midterm Flashcards
Types of ERP Modules
Finance
Manufacturing and production planning
Sales and distribution
Plant maintenance
Quality Management
Material Management
A set of processes are required so they can provide the financial information in the form that is required by the user
Finance Module
It provides us with the information of financial functionality across the different business area
Financial application component
its objective is to provide company-wide control and integration of financial information which required for strategic decision making
Financial accounting system
it gives the ability to centrally track financial accounting data with in an international framework of multiple currencies, companies and language
financial accounting module
It is essential to both financial accounting system ang strategic decision making
general ledger
it supports all the functions which are required in financial ccounting system. It containts sub-ledger
general ledger
gives document parking, posting, reporting, and an integrated financial calendar for automating perod of activities
general ledger
By maintaining this,, ERP system provides us a financial overview of business partner relationships
Accounts Receivable/ Payable
These accounts are integrated with general ledger and it is associated in sales and distribution and material management
accounts receivavle/ payable
it uses the standard business rule fir data entry and processing payments and bank transaction
accounts receivabl/payable
Funtion of accounts payable and receivable
Internet integration
Document management
EDI processing
Automatic integration with cash management
This module manages the company’s fixed asset. It provides the detailed information on asset related function
Asset accounting
Type of asset that does not changed
fixed asset
type of asset that keeps on changing
Current asset
All the financial system should be integrated rffectively with the operational data
legal consolidation
It helps in direct data transferfrom individual statements into the consilidated report
Legal consolidation
It helps to create multiple views of consolidated data and thus we can generate separate reports for the different functions of an organization
legal consolidation
Its process starts from the planning of an organization until the settlement of an organization
Investment management
Are carried out in each and every department and it also tells us the update information about funds, plants cost, and actual cost from internal and external activities
investment programs
allows distributing budgets which helps to monitor the budget and avoid over run
Investment program
it measures that need to be monitored are done from time to time according to the internal order
investments
The organization can gain a significant competitive advantage by efficiently managing the short term, medium term, long term payment flows and managing risk
treasury module
Manages all the risk among all the division of organization
treasury module
components of treasury module
cash managemwnt
Treasury management
Market risk management
Funds management
it comprises of those functions that will optimize share holders values, while meeting internal objective for growth and investments
enterprise controlling
enterprise controlling module includes
executive information systems
Business planning and budgeting
Profit centre accounting
It provides wn integrated solution for supporting the operational needs of an enterprise wide system
Preventive maintenance
It includes the entire family of product covering all aspects of plant/ equipment maintenance amd becomes integral to the avhievement of process improvmeny
Plant maintenance
major subsytem of maintenance modules:
Preventive maintenance control
Equipment tracking
Component tracking
Plant maintenance calibration traking
Plant maintenance warranty claims traking
the series of standards that defines the function of quality management and the element of a quality management system
ISO9000 series
It penetrate all processes within organization
quality management system
management of basic data of quality planning and inspection planning, material specifications, inspection planning
quality planning
trigger inspections, inspection processing with inspection plan selection, and sample calculation, etcs
quality inspection
dynamic sample determination on the basis of the quality level hystory. Application of statistical process control techniques using quality control charts
Quality control
It optimizes all the purchasing process with workflow-driven processing functions, enebles automated supplier evaluation, lowers procurement and warehousing cost
material management module
main modules of material management
pre-purchasing activity
Purchasing
Vendor evaluation
Inventory management
Invoice verification and material inspection
Quality management module functions
Quality planning
Quality inspection
Quality control
A process employed to greatly improve organizational performance by radically redesigning business processes.
Business Process Re-engineering
The aim is to dramatically improve organizational performance by improving an organization’s efficiency and effectiveness of processes.
BPR
It also involves redesigning associated systems and organizational structures.
bpr
The key contributors in the field of business process re engineering
Michael Hammer and Jame Champy
Principle of BPR
- Organize around outcome, not task
- Have those who use the output perform the process
- Integrate information-processing work into the real work that produces the information
- Treat geographically dispersed resources as though they were centralized
- Link parallel activities instead of integrating their results
- Put decision point where the work is performed and build control into the process
- Capture information once and at the source
Defining the outcome clearly and combining several jobs together. Focus shifts from ‘what are we doing now?’ to ‘what do we need to do?’. Get one person to perform all steps of a process, by redesigning his/her job around the outcome and not the tasks.
Organize around outcomes, not task
For instance, managers should be able to complete certain purchases themselves rather than going to Procurement for everything.
Have those who use the output perform the process
People who collect information need to also analyze it instead of relying on other people to do so.
processing work into the real work that produces the information
Integrate information
For instance, an organization with various branches located across the nation needs to have a centralized procurement
treat geographically dispersed resources as though they were centralized
Various product development projects can fail because of several components being designated in parallel and the components not working together
Link parallel activities instead of integrating their results
They need to be responsible for monitoring results and making decisions
Project managers and line managers
It is best to not have people responsible purely for feeding information captured by others
capture information once and at the source
Short coming of BPR
All - or- nothing
Negative result
Gradual and innovative approaches are usually chosen over BPR
Examples of BPR
Streamlining Supply Chain Management
Customer relationship Management
It involves a meticulous reassessment and redesign of every step, including logistics, inventory management, and procurement
Streamline Supply Chain Management
It can be used to forcast demand and optimized inventory levels
predictive analytics
It can be enhance transparency and traceability in the supply chain
blockchain technology
benefits of streamlining supply chain management
improved efficiency
Reduced cost
Enhance transparency
benefits of CRM
360 degree customer view
Increased sales and retention
Faster problem resolution
