Block 2

BUSINESS APPLICATION AND INTRODUCTION
TO ERP
BCA - 501
BLOCK 2:
ERP MODULES AND
BUSINESS
Dr. Babasaheb Ambedkar Open University

Ahmedabad
BUSINESS APPLICATION AND
INTRODUCTION TO ERP
Knowledge Management and

Research Organization
Pune
Editorial Panel
Author
Mr. Nishit Mathur
Language Editor
Prof. Jaipal Gaikwad
Graphic and Creative Panel

Ms. K. Jamdal
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Mr. Prashant Tikone
Mr. Akshay Mirajkar
Copyright © 2015 Knowledge Management and Research Organization.

All rights reserved. No part of this book may be reproduced, transmitted or utilized
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permission from us.
Acknowledgment
Every attempt has been made to trace the copyright holders of material reproduced
in this book. Should an infringement have occurred, we apologize for the same and
will be pleased to make necessary correction/amendment in future edition of this
book.
The content is developed by taking reference of online and print publications that
are mentioned in Bibliography. The content developed represents the breadth of
research excellence in this multidisciplinary academic field. Some of the
information, illustrations and examples are taken "as is" and as available in the
references mentioned in Bibliography for academic purpose and better
understanding by learner.'
ROLE OF SELF INSTRUCTIONAL MATERIAL IN DISTANCE LEARNING
The need to plan effective instruction is imperative for a successful

distance teaching repertoire. This is due to the fact that the instructional
designer, the tutor, the author (s) and the student are often separated by
distance and may never meet in person. This is an increasingly common
scenario in distance education instruction. As much as possible, teaching by
distance should stimulate the student's intellectual involvement and
contain all the necessary learning instructional activities that are capable of
guiding the student through the course objectives. Therefore, the course /
self-instructional material are completely equipped with everything that
the syllabus prescribes.
To ensure effective instruction, a number of instructional design
ideas are used and these help students to acquire knowledge, intellectual
skills, motor skills and necessary attitudinal changes. In this respect,
students' assessment and course evaluation are incorporated in the text.
The nature of instructional activities used in distance education self-
instructional materials depends on the domain of learning that they
reinforce in the text, that is, the cognitive, psychomotor and affective. These
are further interpreted in the acquisition of knowledge, intellectual skills
and motor skills. Students may be encouraged to gain, apply and
communicate (orally or in writing) the knowledge acquired. Intellectual-
skills objectives may be met by designing instructions that make use of
students' prior knowledge and experiences in the discourse as the
foundation on which newly acquired knowledge is built.
The provision of exercises in the form of assignments, projects and
tutorial feedback is necessary. Instructional activities that teach motor skills
need to be graphically demonstrated and the correct practices provided
during tutorials. Instructional activities for inculcating change in attitude
and behavior should create interest and demonstrate need and benefits
gained by adopting the required change. Information on the adoption and
procedures for practice of new attitudes may then be introduced.
Teaching and learning at a distance eliminates interactive
communication cues, such as pauses, intonation and gestures, associated
with the face-to-face method of teaching. This is particularly so with the
exclusive use of print media. Instructional activities built into the
instructional repertoire provide this missing interaction between the
student and the teacher. Therefore, the use of instructional activities to
affect better distance teaching is not optional, but mandatory.
Our team of successful writers and authors has tried to reduce this.
Divide and to bring this Self Instructional Material as the best teaching
and communication tool. Instructional activities are varied in order to assess
the different facets of the domains of learning.
Distance education teaching repertoire involves extensive use of self-
instructional materials, be they print or otherwise. These materials are
designed to achieve certain pre-determined learning outcomes, namely goals
and objectives that are contained in an instructional plan. Since the teaching
process is affected over a distance, there is need to ensure that students actively
participate in their learning by performing specific tasks that help them to
understand the relevant concepts. Therefore, a set of exercises is built into the
teaching repertoire in order to link what students and tutors do in the
framework of the course outline. These could be in the form of students'
assignments, a research project or a science practical exercise. Examples of
instructional activities in distance education are too numerous to list.
Instructional activities, when used in this context, help to motivate students,
guide and measure students' performance (continuous assessment)
PREFACE
We have put in lots of hard work to make this book as user-friendly
as possible, but we have not sacrificed quality. Experts were involved in
preparing the materials. However, concepts are explained in easy language
for you. We have included many tables and examples for easy
understanding.
We sincerely hope this book will help you in every way you expect.
All the best for your studies from our team!
TO ERP
Contents
BLOCK 1: OVERVIEW OF ERP AND RELATED TECHNOLOGY

UNIT 1 OVERVIEW OF ERP
Introduction, Introduction To ERP, What Is ERP?, Evolution Of ERP,
Common ERP Myths, Advantages Of ERP, Various Modules Of ERP,
Challenges To Implement ERP Packages, ERP In India
UNIT 2 ERP AND RELATED TECHNOLOGIES
Introduction, Management Information System (MIS), Decision
Support System (DSS), Executive Support System (ESS), Data
Warehousing, Data Mining, On-Line Analytical Processing (OLAP),
Supply Chain Management, Customer Relationship Management
(CRM), Business Intelligence (BI)
BLOCK 2: ERP MODULES AND BUSINESS
UNIT 1 ERP MODULES AND VENDORS

Introduction, Accounting and Finance, Manufacturing, Human
Resource (HR), Plant Maintenance, Quality Management, Material
Management, Inventory Management, Production Planning and
Control, Sales and Distribution (SD), Purchase, ERP Vendors
UNIT 2 ERP AND BUSINESS
Introduction, ERP and Business Processes, Potential risks of E-
Business/ERP Implementations, Business Process, Six Sigma for
Process Improvement, Process Improvement Models, CMMi Delivery
Process, What is Process Orientation?, SAP, Oracle, Oracle's JD
Edwards EnterpriseOne, ERP Vendor comparison, Target Market,
Trends and Orientation
UNIT 3 BUSINESS PROCESS RE-ENGINEERING
Introduction, What Is Business Process Re – Engineering (BPR)?, How
Can BPR Be Applied To An Organization?, BPR Characteristics,
Theoretical Foundations Of BPR, Contribution/Role Of IT In BPR,
Where We Can Apply BPR, Re-Engineering Computer System, Steps
For BPR, Re-Engineering or Re-Developing?, Link Between
Reengineering Of Computer Systems and BPR
BLOCK 3: ERP IMPLEMENTATION
UNIT 1 ERP IMPLEMENTATION

Introduction, Risks in ERP Implementation, The Role of Technology in
the ERP Selection Criteria, Responsibilities of ERP Vendors, How to
Prepare an Organization for ERP Implementation?, Enterprise
Application Integration, Implementation Methodology, Things to
Check While Implementing ERP, Web Based ERP Software
UNIT 2 MORE ABOUT ERP IMPLEMENTATION
Introduction of ERP Implementation, Successful ERP Implementation
the First Time, Software selection is not easy, Plan to succeed, Getting
ready for ERP Implementation, Issues, What is the ERP life cycle?, The
best practice for ERP implementation, Do's and Don'ts during ERP
implementation
UNIT 3 ERP AND COMPETITIVE ADVANTAGES
Introduction, An affordable ERP for SMEs, Why Indian ERP system is
best suited for Indian industries?, Why ERP is considered to be the
backbone of ebusiness?, Web-based ERP more ideal than server based
solution, Current Trends in ERP, Challenges to watch for in the future
of Enterprise Resource Planning, Predicting the future of ERP
BLOCK 4: CASE STUDIES
UNIT 1 CASE STUDIES

UNIT 2 CASE STUDIES
Dr. Babasaheb BCA - 501
Ambedkar
Open University

TO ERP
BLOCK 2: ERP MODULES AND BUSINESS
UNIT 1
ERP MODULES AND VENDORS 03
UNIT 2
ERP AND BUSINESS 26
UNIT 3
BUSINESS PROCESS RE-ENGINEERING 44
BLOCK 2: ERP MODULES AND
BUSINESS
Block Introduction
Production planning caters utilization of manufacturing which involves
parameters like capacity, parts, components and material resources with ancient
production data and comparing such data with sales aspects. Human Resource
Module is an e-resource ERP having unique features that integrate flawlessly with
other module.
In this block, we will detail about the basic of production planning which
caters utilization of manufacturing capacity, parts, components and material
resources with historical production data by analysing sales. The block will focus
on the study and concept of Production order control resulting as functionality
aspects of production order with varied production environment. You will give an
idea on business process management.
In this block, you will made to learn and understand about the basic of
business process re-engineering involving retiring old databases favouring
enterprise data warehousing. The concept related to Materials Management
contains information will also be explained to you. You will be demonstrated
practically about Capability Maturity Model Integration technique.
Block Objective
After learning this block, you will be able to understand:
 About Business Process
 Basic of Accounting and Finance
 Features of BPR Characteristics
 Concept of Re-Engineering or Re-Developing
 Detailed about Inventory Management
 Basic of CMMi Delivery Process
 Idea of Steps For BPR
1
ERP Modules and Block Structure
Business
Unit 1: ERP Modules and Vendors
Unit 2: ERP and Business

Unit 3: Business Process Re-Engineering
2
UNIT 1: ERP MODULES AND VENDORS
Unit Structure
1.0 Learning Objectives
1.1 Introduction
1.2 Accounting and Finance
1.3 Manufacturing
1.4 Human Resource (HR)
1.5 Plant Maintenance

1.6 Quality Management
1.7 Material Management

1.8 Inventory Management
1.9 Production Planning and Control

1.10 Sales and Distribution (SD)
1.11 Purchase
1.12 ERP Vendors
1.13 Let Us Sum Up

1.14 Answers for Check Your Progress
1.15 Glossary
1.16 Assignment
1.17 Activities
1.18 Case Study
1.19 Further Readings
3
ERP Modules and 1.0 Learning Objectives
Business
After learning this unit, you will be able to understand:
 Basic of Material Management
 Idea about Human Resource
 Role of ERP Vendors
 Production Planning and Control
1.1 Introduction
Enterprise Resource Management asset arranging framework will be an
arrangement or programming used to wrist bindings every last one of assets about
entire enterprise. Right from representative instalments on single screw nearing
under those enterprise, All that could make figured out how & followed by
utilizing ERP frameworks. ERP will be An cross practical product that helps
every last one of business forms inside the association.
Over organization, ERP serves with oversee benefits of the business
methods from claiming various divisions & works through incorporated
requisition. We might settle on every last one of significant choices toward
screening those majorities of the data furnished ultimately Tom's perusing ERP.
There would a lot of people vendors in advertise which would give work to
universal ERP results or cloud built ERP results. In spite of execution platforms
alternately advances would different, there are normal & fundamental modules
about ERP which might be found to any ERP framework. Contingent upon
associations have required segments need aid incorporated & altered ERP
framework is structured.
1.2 Accounting and Finance

A ERP money module is An programming project that gathers fiscal
information and generates reports for example, ledgers, trail parity data, Generally
speaking equalization sheets Also quarterly fiscal explanations.
ERP may be a industry expression to the wide situated of exercises that
aides a enterprise deal with those significant viewpoints of its benefits of the
business. The majority of the data produced accessible through a ERP framework
4
gives perceivability for enter execution indicators (KPIs) obliged to gathering ERP Modules
corporate destinations. and Vendors
ERP frameworks are produced dependent upon for significant number

distinctive programming modules. Every of the modules done ERP module will
be specific will handle particular benefits of the business methods. In this aide will
ERP modules and software, you'll find introductions of the Different segments of
ERP Furthermore take in how every module might profit your association.
Previously, today's focused world, for whatever organization, callous
monetary getting ready Also administration will be exceptionally imperative to
guarantee managed development with more useful wellbeing from claiming
business. For empowering this, you necessity should bring an end-to-end
perspective from claiming your business accounts. It will be the practically far
reaching end-to-end, full-fledged, independent fiscal administration framework
that is Along these lines key for checking your bottom-line in addition
streamlining your whole money related administration methodology. It serves you
will boost benefits and support liquidity & budgetary solidness in the practically
effective approach. The result aides your particular fund Branch will fortify
fleeting performance, and empower long haul development.
Creditor liabilities in addition with records of sales modules would two

essential execution modules under account fragment about a ERP framework.
Monetary relationship with vendors who would give information of the
association in the structure about merchandise also benefits are looked after On
creditor liabilities module. On the other side, that monetary association with
clients who utilize yield of the organization, are managed through records of sales
module. Both these modules look after individual accounts Possibly about debt
holders alternately lenders Furthermore look after diverse sub ledgers for
example, such that control account, money variance accounts and so forth which
is essential analytics and only general record.
Accounts Payable Module (AP)

This module provides the functionality to enter, monitor, maintain and
process for payment of invoices and credit notes that the organization received
from its vendors. The key functionality of this module is as follows:
 Immediate registration of incoming invoices
 Tracking & Authorization of incoming invoices
 Entry of order-based and sundry invoices
5
ERP Modules and  Automatic matching of invoices with receipts
Business
 Separate procedure for approval of invoices that exceeded the user
tolerances
 Self-Billing Invoices this is suitable for JIT environment where receipt of

goods automatically generates approved invoices in the system which is
paid through remittances and supplier need not send any invoice.
 Accounts Classification for reconciliation
Accounts Receivable Module (AR)

This module helps in tracking all the invoices that is awaiting payment from
customers. The key functionalities of ACR are:
 Accounts classification for reconciliation & Control.
 On-line credit management.
 Reminder letters with varying degrees of severity.
 Aging Analysis reports for review.
 Interest for late payments.
 Customer statements.
Check your progress 1

1. ERP finance module contains information based on:
a. ledgers
b. trail balance
c. balance sheets
d. all of above
2. The module that maintains personal accounts of debtors or creditors is:
a. Accounts payable module
b. Accounts receivable module

c. Both a and b
d. neither a nor b
6
ERP Modules
1.3 Manufacturing
and Vendors
In the transform of advancement of manufacturing prerequisites arranging
under ERP, same time vendors have produced more solid programming for
handling planning, consulting organizations need gathered limitless learning for
actualizing creation arranging module. Preparation arranging optimizes those use
for manufacturing capacity, parts, parts in addition with material assets utilizing
authentic creation information Furthermore deals determining.
Customarily generation arranging product might have been differentiate one
bundle alternately a free module on standard ERP. The level about organization
necessary might have been secondary and reporting weight took quite a while.
Standard ERP need an alternate approach to backing MRP preparation

arranging. Being firmly incorporated with different procedures makes those
majority of the data backing to preparation precise effective. It employments those
same guideline as other modules in addition with courses thus it is really simple
will include handling on a existing establishment.
It will ready to run each standard processing operations similar to
engineering base, handling logistics, arranging Also planning. Around highest
priority on that you will figure out how not difficult it is should handle Also track
batches What's more serial numbers. An underpinned nature management
techniques are not difficult following from claiming working hours Furthermore
gainfulness through CRM joining What's more effectively getting thick, as point
by point post-calculation Also other facts reports, which make quite a while on
make Previously, aggressive results.
That creation record in Hansa World's manufacturing ERP framework
performs the evolving from claiming stock amounts also at whatever connected
bookkeeping. Enter onto those processing know what number of specific Formula
you need to produce, and HansaWorld will part serial numbered things down
should differentiate lines for every serial number. There is actually a work to
HansaWorld naturally with produce the serial numbers for each offering.
HansaWorld handles wastage toward permitting Productions to make disposed of.
The client may be constrained should enter in purpose behind the dispose of -
starting with An Choice of standard issues formerly characterized. That assessor
about each clump will be additionally recorded. Productions could make made
naturally starting with creation requests. This capacity may be delicate with clump
sizes generally predefined in the software, At things would clump followed.
Productions camwood make made naturally starting with generation requests. This
7
Unit T
ERP Modules and work will be delicate on clump sizes at that point predefined in the software, when
Business things would clump followed.

1. MRP production planning process:
a. involves easy addition of production process

b. involves different principles for operation
c. involves easy reporting

d. all of above
1.4 Human Resource (HR)

That mankind's asset module to e-resource ERP need a situated for rich
offers and integrates seamlessly with different module. E-resource ERP HR
module offers totally results for hr section making it workable to different Branch
with get particular Worker information. Those hr modules blankets every last one
of capacity required on benefits of the business act and will be adaptable with
streamline business methods toward configuring on suit of shield customer's
prerequisite.
Mankind's asset module streamlines those administration for human assets

What's more mankind's capitals. It comprises about four expansive sections,
basically Training, Recruitment, and payroll also participation. HR module
clinched alongside asset ERP routinely supports a finish Worker database
including contact information, compensation details, attendance, Execution
assessment also advancement about every last bit workers.
ERP mankind's asset administration will be a suited about coordinated

circuit solution, planned should encourage HR operations eventually Tom's
perusing decreasing time-intensive regulatory errands with more bringing down
fetches Toward deploying organization toward oneself requisitions. E-resource
ERP result offers large number diverse sub-systems under the hr module.
Recorded beneath are A percentage of the practically as a relatable point sub
frameworks.
8
 Personnel Management: The personnel management comprises of HR ERP Modules
master-data, personnel administration, recruitment and salary and Vendors
administration.
 Organizational Management: Organizational management includes,

organizational structure, staffing schedules & job description.
 Payroll System: Salary management, statutory reporting, attendance

management for salary calculation.
 Time Management: Time management includes shift planning, time

recording, absence & leave management.
 Personal Development: This section comprises of training and event

management, additional training determination and training assessment.

1. HR modules does not have:
a. Training section
b. Recruitment section
c, Budgeting section
d. Payroll section
1.5 Plant Maintenance

Plant maintenance upkeep module previously, e-resource ERP gives a
incorporated result for supporting the operational needs about an enterprise-wide
framework. The module incorporates a whole gang of results coating know
viewpoints of plant/machine support furthermore turns into essential analytics of
the accomplishment for methodology change.
E-resource ERP Plant & machine support module helps Different

alternatives to structuring specialized foul frameworks with its object, kind What's
more function-related views, Furthermore empowers adaptable route. Information
concerning the arranging preparing what's more history about upkeep errands is
recorded in the framework and complies for benefits of the business confirmation
necessities.
9
ERP Modules and Constantly on upkeep assignments for example, inspection, adjusting
Business furthermore repair shed exercises are spared to a chronicled database.
Additionally, standard indicators, different examination choices need aid also
accessible in the framework for assessing this information.
Plant machine upkeep module gives with specialized foul and business
reports and different presentation alternatives for every obliged criterion. This
majority of the data serves to decrease span and fetches about plant down times
concerning illustration an after-effect of harm What's more will perceive
conceivable powerless focuses inside your specialized foul framework in great
time. It also manifestations the groundwork for characterizing a ideal upkeep
system in the feeling of 'Total profitable upkeep (TPM) or risk-optimized support.
The major sub-systems of eresource ERP Plant & Machine Maintenance
module are:
 Breakdown Repair Log
 Equipment Master Register
 Machine Breakdown Log
 Maintenance Type
 Man Power for Machine Details
 Preventive Maintenance Record
 Spare Part Installation Log

1. ERP Plant & Machine Maintenance module will not have:
a. Equipment Master Register

b. Machine Breakdown Log
c. Service Employee details

d. Machine Details
10
ERP Modules
1.6 Quality Management and Vendors
Quality satisfaction is the prime mainstay for accomplishment for whatever
business. It is a vital movement for any benefits of the business. Result personal
satisfaction may be fundamental component for securing an extensive client build.
On hope personal satisfaction yield starting with those handling Branch and
business necessities should stay with a close check on the nature levels In its
Different phases from claiming creation.
Coordination from claiming different divisions with our personal
satisfaction control module aides benefits of the business stay with track from
claiming its nature levels in various phases. Hence making a difference it will
recognize the personal satisfaction difference toward starting stages, start
correction methods and diminish wastages.
The quality management part may be and only those coordinated circuit sap
ERP framework. For the works of the personal satisfaction management module,
imperative components from claiming QM framework specified in ISO 9000
which could a chance to be utilized to nature management fill in in.:
Quality planning
 Basic data for Quality Management
 Inspection planning
Quality assurance
 Quality inspection
 Quality certificates
Quality control
 Quality notifications
 QM information system
Quality Management in Procurement and Storage
This process shows how the SAP ERP Quality Management is used to guide
the purchasing and Inventory Management activities. This consists fundamentally
of releasing supply relationships, source and receiving inspections, managing
stocks during quality checks, and quantity documents.
The Quality control includes vendor evaluation, quality analysis in the QM

information system, and statistical process control using control charts.
11
ERP Modules and
Business
1. Quality planning is not related to:
a. Data for Quality Management
b. Inspection planning
c. Quality certificates
d. Planned database
1.7 Material Management

Materials Management comprises of details about master data, system
configuration, and transactions to complete the Procure to Pay process. This
process map spans from MRP generated procurement proposals through final
invoice receipt and verification.
Materials Management Components or Sub-Components:
 Vendor Master and Material Master data
 Consumption Based Planning
 Purchasing
 Inventory Management
 Evaluation of Materials
 Invoice Verification
Procure to Pay business process associated with the RHR MM module: ERP M
12 and V
Fig 1.1 RHR MM module
The components of Materials Management:
 Purchasing
 Inventory Management
 Logistics Invoice Verification
 Physical Inventory
 Material Valuation
 Material Requirements Planning
 External Services Management
13
ERP Modules and
Business
1. In Material Management, MRP refers to:
a. Management Requirements Planning
b. Material Requirements Planning

c. Material Reset Planning
d. Method Requirements Planning
1.8 Inventory Management

A standout amongst the greatest variables over money stream management
is those viable administration from claiming stock levels on account of stock is a
standout amongst those biggest speculations an organization makes. A great
programming result necessity should furnish for updated data once stock, the
place it‟s located, the extent to which necessities with be sell, Also when you will
run out. Without such information, there exists need to aid possibilities for danger
from claiming stock outs alongwith overstocks that further will generate subpart
client administration which diminishes benefit without bargains for secondary
carrying costs.
Inventory module gives with instruments to successfully deal with an stock.
Throughout request passage you could view what will be with respect to hand, the
thing that will be allocated will client requests and the request detail, what may be
once backorder and the request detail, Also what may be because of be accepted
and the evaluated receipt date. It holds overwhelming reporting weight
capabilities, upkeep projects to physical checks with adjustments, and the
capability to support stock over different dissemination focuses.
Features:
 Modular Integration – Direct integration with Replenishment, Purchasing,

Production Work Orders, and General Ledger
 Item Code Unit Of Measure – can have multiple units of measure per item
 Item Classification – assign an item class code to each item for reporting
purposes or to group for special pricing discounts
 Ability to Clone, Rename, and Merge Inventory Items
14
 Incremental Units – for items that you must sell or purchase in increments ERP Modules
and Vendors
of 2 or more, set the incremental quantity so that purchases orders and
customer orders must have quantities in these increments
 Serial and Lot Number Tracking
 Serial Number Master Screen with Warranty Information
 Traceability and Recall Management
 Warranty Tracking
 Quality Management
 RoHS Compliance Tracking
 Cost Method – cost method can be set to standard, average, FIFO, or LIFO
 Transaction History – ability to see per item the sales and purchasing history
online for each month with drilldown to document detail
 Item Status – ability to drill down from the quantity on hand

1. Inventory Management Software will carry details regarding:
a. Tracking details of item

b. Delivery time of goods
c. Client detail for transferring goods
d. none of above
1.9 Production Planning and Control

It is seen that Production Planning and Control helps to decrease expense
which furthermore run through market, more terrific accentuation will be
necessary to control shop floor exercises. Well-organized manufacturing process,
coming about disposal from claiming bottleneck and waste, necessitates more
excellent dependence upon adaptable as compared to client cordial creation
arranging control framework. The arranging motor for an ERP system, through
shut circle MRP / MRP II capability, generates arranged creation orders, In view
15
ERP Modules and of the forecasted duration of the time phased demand, done particular month to
Business month / weekly duration of the time buckets.
Following confirmation, full utilitarian processing orders, with movable
directing Also components, states the thing that amount from claiming result
ought to be made and its planned date of handling. Same time generating those
generation order, the framework takes discernment of the amount of hours
required for those request and ability of machines Furthermore fill in focuses
What's more accessibility about materials Also segments.
Functionalities of production module:
 Production order control.
 Production order planning.
 Production order statistics.
 Production order subcontracting.
 Production material issues.
Linking to other modules:

PPP is a coordinated executable module which arranges preparation requests
starting with the arranging motor. It receives subtle elements for result structure
starting with BOM Furthermore subtle elements for operations necessary to An
made thing starting with directing. It receives cost bookkeeper information from
cost bookkeeper module. The stock module arrangements for issue of products on
creation requests compared to caliber management checks those personal
satisfaction about products generated all the.
Production order control:

This purpose is used to do the sum parts of a preparation request under
separate handling earth for example, such that tedium manufacturing, vocation
shop manufacturing, What's more mechanical production system sequencing. The
purpose empowers client with exchange arranged request Furthermore make
manual handling order, print creation request documents holding points from
claiming required segments with operations, discharge request with shop floor for
execution What's more record status of the request for example, planned, released,
animated and finished. Finally, the creation request is shut with last conclusion of
cost, material issued Also hours functioned need aid presented of the creation
request.
16
At a handling request may be created, those framework naturally calculates ERP Modules
evaluated material from routing for executing the request. The framework might and Vendors
embrace forward arranging creation start date that is utilized for ascertaining
conveyance date. Those framework might additionally hold retrograde arranging
of preparation begin date which might be inferred from those conveyance date and
the request lead-time of the thing.
Production order planning:
This functionality helps in changing or rescheduling operation of a production
order, as per details indicated below:
 Changing the operations (tasks).
 Changing sequence of operations (routing) - to alter the structure of the

routing.
 Changing order sequence (dates and scheduling on a work center).
 Changing the content of the order (reference dates) - for replanning the
order.
 Changing material belonging to the order (estimated materials.
Production order Statistics:

Its purpose shows data viewing as real expense and evaluated expense about
processing orders, both clinched alongside appreciation for materials expended
with hours used. Such measurable majority of data aides over better arranging
with execution from claiming future generation requests.

1. Production order control contains details for:
a. repetitive manufacturing
b. job shop manufacturing
c. assembly line sequencing

d. all of above
17
ERP Modules and 1.10 Sales and Distribution (SD)
Business
The Sales and Distribution consists of all master data, system configuration,
and transactions to complete the Order to Cash process. It includes the following
information and processes:
 Customer Master and Material Master data
 Sales Orders
 Deliveries
 Pricing
 Billing
 Credit Management
Fig 1.2 Sales and Distribution Module
18
Subcomponents of the RHR Sales and Distribution (RHR SD) Module: ERP Modules
and Vendors
 Master Data
 Sales Support
 Pendulum List Indirect Sales
 Sales
 Shipping and Transportation
 Billing
 Empties Management
 Credit Management
 Foreign Trade/Customs
 Sales Information System

1. Sales and Distribution Module will not have details regarding:
a. Product servicing
b. Sales Orders
c. Delivery details
d. Pricing
1.11 Purchase
Purchasing management is a group of application that controls purchasing of
raw materials needed to build products and that controls the inventory. It also
helps creating Purchase orders / contracts, supplier tracking, good receipt and
payment and regulatory compliance analysis and reporting.
Organizations which buy material from diverse vendors for fluctuating

amounts required for great ERP module. ERP buy module streamlines working of
acquisition that can be bought for crude materials, recompensing requests with
suppliers and charging.
19
ERP Modules and The buy module need alternative to record every last one of points
Business pertaining merchant which such points for information to vendors who supply
merchandise of the shares of the organization. The buy Branch may be endowed
with those errands for obtaining materials obliged for manufacturing results in the
association. The buy division is answerable for buying materials in the correct
amounts of the correct nature during the right duration of the time.
The vendors are likewise alluded will similarly as suppliers which deals
with these suppliers that is conceivable with such module also others this module
may be likewise alluded on similarly as SCM module. Different elements for
example, firm competition, evolving technology, short item term cycles, interest
that an organization doesn't request material done overabundance. The SCM
module will be outlined on meet the greater part these tests. Suppliers and the
organization could partake) energizes a coupled utilizing the SCM module. Those
suppliers could streamline their assets same time the organization might
streamline its assets same time permitting the suppliers also will do those same. A
supply chain comprises of the crude material which will be supply of the
manufacturer, who thus supplies these merchandise of the wholesaler who
conveys these products of the retailers. The SCM module will be planned on
handle the whole chain from claiming suppliers.
The buy section initiates those buy transform by raising those buy request.
Buy requests would made at there is deficiency about materials to processing of
completed items. Those merchant supplies products In view of the buy request.
All buy requests are dealt with equally pending buy requests till the chance
material is accepted from those vendors.
Looking into receipt for goods, a receipt note will be raised. The point when
those receipt note may be raised, stock accounts are updated. After the receipt
note will be created, buy receipt will be made which may be An reference for the
money section will make a instalment. Those stock updations need aid reflected in
the stock record and the stock registers. General record account updations need
aid reflected in the ledger sheet, p / l explanation and is recorded.
20
ERP Modules
Check your progress 10 and Vendors
1. Purchase management handles information regarding:
a. purchase of raw materials
b. necessity of inventory control details

c. supplier tracking
d. all of above
1.12 ERP Vendors

Enterprise Resource Planning software suppliers come in all shapes and
sizes, with the vital business process software available as a client server
application, a hosted ERP service or even via a web-based portal. ERP has grown
to cover all core functions of a business, regardless of its industry sector. As a
result, both private and public sector organisations now use ERP systems in some
form or other. ERP systems typically carry out financial and business planning
functions, which might formerly have been carried out by many smaller
standalone applications.
Vendor Company Name Package

3i Infotech ORION Enterprise
3rd Dimension Systems Manufacturing Management

Abacus Data Systems ADAMS
ABAS-USA abas ERP

ABBASOFT Technologies NetPartner & WebPartner
AccessIG Pro-III Master

AccountMate Software Corporation AccountMate for Express
AccountMate Software Corporation AccountMate for LAN

AccountMate Software Corporation AccountMate for SQL
AccountMate Software Corporation Visual AccountMate

Acero Solutions ACERO Enterprise
Activant Prelude
21
ERP Modules and Activant Prophet 21
Business
Adonix X3
Advanced Business Software ADaM
AIM Computer Solutions AIM Vision

Bluebird Software LLC Bluebird Accounting
BMA Software BMA

Bowen & Groves M1
CIMA CIMA
Cimnet Systems Paradigm

Cincom Systems CONTROL
CMS Software CMSi5

CompuEx CompuEx Easy Accounting
CompuEx CompuEx Express Accounting

CompuEx Enterprise Accounting
Computer Generated Solutions BlueCherry Enterprise

Computer Insights The BUSINESS EDGE
Consona DTR Plastics ERP

1. Paradigm package is manufactured by:
a. Acero Solutions
b. Bowen & Groves
c. Cimnet Systems
d. Computer Generated Solutions
22
ERP Modules
1.13 Let Us Sum Up
and Vendors
In this unit we have learnt that ERP finance module is a software program
which collects financial data and produces reports containing information on
ledgers, trail balance data, overall balance sheets and quarterly financial
statements
It is seen that production planning caters utilization of manufacturing
capacity, parts, components and material resources with historical production data
by analysing sales.
We see that Human Resource Module which is an eresource ERP contains

special features that integrate flawlessly with other module.
It is noted that Plant and Machine Maintenance provides eresource ERP

having integrated solution that handles operational needs of an enterprise-wide
system.
Materials Management contains information on master data, system
configuration, and transactions to complete the Procure to Pay process.
Production order control results as functionality which has every aspects of
production order with varied production environment.
Answers: (1 – d), (2 - c)
Answers: (1 - a)
Answers: (1 - c)
Answers: (1 - c)
23
ERP Modules and
Business
Answers: (1 - c)
Answers: (1 - b)
Answers: (1 – a)
Answers: (1 - d)
Answers: (1 - a)
Answers: (1 - d)
Answers: (1 - c)
1.15 Glossary
1. ERP - It is a form of business strategy used to keep track of activities which
can be purchasing, inventory and order tracking.
2. Planning - It is the process of deciding in advance what is to be done, when
and where it is to be done, how it is to be done and by whom.
3. Procurement - It refers to getting new employee having required skills in
the employees to fill the vacant positions.
1.16 Assignment
Explain the Plant and Machine Maintenance in ERP?
24
ERP Modules
1.17 Activities
and Vendors
Study about Human Resource Module?
1.18 Case Study

Study the Production order control.

1. Davenport, T.H. (1993), "Need radical innovation and continuous
improvement? Integrate process re-engineering and TQM", Planning
Review, Vol. 21 No. 3, pp. 6-12.
2. Freed, A. (1996), Net Asset: Intranets Have Much To Offer Businesses,
Intranet As Groupware, John Wiley & Sons, New York, NY.
3. Greengard, S. (1995), "Catch the wave as HR goes online", Personnel
Journal, Vol. 74 No. 7, pp. 54.
25
ERP Modules and
Business
UNIT 2: ERP AND BUSINESS
Unit Structure
2.1 Introduction
2.2 ERP and Business Processes
2.3 Potential risks of E- Business/ERP Implementations

2.4 Business Process
2.5 Six Sigma for Process Improvement

2.6 Process Improvement Models
2.7 CMMi Delivery Process

2.8 What is Process Orientation?
2.8.1 SAP
2.8.2 Oracle
2.8.3 Oracle's JD Edwards Enterprise One
2.9 ERP Vendor comparison
2.10 Target Market

2.11 Trends and Orientation
2.12 Let Us Sum Up

2.14 Glossary
2.15 Assignment
2.16 Activities
2.17 Case Study
26
ERP and
2.0 Learning Objectives Business
After learning this unit, you will be able to understand:
 Concept of Process Improvement Models
 Understand Trends and Orientation
 Detailed about Potential risks of E- Business
 Basic of Process Improvement Models
2.1 Introduction
Enterprise resource planning known as ERP, ERP system or ERP
programming characterized related illustration as an arrangement that serves
associations to deal with their financials, supply chain, manufacturing, operations,
reporting mankind's assets. A large portion ERP frameworks cam wood a chance
to be deployed on-premises alternately in the cloud, with move forward
mechanize center parts from claiming benefits of the business.
2.2 ERP and Business Processes

ERP applications are a computer model of your business, embodying the
products and processes, information flow, procedures, and relationships between
functions and activities. A set of planning applications can provide
recommendations for what must be accomplished in order to meet the forecasted
demand and keep the business functioning smoothly. Planning is at the core of
ERP and is embodied in a top-down hierarchy of functions related to:
 master planning
 detailed material and resource planning
 execution
Expert arranging official level work sets those operational benefits of the
business needs. The nitty gritty material arrangement utilizes bill for material
related to stock data to create complete manufacturing additionally obtaining
arrange to the greater part products, assemblies, segments in addition to materials.
In such level, limit prerequisites arranging binds those processing arrangement to
asset availability which focus on ability along with stacking.
27
ERP Modules and Certain business procedure could consider perfect illustration a movement
Business which happens to an association all along the working of the association. A
business procedure could a chance to characterize equivalent to movement which
happens for an association with more result. Further yield will be characterized
with reference to association, such as liability activity, that information results
administration of association profits and the yield or the outgo may be those trade
measure which dives crazy from the association.
Those cooperation included to get ready those framework examine report
card is answerable for identikit Also posting every last one of business procedures
which happen Previously, an association. To guarantee that every last one of
benefits of the business techniques which happens done an association would
listed, a thorough graph will be readied posting every last one of benefits of the
business techniques with point by point illustration.
Each business methodology obliges information should a chance to be
recorded. The data, previously characterizes the benefits of the business transform
Also will be an example of the business procedure. Information entrance types
need aid used to record this information. Numerous of times, single information
passage structure might be used to record information pertaining to different
benefits of the business forms. This could be attained by outline streamlining of
the information entrance structures.
Business processes that occur in a typical Finance department are:
 Creating a Customer Account
 Creating a Vendor Account
 Creating a Bank Account
 Creating a General Ledger Account
 Enhancing Chart of Accounts
 Receiving Check or Cash from Customers
 Payments to Vendors by raising Checks or through Cash
 Journal Entries
Business processes that occur in a typical in Sales and marketing department are:
 Creating Sales Order
 Pick and Pack Sales Orders
 Shipping orders
28
 Create Sales Invoice ERP and
Business
 Sales Returns
Business processes that occur in a typical in Purchase department are:
 Purchase Order
 Purchase Picking Orders
 Purchase Invoice
 Purchase Returns
Business Processes that occurs in the Inventory department are:
 Creation of items
 Issues of Items
 Physical stock adjustment
Business processes that occur in a typical manufacturing department are:
 Creating Bill of materials
 Creating Work Orders
 WIP receipts for recording completed work orders

1. Master planning supports:
a. sales planning process
b. operations planning process

c. both a and b
d. neither a nor b
2.3 Potential risks of E- Business/ERP Implementations

Enterprise Resource Planning is a merger of business management and
operations with modern technology. While ERP offers numerous benefits and can
launch a company into the 21st century, there are many risks associated with ERP
implementation. To properly implement ERP takes a lot of time, resources,
29
ERP Modules and training and patience, which is why understanding these risks is important to any
Business business considering using ERP.
ERP implementations are different from normal systems analysis and design
projects. Among the significant differences are the scale, complexity,
organizational impact, and the costs of ERP projects and subsequent business
impact if the project does not succeed. ERP implementation will impact the entire
organization, whereas a traditional project impacts often only a limited area of the
organization.
Inadequate Training
One of the biggest risks of using ERP is users who are inadequately trained
in the use of the system. When the users (employees) don't know how to properly
use the ERP software, two things may happen. First, they may reject it out of a
lack of understanding. The other possibility is that the employees accept the
system but use it incorrectly. This will lead to the entire ERP system not working
nearly as effectively as it should.
Software Stability
Much like any other computer software, ERP software is subject to stability
issues. A large portion of this risk can be avoided by properly researching and
choosing a reputable ERP software developer with experience in developing
solutions for companies in your field. This is precisely why an ERP system should
go through rigorous testing before making the final decision to go with said
software. This, unfortunately, is a continual risk that could manifest years down
the road when new, incompatible software or hardware is added.
Commitment
ERP solutions, when implemented properly, take a long time to get off the
ground. ERP has to be properly selected, evaluated and tested, implemented and
then used for a period of time before any clear positive results may be seen. It can
become a very risky situation if the company isn't fully committed to seeing the
entire process through.
Software Selection
Unfortunately, ERP solutions aren't one-size-fits-all. Good ERP software

will be specifically designed for the industry or field it will be used in. This is
crucial because if you have software incompatible with your business, you risk
having a completely useless and even hindering ERP solution. Clearly defining
30
what your company needs in an ERP system will greatly reduce the chance of ERP and
Business
your company running into this risk.
Approach
There are two common approaches taken when implementing ERP. The first
is referred to as "The Big Bang" approach. This is where a company tries to
implement an ERP solution quickly. Making so many changes to your company in
such a short amount of time, though, leads to greater risk of something going
wrong. Instead, consider phasing-in your ERP system. Implementation in phases
allows you to pay close attention to one aspect of ERP implementation instead of
trying to pay attention to many of them at once.

1. The risk involved in implementing ERP is:
a. lack of knowledge
b. lack of money
c. lack of concentration
d. lack of training
2. The idea of Big Bang approach by company is to implement ERP solution:
a. in less than 1 year

b. after required period
c. quickly
d. all of these
2.4 Business Process

Business methodology administration will be a comprehensive methodology
used to find, improve and organize benefits of the business techniques to an
organization‟s generally objectives What's more methodology. It empowers
organizations with a chance to be additional proficient with adaptable on
transform. There need aid an assortment about methodologies inside benefits of
the business procedure administration; those initially constantly business
transform change. In this approach, it‟s paramount to analyze the magic methods
31
ERP Modules and inside an association that are aggressive differentiators. Six sigma methodologies
Business would utilized same spine to assess further key benefits of business forms. In
associations recognizing the present state additionally essential key execution
indicators with measure achievement. Next, associations figure out root cause,
accept root make moving forward techniques that should streamline extreme
effectiveness. Finally, association‟s sets control which set up screen that
continuous methodology with guarantee checks need aid placed set up on trigger
fitting reactions if way measurements drop out about control.
Preceding putting programming at top will guarantee procedure with

working at greatest efficiency, as a result when mechanize wasteful process, you
best make an wasteful methodology speedier. This will be the reason bpm is
something like that crucial should an ERP execution. Today‟s ERP frameworks
are exceptionally adaptable. There are numerous – here and there much hundreds
– for different approaches ERP product might suit your business needs.
Comprehension your wanted state former to usage exercises will spare the long
run later in the transform What's more lessen the hazard for picking the not right
setup. It advises the ERP merchant how you have any desire your forms outlined
thereabouts they could select those setup that faultlessly adjusts to the individuals
methods. It likewise provides information for thing that might require
customization along with comprehension of extra cost that might bring about for
it.

1. Which is not a feature of current ERP system?
a. complex
b. latest information
c. simple
d. easy in implementation
2.5 Six Sigma for Process Improvement

Six Sigma is a business process improvement strategy originally developed
by Motorola. The methodology seeks to improve quality by reducing variability
and improving processes. Today Six Sigma enjoys widespread application in
32
many sectors of industry, but often is not in sync with the ERP system. The term ERP and
Business
“Six Sigma” comes from a field of statistics known as process-capability studies
which has qualities of manufacturing processes to generate very high proportion
of output inside particular specification.
Goals of Six Sigma
 Six Sigma‟s implied goal in order to enhance very processes to consistently

high level of quality.
 It is customer-centric where it provides customer satisfaction where

manufacturers deliver reliable and expected services with near zero defects.
 It improves quality of process outputs by locating and removing reasons of

errors and variability in manufacturing and business processes.
 It sets quality-management methods that covers statistical methods and

forms special infrastructure of people in an organization to become experts
in certain methods.

1. Six Sigma in Process Management enhance:
a. quality
b. process
c. output
d. all of above
2.6 Process Improvement Models

Process improvement is effective while applying for business. It carry
following sections:
Prioritize.
Regardless of the mechanics, process improvements should be focused
where the business will reap the biggest benefit. You might be able to produce
fantastic Six Sigma results for your projects, but if those projects don't achieve
meaningful results for the business, you haven't accomplished much. Start by
33
ERP Modules and aligning processes to key corporate goals and strategies to know where to focus
Business scrutiny.
Comprehend the As-is.

Both measure examine stages of a DMAIC project, enter viewpoints from
claiming current methods requirement on make captured, measured more
investigated for cause What's more impact conduct. A real test lies in catching
how those robotized methodology really works, data that is normally housed
inside the framework What's more not archived as it were that could be utilized
What's more re-used Throughout transform change ventures. Transform structures
ought to make imparted from your ERP under devices utilized to business
methodology displaying the place interfaces on human assignments Also other
frameworks delineate the end-to-end benefits of the business techniques. Venture
supervisors will examine how upgrades Also optimizations In each venture of a
methodology will sway the in general business.
The frameworks utilized to incorporate snare under ERP framework should

permit exact synchronization of the ERP procedure structure. Once you've made
the bpm nature's domain that models that cooperation between manual and
robotized courses the measure with examining stage for whatever result the six
sigma venture is accelerated.
Simulate the To-be.

What-if examination may be an essential device around will pilot
methodology change should demonstrate how techniques at present stream
suitably to, through Furthermore starting with the ERP. Additionally, luckiness
you exhibit noteworthy upgrades that might make constructed of the transform
without ERP customization, presently that you've got a handle with respect to how
it know fits together. Furthermore, re-enactment gets additional significant
whether you in reality choose that customization to robotized frameworks is and
only the result.
Methodology streamlining activities could Also if compass procedures that

need aid underpinned via mechanization since ignoring vital forms within great
for less demanding pet activities will would nothing Be that as undermine the
quality about transform changing groups for various undertakings. Seeing and
catching those association about robotized forms to end-to-end benefits of the
business transform will open up procedure change opportunities, quicken future
undertakings various dialogs in middle of benefits of the business around
streamlining exertions.
34
ERP and
Check your progress 5 Business
1. A BPM systems having a hook in ERP system allows:
a. accurate synchronization of ERP process structure
b. correct output
c. completed project
d. none of these
2.7 CMMI Delivery Process

Quality and process go hand-in-hand as implementing better processes
ultimately results in better quality outcome. These are the areas of prime
importance in product manufacturing companies which should be managed and
enhanced to provide the best quality outcome as required by the customers.
Quality control and Quality management are the prime areas of focus for
providing the best reliable services across different industries.
ERP is appraised at Level 3 of the Software Engineering Institute‟s (SEI)

Capability Maturity Model Integration (CMMI). CMMI is a software
development credential that is increasingly required by government agencies.
CMMI Level 3 qualifies ERP as a company with repeatable processes,
procedures, tools, and methods. In addition, it recognizes our quality standards
and process improvement approach that foster consistent high performance in
delivering products and services.

1. CMMI deals with:
a. quality standards
b. process improvement approach
c. software standards
d. all of above
35
ERP Modules and 2.8 What is Process Orientation?
Business
The process-oriented implementation focuses on the support of one or a few
critical business processes which involves a few business units. Those starting
customization of the ERP framework is restricted to purpose nearly identified with
those proposed benefits of the business techniques. The process-oriented
execution might in the end develop under full-blown usage of the ERP
framework. This approach may be used by a number little on mid-sized
organizations which have a tendency should brings perplexing internal business
techniques.
Methodology introduction doesn't main fill in to transform industry, anyhow
it could be connected should administration commercial enterprises too. There
will be experimental confirmation that healing centers with a secondary level for
procedure introduction need aid reasonably be fundamentally more productive.
There will be most likely that medicinal services foundations requirement to
turned into secondary performers. So as to addition secondary performance, the
association need to determine its execution indicators, measure its performance,
infer the execution hole Furthermore launch movements with end those hole.
Surveying techniques by method for execution indicators may be An prerequisite
to methodology control What's more serves Similarly as An groundwork to
transform streamlining. Now and again business procedures would fully
underpinned via an agent framework similar to a endeavour asset arranging
framework gathering information starting with which methodology execution
majority of the data might a chance to be concentrated – naturally and free of
extra cosset.
2.8.1 SAP
They are the largest ERP solution provider with more than 75.000 customers
and 12 million users and holding around 30% of market share. The flagship
Solution, R/3 is unmatched for its sophistication and robustness. R/3 software
gives an option of around 1000 pre-configured business processes. This solution is
available in all major currencies and languages and can be hosted on several
Operating Systems and Databases. As mid market option, SAP has brought out,
Business All in One, a solution with industry tailored configurations. SAP
offering for smaller organization is SAP Business One. SAP offers a hosted
solution, namely SAP Business by Design, for organizations lacking IT resources.
36
2.8.2 Oracle ERP and
Business
Oracle is next to SAP in ERP market breadth, depth and share. It offers a
comprehensive, multilingual and multi currency solution, mostly through its
channel partners.. It is the first to implement internet computing model for
developing and deploying its product. Oracle also took over various ERP solution
providers during 2000 such as People Soft, JD Edwards, Retek (retail industry
solution), and Siebel (customer relationship management software). It has taken
up project Fusion (based on Service Oriented Architecture) to integrate various
products, outcome of which is keenly awaited.
2.8.3 Oracle's JD Edwards Enterprise One

Oracle's JD Edwards Enterprise One is an integrated applications suite of
comprehensive enterprise resource planning software that combines business
value, standards-based technology, and deep industry experience into a business
solution with a low total cost of ownership. EnterpriseOne is the first ERP
solution to run all applications on Apple iPad. JD Edwards EnterpriseOne also
delivers mobile applications.

1. Process orientation works for:
a. process industry
b. service industry
c. both a and b
d. none of above
2.9 ERP Vendor comparison

There are some of the Key Vendors of ERP:
SAP: They are the biggest ERP result supplier with more than 75000 clients
which is 12 million clients in addition considering around 30% of showcase
allotment. Those lead Solution, R/3 may be unmatched for its refinement
Furthermore heartiness. R/3 programming provides for a alternative about around
37
ERP Modules and 1000 pre-configured benefits of the business forms. This result is accessible on
Business whole significant currencies along with dialects which facilitated ahead a few
working frameworks along with Databases. As mid showcase option, sap need
brought out, benefits of the business wholly, an answer with business custom-
made configurations. Sap putting forth to more modest association may be sap
benefits of the business person. Sap offers a facilitated solution, in particular sap
business by Design, for associations needing it assets.
Oracle: Prophet will be following on sap done ERP business breadth, profundity
What's more allotment. It offers a comprehensive, multilingual Also multi money
solution, basically through its channel accomplices.
It may be those initial should actualize all the web registering model to create and
deploy its result. Prophet Additionally took again Different ERP result suppliers
Throughout 2000 for example, kin Soft, JD Edwards, Retek (retail industry
solution), and Siebel (customer relationship management programming). It need
consumed one task combination (based with respect to administration turned
Architecture) should coordinate Different products, result about which will be
keenly expected.
Infor: Infor is about late beginning and stretched through a number of
acquisitions. Its securing from claiming ssa worldwide Throughout 2006 settled
on it a Harbinger Similarly as ERP result supplier. Ssa worldwide required two
solid result lines, BPCS What's more BaaN. Ssa Additionally constructed An
number from claiming different acquisitions, for example, MAPICS, lily
programming cohort Also GEAC. Ssa is centered around building, purchasing
Furthermore coordination best for breed results.
Microsoft Dynamics: Microsoft, which didn't need a ERP portfolio, began by

securing a host of ERP items similar to Navision, Solomon, great Plain Also
Axapta. Excepting Axapta, which will be solid On manufacturing Also
suitableness to mid market, other items need aid implied for more modest
associations. Microsoft is a great part subject to channel partners, not best to
bargains furthermore consulting as well as to add on improvement. Their results
would nearly incorporate for their office suit of reinforcement.
38
ERP and
Check your progress 8 Business
1. Which among the following is not Vendor of ERP?

a. SAP
b. Google
c. Oracle
d. Infror
2.10 Target Market

Various Open Source ERP Projects are marketed towards SME (Small &
Medium Enterprises) because it is generally thought that the potential for cost
savings may be more attractive to smaller budgets. While this is generally true, it
is best for any project team of any size to consider various ERP systems in
relation to the needs of the project. Although, no perfect solutions exist, the
choice is often based on the experience of their developers or other features that
may be important in reference to integration with other existing systems.
Keep in mind that Going Open Source for your organization can bring many
benefits. There are also several system providers that utilize open source as their
core and providing a feature set that is more attractive to large enterprise built on
top. Usually core functionality is provided at no cost and additional features at a
premium.

1.The market of ERP can be:
a. industry
b. firms
c. manufacturing unit
d. all of above
39
ERP Modules and 2.11 Trends and Orientation
Business
Enterprise resource planning (ERP) has helped companies to reduce
unnecessary data entry and to streamline workflow, thereby reducing costs.
Precious man-hours can instead be used to improve efficiency and increase
profits. It helps companies to store and manage data through every stage.
ERP aides clinched alongside making organizations additional alarmed
Eventually Tom's perusing serving streamline the transform of result planning,
cosset improvement. It needn't make said that ERP may be key when it hails with
utilizing information for manufacturing, promoting and stock oversaw economy.
Finally, ERP is likewise utilized to shipping, instalment and client connection
oversaw economy. Over short, ERP aides an organization to streamline the
procedure straight starting with the beginning phases for origination of an item of
the maintenance from claiming clients.
In spite of ERP is getting to be progressively common, there need aid a few
issues that organizations need faced as of late. Expanding sums of information
Also apprehensions in information security bring provided for Ascent to
apprehensions regarding utilizing ERP frameworks. We see these apprehensions
expand "around ERP clients. ERP frameworks will prone end up additional
privacy-aware and developers will utilization innovation will battle security
dangers against information. ERP frameworks will ended up additional wary
something like both outer Furthermore inward threats, The point when it goes will
pernicious strike Also suspicious accesses.
Endeavour asset arranging regularly aides organizations to regularize What's

more incorporate operations, much appreciated will which information could a
chance to be imparted crosswise over platforms. However, this centralization of
information offering need frequently expanded those apprehensions for chiefs
who regularly don't similar to data being produced accessible over every one
platforms.
An ERP framework will be frequently considered on a chance to be unified

stage that takes consideration of a company‟s business information and oversee it
too. However, a number of organizations that utilizes ERP frequently will feel that
ERP platforms would cumbersome and awkward. 2015 will likely view ERP
frameworks getting leaner (cloud oriented). An incline ERP programming
framework have chance to be simpler to manage, particularly with things
searching splendid on the cloud front.
40
With an expanded concentrate on cloud based technologies, ERP will take ERP and
Business
after those suits of reinforcement of other benefits of the business product projects
for adopting cloud-based innovation. Those comfort of cloud built innovations
and the fact that information security will drive progressions inside ERP projects
along with bringing about significant updates.

1. Enterprise resource planning helps companies in:
a. regularizing operations
b. centralizing operations
c. managing operations
d. all of above
2.12 Let Us Sum Up

While studying this unit, we have learnt that ERP applications serves as
computer model for business which describes about products and processes,
information flow, procedures and relationships among functions and activities.
It is seen that in order to properly implement ERP, it is noted that
implementation requires more time, resources, training and patience so it is
required to know risks for having an ERP.
We see that business process management is holistic idea applied to know,

enhance and arrange business processes to organization‟s overall goals and
strategy.
It is noted that ERP is evaluated at Level 3 of Software Engineering
Institute‟s Capability Maturity Model Integration.
Answers: (1 - c)
41
ERP Modules and
Business
Answers: (1 - d), (2 - c)
Answers: (1 - a)
Answers: (1 - d)
Answers: (1 - a)
Answers: (1 - d)
Answers: (1 - c)
Answers: (1 - b)
Answers: (1 - d)
Answers: (1 - d)
2.14 Glossary
1. ERP - It is a form of business strategy used to keep track of activities which
can be purchasing, inventory and order tracking.
2. Planning - It is the process of deciding in advance what is to be done, when

and where it is to be done, how it is to be done and by whom.
42
3. Procurement - It refers to getting new employee having required skills in ERP and
Business
the employees to fill the vacant positions.
4. ROI - This refers to Return on Investment to signify return from employee
in terms of productivity and value added to organization for cost incurred in
form of salary, benefits, trainings and other expenses to develop his skills.
2.15 Assignment
Write short note on Process Improvement Models.
2.16 Activities
Collect some information on ERP Vendor.
2.17 Case Study

Generalised the basic idea about ERP Trends and Orientation and discuss.

1. Bashein, B., Markus, L. and Riley, P. (1994), "Precondition for BPR
success", Information Systems Management, Vol. 11 No. 2, pp. 7-13.
2. Caron, J., Jarvenpaa, S. and Stoddard, D. (1994), "Business re-engineering
at CIGNA Corporation: experiences and lessons learned from the first five
years", MIS Quarterly, Vol. 18 No. 3,pp. 233-50.
3. Champy, J.A. (1996), Reengineering Management: The Mandate for New

Leadership, HarperCollins, New York, NY.
43
ERP Modules and
Business
UNIT 3: BUSINESS PROCESS RE-
ENGINEERING
Unit Structure
3.1 Introduction
3.2 What Is Business Process Re – Engineering (BPR)?

3.3 How Can BPR Be Applied To An Organization?
3.4 BPR Characteristics

3.5 Theoretical Foundations Of BPR
3.6 Contribution/Role Of IT In BPR

3.7 Where We Can Apply BPR
3.8 Re-Engineering Computer System

3.9 Steps for BPR
3.10 Re-Engineering or Re-Developing?
3.11 Link between Reengineering Of Computer Systems and BPR

3.12 Let Us Sum Up

3.14 Glossary
3.15 Assignment
3.16 Activities
3.17 Case Study

44
Business
Process Re-
After learning this unit, you will be able to understand: Engineering
 Basic of BPR Characteristics
 Concept of Re-Engineering Computer System
 What Is Business Process Re – Engineering
 Idea about Reengineering Of Computer Systems
3.1 Introduction
Since the evolution of processes is a product of the pressures at the time,
they may no longer be the optimal process for the current environment.
Consequently, business process re-engineering sometimes involves scrapping
and/or drastically altering existing systems and processes in order to create the
best processes to fit current business needs.
Business process re-engineering for enterprise purposes, for example, often

involves retiring old databases in favour of an enterprise data warehouse. The
database can then be coupled with enterprise class applications such as enterprise
resource planning, customer relationship management, and so on, effectively
replacing all the previous systems.
3.2 What Is Business Process Re – Engineering (BPR)?

Enterprise Resource Planning (ERP) and Business Process Re-engineering
(BPR) evolved almost at the same time i.e. 1st half of 1990. Both relates to radical
redesign of an organization at a relatively short period. Both are having the
primary intend to optimize workflow and improve productivity. But, the chicken
and egg question remained, whether an organization reengineer business process
before implementing ERP or directly implement ERP and reengineer by adopting
standard business process, included in the ERP package.
Definition
BPR means not only change but radical change within a short period. This
change is achieved by complete revamp of organizational structure, business
process workflow, job description, performance measurement and adoption of
information technology. Some of Basic characteristics of BPR are:
45
ERP Modules and  View business as a set of customer (both internal and external) oriented
Business processes rather than a set of departmental functions.
 Processes must have clear cut ownership.
 Non value adding activities within a process should be eliminated..
 Gather information only once at the point of origin.

A successful BPR implementation brings significant improvement to
productivity, customer service and bottom-line. There are pain and difficulties
during implementation and instances where BPR efforts did not achieve desired
result. Notwithstanding, the risk is worth taking. Otherwise, there will be grater
risk of being overtaken by competitors who develop and progress rapidly through
BPR.

1. Business Process Re-engineering evolved in:
a. 1985
b. 1990
c. 1995
d. 2002
2. Business process does not involve:

a. designing a new product
b. hiring an employee
c. purchasing services
d. testing of software
3.3 How Can BPR Be Applied To An Organization?

The concept of business process reengineering (BPR) is to rethink and break
down existing business processes. This allows a company to reduce costs and
improve productivity through newer, more efficient processes. It is important to
remember however, that though there are instances where this is necessary,
business process reengineering is not without its disadvantages. This makes it
46
vital to weigh your decision carefully. One of the most obvious adverse effects of Business
Process Re-
a company‟s decision to reengineer is a lowered employee morale. Most people
Engineering
are vary of change and do not manage to adapt to it easily. This aspect needs to be
kept in mind when trying to make the decision to go through with the activity. The
following steps can help BPR realize its core principles of customer satisfaction,
reduced costs of business and increased competitiveness.
1. Business vision and objectives
Any BPR activity needs to begin with clearly defined and measurable
objectives. Whether the goal is reducing costs, improving quality of product, or
increasing efficiency, the framework for what needs to be achieved has to be
decided upon at the outset, in line with the company‟s vision and mission.
2. Identification and slacking processes
Once a clear goal is in mind, all processes need to be studied and those seen
as „slacking‟ or that can be improved need to be identified. Among these, those
processes with direct impact on the company‟s output or those that clash with the
company‟s mission become part of the „red‟ list. This clear identification makes
the difference between BPR success and failure.
3. Understand and measure the „red‟ processes
With a list of slacking processes in hand, it is imperative to identify how

they were identified as such. Are they taking too much time to complete? Is the
quality of the outcome being compromised? Whatever the issue, each process
must be judged objectively either against industry standards or ethically obtained
competitor best practices.
4. Information system and technology capabilities
An efficient and relevant IT system is an essential BPR enabler. Without

such a system, it is not possible to keep a check on all factors affecting the change.
Before setting out on a radical BPR activity, it is vital to set in place information
systems that can deal with the magnitude of the change.
5. Design, build and test the new prototype

Before any new product is launched, a prototype is tested out. A failure at a
testing stage should never be implemented at a larger scale. BPR projects fail
more often than not for a variety of reasons but a basic reason is the inability to
identify and accept any limitations at the testing stage. Among other factors, both
the management‟s attitude towards the new way of work and the employees‟
outlook towards the change should be carefully assessed.
47
ERP Modules and 6. Adapting the organization
Business
Managing change brought about by BPR activities is the final effort towards
a successful project. Providing updated documentation, organizational structures,
governance models as well as updated charts of authority and responsibility leave
little room for confusion and allow a smooth transition into the new way of work.

1. Which among the is not a business goal of re-engineering?
a. reduction in cost
b. reduction in time
c. maintainability
d. none of these
3.4 BPR Characteristics

Job Integration
 Compressed responsibility for an end to end process : Case worker / Case

team
 Reduces process administration overheads
 Improves control
 Employee is encouraged to find innovative ways to reduce cycle time and

cost and produce defect free product and service
Worker empowerment
 Compressing work vertically and horizontally

Steps in the process are performed in a natural order
 Linear sequencing to need based sequencing
 „Delinearizing „ results less rework
Multi-version Processes
 usually starts with three versions
 Reduces the complexity associated with one-size-fits-all process

48
Work where it makes the most sense Business
Process Re-
 Shifting of work across departmental/organizational boundary Engineering
Reduced Checks and Controls
 To the extend that make economic sense
 Aggregate or deferred controls
 Aggregate patterns rather than individual instances
 Tolerate modest or limited abuse
 Sense a pattern and compare with normative standards
Minimization of Reconciliation
 Cut back the number of external contact points the process has
 Inventory management
 Continuous replenishment
Single Point Contact
 Case manage

1. Which is not a feature of BPR?
a. lowering of process administration overheads
b. less control
c. Worker empowerment
d. all of above
3.5 Theoretical Foundations of BPR

Business process reengineering (BPR) consists of radically transforming
organizational processes through the optimal use of information technologies (IT)
to achieve major improvements in quality, performance, and productivity.
Since 2004, the government has also endorsed Business Process

Reengineering (BPR) as a foundation for strengthening Result Based Performance
49
ERP Modules and Management System in the Civil Service. Scientific Management, Systems
Business Theory and Operations Management are the theoretical and methodological
foundations of BPR. For this reason, most corporations used BPR as
transformation tool during the 1980s and 1990s. However, the characteristics of
government organizations are different from corporate organizations. These
distinguishing features constrain government organizations from emulating the
BPR experiences of corporate ones. Hence, it is important to introduce a
conceptual framework and a working model that facilitate the implementation of
BPR in a particular civil service organization.

1. The BPR transformation tools exist between period:
a. 1980s and 1990s
b. 1970s and 1980s
c. 1990s and 2000s

d. 2000s and 2010s
3.6 Contribution/Role of IT in BPR

Business Process Re-engineering has rapidly developed towards a new
management philosophy. The inherent business process orientation changes the
perspective of international management from a structural to that of a process
view. The re-engineering of business processes is only one aspect of the
management of business processes. In particular, the re-engineering of
international business processes needs special attention, because the multi-faceted
structure of multinational corporations increases the complexity of business
processes, there by influencing the options for redesign.
Business Process Re-engineering has rapidly developed towards a new

management philosophy based upon predecessors like Total Quality Management,
Overhead Value Analysis, Kanban or Just-In-Time-Management. Business
processes can be re-engineered by redesigning the steps, by changing the logical
and temporal sequence of the steps, or by changing any other characteristics of the
process. The role of IT is discussed in contradictory way.
50
Advocates of information systems favor the view that the new technology is Business
Process Re-
an enabler of process re-engineering. IT has to be monitored constantly to
Engineering
determine whether it can generate new process designs or contribute to the
performance of a business process. The breakthrough of BPR is closely connected
with IT, which opens new dimensions of process reorganization. Moreover, those
who take the initiative in process improvement/redesign, influence the role of IT.
If the data processing department initiates the process change, then IT will have
more of a generator function for new process redesigns. If on the other hand, the
top management sets off the change process, then the process will be first
restructured and later optimized through IT.

1. On restructuring software, what is preferred?
a Higher quality programs
b Reduced maintenance effort

c Software easier to test
d All of the mentioned
3.7 Where We Can Apply BPR

Business process reengineering is main way in which organizations become
more efficient and modernize. Business process reengineering transforms an
organization in ways that directly affect performance. Process reengineering is
redesigning or reinventing how we perform our daily work, and it is a concept that
is applicable to all industries regardless of size, type, and location.
The intent of process reengineering is to make organizations significantly

more flexible, responsive, efficient, and effective for their customers, employees
and other stakeholders. According to field experts Michael Hammer and James
Champy, process reengineering requires the "fundamental rethinking and radical
redesign of business processes to achieve dramatic improvements in critical,
contemporary measures of performance, such as cost, quality, service, and speed."
If process reengineering is to work, a business's priorities must change in the

following ways:
51
ERP Modules and (1) From boss to customer focus;
Business
(2) From controlled workers to empowered, involved process owners and
decision makers;
(3) From activity-based work to a results orientation;

(4) From scorekeeping to leading and teaching so that people measure their own
results;
(5) From functional (vertical) to process (horizontal or cross functional)
orientation;
(6) From serial to concurrent operations;

(7) From complex to simple, streamlined processes;
(8) From empire building and guarding the status quo to inventing new systems
and processes and looking toward the future (i.e., from the caretaker
mentality to visionary leadership).

1. Process reengineering concerns with:
a. redesigning
b. reinventing
c. both a and b
d. neither a nor b
3.8 Re-Engineering Computer System

Software development is not always a "green-fields" process. More often
than not, new software engineers are hired to maintain and evolve existing
systems, not to develop new ones. More often than not, if a new system is to be
developed, it has to be integrated with other existing "legacy" software systems.
Legacy systems are valuable software systems that are still in use but are difficult
to maintain, change or migrate because they were developed with technologies of
the past and/or because they were not engineered properly. Very often, these
systems were developed without proper documentation, version control, or proper
design. Many such systems had undergone numerous changes by different people
52
that violate the original system design, if any ever existed. As a result, it is Business
Process Re-
challenging to understand, modify or migrate these systems. Fresh software
Engineering
developers are usually neither equipped with the necessary skills nor have the
desire to work with these software "legacies". Fresh software development is
usually considered superior to software maintenance and reengineering.
Reengineering implies changes of various types and depth to a system, from

a slight renovation to a total overhaul. Some of the typical challenges our clients
have:
 A system was developed for us, but we'd like to change several things,
namely improve the system's functionality, usability, security, stability and
performance; change the system's architecture or adjust it for another
platform.
 We have three systems with roughly the same functionality, which work on
different platforms. As these systems supplement each other, users have to
use all three of them. This makes their work more complicated and adds a
lot of extra work for the system administrators.
 We have a best-selling software solution and received an order from a major

client to modify it. However, no company wants to undertake its
maintenance.
 A software component was written by someone who is no longer with the

company, and there is nobody capable of working on the system's
maintenance.

1. The problems associated with re-structuring involves:
a Loss of comments
b Loss of documentation
c Loss of computational demands
d None of these
53
ERP Modules and 3.9 Steps for BPR
Business
We can generalize Business Process Reengineering (BPR) efforts as an
eight step process as follow –
Step 1: Formulate / Modify business visions, policies, objectives
Step 2: Formulate / Modify business strategies according to changing

customer requirements, technology changes and competition
Step 3: Analyze the existing business process cycles & workflows and
determine how they may be modified or refined
Step 4: Apply IT to setup an optimal Business Information Management

Architecture (BIMA) to support the reengineered business process
Step 5: Modify or redesign the existing processes according to the

reengineering strategies and develop refined Business Process
Automation Systems (BPAS)
Step 6: Apply IT strategies to map BIMA onto an Enterprise Information
Management System (EIMS) that is integrated across the enterprise
and that fits into and supports the reengineered Business process
cycles and workflows.
Step 7: Integrate the EIMS with the BPAS to build up the completed
reengineered business system
Step 8: Repeat steps 1-7 for continuous BPR due to changing customer
demands, technology changes and business strategies, which leads to
business stability

1. Source code translation is part of:
a. Data re-engineering
b. Re-factoring
c. Restructuring
d. All of these
Bu
3.10 Re-Engineering or Re-Developing? Proc
54 Eng
Generally, wholesale re-engineering of a system is a bad idea, because the
system still serves a purpose and its‟ functionality is a moving target. If the system
does not serve a purpose, then what is the point of rewriting it? So, if we follow
the assumption that parts of the system were a good idea and scrapping the system
is a bad idea, how do you modify the system?
BPR is achieving dramatic performance improvements through radical

change in organizational processes, rearchitecting of business and management
processes. It involves the redrawing of organizational boundaries, the
reconsideration of jobs, tasks, and skills. This occurs with the creation and the use
of models. Whether those are physical models, mathematical, computer or
structural models, engineers build and analyze models to predict the performance
of designs or to understand the behavior of devices. More specifically, BPR is
defined as the use of scientific methods, models and tools to bring about the
radical restructuring of an enterprise that result in significant improvements in
performance.
Redesign, retooling and reorchestrating form the key components of BPR
that are essential for an organization to focus on the outcome that it needs to
achieve. The outcome pursued should be an ambitious outcome (as for instance,
are a 24 hour delivery to any customer anywhere in the world, approval of
mortgage loans within 60 minutes of application, or ability to have on-line access
to a patient's medical records no matter where they are in any major city in the
world). These types of visionary goals require rethinking the way most
organizations do business, careful redesign. They will additionally need very
sophisticated supporting information systems and a transformation from a
traditional organizational structure to a network type organization.

1. Which is not the component of BPR?
a. Redesign
b. Retooling
c. Reorchestrating
d. All of these
55
ERP Modules and 3.11 Link between Reengineering Of Computer
Business
Systems and BPR
The relationship between continuous process improvement and
business process reengineering has been a heavily debated topic for some time.
However, these two approaches are very similar because each aims for process
improvement. They only differ in focus. Processes and systems have parts that
perform the work of the system, and relations among the parts that define how the
work should be performed. For example, a business process has employees as its
parts, and procedures and directives as its relations. Both parts and relations must
be effective for the system to succeed in meeting its objectives. Based on systems
theory, changes in a system's relations often represent the largest potential for
improvement because the relations provide the structure in which the system
functions.
Reengineering is the "fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements in critical, contemporary
measure of performance, such as cost, quality, service and speed," according to
Hammer and Champy in Reengineering the Corporation. To achieve such drastic
improvements, a focus on relations is necessary because, according to systems
theory, relations primarily determine system performance.
For instance, consider the traditional engineering company that is organized
by functions. Generally, work flows from design to planning to manufacturing.
An individual within each functional area does his or her portion of the work and
throws the work "over the wall" to the next step in the process. This is a complex
system. Now, suppose that this process is producing unsatisfactory results. If the
company were simply to improve each functional area separately, this
improvement effort would be focused on the system's parts. The positive results
would be minimal.
56
Business
Check your progress 10 Process Re-
Engineering
1. Reengineering involves rethinking and radical redesign of:
a. business processes
b. cost quality
c. quality process
d. service process
3.12 Let Us Sum Up

In this unit we have learnt that business process re-engineering for enterprise
purposes, for example, often involves retiring old databases in favour of an
enterprise data warehouse
It is seen that the concept of business process reengineering (BPR) is to
rethink and break down existing business processes. This allows a company to
reduce costs and improve productivity through newer, more efficient processes.
Answers: (1 – b), (2 - d)
Answers: (1 - d)
Answers: (1 – b)
Answers: (1 – a)
Answers: (1 – d)
57
ERP Modules and
Business
Answers: (1 - c)
Answers: (1 – b)
Answers: (1 - c)
Answers: (1 – d)
Answers: (1 - a)
3.14 Glossary
1. ERP - It is a form of business strategy used to keep track of activities like
purchasing, inventory and order tracking.
2. AVL - A list of suppliers that are approved by company as sources to
purchase materials.
3. Change Management - It is a process of creating, reviewing and taking
approval for engineering requests, change orders and change notifications.
3.15 Assignment
Explain the Contribution Of IT In BPR?
3.16 Activities
Study about Re-Engineering or Re-Developing.
58
Business
3.17 Case Study Process Re-
Engineering
Study the types of BPR Characteristics.

1. Champy, J.A. (1996), Reengineering Management: The Mandate for New
Leadership, HarperCollins, New York, NY.
2. Clark, T. and Stoddard, D. (1996), "Interorganizational business process

redesign: merging technological and process innovation", Journal of
Management Information Systems, Vol. 13 No. 2, pp. 9-28.
3. Cooper, D. and Emory, C. (1995), Business Research Methods, Irwin,
Chicago, IL.
59
ERP Modules and Block Summary
Business
In this block, you have learnt and understand about the basic of production
planning that caters utilization of manufacturing capacity, parts, components and
material resources with production data by analysing sales. The block gives an
idea on the study and concept of business process re-engineering for enterprises.
You have been well explained with concepts of implementation of ERP along
with features such as time, resources, training and patience with various risks
involved.
The block detailed about the basic of Human Resource Module which serves
as e-resource ERP with special features. The concept related to Plant and Machine
Maintenance providing e-resource ERP with integrated solution handling
operational needs of enterprise-wide system will also be explained to you.
60
Block Assignment
Short Answer Questions
1. What is Human Resource in ERP?
2. Explain BPR Characteristics?
3. Write note on Six Sigma for Process Improvement?

4. Write short note on Production Planning and Control?
Long Answer Questions

1. Write short notes on Six Sigma for Process Improvement?
2. Write short note on Re-Engineering Computer System?

3. Write note on Link between Reengineering of Computer Systems?
61
ERP Modules and Enrolment No.
Business
1. How many hours did you need for studying the units?
Unit No 1 2 3 4
Nos of Hrs
2. Please give your reactions to the following items based on your reading of
the block:
3. Any Other Comments

………………………………………………………………………………………………
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62
Education is something
which ought to be
brought within
the reach of every one.
- Dr. B. R. Ambedkar
Dr. Babasaheb Ambedkar Open University

‘Jyotirmay Parisar’, Opp. Shri Balaji Temple, Sarkhej-Gandhinagar Highway, Chharodi,
Ahmedabad-382 481.

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BUSINESS APPLICATION AND INTRODUCTION

Dr. Babasaheb Ambedkar Open University

Knowledge Management and

Graphic and Creative Panel

Copyright © 2015 Knowledge Management and Research Organization.

The need to plan effective instruction is imperative for a successful

BLOCK 1: OVERVIEW OF ERP AND RELATED TECHNOLOGY

BLOCK 2: ERP MODULES AND BUSINESS

UNIT 1 ERP MODULES AND VENDORS

BLOCK 3: ERP IMPLEMENTATION

UNIT 1 ERP IMPLEMENTATION

UNIT 1 CASE STUDIES

BUSINESS APPLICATION AND INTRODUCTION

BLOCK 2: ERP MODULES AND BUSINESS

 About Business Process

 Basic of Accounting and Finance

 Features of BPR Characteristics

 Concept of Re-Engineering or Re-Developing

 Detailed about Inventory Management

 Basic of CMMi Delivery Process

 Idea of Steps For BPR

Unit 2: ERP and Business

1.5 Plant Maintenance

1.7 Material Management

1.9 Production Planning and Control

1.13 Let Us Sum Up

1.19 Further Readings

 Basic of Material Management

 Idea about Human Resource

 Role of ERP Vendors

 Production Planning and Control

1.2 Accounting and Finance

ERP frameworks are produced dependent upon for significant number

Creditor liabilities in addition with records of sales modules would two

Accounts Payable Module (AP)

 Immediate registration of incoming invoices

 Tracking & Authorization of incoming invoices

 Entry of order-based and sundry invoices

 Self-Billing Invoices this is suitable for JIT environment where receipt of

 Accounts Classification for reconciliation

Accounts Receivable Module (AR)

 Accounts classification for reconciliation & Control.

 On-line credit management.

 Reminder letters with varying degrees of severity.

 Aging Analysis reports for review.

 Interest for late payments.

Check your progress 1

b. Accounts receivable module

Standard ERP need an alternate approach to backing MRP preparation

Check your progress 2

a. involves easy addition of production process

c. involves easy reporting

1.4 Human Resource (HR)

Mankind's asset module streamlines those administration for human assets

ERP mankind's asset administration will be a suited about coordinated

 Organizational Management: Organizational management includes,

 Payroll System: Salary management, statutory reporting, attendance

 Time Management: Time management includes shift planning, time

 Personal Development: This section comprises of training and event