ERP WORK FLOW &

PROCESS MODELLING FOR

ERP SYSTEMS


By Gaurav Verma
(Roll No:8116688512)

The aim of an ERP system is to provide an integrated
solution to all business areas of a particular enterprise.
Ideally, you have one software system that the entire
company can access and work with. So, for example, all the
data for finance, sales, accounting, human resources and
inventory is managed in one central repository and each
business group within the organization accesses only the
subset of data that they need
Workflow as a concept is
nothing new.
Even before the era of computers, there
have always been established procedures
for handling operations within a corporate
structure. Take a purchase order, for
example: an employee notifies their
manager that they require a particular item;
the manager then puts in a requisition,
which, depending on his level of authority,
may need to be bumped further up the
management chain until it is authorized; it
is then handed over to the purchasing
coordinator and finally purchased
The workflow can be relatively
straightforward or very complex
The workflow can be relatively
straightforward or very complex, but it is
basically a business process that
consists of a number of sequential tasks
performed in a particular order or
following a set of rules that is designed
to facilitate a particular objective.
Examples of processes
Examples of processes for which
workflows are commonly in place
include order processing and fulfillment,
sales cycle and campaign management,
performance reviews, medical/insurance
claims processing, expense reporting,
warranty management, invoice
processing and more.

The ERP workflow at a part of
BPM
The ERP workflow can be part of the
larger concept of Business Process
Management (BPM), which is a more
holistic approach to business processes.
Companies that employ BPM aim to
optimize their business processes while
striving to be more efficient, more
effective, and improve the level of
tracking and control built into their
processes as a whole
BPM and workflow implementation force
companies to sit down and evaluate their
processes and the rationale behind them:
what is the flow of a particular task (e.g. draft
-> ready -> financial approval -> final
authorization -> sent to vendor)
what possible scenarios exist, what rules
need to be applied at each stage of the
process (e.g., a purchase order cannot be
moved from a status of cancelled to sent
to vendor or any order over $10,000 needs
another level of authorization)


who is involved at each stage and what
level of authority should they be granted
Effects of Creating a detailed
blueprint of business
processes:
streamlining and regulating the workflow
facilitates a greater degree of control
enhanced ability to respond to any
potential issues
increased efficiency
accountability and transparency for
continued auditing and analysis of the
process.

Extra Utilites of BPMs
In many of the available solutions, in addition to
automating the routing of documents and tasks from
one person to another
email or SMS notification is employed to inform the
next person in the chain of events that a document
or process requires their attention
Rules can often be set so that another person in the
chain is notified if a document remains at a particular
status for too long (e.g. if the tracking document for
an item in a repair shop remains by a certain
technician at the status in process for more than
two days, both the technician and his or her
supervisor will receive automatic notification so that
they can investigate the delay).

Extra Utilites of BPMs
BPM and workflow functionality are
increasingly a part of many ERP solutions, and
it makes sense to implement such process
maps and controls early in the game in order
to maximize the benefits of the ERP system.
Some ERP vendors offer built-in workflow
functionalities, while others offer possibilities
for third-party integration. If third-party
solutions are employed, its very important that
the ERP and BPM/Workflow groups
understand and communicate about the
technology and processes that are being
implemented.

++ Remember++
workflows involve humans, and the people involved
at all levels of the process should also be involved in
the initial mapping out of the processes before they
are implemented. While mapping out the process,
you may discover new and better ways to perform
tasks or provide better oversight. The defining and
modeling phase is often a learning process for both
employees and managers. Collaboration during the
definition process can produce enhanced processes,
improve performance of both the system as a whole
and of individual employees, and ultimately foster a
sense of ownership in each individual regarding his
or her part in the process itself.

Conclusion and to recap:
workflow and BPM systems control the flow
of information between individuals or
departments, and direct it to the next
appropriate processing stage according to
an established workflow map.
A good system should enable managers to
monitor the progress of a particular
process within the workflow, handle
exceptions, escalate individual exceptions
and generate reports that can be used to
improve performance.
Conclusion and to recap:
It is therefore advisable that you make
BPM and workflow one of your priorities
when selecting or implementing an ERP
software solution.

THE END