ERP can make a business more efficient than ever and also it can create an IT infrastructure for the business. ERP can take care of a lot of work for each section in a business. The structure of ERP for different departments is called modules of ERP or ERP modules.
Different types of Manufacturing ERP modules are:-
(2.) Finance and Accounting module
(3.) Sales and Distribution module
(4.) Production module
(5.) Project Management
(6.) HR and Payroll
(7.) Plant maintenance
Functions of ERP modules:
Management of materials is a tedious and difficult but necessary task in any manufacturing industry. As it ensures the availability of raw materials for production and also to ensure that these materials are not in abundance that can result in wastage which will be adverse for the organization. ERP can simplify things in this area. ERP does the following functions in material management:-
- Material Management process ensures that there is never a shortage of materials or any gaps in the supply chain process of the organization. ERP speeds up the procurement and material management activities making the business run smoother with complete time and cost efficiency.
- It deals with managing the materials (products and or services) resources of an organization with the aim of accelerating productivity, reducing costs and increase improvement and at a similar time be versatile to accommodate changes in day to day life.
- It deals with the Procurement Process, Master Data (Material & Vendor Master), Account Determination & Valuation of Material, Inventory Management, Invoice Verification, Material Requirement Planning etc.
In any business organization, sales are the department that generates revenue. No matter how good your manufacturing operation is, how cutting-edge your technology is, how tight your financial goals are or how progressive and forward-thinking your management techniques are, you must still have a sales mechanism in place, or everything else is useless.
And with the rising competition in markets customer doesn’t like to wait hence it is necessary that customer receives the product as fast as he could and hence leading to the importance of proper and early dispatch.
This makes the management of sales and dispatches important in any organization. Following are the ways in which ERP can help in the management of these departments:-
- Clients’ activities can be found out with the help of ERP, this can be used to create opportunities for sales, ERP can also be used for managing order fulfillment.
- Automation is the current trend in the market. It is used in every department to make processes easy. ERP is used for marketing automation, it provides the ability to generate qualified leads, streamline the sales process, manage multi-channel marketing campaigns, and collaboration between marketing and sales.
- Speed is one of the major factors on which organization depends upon. ERP can provide real-time information about the transactions which took place in the organization
- ERP has the ability to provide fully customizable dashboards providing up-to-the-minute information with the ability to drill down to underlying information.
This module is responsible for turning inputs into outputs through series of production processes. The quality and quantity of the product depend on this department, and hence future sales and success of any organization can be completely linked with this department. This is why proper functioning of production department with good efficiency is necessary. ERP can help increase the efficiency of production department in the following ways:-
- As manufacturers grow, their operations become more and more complex. ERP manufacturing software automates all business operations, providing accurate, real-time information. ERP increases efficiency and productivity by helping users navigate complex processes, preventing data re-entry, and improving functions such as production, order completion and delivery.
- With one source of accurate, real-time information, ERP software reduces administrative and operations costs. It allows manufacturers to proactively manage operations, prevents disruptions and delays, breaks up information logjams and helps users make decisions more quickly.
- ERP software now is flexible and configurable. They are not a one-size-fits-all proposition but can be tailored to the unique needs of a business. ERP systems also have the ability to adapt to the ever-changing needs of a growing business.
Without a proper flow of finance, industry will cease to exist. so it can be said that finance and accounting is one of the most important departments in any organization. Low efficiency in this department can cause an impediment to the flow of money hence leading to inconvenience in all the departments therefore proper functioning of this department is necessary for any organization. ERP helps in ensuring good efficiency in finance and accounting by following factors:-
- Determination of sales and profitability becomes painless due to this module. This module can also manage multiple accounts and supervise the collection of payment
- Multiple payment gateways can be used hence making online payment easy. Online payment is popularity is increasing every day now so this will help the business to not fall behind.
- ERP can provide bills online to the customers hence reducing the efforts of the customer and making doing business with the organization easy.
- The transaction with the customer in retail stores can be updated immediately in the software and thus eliminate the requirement for repetition of process hence saving time
- Financial modules of ERP provide a report of the organization finance and accounting in details. This can be used to determine the organization financial stability and if any changes are required.
The welfare of a project or how well an organization completes a project completely depends on project management. Project management is the discipline of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria. Functions that ERP can do in project management are:-
- The data that is acquired from the project if not saved correctly can lose and this can give rise to many problems. ERP provides a single point for all the data entry of the project hence ending the worry of losing any data about the project.
- Any project cannot be completed by a single department in an organization, and due to the involvement of different departments efficient transfer of data is required. ERP provide this, it creates a single database hence making it easy to transfer data among different departments of an organization.
- Different data structures can create confusion between various departments hence leading to delay in operations etc. ERP provides standardization of data structure in an organization so as to avoid any confusion.
- ERP provides a consistent interface among all business function. This will lead to the understanding of the data from separate function easy.
HR and Payroll module in ERP
No matter how good automation becomes or how advanced the technology of the organization is humans will always be the most important part of the organization. Hence proper human resource is a must in any organization.
Compensating correctly and in time for the work done by people in any organization will keep them motivated to work their hardest without complaints. Hence a successful payroll system will benefit the employers as well as the employees in the organization.
ERP functions in HR and Payroll department are:-
- Because HR is a central function of any business, data related to HR needs to eventually be shared with other teams or departments. With ERP for HR, data is stored in a central location, or brought together to a central location, which means that data from different sources can be shared faster and easier. This also ensures that the right data is shared, thus enhancing overall outcomes and making it simpler for other teams to work together.
- HR systems usually involve data from various locations. This means that there is always a chance of duplicate or incorrect information. An ERP module can help ensure that the data is not only correct but also not duplicated, which can in turn speed up decision-making and enable better decisions to be made.
- A large function of HR, as with many other business processes, is data entry and reporting. An ERP module data will be more accessible. This simultaneously makes it easier to enter and pull data together into reports.
- HR and Payroll modules stores salary details as well as statutory details viz. PF, ESI, Gratuity etc. this makes storing details easy hence avoiding any confusion which can lead to delay in the salary of employees.
- It also keeps records of attendance and leaves records so if an employee is on unpaid leave His/her salary will be deducted fairly or if She/he is on a paid leave She/he will be compensated fairly.
Plant Maintenance Module in ERP
Maintenance in an industry is the most underappreciated necessary job, as without proper maintenance machines will lose their efficiency which will lead to deterioration in product quality leading to drop in sales which can lead to loss and even bankruptcy of the organization.
The uses of ERP in plant maintenance can be classified as:-
- ERP keeps a log according to the breakdown repair in a machine so as to verify when the machine will need maintenance again and if the parts are working as they should or not.
- ERP also keeps the record on the type of maintenance done on different machines. This can verify the effectiveness of a particular type of maintenance and if there is a need to change the process of maintaining a machine.
- ERP keeps details about the manpower required to operate a certain type of machine hence whenever there is a shortage of manpower or more than needed manpower is being used for a particular machine it can be known instantly hence making required adjustments.
- ERP keeps log on details of the spare part, if any, used in a machine. The efficiency of a machine before and after spare part can be measured to look at the efficiency of the spare part used.
Now you know various manufacturing ERP modules
So now you know the common types of manufacturing ERP modules. Using of ERP various departments can be optimized giving results better than ever. But it is also necessary to choose ERP according to the needs of the organization and the processes involved in the organization. With the era of technology, the business that still uses the old ways and doesn’t change its functions, processes, and products according to the market will be left behind. ERP can help in increasing the total efficiency of the organization hence various companies are using ERP to stay ahead in the completion.