GOLDEN SUN

ERP
MODULES
Project/Initiative
04/11/ 2016
Version 1.0

Company Information

Contents
1

Document Revisions............................................................................................. 4

Approvals............................................................................................................. 4

ERP (Enterprise resource planning) Modules:.......................................................5

Inventory:............................................................................................................. 6
4.1

Features:........................................................................................................ 6

4.2

Advantages:................................................................................................... 8

Sales and Marketing........................................................................................... 10

5.1

The important components of sales modules:.............................................10

5.2

Advantages:................................................................................................. 12

Purchase:........................................................................................................... 15
FEATURES/FUNCTION HIGHLIGHTS........................................................................15
6.1

Features:...................................................................................................... 16

6.2

Advantages:................................................................................................. 18

Finance & Accounting:........................................................................................ 19

7.1

Features:...................................................................................................... 19

7.2

Advantages:................................................................................................. 20

Customer Relationship Management (CRM):......................................................22

8.1

Features:...................................................................................................... 22

8.2

Advantages:................................................................................................. 23

Engineering / Production module:......................................................................25

9.1

10

ADVANTAGES............................................................................................... 31
SCM (Supply Chain Management)...................................................................32

10.1 Supply Chain Management has three business objectives;.........................32

10.2 Advantages.................................................................................................. 33
11

Product Data Management (PDM)...................................................................34

11.1 PDM systems are composed of:...................................................................34

11.2 Advantages.................................................................................................. 35

Version
Number

Date
04/11/2016

1.0 of ERP

Document Changes
Initial Draft

1 Document Revisions
2 Approvals
Role
Project Sponsor

Name
L N GUPTHA

Business
Manager

L S RATHORE

BUSINESS
MANAGER

Project Manager

KHALEED

MANAGER

04/11/201
6

MURALI

LEAD

04/11/201
6

System
Architect
Development
Lead
User
Experience
Lead
Quality Lead

Title
CEO

Signature

Date
04/11/201
6
04/11/201
6

3 ERP (Enterprise resource planning) Modules:

What types of ERP systems are there?
Depending on the size of your ecommerce platform, the size and structure of an
ERP systems will vary. Since the online retail industry is a digitally driven nowadays,
ERP systems can monitor, manage and increase visibility with regard to critical
components of a business's foundation. Your ERP software need to be integrated
with other aspects of operations, though, otherwise it won't be effective.
There are two types of ERP modules:

There

On premise: An on premise ERP system is a series of servers at the actual

location of a given business. Some companies prefer to have the
infrastructure on site so they can fix any issues on their own accord. Also,
some businesses don't like letting go of company information in fear of cloud
security strength.
Cloud-based: ERP as a service, or in the cloud, is when a company stores all
of its integrated data in a massive sever hosted by a third-party vendor.
These services charge an upfront fee, but there's no maintenance and
upgrade costs to the partnering company. Cloud-based options offer a more
flexible solution and create an agile workspace for businesses that use cloud
ERP.
are

many

vendors

in

market

which

are

providing

traditional ERP

solutions or Cloud based ERP solutions. Though implementation platforms or

technologies are different, there are common & basic modules of ERP which can be
found in any ERP System. Depending on organizations need required components
are integrated & customized ERP system is formed. All the below mentioned
modules can be found in any ERP systems

Inventory

Sales & Marketing

Purchase

Finance & Accounting

Customer Relationship Management(CRM)

Engineering/ Production

Supply Chain Management (SCM)

Product Data Management

Inventory:
Efficient inventory management should be able to rapidly

respond to customer requirements; at the same time should be flexible enough to

undertake any corrections when required. The ERP Inventory management module
offers a host of advanced warehousing features such as modification, balancing,
transfer, and reverse operations.

4.1 Features:
Multiple Warehouses:

A separate inventory can be maintained at any

number of
Locations. In Addition, Items can be transferred between
Ware house locations.
Flexible Item Numbers:

Accurately identify items using up to 30

alphanumeric
Characters according to the needs of each of your
companies.
Embed meaningful information in smart part numbers
such as
UPCs, a vendors number, recycling codes, Special
handling
Requirements information, and more.
Physical Count:

Inventory can be physically counted without

interrupting the
Normal

Sales

order

Entry

process.

Physical

Count

Worksheets
Simplify the physical count process and speed data entry.
A
Variance report provides data that highlights
Alias Item Numbers:

Assign alias item numbers to each customer and

vendor. Alias
Items permit you to type alias item numbers in the
Purchase

Order and Sales Order modules, allowing the system to

find
Regular item records and stock status.
Sales Kit Processing:

Groups of items priced and sold together can be

defined as sales
Its. A single-level bill of components can be defined for
each kit. The Sales Kit Listing, Sales Kit Where-Used
Listing, and Costed Sales Kit Report are available. Sales
kits can be entered during order entry to automatically
explode the components.
Comprehensive Pricing:

Detailed price schedules based upon customer price

levels and
and costing

the quantity sold can be created for each item. Prices can

be
Calculated as a discount of the standard price or markup
of the
Standard cost and can be calculated based on standard
cost,
Average cost, LIFO, FIFO, and lot/serial methods. Sales
Promotions and customer contract pricing may also be
Established.

Standard,

last,

and

average

costs

are

maintained for
Each item regardless of costing method.
Transaction History:

A detailed history of all inventory transactions can be

retained
Indefinitely, and a transaction audit trail can be produced
for a
Specified date range.
Bar-Code Printing:

Inventory labels with bar codes can be printed for

inventory items.
Both Code 39 and Code 128 bar-code formats are
supported for
A variety of printers.

Reordering:

Report lists stock on hand that has reached a specified

Reorder point (which is unique to each item at each

location). The
Suggested reorder quantity can be based upon an economic
order
Quantity, maximum stock quantity, or reorder point.
Commission Method:

Commission on each item can be calculated using

different
Methods. Commissions can be based upon percentage of
price,
Percentage of cost, or percentage of gross profit plus a base
Commission amount.
Item Delete/Renumber/: A separate inventory can be maintained at any number
of locations.
In addition, Items can be transferred between warehouse
locations.
Drill-Down from Item:

View inventory items in sales history and drill down to all

invoices
Inquiry

for that item and a specific customer. Details include invoice

Number, invoice date, quantity, and price.

Unlimited Vendors Per:

The lookup displays the last purchase price of an item,

the lead
Item

time (based on the date of the last purchase order

compared with
The date of the last receipt), and available quantity price
discounts.

Warranty Tracking:

The warranty expiration date for items, optionally

calculated on
Shipment or Invoice date, prints on invoices and packing
slips for

Your customers.
Lot/Serial Tracking:

Items may be tracked by lot or serial number. This helps

improve
Quality while providing an audit trail to the source purchase
order
Or work order.

4.2 Advantages:
No business can operate without inventories. It needs
inventory as a protection against uncertainty, for efficient processing of material,
and to permit transit and handling. So the companies carry inventory for following
reasons:
1. Uncertainty of demand:
Uncertainty of demand and lead time necessitate building of
safety stock. These are also called as buffer stocks. Larger the uncertainty of
demand and supply; the larger will have to be the amount of buffer stock.
Inventories protect him against unforeseen failures in supply or increase in demand.
Even a tire on a suppliers delivery truck could interrupt production if it delayed a
shipment of needed material. Inventories protect production against no anticipated
delays.

2. Uncertainty in lead-time:
The supplier is usually not in a position to supply goods as
per decided dates or as he promises. In the context of the vendors in India it is
observed that there is a rather rare supplier who supplies as per promises and of
the quality essential. This situation leads to overstock the quantity.
3. Time lag in deliveries:
Time lag in deliveries also necessitates building of inventories.
If the replenishment lead times are positive then stocks are needed for system
operation.
4. Stock built up for scale of economy:

Stocks may be maintained to get the economy of

scale so that total system cost due to ordering, carrying inventory and backlogging
are minimized. Unit cost normally is lowest when material is purchased, handled,
and processed in large quantities, which in turn generates larger inventories. In
addition, inventories act as a cushion between operations or processes.
5. Pipeline inventory:
Stock may build up as a pipeline inventory or work-in-process
inventory due to continuation of production and transportation rates. This includes
materials actually being worked on or moving between work centers or being in
transit to distribution center and customers.
6. Seasonal demand:
When the demand is seasonal, it may become economical to build
inventory during periods of low Demand to ease the strain of peak period demand.
7. Quantity discounts:
Inventory may also be built up for other reasons such as:
quantity discounts being offered by suppliers, discount sales, anticipated increase in
material price, possibility of future non-availability, etc.
8. Transport:
Materials may be transported thousands of miles before they are
incorporated into an end product.
9. Ease of production system:
Company sales and manufacturing department find it convenient to
have stocks that are more than required. The marketing as well as manufacturing
persons feel the safe and secured. Scheduling, production control and inventory
management are more difficult and costlier when stocks are kept at optimum level.
The manufacturer may lack the skills necessary for such control or be unwilling to
incur the control costs, so he carries extra inventory in order to prevent stock units.
10. Future cost increase:
Sometimes the material manager expects prices of materials to
rise in near future. So he purchases stock at lower prices.

5 Sales and Marketing

Sales and marketing processes are part of ERP and generally
are incorporated into the customer relation management (CRM) module of
corporate ERP systems. A sales and marketing ERP software allows activities which
begin from contacting customers which are referred to as pre sales activities to be
recorded. It also allows tracking of each customer orders right from placing an order
to dispatch of material for that particular order and customer.

5.1 The important components of sales modules:

1. Sales inquiry handling
2. Sales pricing control
3. Sales contract handling
4. Sales order control
5. Sales invoicing

Sales inquiry handling:

Margin Control: Margin control is based on cost price, standard sales price
or retail price. The system verifies if the price quoted is as per allowable margin.
Allowable margin may be configured to vary from user to user, whereby a user with
higher level of authorization may confirm a transaction which was disallowed by the
system for a user with lower level of authorization.
Quotation is made in response to enquiry from a customer. Quotation may
be created for a standard or customized item. Terms of payment is suggested by the
system from the credit rating of the customer and delivery date is obtained from the
Available to Promise (ATP) data of inventory module. Price and discount amount for
each item of the quotation may be obtained automatically from price book. If the
quotation is successful, it is processed for generation of sales order. If the quotation
is unsuccessful, the reason of failure and name of successful vendor are recorded in
the system for future reference.

Sale Pricing Control:

Sales pricing control helps to maintain prices for items, details of
discount structure and special discount given to some category of customers such
as Original
Equipment Manufacturer (OEM). A price book originates with base price for the item.
A single level discount rule with a minimum or maximum quantity or pricing break,
is attached to price book. Additional pricing conditions such as category of suppler,
delivery schedule etc. may be formulated in a matrix format, for attaching to the
price book.
Sales Contract Handling:
This process relates to recording long term agreement
with customer for price, discount, delivery etc. Normally, a validity period and
minimum committed quantity forms part of the contract. Cumulative called quantity
by the customer, delivered quantity and invoiced quantity are maintained in the
system for control purpose.
The easy way of making a contract for existing customer is
by copying an old contract and doing modification in the system. For a new
customer, data related to header and lines are entered in the requisite session. The
system helps in evaluating the contract at any given time, and customer may be
reminded for any failure to meet their part of commitment.
Sales Order handling:
This process allows a company to manage sales operations
quickly and efficiently. This process handles regular sales order, cost order,
customer return and collect order. Through use of templates, the system allows
quick data entry process to manage products ranging from standard to Engineering
to Order (ETO). On time ATP helps in identifying when a product is available for
delivery and making necessary commitment/allocation for the same. Rebate and
commission process enables automatic calculation of commission to be paid to
sales employees and channel partners.
Sales invoicing:
This process facilitate billing functions such as issuing of
invoices based on goods / services provided, generating preform invoices, issuing
credit notes resulting corresponding entries in accounts receivable and control
account of general ledger.

5.2 Advantages:
Using sales management software offers wide-ranging
organizational benefits for an enterprise, and can help it to achieve its competitive
and profit goals. The best sales management software aids in business budgeting
and planning to improve a small business overall success.
Strategic Account Management:
A top rated sales management system can be a knowledge
database that provides access and information about sales accounts. This can help
to reduce the challenges and Problems faced while handling a large portfolio of
accounts. Companies will be able to identify the sales accounts that provide the
most promise and revenue. And, they can filter out the less promising accounts.
This enables sales managers to distribute and prioritize accounts effectively. The
sales team can pitch unique promotions and packages to each account to enhance
the chances of closing the deal.
Leveraged Analytics:
Comprehensive analytics is essential for improved business
planning. Implementing a good sales management software system can help a
business assess sales cycle, target characteristics, competitive positioning, and the
effectiveness of sales campaigns and tools. These analytics can assist sales reps to
concentrate on business areas that are most productive and profitable.
Accurate Forecasting:
Inadequate information can lead to inaccurate sales
forecasts. The best sales management software systems capture data efficiently
and provide critical information that helps sales reps to make accurate forecasts.
The data is easily managed and projected. This simple procedure can be quite a
relief for sales managers.
Effective Inventory Management:
A good sales management software system can help to
manage inventory more effectively. It can provide up-to-date information on the
latest inventory scenarios that can help sales managers to make important
decisions on new deals. They can utilize existing inventory to provide goods to the
most profitable current customers.
Focus on Automated Business

Businesses can cut expenses, save time spent in manual work,

and reduce risks. They can focus more effectively on their core competencies and
overall management, and spend less time on time-consuming manual tasks.
Easy to Use
A top rated sales management software tool is easy to use because
of its intuitive interface. It can make a sales reps job more simple by providing
quick access to data and links. You can use the application to improve conversion
ratios and revenue, and to expand the customer base.
Analysis and Reports
Sales management software can help a company gauge the
effectiveness of its various sales and marketing campaigns. It can determine if
traffic volumes and sales conversion ratios meet the set targets. Past performances
can be analyzed, and shortcomings can be identified and mended to improve
revenue and profit.
More Focus on Sales
Sales reps would be able to focus on core activities and not on
administrative work. Since up-to-date information is available on customers, the
sales team can easily sell services and products to them. Sales reps can easily
access information in the centralized database from anywhere, anytime, whenever
they need it.
Customizable Options
The sales management software system can be easily customized to suit
the requirements of the company. This can help to prepare unique sales data for
each individual team to enhance their effectiveness and productivity.
Helps to Manage Lead Sources
You would be able to calculate the returns you get from each lead source.
This would enable you to allot the most resources and money to useful and effective
lead sources. You would thus be able to save money spent on less effective lead
sources and focus on the lucrative ones.
You can Convert More Leads:

You would be able to match sales leads with specific agents by using sales
management software. For example, you can send an agent who is an electronics
specialist to a lead who is the proprietor of a television business.
This will increase the chances of closing the deal. You would also be able to
identify which sales reps have built good rapport with customers, and match them
to increase sales and profit.

Provides Useful Notes on Previous Customer Interactions:

Sales management software can be used to note down details of previous
interactions with customers and the outcomes of previous calls. When a prospective
customer calls your company, they would not have to repeat everything again. The
sales rep who takes the call
Would merely have to read the notes to get up to speed on what is the deal with
this customer. He or she can take effective action to carry forward the conversation
and close the deal.
Eases Load on Your Employees:
Some businesses make their employees work on multiple programs and
tasks. This increases their workload and stress as they have to keep toggling
between these various programs. Sales management software enables marketers,
sales agents, and customer service reps to perform all their tasks in the same data
repository. They would be able to handle their CRM, sales goals, and lead
management without having to alternate between various programs. This reduces
work-related stress on employees and makes them more efficient, which leads to
increased sales and lower attrition rates.

6 Purchase:
An efficient and robust Purchasing module is key for all
distributors. The purchase order management module in resource ERP includes Ontime Requisition, Contract Management, and Rate Sealing with vendors, Vendor
Management. This module also offers

Access to approved supplier, purchase order management, purchase enquiry to be

floated to multiple vendors on just a click of a button.
This module is fully integrated with other module in resource ERP.
The purchasing module of

resource ERP supports all phases of

material

management, material planning and control, purchasing, goods receiving, inventory

management and invoice verification. The purchase module communicates with
other modules to ensure a constant flow of information.

FEATURES/FUNCTION HIGHLIGHTS:

Modular Integration

Direct integration with Inventory, Replenishment,

Production Order Processing, Entry, Accounts Payable, and General Ledger

Item Catalogs the ability to store multiple vendors, vendor item code, and
vendor cost per item. This makes data entry more efficient and ensures that
the costs used on your purchase orders are accurate
Approved Vendor Lists- restrict which vendors items can be purchased from

Compliant Vendor Tracking- track which vendors have not yet sent Full
Material Disclosure information on items purchased from them

Non Stock Items purchase orders can be processed for items not stocked in
inventory such as supplies, capital expenditures, and services

Requisitions automatic creation of requisitions for customer back orders

that in turn create purchase orders to your vendors

Blanket Purchase Orders-create a master blanket purchase order that is then

released and shipped in increments when requested from vendor

Drop Shipments by specifying in order entry via order type, a drop ship
customer order automatically creates a vendor purchase order to your
preferred vendor at your contract cost

Automatic Reordering if the Replenishment module is also in use, purchase

orders will be created automatically for items that fall below user specified
reorder levels

Automatic Release of Customer Back Order when purchase orders are

received, in addition to updating your quantity on hand and General Ledger,
any items on back order will be released in oldest order date order.

Interface with Accounts Payable when you receive the vendor invoice there
is no need to enter the purchase information again to record the liability.
Simply bring up the PO, enter the invoice number and date, and post to

Accounts Payable thereby creating an open payable item to the vendor. If

there are any variances in cost between the purchase order cost and invoice
cost, these will be listed on the Price Change report for your review.

6.1 Features:

Modular Integration Direct integration with Inventory, Replenishment,

Production Order

Processing, Entry, Accounts Payable, and General Ledger

Item Catalogs the ability to store multiple vendors, vendor item code, and
vendor cost per item. This makes data entry more efficient and ensures that
the costs used on your purchase orders are accurate

Approved Vendor Lists- restrict which vendors items can be purchased from

Compliant Vendor Tracking- track which vendors have not yet sent Full
Material Disclosure information on items purchased from them

Non Stock Items purchase orders can be processed for items not stocked in
inventory such as supplies, capital expenditures, and services

Requisitions automatic creation of requisitions for customer back orders

that in turn create purchase orders to your vendors

Blanket Purchase Orders-create a master blanket purchase order that is then

released and shipped in increments when requested from vendor

Drop Shipments by specifying in order entry via order type, a drop ship
customer order automatically creates a vendor purchase order to your
preferred vendor at your contract cost

Automatic Reordering if the Replenishment module is also in use, purchase

orders will be created automatically for items that fall below user specified
reorder levels

Automatic Release of Customer Back Order when purchase orders are

received, in addition to updating your quantity on hand and General Ledger,
any items on back order will be released in oldest order date order

Interface with Accounts Payable when you receive the vendor invoice there
is no need to enter the purchase information again to record the liability.
Simply bring up
The PO, enter the invoice number and date, and post to Accounts Payable
thereby creating an open payable item to the vendor. If there are any

variances in cost between the purchase order cost and invoice cost, these will
be listed on the Price Change report for your review

Other Features, including:

Add additional costs such as inland freight and duty to items
received to achieve a true landed cost
Vendor Rebate Processing

REPORTING:
Reports available include:

Open Purchase Order Summary By PO Number, Buyer, or Vendor

Open Purchase Order Detail By PO Number, Buyer, or Vendor

Goods Received By GL Code

Purchasing log
Price Change Report (PO vs. Vendor Invoice)

Expected Receipts Report

Direct/Drop Ship Status Report

Purchase Replenishment Advice

Requisitions Created From Order Entry

Rebates Due Report and Rebates Expiration Report

GL Activity by Account Number for Purchase Transactions Only

6.2 Advantages:
A key way for business owners to better understand, control and manage
costs is an effective purchase order system. A purchase order (PO) is a contract
between a buyer and seller to purchase goods or services. It includes: a unique and
sequential number, quantity, price, ship to and billing addresses, authorized
signature, terms, and method of payment.
Here are four benefits of an effective PO system:
Approve cost before incurred
The primary benefit of a purchase order is approving an expense or purchase
before it is incurred. Companies are better able to manage budgets, understand
costs and proactively

Run projects. It puts the approval where it belongs at the beginning of the
purchasing process. Notify suppliers or vendors of authorized team members and
their approval limits.
Enhance internal controls
Two critical points of control are: items received against what was ordered,
and pricing. A unique PO number is the key reference number for the document.
This will become the control number that links the supplier documents: purchase
order, delivery ticket and invoice. The numbers are sequential which adds a level of
control to limit abuse.
Manage committed costs
When a purchase order is executed by the buyer and seller it commits both
parties to the terms on the document.

Committed costs of a project are costs

committed but not incurred PO issued but goods not delivered. This is most
helpful for items with volatile pricing, in great demand or requires long lead times.
Improve project profitability
A common mistake when managing project profitability is looking at costs
incurred (actual invoices received). This is a partial picture. To understand the true
profit of a project, committed costs must be included in the analysis.

Expected

revenue minus total costs (incurred cost plus committed costs) equals the potential
profit.

7 Finance & Accounting:

A financial management system is the methodology and software that an
organization uses to oversee and govern its income, expenses, and assets with the
objectives of maximizing profits and ensuring sustainability. Irrespective of your
business depth, whether it is stretched across the globe or locally focused, ERP
Financial Management module is tightly integrated all your business needs.

ERP

module comprises of material management to human resource to logistics.

7.1 Features:
1.

Automation

Procedures:

and

Management

of

End-to-End

General

Accounting

Financial management software systems streamline and enhance all basic

administrative financial processes from start to finish, such as accounts payable,
accounts receivable, cash flow management, purchasing, payroll, and general
ledgers.
2. Support for Worldwide Financial Processes:
With a financial management software package, companies have the tools
and technologies they need such as support for multiple currencies and
conversions, languages,
Country-specific laws and guidelines, and multi-national transactions to better
coordinate activities that span multiple departments and business units, and
improve the execution and management of all financial tasks across all global
locations.
3. Planning and Forecasting
Companies who utilize financial management software solutions have a
dramatically enhanced ability to leverage historical data to predict future financial
activities such as trends and patterns in income, revenues, and expenses.
Additionally, a financial management software system can allow an organization to
understand how certain potential scenarios, such as market conditions, acquisitions,
or the additional of new business units, can impact its financial status. This makes
strategic planning more accurate and successful.

4. Cash Flow Management and Tracking

Tracking income as it is recognized by disparate departments and business
units and monitoring how funds are spent across various divisions and locations are
faster, easier, and more accurate with a financial management software package.
By

streamlining

consolidations,

allocations,

budgets,

and

other

cash

flow

management tasks and activities across an entire

Enterprise, financial management software delivers a complete, unhindered, realtime

view of cash flow status as well as all related transactions.

5. Advanced Reporting and Analysis

The ability to rapidly generate thorough, consistent, and highly accurate

balance sheets, profit and loss statements, budget allocations, and other important
financial reports is a key feature of todays most popular financial management
software applications. Many financial management software packages also provide
in-depth ad hoc analysis capabilities, so that financial professionals can easily
create custom reports to satisfy their own unique information needs.
Many of the financial management software packages on the market today are built
on powerful architectures that provide:

Advanced security features to prevent unauthorized access to confidential

financial data.

Web-based access to eliminate cumbersome client/server implementations

and maintenance while ensuring anytime, anywhere access to vital financial
information.

Seamless integration with other business applications to ensure rapid

information sharing and full collaboration.

7.2 Advantages:
Workday Financial Management helps you achieve the highest levels of business
performance and financial excellence.

Get immediate visibility into financial performance

comprehensive financial and operational reports.

with

real-time,

Accommodate multiunit, multibank, and multicurrency requirements for

global organizations and support alternate chart of accounts, global tax, and
withholding framework.

Manage your global business with country-specific configurations, language

translations, and enhanced document sequencing.

Adapt to and accommodate new business and regulatory requirements as

they arise without additional customizations or technology investments.

Ensure proper security and support compliance efforts with embedded

controls and an always-on audit trail.

Track and manage your business bank accounts.

Automatically reconcile bank statements.

Use a single settlement engine to manage all payments generated across

your entire business, including payroll, supplier payments, employee expense
reimbursements, and customer refunds.

Gain real-time visibility into cash balances and more accurately forecast cash
flow with embedded analytics.

Track low-cost and zero-cost items that have high value or liability (such as
mobile devices or security badges).

Assign custody and responsibility of items to workers to prevent cost leakage

and security risks due to worker turnover.

Get immediate visibility

consolidated reports.

Reduce the time spent compiling, reconciling, and consolidating data from
fragmented systems.

Securely access financial reports from anywhere using a web browser or

mobile device.

Configure and monitor business processes and workflows.

Report on transactions and get full audit reports on any and every transaction
processed in the system.

Manage all your business controls centrally, while allowing for variations for
local regions or specific countries.

into

financial

performance

with

real-time,

8 Customer Relationship Management (CRM):

CRM software consolidates customer information and
documents into a single CRM database so business users can more easily access
and manage it. The other main functions of this software include recording various
customer interactions (over email, phone calls, social media or other channels,
depending on system capabilities),

8.1 Features:

Modular Integration Direct integration with other ERP modules

Account Management CRM allows users to enter and maintain various

demographic and other information about suspects, prospects and
customers, and even other organizations like business partners, associations
and competitors. Companies can be organized into hierarchies to track the
parent-child relationships of parent companies and subsidiaries at multiple
levels.

Contact Management An unlimited number of contacts can be

maintained for each company/account, with one being designated as
primary for each Account. Multiple phone numbers, email addresses and
physical addresses can be managed for each contact.

Lead & Opportunity Management CRMs Lead and Opportunity

management capabilities allow sales and marketing personnel to track
interactions and interest with Accounts from the very first (e.g. a trade show
lead) to multiple individual sales opportunities for different products or
services the Account may be interested in, with forecasting and tracking.

Quotes & Proposal Management With CRM you can quickly and easily
see quotes and proposals that you have sent your prospects and customers
and turn these into sales orders when they are sold.

Team Selling Support is designed with team selling capabilities built in

that will continue to be enhanced over time to support a robust role-based
multi-member Account team model that is typical in more sophisticated sales
organizations, but can also be used in more simplified settings with singlemember or small sales teams.

Activity & Project Management CRM lets users manages all kinds of
Activities within like calls, appointments, to-dos as well as build their own
specialized types of Activities and track them. Projects are templates of
reusable sets of Activities that can be scheduled and assigned to all or just
Primary Contacts using CRMs Campaigns features.

Campaign Management CRMs Campaigns capabilities allow sales,

marketing and service/support teams to build robust multi-media/multimodal campaigns that can be scheduled, assigned and managed to various
lists of Accounts based on user-defined criteria.

List & Query Management The CRM module of ERP allows users with
proper access the ability to build, use and reuse powerful SQL queries via a
standard Query by Example query capability. These lists can then drive
Campaigns or feed other applications targeting prospects and/or customers
with your companys communications or other interactions.

Case/Incident Management CRM includes a powerful Case Management

capability that allows customer service/support personnel to track and
manage cases/calls/incidents/issues/etc. Help desk or call center users can

assign cases to the most competent/available personnel using a rules-based

facility.

Problem Management Tracking problems and identifying trends so that

major customer service issues can be addressed proactively is an important
feature that CRMs Problem management feature helps automate.

Sales Lead & Support Call Dispatch Rules can be set up within CRM
that determine how new sales leads and new support cases are assigned or
dispatched, based on factors such as geography or skill set of agents.

8.2 Advantages:
CRM or Customer Relationship Management is a system which aims at
improving the relationship with existing customers, finding new prospective
customers, and winning back former customers. This system can be brought into
effect with software which helps in collecting, organizing, and managing the
customer information.
Improved customer relations
One of the prime benefits of using a CRM is obtaining better customer
satisfaction. By using this strategy, all dealings involving servicing, marketing, and
selling your products to your customers can be carried out in an organized and
systematic way. You can also provide better services to customers through improved
understanding of their issues and this in turn helps in increasing customer loyalty
and decreasing customer agitation.

In this way, you can also receive continuous feedback from your customers
regarding your products and services. It is also possible that your customers
recommend you to their acquaintances, when you provide efficient and satisfactory
services.

Increase customer revenues

By using a CRM strategy for your business you will be able to increase the
revenue of your company to a great extent. Using the data collected, you will be
able to popularize marketing campaigns in a more effective way. With the help of

CRM software, you can ensure that the product promotions reach a different and
brand new set of customers, and not the ones who had already purchased your
product, and thus effectively increase your customer revenue.

Maximize upselling and cross-selling:

A CRM system allows up-selling which is the practice of giving customers
premium products that fall in the same category of their purchase. The strategy also
facilitates cross selling which is the practice of offering complementary products to
customers, on the basis of their previous purchases. This is done by interacting with
the customers and getting an idea about their wants, needs, and patterns of
purchase. The details thus obtained will be stored in a central database, which is
accessible to all company executives. So, when an opportunity is spotted, the
executives can promote their products to the customers, thus maximizing up-selling
and cross selling.
Better internal communication
Following a CRM strategy helps in building up better communication within
the company. The sharing of customer data between different departments will
enable you to work as a team. This is better than functioning as an isolated entity,
as it will help in increasing the companys profitability and enabling better service to
customers.
Optimize marketing
With the help of CRM, you will be able to understand your customer needs
and behavior, thereby allowing you to identify the correct time to market your
product to the customers. CRM will also give you an idea about the most profitable
customer groups, and by using this information you will be able to target similar
prospective groups, at the right time. In this way, you will be able to optimize your
marketing resources efficiently. You can also be ensured that you dont waste your
time on less profitable customer groups.

9 Engineering / Production module:

Production module is great help for manufacturing industry
for delivering product. This module consist of functionalities like
1. Production planning,
2. Production order control,
3. Production Scheduling,
4. (Bill of material) preparation,
5. Routing
6. Production forecasting
7. Loading

1. Production planning.
The production planning and control system uses a
hierarchical level of planning at the highest level it lies forecasting module. The
module that handles past data of sales of company and accordingly it forecasts
demands for next period by linear regression method or exponential Smoothing
method. The forecasting data given to aggregate planning module which generates
two plans according to strategies like workforce leveling with overtime and
workforce leveling without overtime and best plan is selected. The master
production schedule translates aggregate plan into specific end items.
The Master production schedule data is given to material
requirement planning module which also required data like inventory status and
BOM file. All data is processed and orders are released or planned for the materials
required for the products in the company. The capacity planning requires the data of
MPS and the loading capacity of particular work center. According to the data it
generates report on whether the capacity is improved or not. The production control
module

can

generate

maintenance report.

the

report

like

daily

production

report,

breakdown

2. Production order control:

This functionality is used to carry out all aspects of a
production order under different production environment such as repetitive
manufacturing, job shop manufacturing, and assembly line sequencing. The
functionality enables user to transfer planned order and create manual production
order, print production order documents containing details of required components
and operations, release order to shop floor for execution and record status of the
order such as planned, released, active and completed. Finally, the production order
is closed when final outcome of cost, material issued and hours worked are posted
to the production order.
When a production order is created, the system
automatically calculates estimated material (from BOM) and estimated hour (from
routing) for executing the order. The system may adopt forward planning when
production start date is used for calculating delivery date. The system may also
adopt backward planning when production start date can be derived from the
delivery date and the order lead-time of the item.

3. Production Scheduling
Imagine how much more efficient your organization
would be if you could see at a glance all open work orders and the effect they have
on your capacity to produce by work center, by Department, by team, even down to
the machine level. There would be no more guess work on when a job can start or
when you can tell your customers their order will ship.
Production Scheduling gives you the tools to
maximize efficiency while reducing costs. You can view at a glance which resources
are being under or over utilized and can adjust your production accordingly to
balance the load. As new orders are placed or existing order due dates change, you
can see real time the effect on your

Production capacity. The application also provides recommendations to changes in

order due dates based on the work remaining to be done.
FEATURES/FUNCTION HIGHLIGHTS

Period Intervals

Define how the future is to be divided into time periods

Multiple period intervals may be defined
Used to display and print future production activity by time period

Capacity Maintenance

Allows for non-standard override of daily capacity, by shift, for Work Center,
Department, Teams, Machines

Reschedule Operations

Recalculates operation due dates when order due dates are changed

Work List Inquiries and Reports

Display the status of operations for open orders by resource. Types of operations
include Active, Waiting, Arriving
Resource types are Work Center, Department, Teams, Machines

Capacity Inquiries

Displays capacity and load for a given resource, with overload or under-load
percentage
Resources analyzed are Work Center, Department, Teams, Machines
User-defined period intervals to view loads in a variety of formats
Drill-down from period load to details of orders and operations
Review alternates for an overloaded resource

Reschedule Recommendations

Report which highlights recommendations for changes in order due dates based
on work remaining

4. BOM (BILL OF MATERIALS)

Bill of Material (BOM) is a base functionality of setting up production module of

an ERP system. A manufactured item consists of components, which are used to

build the product through production operation(s). The main use of BOM is to
define product structure of a manufactured end item.
Routing is another important base of production module, which defines the
method of manufacturing. Method or route to be followed for manufacturing a
product is a prerequisite for setting up production module.

Bill of Materials: Any manufacturing process goes through various phases of

production and at each phase, components (either work in progress or purchased)
are needed. BOM details components required at various phases or levels of
operations (either single level or multi-level). In a multi-level BOM, a parent / child
relationship between successive levels is formed.

BOM is used both for production and planning purpose, as specified below:
1. Defining a production bill of materials: The end item is described at highest level
of BOM. Levels of BOM are defined indicating material-routing relationship at
every level of operation. Thereafter, components are added at each level. An
existing BOM can be easily modified to create a newer version of BOM. An
Engineering Bill of Material from Engineering Data Management module may
also be copied to make a production BOM. A generic BOM may also be
modified to make a customized product with the help of Configuration
Management module.
2. Defining a planning bill of materials: Production of similar items (such as
garments of same type but of different sizes) is linked through aggregate
relationship under

Planning bill of material so that their long term plan of production/

subcontracting are not done separately.
Loops in BOM - While defining multi-level production bills of material, the user may
mistakenly link a higher level item to its component at a lower level. This creates a
data error and triggers an infinite loop for the manufactured item. This mistake is
detected through utilities, which normally forms part of the module.

5. ROUTING
The objectives of Routing module are:
1. All tasks required to manufacture an item are determined.
2. The work centers related to these tasks are identified.
3. The sequence of task linked operations to be carried out on work centers or
sub-contracting work centers are established.

Department - An organizational unit that carries out a specific set of tasks. A

department can be of various types such as work centre, service Centre, sales office
etc.
Work Centre - A Work Center is a place where production activities are performed.
Resources (like men and/or machines) are linked to a work centre. Thus, a Work
center is a group of resource units used as a functional planning unit. . Work centers
may be departmental work centre or sub-contracting work center.
Task - This term is used to describe any activity carried out on the shop floor. Work
centers and machines (for machine tasks) are used to define tasks. Task may be of
various types such as production, repair etc.
Work centre Task relationship - The task is linked to the work center if the work center
is able to executing the task. Details such as set up time, production rate etc. are
maintained under this relationship.

Routing Code - The routing code identifies a routing sheet. Multiple (alternative)
routings are possible for each standard manufactured item. A routing selection can
depend on the order quantity, which is called the Order Quantity Dependent
Routing. A routing code is needed to be linked to the manufactured item.
Routing Operation - Here, series of routing steps that are carried out successively to
produce an item is defined. The operations are identified by serial number, which
indicates sequence of operations for the associated manufacturing process.

6. PRODUCTION FORECASTING
Production forecasting means to estimate the future demand
for goods and services. It also estimates the resources which are required to
produce those goods and services. These resources include human resources,
financial and material resources. So, production forecasting means to estimate the
6M's of management.
The production manager first estimates the future market or
demand for the companies goods and services. Then he estimates the Men (human
resources), Money (financial resources), Materials, Machines and Methods, which
will be required to produce those goods and services.
Production forecasting estimates the future technological
developments. It estimates the customers needs and preferences along with
competitors' strategy in the future. So, production forecasting is an estimation of a
wide range of future events, which affect the production of the organization.

7. Loading:

The next step is the execution of the schedule plan as per the
route chalked out it includes the assignment of the work to the operators at
their machines or work places. So loading determines who will do the work as
routing determines where and scheduling determines when it shall be done. Gantt
Charts are most commonly used in small industries in order to determine the
existing load and also to foresee how fast a job can be done. The usefulness of
their technique lies in the fact that they compare what has been done and what
ought to have been done. Most of a small scale enterprise fail due to non-adherence
to delivery schedules therefore they can be successful if they have ability to meet
delivery
Order in time which no doubt depends upon production of quality goods in right
time. It makes all the more important for entrepreneur to judge ahead of time what
should be done, where and when thus to leave nothing to chance once the work has
begun.

9.1 ADVANTAGES

Higher quality
Better resource utilization and reduced inventory
Reduced manufacturing cycle time
Faster delivery
Better customer services
Lower production costs and Lower capital investment
Higher customer service
Improved market share
Improved profitability
Flexibility
Dependability
Improved sales turnover

10 SCM (Supply Chain Management)

Supply chain management helps a company get the right
products to the right place at the right time, in proper quantity and at an
acceptable cost. The goal of SCM is to efficiently manage this process by
forecasting demand; controlling inventory; enhancing the network of business
relationships a company has with customers, suppliers, distributors, and others;
and receiving feedback on the status of every link in the supply chain.
Supply Chain Management is a cross-functional
interenterprise system that uses information technology to help support and
manage the links between some of companys key business processes and those
of its suppliers, customers and

Business partners. The goal of SCM is to create a fast, efficient, and low cost
network of business relations, or supply chain, to get a companys products from
concept to market.

10.1 Supply Chain Management has three business objectives;

Get the right product to the right place at the least cost.
Keep inventory as low as possible and still offers superior customer service.
Reduce cycle times. Supply Chain Management seeks to simplify and accelerate
operations that deal with how customer orders are processed through the
system and ultimately filled, as well as how raw materials are acquired and
delivered from manufacturing process.
Three possible stages in a companys implementation of SCM systems.
First Stage
A company concentrates on making improvements to its internal supply chain
process and its external processes and relationships with suppliers and
customers.
Second Stage
A company accomplishes Substantial Supply chain management applications by
using selected SCM. Software programs internally as well as externally via
intranet and extranet links among suppliers, distributors, customers, and other
trading partners.
Third Stage
Company begins to develop and implement cutting-edge collaborative supply
chain management applications using advance SCM software, full- service
extranet links, and private and public e-commerce exchanges.

10.2 Advantages

Faster, more accurate order processing, reductions in inventory levels, quicker

time to market, lower transaction and material costs, and strategic relationships
with suppliers.

Companies can achieve agility and responsiveness in meeting the demands of

their customers and the needs of their business partners.

SCM adds value to the business by enabling the business to save money through
lower costs at various stages of the supply chain. Like for instance, SCM would
effectively enable accuracy in the inventory of items which in turn improves
resource utilization.

Speed and the ability to communicate: Electronic channels decreases costs of

communication, carrying inventory and providing customer service

Collaboration: Minimizes the bullwhip effect which is the distortion of demand

forecasts along a supply chain as a result of inaccuracies or inadequacies of
information on hand

Ability to build long-term relationships along the supply chain: Organizations

increase the availability of information with each other, enabling them to align
their strategies and goals, making supply chains committed to the end
consumer; it also moves to stabilize processes, since organizations can focus on
their core competencies, while outsourcing their remaining needs to trusted and
reliable partners

Improved customer relationships: Eliminates stock

customer driven
demand as well as efciency in tracking of deliveries

Decreased costs: Through the sharing of information in the supply chain, a pullbased demand inventory system is created leading to lower warehouse and
facility costs and more reliable operations

outs and encourages

11 Product Data Management (PDM)

Product data management (PDM) is the process of
capturing and managing the electronic information related to a product so it can
be reused in business processes such as design, production, distribution and
marketing. It usually involves the use of a dedicated software application and
centralized database.
Product Data Management is a general extension of
techniques commonly known as engineering data management (EDM),
document management, product information management (PIM), technical data
management (TDM), technical information management (TIM), image
management, and other names. PDM provides a common term, encompassing
all systems that are used to manage product definition information.
PDM integrates and manages processes, applications,
and information that define products across multiple systems and media. The
profitability of products is dependent upon orderly and efficient development,
fabrication, and distribution. PDM systems help achieve these goals.
The types of features and functions that should be found in a
PDM system are defined and described below. This is done independently of any
particular application or data form. Features and functions are presented in
terms of an ideal PDM system. None of the commercially-available systems on
the market today contains all of the features discussed. However, many
suppliers are adding to and improving their systems along the general lines set
forth.

11.1 PDM systems are composed of:

An electronic vault or data repository:

An electronic vault is used as a repository to

control all kinds of product information. The vault is a data store that contains some
data within itself and controls other Externally-generated data by managing access
to it.
Two types of data are stored:
Product data generated in various applications, such as specifications, CAD
models, CAE data, maintenance records, and operating manuals

Meta-data, which is data about PDM-controlled information. Meta-data is

stored in a PDM database and supports the functions performed by the PDM
system
A set of user functions & A set of utility functions
The functionality of PDM systems falls into two broad
categories: user functions and utility functions. User functions provide the users
interface to the PDM systems capabilities including data storage, retrieval, and
management. Different types of users use different subsets of the user functions.
These functions are divided into five categories:
Data Vault and Document Management
Workflow and Process Management
Product Structure Management
Classification
Program Management

11.2 Advantages

PDM systems and methods provide a structure in which

all types of information used to define, manufacture, and support products are
stored, managed, and controlled. Typically, PDM will be used to work with
electronic documents, digital files, and database records. These may include:
Product configurations
Part definitions and other design data
Specifications
CAD drawings
Geometric models
Images (scanned drawings, photographs, etc.)
Engineering analysis models and results
Manufacturing process plans and routings
NC part programs
Software components of products
Electronically stored documents, notes, and correspondence

Audio and live video annotations

Hardcopy (paper-based and microform) documents (by reference)
Project plans
Others
In short, any information needed throughout a products
life can be managed by a Product Data Management system, making correct
data accessible to all people and systems that have a need to use them. PDM is
not limited to managing only the design cycle but, according to user needs, can

manage product conception, detailed design, prototyping and testing,

manufacturing or fabrication, operation, and maintenance. The product
development process is managed as well as the data; PDM systems control
product information, states, approval processes, authorizations, and other
activities that impact on product data. By providing data management and
security, PDM systems ensure that users always get and share the most recent,
approved information.
The implementation of PDM technology doesnt have to
be an all-or-nothing undertaking. PDM will provide significant productivity gains
when it is used by a workgroup. However, a much greater impact is accrued
when PDM becomes an enterprise-wide environment.
PDM manages all product-related informationincluding electronic documents,
digital files, and database records. Examples of products include:
Manufactured productsautomobile, computer, refrigerator, mobile phone.
Facilitiesairport, harbor, railway system, logistics warehouse
People that can benefit from the use of PDM include chief executives, technical
directors, chief engineers, engineering managers and engineers of all disciplines,
heads of information technology or of information services, design managers,
CAD/CAM/CAE managers, production engineers, project managers, operations
and maintenance managers, estimators and purchasing officers, and marketing
and sales managers.