Chapter 5 Erp Modules-hr
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Transcript of Chapter 5 Erp Modules-hr
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ERP MODULES
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HUMAN RESOURCE MODULE Human resource management is an essential factor of any
successful business. The various subsystems under HR module are: Personnel management: (HR master data, Personnel
administration, information systems, recruitment, travelmanagement, benefits administration, salary administration)
Organizational management: (Organizational structure,staffing, schedules, job descriptions, planning scenarios,personnel cost planning)
Payroll Accounting: (Gross/net accounting, history functiondialogue capability, multi currency capability, internationalsolutions)
Time management: (Shift planning, work schedules, timerecording, absence determination)
Personnel development: Career and succession planning,profile comparisons, qualifications assessments, additionaltraining determination. Training and event management.)
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PERSONNEL MANAGEMENT Personnel management includes
numerous software components, which
allow you to deal with human resourcestasks more quickly, accurately andefficiently. You can use these
components not only as part of thecompany wide ERP solution but also asstand alone systems.
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i . Personnel Administration Information is no longer owned by
specific departments, but is shared bymultiple entities across an organization.This eliminates duplicate entries
reduces the chance for error andimproves data accuracy.
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i i . Employee master data Human resource module has a centralized database with integration to
multiple components for processing employee information. The system provides tools to save time and help you tailor the system
to fit your needs.
The HR module contains features for storing any desired informationabout your employees. Most systems have the facility to scan the original documents for optical
Storage. The HR Information system displays graphical information such as
organization charts or employee data.
The system can produce charts and reports-both standard and customerdefined.
iii. Recruitment management This function helps in hiring the right people with the right skills. Reducing the cost of recruiting and hiring new employees is a challenge
for the HR professional, who is responsible for placing people in theright job, at the right time, and with the right skills and education.
These requirements are fulfilled only through effective automation ofthe entire recruitment process.
The recruitment component is designed to help meet every facet of thischallenge like managing open positions/requisitions, applicant screening,selection and hiring, correspondence, reporting and cost analysis.
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iv. Travel Management This module helps you in processing the travel expenses
effortlessly, in several currencies and formats. HR Travel management allows you to process a business trip from
start to finish-from the initial travel request right through toposting in financial accounting and controlling. This includes any subsequent corrections and all retroactive
accounting requirements. Travel management automatically calculates the tax. It automatically processes credit card transactions for a particular
trip. You reimburse costs incurred during a trip through a payroll
accounting, accounts payable accounting or by data mediumexchange.
In addition, Travel management provides multiple report formats. You can enter receipts in any currency and then print reports in
your native currency.
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Salary Administration This function helps you in simplifying the process of
rewarding your employees. Administration of salaries is an ongoing process within
your human resource department. It is particularly important during the review
processes, when your goal is to justify rewarding of
good performance. The salary administration module assists you in the
salary review process by taking into account standardsalary changes within the company as well asindividual competition exceptions
Benefits AdministrationUsing the benefits administration component, we candefine eligibility groups and rules based on a wide range offactors. We can determine the variables, rules and costs
formulas for each benefits plan.
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ORGANIZATIONAL MANAGEMENT
This module will assist you inmaintaining an accurate picture of your
organizations structure, no matter howfast it changes. In many cases,graphical environments make it easy to
review any moves, additions, orchanges in employee positions.
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PAYROLL ACCOUNTING The payroll accounting system can fulfill the payroll
requirements and provide you with the flexibility to respondto your changing needs.
Payroll accounting should address payroll functions from aglobal point of view.
You should be able to centralize your payroll processing, or
decentralize the data based on country or legal entities. Most payroll accounting systems give you the options andcapabilities to establish business rules without modifyingthe existing payroll.
Many systems have the features to remind you when
transactions are due for processing. With payroll accounting, you have the ability to tailor thesystem to your organization requirement.
With country specific versions of payroll accounting, youcan fulfill language, currency and regulatory requirements.
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TIME MANAGEMENT
It is a flexible tool designed to handlecomplicated evaluation rules to fulfill
regulatory requirements and determineovertime and other time related data.
The time evaluation component stores
your organizations business rules andautomatically validates hours workedand wage types.
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Shift Planning Shift planning module helps you to plan your
workforce requirements quickly and accurately. You can plan your shifts according to your
requirements taking into consideration all criteria,including absences due to leave or sickness, andemployee requests for time off.
Shift planning keeps you informed at all times of any
staff excess or deficit. Another advantage of shift planning is that it enablesyou to temporarily assign an employee or employeesto another organizational unit where they are needed,allowing for a temporary change of cost centre.
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PERSONNEL DEVELOPMENT Effective personnel development planning
ensures that the goals of the organization andthe goals of the employee are in harmony. Thebenefits of such planning include improvementsin employee performance, employee potential,staff quality, working climate and employeemorale.i. Training and Event Management
A good HR system will have scheduled seminars,training courses and business events.
On completion of a training course, appraisalforms can be automatically issued.
Appraisals can be carried out for instructors,attendees, business events and training courses.
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PLANT MAINTAINENCE MODULE The achievement of world class performance demands delivery of
quality products expeditiously and economically. Organizations simply cannot achieve excellence with unreliable
equipment. Machine breakdown and idle time for repair was once an accepted
practice. Times have changed. Today when a machine breaks down, it can shut down the
production line and the customer's entire plant. The Preventive Maintenance module provides an integrated solution
for supporting the operational needs of an enterprise wide system. The Plant maintenance module includes an entire family of product
covering all aspects of plant/ equipment maintenance and becomes,integral to the achievement of process improvement.
The major subsystems of a maintenance module are : Preventive Maintenance Control. Equipment Tracking. Component Tracking. Plant Maintenance Calibration Tracking.
Plant Maintenance Warranty Claims Tracking.
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QUALITY MANAGEMENT MODULE The quality management module supports the essential elements
of a system. It penetrates all processes within an organization. The task priorities, according to the quality loop, shift from
production (implementation phase) to production planning and product development (planning phase), to procurement and
sales and distribution, as well as through the entire usage phase. It handles the traditional tasks of quality planning, quality
inspection and quality control. The quality management modules internal functions do not directly
interact with the data or processes of other modules.
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QUALITY MANAGEMENT MODULE FUNCTIONS:
The quality management module fulfills the followingfunctions:
QUALITY PLANNING: Management of basic data for
quality planning and inspection planning, materialspecifications, etc. QUALITY INSPECTION : Trigger inspections,
inspection processing with inspection plan selectionand sample calculation etc.
QUALITY CONTROL.: Dynamic sample determinationon the basis of the quality level history, qualitymanagement information system for inspections andinspection results and quality notifications, etc.
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MATERIAL MANAGEMENT MODULE: The material management module optimizes all purchasing
processes with workflow-driven processing functions, enables automated supplier evaluation, lowers procurement and
warehousing costs with accurate inventory and warehouse
management and integrates invoice verification. The main module of material management are as follows:
i. Pre- Purchasing Activity.ii. Purchasing.iii. Vendor Evaluation.
iv. Inventory management.v. Invoice verification and material inspection.
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MANUFACTURING MODULE: A good manufacturing system should provide for multi mode
manufacturing applications that encompass full integration ofresource management.
These manufacturing applications should allow an easier
exchange of information throughout the entire globalenterprise, or at a single site within a company. The manufacturing module should enable an enterprise to
marry technology with business processes to create anintegrated solution.
It must provide the information base upon which the entire
operation should be run. It should contain the necessary business rules to manage the
entire supply chain process whether within a facility, betweenfacilities or across the entire supply chain.
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Major subsystem of themanufacturing module - Materials and capacity planning Shop floor control Quality management JIT/repetitive manufacturing Cost management Engineering change control Engineering data management Configuration management Tooling Serialization/lot control
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Finance Module:
The entire concept of IT is based on thepremise that providing the right
information to the right people, at theright time can make a critical differencein the organization. Much of the key
information could be taken from thefinancial data.
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Finance Module:[Contd]
But merely having financial data is notenough. You need a set of processes
and views of your data that provides upto the minute financial information inexactly the form you need it to make
that critical difference and help withthat crucial decision. Accountingsoftware needs access to information ineach area of your organization from
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Finance Module:[Contd]
Accounting software needs access toinformation in each area of your
organization from R&D and marketresearch through manufacturingdistribution and sales. Your financial
soln must provide the mgmt withinformn that can be leveraged forstrategic decisions, in order to achievecompetitive advantage.
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Finance Module:[Contd]
The financial modules of most ERPs hasthe following sub systems Financial Accounting [General Ledger,Accounts Receivables/Payable, SpecialLedgers, Fixed asset accounting, LegalConsolidation]
Investment Management [Investmentplanning/Budgeting/Controlling,Depreciation
Forecast/Simulation/Calculation]
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Finance Module:[Contd]
Controlling [Overhead Cost Controlling,Activity Based Costing, Product Cost
Accounting, Profitability Analysis] Treasury [Cash Management, Treasury
Management, Market Risk Management,Funds Management]
Enterprise Controlling [ExecutiveInformation System, Business Planning andBudgeting, Profit Centre Accounting]
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Financial Accounting:
The objective of financial accountingsystem is to provide companywide control
and integration of financial information thatis essential to strategic decision making.This module of an ERP system, gives youthe ability to centrally track financial
accounting data within an internationalframework of multiple companies,languages, currencies and chart ofaccounts.