What is an ERP System Simplistic Definition ERP - Enterprise Resource Planning Detailed Definition “a business strategy and set of industry-domain-specific.

What is an ERP System

Simplistic DefinitionERP - Enterprise Resource Planning

Detailed Definition“a business strategy and set of industry-domain-specific applications that build customer and shareholder communities value network system by enabling and optimizing enterprise and inter-enterprise collaborative operational and financial processes”(Source: Gartner’s Research Note SPA-12-0420)

What is an ERP – Key Characteristics

Integration

seamless integration of all the information flowing through a company – financial and accounting, human resource information, supply chain information, and customer information.

Typical architectural components

E-business PlatformTech Stack

CRMFoundation

WebInternet

Mobile Wireless e-Mail Call Center

ICM/TelephonyInteractionChannels

Common Data and Object Models, Security, Interfaces, GlobalisationCommon Data and Object Models, Security, Interfaces, GlobalisationE-Business Foundation

MarketingMarketing SalesSales eCommerceBusiness Application

s

MarketingIntelligence

SalesIntelligence

CustomerIntelligence

Call CenterIntelligence

AnalyticalApplication

s

Interaction History Universal Work Q

1-to-1 Fulfillment

Assignment Engine

EscalationsTCA

Installed Base

Tasks Notes

Resources

Calendar

Territories

OSS HR

Why implement an ERP System?

• To support business goals – Integrated, on-line, secure, self-service processes for

business– Eliminate costly mainframe/fragmented technologies

• Improved Integration of Systems and Processes• Lower Costs• Empower Employees• Enable Partners, Customers and Suppliers

Evolution of ERP

1960’s - Systems Just for Inventory Control 1970’s - MRP – Material Requirement Planning

(Inventory with material planning & procurement) 1980’s - MRP II – Manufacturing Resources Planning

(Extended MRP to shop floor & distribution Mgnt.) Mid 1990’s - ERP – Enterprise Resource Planning

(Covering all the activities of an Enterprise) 2000 onwards – ERP II – Collaborative Commerce

(Extending ERP to external business entities)Ente

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ERP – Expectations Integrating all the functions

Integrating the systems running in all the locations

Transparency of information using a single data source across the organization

Software must be responsive Modular Flexible Easy to add functionalities Provide growth pathEn

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Overview of Human Resource Management systems in ERP

Features of HRMS

1) Design Organizational models (Business group/legal entity/ operating unit/inventory)

2) Core HR (Job, positions, grades, competencies)

3) Create and manage the entire recruitment cycle( Hiring an employee)

4) Manage salary proposals ( Salary process or payroll)

5) Time Management ( Time card submission and shifts)

6) Self Services (Employee self service and Manager self service)

ABC is a sales company. They want to create and maintain organization hierarchies for their operations in India using ERP.

They have corporate office in Mumbai and operating units in Bangalore and Hyderabad.

Hyderabad office has sales department and Training department. Sales Team deals with sales and distribution (Inventory).

Bangalore OU has HR department, Finance department, Sales department.

Business Requirement for defining Multi org

Core HR- Work Structures

1) Defining Jobs:

Job can be generic or specific roles within your enterprise. By definition they are independent of organization structures.

For example, Manager and clerk can occur in Government organizations where as Manager and consultant occur in software companies.

Additional Information on jobs

1) Jobs should be created and assigned to organization where people will be employed.

2) Requirements: Job Requirements given such as required communication or MBA qualifications or valid experience, to help you match people to roles.

2) Position

A position is a specific occurrence of one job, fixed within one organization.

For example, the position Finance Manager would be an instance of the job of Manager in the Finance organization.

The position belongs to the organization and job. There may be one, many, or no holders of a position at any time.

Position type:

The choices are:

1)Single Incumbent, meaning that only one employee is allowed to hold the position at any time

2)Shared, meaning there can be several incumbents, up to the value of the FTE field

3) Pooled (Public Sector only), meaning the position is loosely defined so rules about FTE and hours are not enforced by the system

4) None, which you can select if you do not need to record position types

Position options:

If the position is permanent for organization, select the Permanent check box.

If the position is only used in one season each year (such as a summer teacher), select the Seasonal check box. You can enter the season dates in the Seasonal Information extra information type.

Position status:

Proposed - For modeling or planning.

Active - Available for use.

Frozen - Position can continue to be used with current incumbents but no new incumbents can be placed in it.

Eliminated - Position is no longer in use and will not be required in the future. A position cannot be reactivated when it has been eliminated.

Deleted - Position was set up by mistake, or never approved.

Sample position screen

3)Grades

Grades are normally used to record the relative status of employee assignments and to determine compensation and benefits, such as salary, overtime rates, and company car.

You can define one or more valid grades for each job or position.

4)Competencies

Competencies clarify what is needed from both teams and individuals. It ensures fairness and equality of employment.

Competence can be a:

Skill (Coding, Designing, communication) Attribute (perfect pitch) Attitude (Approach to work, work pressure handling etc.) Knowledge ( Technical, Functional)

Clusters Competencies that lead to formal qualifications are known as unit standard competencies. To measure a unit standard competency, you define one or more outcomes (behaviors or performance criteria), each of which has its own assessment criteria.

4)Rating Scales

Rating Scales are used in competence management. They are used to describe competencies in a general way. Instead of defining proficiency levels for individual competencies, you use a general rating scale and text for measuring several competencies.

Rating Scales are of 3 types:

Proficiency Scale: is used to measure employees mastery at a skill or technique. E.g. skill of an employee in organizing meetings. Proficiency scale can be defined as 1.Good, 2.Average, 3.Bad

Performance Scale: is used to describe how well an employee delivers a competency at a particular level. A person’s competency can rank high on a proficiency scale but less high on a performance scale. E.g. rating employee skill of delivering competence (organizing meetings) at proficiency level of Good. Major use of this type of scale is while defining appraisal or assessment templates.

Weighting Scales: are used to measure importance of a competence to the enterprise.

HRMS- Recruitment business process

1. Recruitment preparation2. Selection process3. Appointment

Recruitment preparation starts at identifying the requirements

choose an 'Activity' for getting application

Once the activity is started, the selection process starts with receipt of the application and ends with an offer or rejection.

If we give offer, applicant accept the offer then we have 'Appointment'

Requisition and vacancy

Recruitment activity

Entry of the applicant

Mass update of applicants

Hire the applicant

Recruitment process in ERP

Requisition: It is raised for the vacancy existing with in organization.

Single Requisition can be existed with multiple vacancies.

V v v

A single vacancy can have multiple openings

O O O

Sample screen for Requisition and Vacancy

Activity can have multiple vacancies and also single vacancies and we can go for many activities for single vaccines.

V < ------- > A

1. Advertisement2. Agency3. Campaign4. Career Fair5. College Recruitment6. General7. Referral8. Walk-in

Different types of activities

Recruitment Activity

Sample screen for Applicant information entry

Receipt of Application

Sample screen for Mass update of Applicant Information

Applicant status

1)Active application2)first interview3)second interview4) offer5)Accepted6)End

Sample screen to enter the applicant information to hire

Employee Information

Status - Employee. Ex-applicant

Time Management Structures Overview

Holiday Calendars

Holiday calendars allow the system to recognize paid and unpaid holidays.

Automatically generate (auto generate) a detail time entry line item with the correct number of hours.

• ShiftsShifts define the duration or time-in and time-out of work schedules. Shifts are a building block for work plans and must be defined first.

• Work plans

Work plans identify applicable shifts for each of the seven days of the week. Work plans are a building block of rotation plans.

Auto generate hours for each person

• Rotation plansRotation plans identify the dates on which an employee moves from one work plan to another.

Time Management Policies

You use time management policies to set up the rules governing time entry,auto generation, and how time information is calculated.

The policies are:

•Hour Deduction policy, which establishes how much time, if any, should beautomatically deducted as unpaid time from the employee's recorded hours. Forexample, if a person clocks in and out over a 9 hour period and has an HourDeduction policy, that subtracts a 1/2 hour meal, and two 15 minute breaks, he has worked a standard 8-hour day.

•Shift Differential policy, which sets up any premiums or differentials paid as aresult of people working different shift.

•Premium Eligibility policy, which defines premiums associated with base hours for which a person or group of people may be eligible.

•Earnings policy, which consolidates many of the structures and policies to generate

Structure and Policy Relationship

How do workers enter their time using Time & Labor?

Workers use a self service web page in the format of a timecard. You can create different timecard layouts for each group of workers so that they only see the fields that are relevant to them.

Does T&L allow managers to record timecards for their employees?

A manager can create, edit, view prior period timecards, and submit timecards for employees. This allows managers to record timecards for absent employees, or employees who may be on vacation -- to close a payroll without delay, for instance.

How do you manage separate approval chains for different groups of workers and different types of time entry?

You associate an approval style with each employee. The approval style defines who approves the employee's timecards. The approver could be a named individual, the employee's supervisor, more than one person in a business hierarchy.

Sample Time card

ERP Payroll Business Process in sequence

1. Payroll2. Prepayment3. NACHA/BACS4. Check writer5. Payment Register6. Costing7. Costing detail/summary report8. Net to Gross Report9. Transfer to GL

Overview of Payroll Processing

• The following post–run processes are available when a payroll run has successfully completed:– PrePayments Process: Enables you to allocate

employee payments according to the pay methods that have been defined for those employees

– Check Writer: Produces a check file so that checks to be printed

– NACHA: Produces a file that is sent to a bank for direct deposits

– Payments Register: Reports the amounts paid to your employees

– Costing: Earnings will get provided with cost as per the costing information given either at payroll level or element (earning) link level.

Overview of Payroll Processing

• These post–run processes are also available when a payroll run has successfully completed:– Void Check Payments Process: When an

employee has lost a check, you can void the check and reissue it

– RetroPay Process: Enables you to retroactively distribute current payments to the period in which they were earned.

– Reversal: Enables you to reverse an employee’s payroll run if the check is incorrect or should not have been issued`

Payroll Process Diagram

Element Entry

BEE

PayrollProcess

Payroll Register

Payroll Activity

BACS

CheckWriter

Costing

BACS

DepositAdvice

Transfer to GLOTM

Print Checksand

Deposit Advices

PrePayments

Payroll Processing and Rollback Sequence

PayrollPayroll

ProcessProcessPrePaymentsPrePayments

NACHA orNACHA or

Magnetic ReportMagnetic ReportCheck WriterCheck Writer CostingCosting

Processing OrderProcessing Order

Rollback

I wish you all the best for your exams

Please be clear with the business processes from the slides and try to explain in your own words.