Enterprise Resource Planning
ERP: The key to success
One of the major challenges facing any growing organization is bringing all its diverse functions into perfect sync with each other. Too often, islands of information exist within an organization, which in turn, create bottlenecks between departments. Indeed, in the age of information, the need to channel data smoothly and thoroughly is an integral path to success. ERP (Enterprise Resource Planning) is a crucial stepping-stone to achieving that success in today’s business environment. An international standard for implementing high-quality business processes, it enables companies to integrate their driver functions into a lightly-knit whole. By connecting the various facts of modern-day business, ERP enables companies to grow by sharing information and resources.
ERP: Hardwired for Performance
Addressing the needs of small and medium-scale enterprises, ERP solutions are unique, customized and tailor-made for individual business needs. And they are upgraded regularly to be at the forefront of ERP technology. Some of the highlights of ERP include… ERP offers users the choice of back-end software, including Oracle or Microsoft ERP bases its solutions on a modular design in which modules requiring special development could be quickly built and easily integrated with the core ERP
Product Users through a wide range of parameters, which influence their functioning, can program ndividual modules. Consequently, the most demanding and diverse needs of organizations can be easily met. Several years of experience in turnkey development projects have geared ERP solutions to be in line with the country’s legal and statutory requirements. Additional time and money need not be spent bringing the ERP solutions in sync with the country’s requirements. ERP helps small and middle-scale enterprises to embrace the Internet and e-commerce with ease, as and when they are ready for it and give strategic tools to enhance their global competitiveness.
ERP VS Standard Software
The advantages of a dedicated ERP solution are numerous and readily perceptible. There are four fundamental advantages that we offer: Database strength: ERP is built on a RDBMS like Microsoft SQL Server or Oracle for. These offer the best possible storage system for larger transactions. Higher degree of complexity handling: ERP can handle a higher number of complex day-to-day
activities, such as purchase order processing, production planning, sales and distribution and networking. Higher degree of integration: ERP integrates a large number of modules transparently to give an enterprise access to a wide variety of information from various systems and modules. Extensibility: ERP solutions grow with the company. The architecture of the database and the open system approach allows in-house MIS departments to easily generate information as required.
The Functional Management Module incorporates Financial Accounting, Accounts Receivables, Account Payable, PDC (Post Dated Cheques) Management System, Budgetary Control and Management Reporting. This area of the application contains the features that are used with a company’s chart of accounts, account schedules, budgets, multiple currencies and consolidation and all the reports. In addition to general accounting it provides other tools for analyzing financial information using dimension information. These let you identify income-generating areas or products, avoid losses, adjust unrealistic budgets etc. It also provides reports to be generated for various statutory bodies.
- Integrated general ledger, accounts receivables, accounts payable, and MIS Reporting
- Multi divisional and multi departmental accounting and consolidation at company level as well as at the group level
- Financial reporting for inter company cross-references, consolidations and statements. Trial Balance, Balance sheet, and Profit & Loss account at both Company level and Cost Center/Divisional level.
- Extensive Financial Ratio Analysis with user definable ratios.
- Flexible Chart of Accounts coding structures. Balance Sheet and Profit & Loss Account classifications are independent of the account codes. This facilitates the shifting of Balance Sheet or Profit and Loss account heads from one group to another, without recoding the main accounts, and losing the General Ledger history of that account.
- The system provides for a facility to group various schedules under multiple Chart of Account formats, effectively facilitating multiple formats of Balance Sheet and Profit and Loss statement for one company.
- Unlimited user defined sub-ledgers in addition to the standard creditors and debtors sub-ledgers.
- Activity codes to analyze over and above the available account code break-up
- Allows for any number of accounting periods i.e. more than 12 accounting periods
- Generalized transaction entry screens to simplify data entry procedures.
- On-line matching of Accounts Payable and Accounts Receivables documents against receipts, payments, and other vouchers
- On-line information references are available. Auto Journals facility to provide for Reversal JVs., Correction JVs., Periodic Allocation JVs., and Recurring JVs Complete Audit Trail, with changes to the Masters and Transactions logged with User Id, data & time stamps. Powerful “Query by Example” eases document tracking and information retrieval
<align=”justify”>The Materials module of the ERP covers the Tendering & Procurement Management, Inventory Management and the Sub-Contracting modules. The Tendering & Procurement module incorporates a complete Procurement Management system. This module monitors the procurement of goods from Vendors, right from the requisition stage. The Inventory Management Module incorporates a comprehensive stock control and inventory management system. This module covers stock control; right from the shipment advice from the vendor up-to the issue goods. The Sub-Contracting (Jobber) Module is geared to handle the outsourcing of work to Jobber/Contractor, as well as, working on out-sourced work from various parties.
- Generic Information Flow: ERP provides for the definition information flow in an organization. The system permits the user to define their own transactions on the basis of available transaction templates. Against each user-defined transaction the user can specify parameters relevant to the transaction. ERP does not require the user to confirm to any default information flow. The user can specify the document flow in the organization and parameterize the transactions accordingly.
- Multiple-Unit of Measurement: Purchases and Issues can be made in different units of measurement. The system will automatically convert this into the base unit of measurement in which the stock is maintained for that item.
- Maintenance of stock by grades / condition of item: Maintenance of items by grades / conditions (e.g. cannibalized, Refurbished, New stock, “A” Condition, “B” Condition, etc.). The user will have the facility to view stock of the item requested by condition of the item.
- Seamless integration with financial accounting.
- Provides for the purchase, sale and tracking of both stock & non-stock items and/or services items.
- ERP provides for user-defined transactions for generic transaction types. For example you could have two transaction codes for the transaction type requisition as follows: one for requisition of material from stores and another one for Purchase requisition. Each of these transactions can have document number series.
- On-line update (posting) of stocks.
- Automatic generation of financial entries in financial accounting for the stores transactions document by document or batch posting. In case of document by document posting, same transaction code and document number will be used for the transferred entry. If batch posting is used then the transactions will be clubbed together and a single summary entry passed to Final; for this, the transaction code and document number is to be provided.
- Grouping of items by item Group/Sub-Group or by Item Types/Sub-Type. Generalized Analysis codes are provided for further categorization of the item codes _ Suppliers and Clients can be grouped geographically by area, country and region.
- Materials received in stores can be immediately issued without waiting for the costing of the goods to be completed. (i.e. before the confirmation of the receipts materials can be issued).
- Generalized stock error checking facility.
- At the time of entry of issues, parameter setups determine whether negative stock is permitted, or to allow the user to proceed even through the stock has become negative with or without warning.
- Elimination or data transcription. Repetitive data entry completely eliminated in ERP by allowing the user to reference the document against which the document he is working on is being raised. For instance, while entering the Goods Receipt Note, if the user references the Purchase Orders against which the goods are being received. The system will display all the items from the relevant orders. The user than simply has to edit or add to the information already displayed.
- Multiple delivery schedules for purchases.
- Integration of the Payment Schedule specified in the Order with Financial Accounting.
- Landed cost calculations by Weight, by Volume, or by Value.
- Stock valuation by weighted average cost (WAC) , First in First Out (FIFO), Last in Fast Out (LIFO), Batch wise methods.
- Parameterized Credit Control at various stages in the sale and distribution process. _ Maintenance of multiple Jobs and Job related data.
- Profitability and Expense tracking by Job.
- Material Issues & Returns against each Job.
- Job estimation Vs Actual Comparison
- Automatic WIP to Actual A/C’s transfer on Closing of Job.
Sales and Distribution
The Sales module of ERP covers the sales order processing, warehouse management, invoicing & dispatching, and transportation management. It is a boon to organization that needs to get a well-coordinated sales and distributions network.
- _ Sales orders processing system handles the diverse and complex requirements. Orders can be split into date-wise delivery schedules. Pricelists/rates can be maintained on various parameters like distributors, customers, areas, salesmen, items, delivery dates, etc. Status of pending orders also maintained.
- _ Dispatch plan on the basis of pending orders and available stock.
- _ Logistics planning for timely delivery of products to various locations and arranging transportation as per the dispatch plan.
- _ Maintaining package and storage location information of item produced through the warehousing module. Consequently packing list is easily generated for dispatch purpose
- _ Maintaining sales targets for salesman, brokers and commission agents, including the sales performance with details of area, outstanding, etc.
- _ Maintaining Sales Tax Forms received. Also generates reminder letters and reports relating to different pending forms, besides tracking waybills.
- _ Closely integrated with the Production, Production Planning and Finance module.
- _ The Sales order amendment function allows modifications in orders awaiting dispatch. In a factory, the Branch indent serves the function of the Sales Order.
- _ Allows the user to track sales returns, discounts and free items. Product-wise sales targets can be set up for various categories, like salesmen, areas and more. Variances with various sales targets can be calculated.
- _ Extensive sales analysis for products or even groups of products. Monthly comparisons with previous and current years sales can be analyzed.
HR and Payroll
Payroll system shall consider the following information to be captured.
- Information Capturing
- Department related information: Here the user enters the department details like the name and code and also if the department is under another department then the name of that department.
- Earning Heads information: All the earning heads that are prevalent in the organization are entered here
- Deduction Heads information: All the deduction heads that are prevalent in the organization are entered here
- Grade related information: All the Grades that are prevalent in the organization are entered here.
- Payroll Structures definition: The system requires that the pay structure that makes up an individual pay packet be clearly chalked out. The user will be guided by the system in entering this information with the help of a wizard.
- Payroll Templates: Once the various pay structures have been chalked out using user defined earning and deduction heads. The user then goes on to make as many templates of salary structures as required. The user will be guided by the system in entering this information with the help of a wizard. These pay structure templates are nothing but salary structures of an individual. The advantage the user derives is that the user will be able to map these templates with individual employees and will save the user the trouble of defining the salary structure for each individual employee.
- Provident Fund & ESI: PF number and ESI number are entered here apart from this the statutory limit is accepted. If the PF is to be deducted up to statutory limit is specified here. Any changes done to the information in terms of limit or otherwise for PF is recorded with a version number i.e.; the earlier information are not lost. Professional Tax Slab: Professional tax details State wise are maintained in the system, which includes professional tax number, certificate number, Date, and the month and year
- for which the slab information is being entered.
- Period: The various periods for which the salary reimbursements are made are entered here which can be Monthly, Quarterly, Every Fifteen Days, Flexible Period etc.
- Offices: The organization might have various offices at various locations. Each office may be of a particular type. All information about all offices of the organization is entered here. The office structure is also mapped with each office defined. All this is achieved using a wizard, which guides the user through the steps involved in defining an office.
- Perks: Employees might be offered certain perks by the organization. Information about the same is accepted here.
- Employee Loan / Advance Entry: All Loan or Advance related information for employees would be entered in the system using this module.
- Leave: Leave details like the leave name and code, the monthly increment, maximum yearly limit, maximum that can be carried forward or it can be carried forward at all, whether the leave can be en-cashed or not. Such details are accepted here.
- Employee Leave: In this module the employee wise Leave information will be entered.
- Attendance: Attendance recording will be done in the system through this module. The Attendance can be taken on a daily basis or on a monthly basis depending on the practices prevalent in the organization.
- Leave Encashment: If an employee en-cashes the en-cashable leave then the adjustment of leave balance will be done accordingly and the encashment details will be maintained.
- Maintenance of Personnel Records:
- Designation: The various designations used in the organization and also their hierarchy is defined here.
- Qualification: In this module the user will specify the qualifications the employees in the
- organization have even though information is not entered employee wise but at the time of
- employee creation this information will be used.
- Employee: This is perhaps the most important master information in the system because this is where all other information comes together. At the time of entering the employee information, the user has to enter all the relevant employee information like code, name, sex etc. Based on that the user has to map the image of the employee to the name and code selected.The personal information about the employee like the address of the employee, the communication details like phone, fax numbers etc. System shall capture Qualification details of the employees. The system will keep track of the particular office, department designation, grade and the status of the employee like Permanent; Probation etc will be recorded in the system. Previous employer information can also be recorded. The person to whom the employee reports will also be recorded. After the Personal details of the employee have been recorded the financial details will be entered. This includes the bank and bank account information of the employee. Based on what is applicable to the employee in question the details about PF, FPF, ESI will be entered in the system.Other details like OT, LIC No., PAN No., GIR No., Professional Tax applicable or not, Round Off applicable or not. The payment mode, Salary Period, Increment Month etc are also being captured by the system.
- In Payroll Details the employee Perks information, Pay Structure Template Mapping, Provident Fund Details, Superannuating details, ESI Contribution Details are entered. The employee wise Opening Balances for Leave is also entered in this module. So controlling the employee information is done centrally from one module. This saves the user the trouble of selecting different menu options for entering or editing information about the same employee.
- Shift: In case of factories where work is done in shifts information about each shift is kept here including the shift timings.
Production Planning and Control
The Production Planning and Control module of ERP is to provide special vertical market solutions. Production Planning and Control is geared to handle:
• Continues process (batch process)
• Repetitive manufacture
• Assembled to order
• Engineered to order
- _ Accuracy in production planning while considering capacity utilization
- _ Comprehensive material requirement planning
- _ Calculation of production efficiency and wastage
- _ Demand planning through sales forecast model
- _ Define processes for different stages of manufacturing and execution of work against Production of works order and offers detailed information of WIP
- _ Creates Bill of material recipe for various processes. It is possible to define the Bill of material up-to any level. Define process-wise / line-wise production capacity, keeping in mind the organizational constraints such as labor, working hours and number of shifts. Details of man-hours worked, machine down-time and production efficiency are recorded
- _ Prepares Master Production Schedules. Where applicable, the MPS can be segregated into frozen (for current month), firm (for subsequent month), and Open (for the third month)
- _ Generates detailed weekly production plans, prepares production orders for shop floor control, and tracks productions, issue of material on the basis of predefined recipe and quality inspection. Provides details of yield after rejection, and by-products and scrap generated. Details are available date-wise, batch wise, and order-wise, which in turn, enables historical production analysis. Production record forms the basis of maintenance of the excise records and updates the inventory module with stock
Plant Maintenance module Enables Company to manage the maintenance activity of various equipments. The factory may have multiple locations, each having conglomerate of equipments. The part numbers required for each machine-equipment are predefined. Maintenance work is divided into several activities like cleaning, electrical, etc. depending on the nature of work applicable
- _ Creation of Daily / Monthly maintenance activity
- _ Breakdown maintenance work
- _ Unplanned maintenance work
- _ Generation of requisition for various items
- _ The frequency of the maintenance work and the periodicity within which various part numbers must be changed is defined, so are the Maintenance agencies. The agency could be internal, external, contractual, etc.
- _ Daily schedules may be generated for the maintenance work to be done on a particular day or month. It also prepares a plan regarding the requirement of people for various kinds of maintenance activity. Work can also be related to breakdown. In such cases, breakdown hours, the reason for breakdown and the employee whose time has been utilized for breakdown work is recorded. Plant maintenance also requires certain unplanned work, reclusive of breakdown, which too, is recorded
- _ Besides this, it automatically generates requisition for various items/spares required for maintenance. Reports on pending maintenance work can be easily generated
- _ Maintenance work done for a period.
- _ Machine-wise maintenance work done, with break-up of planned, unplanned and breakdown cases.
- _ Employee-wise maintenance work done, with break-up of planned, unplanned and breakdown cases.
- _ Maintenance cost for various machines with break-up of planned, unplanned and breakdown cases.
Fixed Assets take care of an organization’s assets logistics, location-wise according to the Company Act and Income Tax Act requirements. Key Areas:
_ Multiple groups could be defined in the Fixed Assets module. Depreciation could be calculated separately, as per Income Tax and Companies Act
_ The rate of depreciation can be given separately for each group and for each financial year, separately for both Income Tax and Companies Act.
_ Details of fixed assets are recorded at the time of creating individuals assets. These include details like quantity of fixed assets, original cost of asset, expenses incurred for capitalization, supplier information, etc.
_ Creation of a grouping system for various kinds of assets, for both IT and Companies Act.
_ Creation of depreciation rate chart for both IT Act and Companies Act for individual financial years.
_ Creating the opening stock of fixed assets from existing fixed register giving the initial gross block and the subsequent written down value.
_ Recording the creation of assets with all details regarding the purchase of assets, vendor details, etc. Recording the sale of assets, including the calculation of profit or loss on sale of fixed assets.
_ Fixed assets register can be automatically generated in prescribed format for a financial year
Software and Security module is at the heart of the ERP system. In this module, role-based security has been implemented. Modules with certain rights and privileges could be defined. Users can then be attached to various modules and they can inherit the rights of the module, before further rights are given to them, if required Rights are given on an object-based security model in which each option can be individually allocated. For ease and convenience, a tree is provided so that rights can be given at any position. This enables the administrator to assign rights at any level. There are extensive restrictions on working on the basis of the date. Users can be restricted modifying existing entries. Extensive audit trail of every entry ensures accountability of users. Work done by individual users can be easily tracked and controlled.
Get the ERP advantage today
With ERP, your company can make the transition to the age of information easily and smoothly…where island of information and bottleneck between departments are eliminated forever…where all the different functions of your organization remain in perfect sync with each other at all times. But that’s not all. IIBM has its own dedicated team for implementing its ERP solutions, which translates into quicker turnaround times and a more economical choice for our customers. On top of that, IIBM is known for the customer-friendly environment it has fostered. Keeping our customers happy and satisfied is the cornerstone of our philosophy. Finally, the cost-effectiveness of ERP is tremendous, considering the depth of the requirements fulfilled and the exhaustive detailing of the solutions. Indeed, for those wishing to embrace the enormous business potential of the 21st century ERP is the definite way to go.