upgrades or bug fixes.

Security Needs to be managed carefully to ensure proper security access and process

management.

TENDENCIES : Open Source ERP

TENDENCIES : Open Source ERP

OpenERP Enterprise Pricing

TENDENCIES : Open Source ERP

TENDENCIES : Mobile ERP Manufacturing professionals view the mobile interface as an

important consideration in enterprise software selection.

Few respondents currently rate access to enterprise software from their mobile device highly, and many have no access today.

As expected, the mobile interface is more important to respondents who regularly work during personal time or away from an office location than to those who work primarily during business hours in an office setting.

A sizable majority of respondents said that the mobile interface is either as important as other considerations or the most important consideration in ERP selection.

More detailed information:

http://www.technologyevaluation.com/research/article/Dont-Forget-to-Factor-In-Mobile-ERP-When-Selecting-a-New-ERP-System.html

http://ko.com.ua/mobilnye_erp-resheniya_moda_ili_neobhodimost_72167

References:

VINOD KUMAR GARG,N. K ENTERPRISE RESOURCE PLANNING: CONCEPTS AND PRACTICE

http://www.norbit.ru/

Best regards,Irina Pokrovskaya