ERP Functions: Journey So Far

We have started ERP journey with understanding it as an important tool for business process improvement in any organization. This tool aids top management of industries to get better and overall top view of business for decision making. Along with that it makes departments (functions) of organisation to adhere to business standard procedures that will help them perform more efficiently and effectively.

Then we started our journey of ERP functionality understanding with the root department of the organisation i.e. Sales/Marketing. We discussed on the flow of information and decisions. In brief

 

Once the Customer PO is accepted execution Production Planning is done. There are two Stages of planning.

1. Capacity Planning : For the Production Requirement for next month, Considering Previous month's back log productions and Work in Progress Production  Process and Production Qty  is arrived. Based on the Arrived Processes and Production Qty of product the Date and Time and Qty to be produced are arrived.

2. Material Requirement Planning: For the arrived Capacity planning Process and Production qty, based on Bill of Material of the product the Material wise qty requirement is to be arrived

With these background work we then moved onto execution of MRP. And this done by the Supply Chain Management) SCM.

Purchase Functions are briefly to procure the required material for various functions of organisation. It also got a procedure which is in below Image. We also see that this is just reverse process of Sales/Marketing Functions.

Stores: Once the Material is procured and arrives inside the factory the storing of material and distribution to the required department comes under stores. Along with that Subcontracting works managing and maintaining stocks of some of critical items are also responsibility of stores.

Logistics: There are two basic functions

1. Receiving of Materials/Items inside factory and maintaining documents.

2. Sending of Materials/Items outside factory and maintaining documents.

This is the journey so far. I hope I am able to provide some knowledge light on ERP to whoever is following the blog and viewers of blog. I am thankful to all of you. 

Further we will go in deep of Production, Quality, Human Resource, Finance, Plant Maintenance functions.

Keep Watching the space...