Module 4 ERP System
Module 4 ERP System
Module 4
Contents
Introduction; Finance,
Plant Maintenance
Quality Management,
Materials Management
Introduction, SAP AG,
Baan Company,
Oracle Corporation,
People Soft,
JD Edwards World Solutions Company,
System Software Associates, Inc. (SSA); QAD;
A Comparative Assessment and Selection of ERP Packages and Modules.
Introduction to ERP system
Business Process Integration
G/L Consolidations lets one transfer and merge the General Ledger account.
It merges transaction information between separate companies and branch
office locations.
It is also designed to enable subsidiaries and holding companies to run without
being on the same network or accounting database.
G/L Consolidations provides a feature set that allows the company to define the
level of detail to join and provides a comprehensive audit trail.
Features of ERP Finance module
External departments like marketing or purchase will create some of these accounts.
Apart from regular voucher entries, this module will help the authority as well as other departments
by providing financial figures.
Documents like receivable and payable statements are generated from this module.
only authorized person/s will be eligible to access information from this module.
Working of the Finance Module
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Plant Maintenance
Plant Maintenance
Plant maintenance is a type of module that provides an integrated solution which supports the
operational needs of an enterprise.
includes all the products that covers
maintenance of plant or equipment in good operating conditions
to avoid production stoppage and loss.
Plant Maintenance module consists of key activities to include
inspection,
corrective and preventive maintenance,
repairs, and other measures to maintain an ideal technical system
All the activities that are performed under maintenance are interconnected and hence this
module is closely integrated with other modules - Production Planning, Material
Management, and Sales and Distribution
perform automatic repairs and facilitate maintenance requests in an
organization.
It allows you to record problems in ERP system, plan labor and material
activities, and to record and settle the cost.
Activities performed under Plant Maintenance
Inspection
Inspection is done to check the actual condition of a technical system.
Preventive Maintenance
Preventive maintenance is used to maintain high availability of the technical system.
It includes maintenance planning and work scheduling activities for technical
objects.
Repair
Repair involves all measures that can be performed to restore the ideal condition.
Repair process can be performed at many planning stages - like work scheduling,
resource planning and initial costing, etc.
respond immediately w.r.t to a damage events causing production shutdown
create required purchase requisition and processed work orders to reduce the
downtime
Plant Maintenance process
major subsystems of a plant maintenance
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Objectives of Plant Maintenance
• It helps in minimizing the loss of production time due to any equipment failure .
• It helps in quality and product improvement.
• It keeps all the assets in proper working conditions.
Advantages of Plant Maintenance :
• It helps in reduction of breakdown losses.
• It helps in reduction of quality defects.
• It increases net quality profits.
• It reduces maintenance cost.
Disadvantages of Plant Maintenance :
• It increases investments in diagnostics equipment.
• It also increases investment in staff training.
• Saving potential that is not readily seen by the management
Summary – Plant maintenance
spans from
MRP
transactions generated
The Materials
system to complete procurement
Management all master
configuration, the Procure proposals
module data,
and to Pay through final
consists of
process. invoice
receipt and
verification
Sub-components of Materials
management
Vendor Master and Material Master data
Purchasing
Inventory Management
Evaluation of Materials
Invoice Verification
customer satisfaction is can be noticeably increased
Benefits of
basis for high adherence to deadlines and the lowest MM
possible throughput times.
module
for setting up
Material The unit of measure and material classifications
must be descriptive and accurate to ensure all
Management material can be found quickly and efficiently
Module
Get at Right Price
High Turnover
Consistency in Quality
Continuity Of Supply
Objective of
Material
Inter-Department harmony
Management
New Material and Product
Product Improvement
i) Material Valuation:
• Determining the price of the material.
• Helps in recording tracking and moving material.
• It provides divergent inventory valuation methods such as
LIFO, FIFO, Moving Average, etc.
ii) Multi-location Inventory: For large scale manufacturers and
having more than one Distribution Unit - lot tracking, serialized
inventory, and specific costing, are maintained.
Advantages iii) Traceability: Consumer goods and Raw Material consist of Lot
number or serialized number which is used to track the location of
of Material goods.
Management product is sent to the consumer, importing raw material,
System amount of goods available in the Warehouse can be easily
traced by an organization which makes the work of
organization much easier.
iv) Product Life Cycle Management: enables organizations to
make analysis of the new and old product and measure the
demand and supply of that product
Procure to pay in Material Mgt. module
Human Resources Module
Time
Management of
Time management
schedule also Management
work schedule by enables individual
automating and group
schedule piecework
generation is done calculation for
by this functionality. employees’
incentive wages.
Acquired by Koch
Acquired by Oracle
Industries
Acquired by Oracle
SAP (System Applications Products)
The SAP R/3 system is a business software package designed to integrate all areas of a
business.
It provides end to end solutions for financials, manufacturing, logistics, distribution etc.
Introduction,
All business processes are executed in one SAP system and sharing common information
SAP AG
with everyone.
SAP is an Enterprise Resource Planning (ERP) system by SAP AG, company based out of
Walldorf in Germany
SAP software suite that is being implemented as part of re-engineering and Provides end to
end solutions for financial, logistics, distribution, inventories. Present scenario large number
of companies are using sap software for their day to day business activities.
SAP History
SAP ERP
SAP xApps
• HR – Human Resources
• CRM – Customer Relationship
Management
SAP R/3 Architecture
SAP Systems contains 3 layers such as
Presentation Layer, Application Layer
and Database Layer.
• Presentation: – It is a layer where
the user work with SAP GUI. It
interacts with database layer via
Application layer.
• Application: – It interacts between
presentation and database layer
• Database: – It is a central database
that stores all the data of ERP SAP
Systems.
Functional modules
SAP FICO
Stands for FI (Financial Accounting) and CO (Controlling).
The ‘FI (Financial Accounting)’ records, collects, and processes
financial transactions or information on a real-time basis to provide
the necessary inputs for external (statutory) reporting purpose.
SAP CO plays an important role for the management decision making
purpose and for the internal reporting purpose
SAP MM ( Material Management )
contains many aspects such as purchasing, goods receiving, material
storage, consumption-based planning, and inventory. SAP MM
module is fully integrated with other modules in the SAP R/3 System
such as FICO, SD, QM, PM, PP, and WM
Functional modules
PP (Production Planning)
module is used to plan and control the manufacturing activities of a
company.
consists of all system configuration, master data, and complete solution
to Production process
SAP SD ( Sales and Distribution )
The main activities of SD are sales order handling, distribution of
shipments to customers, billing process, customer invoice, delivery.
SD module is fully integrated with other modules in the SAP R/3
System such as Finance, Purchasing(MM), Production Planning(PP)
SAP Human Resources manages complete employee life cycle and
payroll. All aspects are covered from training to appraisal
client/
server Multi-
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Factors
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SAP offering various applications along with the ERP SAP to meet the
SAP customer requirement. The important applications of SAP are as follows.
SAP
SAP SAP Product Life Cycle Management (SAP PLM)
Business
SAP SAP Supplier Relationship Management (SAP SRM)
Suites
The Baan Corporation was created by Jan Baan in 1978 in Barneveld, Netherlands, to
provide financial and administrative consulting services
Baan software is famous for its Dynamic Enterprise Modeler (DEM), technical architecture
and its 4GL language
Baan became a real threat to market leader SAP after winning a large Boeing deal in 1994
Baan was sold at a price of US$700 million to Invensys, in June 2000, facing worsening
financial difficulties, law suits and reporting 7 consecutive quarterly losses and bleak
prospects
Invensys sold its Baan unit to SSA Global Technologies
In May 2006, SSA was acquired by Infor Global Solutions of Atlanta, which was a major ERP
consolidator in the market.
Product Version - BaaN
product is
renamed to
Baan Infor 10
ERP
Infor ERP
Enterprise
LN 6.1
SSA ERP
6.1
BaaN supports
4.0 – 5.2 Unicode
TRITON
1.0 TO 3.1 and comes
with
additional
language
translations
Baan server platform and database
Server Platform Database
• Windows Server, • Oracle,
• Linux, IBM AIX, • DB2,
• Sun Solaris, • Informix,
• HP-UX, • MS SQL Server,
• AS400(Obsolete), • MySQL (Obsolete
• OS390 (Obsolete) since year 2010),
• Bisam (Obsolete),
• Btam (Obsolete)
ERP Ln 6.1 modules
Enterprise Modeler (tg),
Common,Taxation (tc),
People(bp),
Financials (tf),
Project (tp),
Enterprise Planning (cp),
Order Management (td),
Electronic Commerce (ec),
Central Invoicing (ci),
Manufacturing (ti),
Warehouse Management (wh),
Freight Management (fm),
Service (ts),
Quality Management (qm),
Object Data Management (dm),
Tools (tt)
Oracle Corporation
Oracle began in 1977 as Software Development Laboratories (SDL).
founders, Larry Ellison, Bob Miner, and Ed Oates, won a contract from the Central
Intelligence Agency (CIA) to develop a system, called Oracle, to manage large
volumes of data and extract information quickly.
released its first commercial database product client-server Oracle relational
database.
in 1988 released Oracle Financials, a set of financial applications.
Product suite of Oracle: Oracle Financials, Oracle Supply Chain Management,
Oracle Manufacturing, Oracle Project Systems, Oracle Human Resources, and
Oracle Market Management.
Oracle Financials was the foundation for what would become Oracle’s ERP
product.
Oracle is now SAP’s biggest competitor.
Oracle ERP Objectives
Oracle ERP is a cloud-based software solution used to automate back
office processes and day–to-day business activities.
Oracle ERP brings business processes together to
boost collaboration,
drive business productivity, and
support data-driven decisions
to make informed business decisions while accelerating performance
and reducing costs
Oracle ERP's cloud solution, organizations are able to benefit from
cloud technology to gain faster time to value and enhancing scalability
and growth
Oracle ERP Features
One of the most important ERP modules to have is an ERP financial module.
cloud features like accounts receivables, accounts payable, and other related financial
features
The goal of this ERP module is to provide complete
inventory management
ERP procurement supplier portal module gives organizations visibility into all
PeopleSoft was founded by David Duffield, a former IBM employee
PeopleSoft started out offering software for human resources and payroll
accounting,
PeopleSoft strengthened its offerings in the supply chain area with its
acquisition of ERP software vendor JD Edwards.
People Soft
In 2004, Oracle succeeded in its bid to take over PeopleSoft.
Applications
Financials and Enterprise in
Supply chain performance
management management Peoplesoft
(FSCM) (EPM)
PeopleSoft Human Capital Management
(HCM)
allows users to approving a
managing their
execute common promotion
team
HR tasks transaction
to analyze
employee and
viewing a pay slip editing personal
organizational data
via self service information
via analytics
software
Supply
Management –
Procurement
Versions of JD Edwards
• first version of the software is called JD Edwards
World,
JD Edwards • runs on the IBM hardware AS/400 ,
World • very accounting focused,
• used by mid-sized businesses.
Consumer
Package Manufacturing Distribution Asset Intensive
Goods
Engineering
Other Project-
Construction Home Builders and
based
Architecture
Service-based
One View Reporting: Real-time, built in reporting to
access data and create list, charts, graphs and
more
Cloud capabilities
Features for streamlined and modern user
experience
JDE Mobile Applications: There are over 88 mobile JDE
features apps available for users who want to utilize a mobile
platform
Internet of Things: An integrated IoT platform
Infrastructure Tools and Integrations: Flexibility and
options as far as platform, database and hardware
options
System Software Associates, Inc. (SSA);
QAD;
Comparative Assessment and Selection of ERP Packages and
Modules
Based on
Gartner report