Enterprise Resource Planning in Manufacturing Industry in India
Enterprise Resource Planning (ERP) solution can significantly improve the productivity of the manufacturing sector. Use of ERP should not be looked at as a tool for automation of the transaction system. The major objective of ERP should be improvement of business process.
ERP system has been defined as a packaged business software system that allows a company, to automate and integrate the majority of its business processes, and share common data and practices across the enterprise. Through integration of various functions in the organization, managers and staff alike can use timely information to make better decisions and to perform activities, which add value to the company. The biggest problem area for any manufacturing enterprise is fragmentation of information, ERP solution for manufacturing unit integrate all the functional area of the enterprise in real time and information available to all. ERP systems are designed to address the problem of fragmentation of information in manufacturing organizations. ERP systems integrate an entire business with a suite of software modules covering all cross functional processes of manufacturing sector.
Modules in ERP to integrate cross functional are:
Sales and Distribution Management - This Module comprises of Contact Management and Sales Order Processing Management. It is an integrated solution comprising of marketing and sales activities. Organization can act immediately to improve sales, service and effectiveness by using this Module.
Inventory and Material Management -Inventory Management Module in ERP provides a powerful and flexible set of features to help you manage and report your inventory information. ERP defines raw materials, work-in-process, and finished goods in terms of any unit of measure with automatic conversion from one unit to another.
Purchase and Order Management Module -Supports the entire purchasing process, from securing quotations to receiving and issuing vouchers for materials, to updating inventories. The sales utilities allow to enter Sales Orders, ship from finished goods, generate an invoice and transfer a transaction to Accounts Receivable.
Production-ERP supports the simultaneous launch of a series of production projects for all components within a batch. You can size a batch based upon a finished weight or volume, or on the availability of component materials. Raw Materials are issued while the finished goods are posted in real-time on batch closure.