ERP Software Solutions

Option for building ERP

MAKE a new Software
MAKE Using External Resources
MAKE Using Internal Resources

BUY a Software

Building using Internal

Resources

Lack of Qualified Manpower

No clear Focus on Expectations, Time & Cost
Poor S/S Project Execution
Lack of Seriousness
High Employee Turnover
Lot of Schedule Gaps during Project Execution
Project Life
Frequent Changes Approval of the
Management

Buying Tailor Made ERP

Solutions
Generalised off the shelf applications
S/W Packages
Modules based on rich functionalities
User tested with lot of installations
No lead Time requirement
Tuned for more users/networks
Parameterized for flexibility
Use of Latest H/W & S/W
Upgradation of functionalities with
version control

Building Using External

Resources

Whole package is designed & built.

Very economical
Less Prone for hidden Cost
The comapnay and the S/W vendor have
direct relationship during the project
execution
IT dept. have good control over project
Maintenance & improvements are easy &
less costlier
IT team can maintain setup after getting
the source code.

Build or Buy
The idea of Build or Buy can be
decided by :
Custom Development and Maintenance
cost
Low risk of Failure
Business Functions

ERP: Small, Medium &

Large Enterprise Vendor
Solutions

Small & Medium Enterprise

Net Fixed Assets of more than 15 million
Singapore Dollar(SGD) in manufacturing
and non-manufacturing companies with
employee base of less than 200 staff.
From April 2011, annual sales turnover of
not more than SGD 100 million (or) have
employee base of less than 200 staff.
SMEs are further broken up in definition
as small enterprise and medium
enterprise.

Contd..
ERP established for 4 decades with the
introduction of SAP, Oracle & Microsoft.
Big companies implemented ERP from
any one of the companies.
The solid reason for ERP vendors to
move in the direction of SMEs is due to
the fact of growing number of SMEs.
ERP S/W got tailored and suits for small
sized companies & increasing
productivity.

Contd..
Effective Data Management helped in
streamlining the business process
effectively.
Flexibility & real time control over
the price and the jobs are the key
features for a small sized company
customers.

ERP Systems implementation

Barriers for SME

Cost
Time
People
User Trainings & System Friendliness
Business Process Management
IT Department & IT Infrastructure.

FUNCTIONAL MODULES

INTRODUCTION
The number of modules vary from one
ERP package to another.
Generally for any ERP system, the
modules are
Financial Module
HR Management Module
Production Planning Module
Plant Maintenance Module
Sales & Distribution Module

Contd..
Materials Management Module
Quality Management Module
Manufacturing Module

Reasons for Selecting ERP

Module

Cost reduction
Specialized module
Reduced Project Duration
Less Risk
Reduced Resistance to change
Purchasing different modules from
different vendors
More features, less training and easy
maintenance

FINANCIAL MODULES
Financial Management is concerned
with not only the adequate acquistion of
funds at the appropriate time but also
its proper utilisation
Subsystems of Financial Management
Financial Accounting
Controlling System
Investment Management
Treasury Application
Enterprise Controlling.

1. FINANCIAL ACCOUNTING
Objective of a good accounting system
is to provide company wide control and
integration of financial information that
is essential to strategic decision
making.
Elements of Financial Accounting
General Ledger
Account Receivables and Payable
Asset Accounting
Legal Consolidation

General Ledger
It is essential both to the financial
accounting system and to strategic
decision making.
Some of the features of GL module are
Automatic and simultaneous posting of all
sub-ledger
Simultaneous updating of general ledger
and cost accounting areas
Inter-company transactions

Accounts Receivables and

Payables
ERP system offer
a financial overview of

global business partner relationships, in the

accounts receivable and payable functions.
Accounts Receivable and payable
transactions are performed automatically,
when related processes take place in other
modules.
Transactions are
Down Payments
Bill of Exchange
Credit Management

Asset Accounting
Manages Companys Fixed assets.
It serves as a sub-ledger to the
general ledger, providing detailed
information on asset related
transactions

Legal Consolidation
Consolidated financial statements
need to be integrated effectively with
operational data the individual
company level.
By using different valuation methods,
Plan balance sheet strategies to suit
customer requirements.

2. CONTROLLING SYSTEM
Gathers the function required for
effective internal cost accounting. It
include
Overhead Cost Controlling
Cost centre Accounting
Overhead Orders
Activity Based Costing
Product Cost Controlling
Cost Object Controlling
Profitability Analysis.

3. TREASURY APPLICATION
It includes
Cash Management
Treasury Management
Market Risk Management
Funds Management

4. ENTERPRISE
CONTROLLING
Optimizes shareholders value, while
meeting internal objectives for
growth & investment.
It contains
Executive Information Systems
Business Planning & Budgeting
Consolidation
Profit Centre Accounting

MANUFACTURING &
PRODUCTION MODULE
The term Production or Operations
are used interchangeably with
manufacturing.
Manufacturing Module should enable
an enterprise to include technology
with business processes to create an
integrated solutions.

Manufacturing Response to
Customers
Manufacturers must respond quickly
and effectively to customer
demands.
The heart of an enterprise
manufacturing system centres on its
integrated planning, business
process and execution capabilities.

Subsystems

Material and capacity planning

Shop Floor Control
Quality Management
Just-in-time/Repetitive Manufacturing
Cost Management
Engineering Data Management
Engineering Change Control
Configuration Management
Serialisation
Tooling

HUMAN RESOURCE
MODULE

INTRODUCTION
HR management is an essential
factor for any successful business.
It will seamlessly integrate with other
modules and improves productivity.
A flexible structure enables quick and
easy customisation of the system to
suit your requirements.

NEED
Recruitment, training, and retention of
sales force is difficult
HR records inadequate
HR paperwork and compliance
requirements increase steadily
Management of compensation packages
difficult
Needs to create a strategy for controlling
the cost of various employee benefits

Subsystems

Personnel Management
Personnel Administration
Employee Master Data
Recruitment Management
Travel Management
Benefits Management
Salary Adminstration
Organisational Management

Contd..

Payroll Accounting
Time Management
Shift Planning
Personnel Development
Training and Event Management

PLANT MAINTENANCE

INTRODUCTION
The Plant Maintenance provides
integrated solution for supporting the
operational needs of an enterprisewide systems.
The modules includes an entire family
of products covering all aspects of
plant/equipment maintenance and
becomes integral to the achievement
of process improvement.

SubSystems

Preventive Maintenance Control

Equipment Tracking
Component Tracking
Plant Maintenance Calibration
Tracking
Plant Maintenance Warranty Claims
Tracking

Purchase-to-Pay Process

Order-to-Cash Process

IS 630 : Lecture 2

37

MATERIALS MANAGEMENT

INTRODUCTION
This Module optimises all purchasing
processes with workflow driven
processing functions, enables
automated supplier evaluation,
lowers procurement and warehousing
cost with accurate inventory.

Subsystems

Pre-Purchasing Activities
Purchasing
Vendor Evaluation
Inventory Management
Invoice Verification and Material
inspections

QUALITY MANAGEMENT

INTRODUCTION
ISO 9000 series and a host of other
intenational standards define the functions
of quality management and the elements of
a quality management system.
In the area of production, quality assurance
is no longer viewed in terms of inspection
and the elimination of defects alone.
Production process itself becomes the focus
of attention.

Contd..
CAQ-Computer Aided Quality
Management
CIQ-Computer Integrated Quality
Management
The Quality Management Module integrates
with master data and processes of the
following applications.
Materials Management
Production
Sales & Districution

QUALITY MANAGEMENT MODULEFUNCTIONS

Quality Planning
Quality Inspections(triggers
inspection, inspection processing
with inspection plan, etc)
Quality Control