ERP System

ERP (Enterprise Resource


Planning)
ERP Business applications to improve the performance of
organizations resource planning, management control and
operational control

ERP Component:
 ERP (Enterprise Resource
Planning)
 Ease of use and Powerful Attributes.
 Comprehensive Business Management.
 Make it easier to find customer
Information, allowing sales and Customer
service Employees to focus on more value-
added Activities.
 Reduce Customer Inquiry Processing time
and Costs.
 Increase Customer satisfaction and
retention.
 Reduce risks to the Business caused by
Inaccurate Customer. responses and poor
Customer retention rates.
 Increase Global Visibility of Business
 Open Source Software
((OSS
 The Source Code must either be
included or freely obtainable .
 Free Redistribution
 Derived Works: redistribution of
modifications must be allowed
 Integrity of The Author's Source Code
 No Discrimination against Persons or
Groups
 No Discrimination against Fields of
Endeavor
 License Must Not Restrict Other Software
 Open Source versus than
Others
Open Source versus

versus

source-available
Software Closed Source
versus

Free Software
 Oracle Data Base
 Key Benefits:
 Increased knowledge and skill base of database
administrators so they can manage complex
database environment
 Improved return on investment by maximizing
efficiency of
database platform
 Gained high-level understanding of database
operation by providing staff with opportunities to
interact with Oracle engineers
 Raised awareness of Oracle technology and
prepared staff for future rollouts
 Java
Key Benefits:
 Java technology is an object-oriented

 Multithreaded programming environment. It is the

foundation for Web and networked services,
applications
 Platform-independent desktops, robotics, Mobile and
other embedded devices.
•Java Can do More!
for Customer
for Business
for Developer
 Planning System
What is planning?
 Planning is about how we plan
for, and make decisions about.
Planning System is provides
answers for This questions:
 What items are required?
 How many are required?

 When are they required?

 Advantages of efficient
A- For the supplierplanning
of raw materials
 Assured of a continued relationship with the
factory
 Assured of regular orders from the factory

B- For the dealer

 Regular supply at a reasonable price
 Assured against having to search for suppliers all
the time
 Usually assured of a certain quality, quantity and
timeous and correct delivery
 Costs reduced

C- For the worker

 Job satisfaction is promoted.
 Healthy and safe working environment
 May result in improved wages or salaries
 Planning Cycle

General Planning Detailed Planning

Execution
and
Control
 Planning System
General Planning Production
Planning
Marketing
Strategy

Budgeting

Customer
Detailed Planning
Order

Material
Planning

Execution
and Control
Monitor
Execution
Measurement
Priority of Performance
Control
 Production System
 production system provides the
mechanism necessary to execute
productions in order to achieve some
goal for the system.

 Product lifecycle management

(PLM) is the process of managing the
entire lifecycle of a Product from its
conception
 Production System
Benefits
  Manufacturing solutions to help the
Organization: 
 Optimize MRP/ERP and manufacturing
success
 Increase speed, improve quality, and reduce
costs
 Eliminate the high cost of overtime, scrap,
and rework
 Put and end to the costly end-of-the-month
crunch
 Gain control of inventories and optimize their
turnover
Shifts
Production ERD
EmployeeShifts Employee

ProcessItems ProductionProcesses ProcessEmployees

Items MachineProcesses Machines

PlanWorkOrders MachineMaintanence
PlanSalesOrder

WorkOrderDetail WorkOrderHeader SubsidaryWorkOrderDetail

FollowupHeader SubsidaryWorkOrder TestingProductWorkOrders

TestingProducts
FollowupSetup FollowupDetail

TestingSetup
 Inventory System
 The Inventory Control module is a
complete real time management of
warehouse inventory and location data.
This module includes the tracking of
inventory by locations from building,
warehouse, zone, and location to sub-
location, pallet, and carton.

 Inventory control system can be

stand alone systems, or modules of an
ERP system.
 Inventory Control Features
 Complete transaction management
 Easy to use
 Issue by item, carton, user-defined case
quantity
 Transfer by item, carton between locations,
buildings, warehouses, zones, sub locations
 Flexible Min/Max quantity maintenance
 Complete requisition approval process
keyed to dollar amounts requested
 Warehouse zoning
 Complete physical inventory counting
 Tracking by lot, serial, revision, asset
number
 User definable Methodology (FIFO, LIFO, or
other user-defined method)
 Unit price changeable per customer with
default price per item
Methodology

 LIFO - Last in, first out

 FIFO - First in, first out

 GIGO - Garbage in, garbage out

 ItemComponent
Inventory ERD ItemClass ItemType OrderPolicy

Units

Items

StoreItems

InventoryTransactionDetail InventoryTransactionType

StoreType Stores

Locations
PurchaseTransactionHeader

InventoryTransactionHeader

SalesTransactionHeader
 Costing
What is Costing?
 All manufacturing companies sell
their Products to make profit.
The profit on each product sold can
be defined as the difference
between the selling price of the
product and the total cost of
making the product.
 Cost components
 Direct raw material costs -- costs of raw materials used to
make a specific product.
 Direct labor costs -- costs of labor used to make a specific
product.
 Overheads -- costs that cannot be charged directly to a
specific product.
 Fixed overheads -- stable costs that occur regardless of
whether or not goods are being produced (i.e. rent of factory).
These are allocated according to the number of machine hours.
 Variable overheads -- changeable overhead costs that vary
according to the number of goods produced (i.e. water and
lights). These are allocated according to the number of labor
hours.
 Indirect raw material costs -- costs of raw materials whose
role in the manufacturing of a product cannot be easily
determined
 Indirect labor costs -- costs of labor that cannot be charged
to a particular product (i.e. the floor sweeper in a factory).
 Primary production costs = direct labor + direct raw
materials
 Overhead expenses = fixed overheads + variable
overheads
 Costing
Why cost is important to the
Customer?
 The Customer has limited means or buying power.
 The Customer will benefit from a lower selling price.
 The Customer will benefit, too, in a market where
supply and demand forces prices down.
 Competitive prices of substitute goods also benefit
consumers.

Why cost is important to the

manufacturer?
 Provides management with information for decision-
making
 Helps to determine the break-even point
 Determines the cost of raw materials, labour and
other manufacturing costs for each component and
completed product
 Cost ERD
CostCenterLoading E xpenses
Machines

CostCenter
CostCenterE xpensesHeader

MachineMaintanence

CostCenterExpensesDetail
E mployee
 Purchasing
 The ERP Purchasing Software Module
provides complete purchasing control
to generate and track purchase orders
from PO issue to receipts.
 The Purchasing module provides
controls for the complete purchasing
process, from vendor quoting through
receiving, inspection, cost and vendor
payment.
 Manage all purchasing activities, from
purchase order entry to receiving and
inspecting. Take advantage of quantity
breaks and vendor performance
 Purchasing
 Vendor: Tracking Vendor Data Provides
access to information that is crucial to your
Vendor Partnerships, including Sales orders,
accounts payable data, and other key
documents.
 Any Purchasing System must easily keep
track of Vendor. Whether you would like to
Improve Purchasing Process, improve Vendor
service, reduce paperwork or streamline
marketing, the software will help you attain
your business goals.
 The software can store Vendor type, contact
information, postal address, email address,
contact history, notes, associated document
 Key Purchasing Features
 Manual Requisition and Purchase Order Entry
 Tracking Vendor Data
 Tracking Vendor Performance
 Quantity Requisition and Purchase Order
Generation
 Control on Item price, quantity and unite on
Invoice
 Direct Purchase Order Entry
 Detailed Reporting Integrated
 Purchasing Return Management
 Multiple Sales Order per Invoice
 Single Transaction to Create Invoice
 Flexible Pricing on Invoice
 Multiple Unit of Measurement
 Purchsing ERD
Banks Stores
...
BankID varchar(10) <pk> StoreID
... varchar(10) <pk>

Suppliers PurchaseTransactionHeader
S
...upplierID varchar(10) <pk> P urchTransID
... varchar(10) <pk>

PriceListHeader
P
...riceListID varchar(10) <pk>

PurchaseTransactionType
...
TransTypeID varchar(10) <pk>

PriceListDetail PurchaseTransactionDetail
P riceListID
... varchar(10) <pk,fk2>

Items Units
 an / production /Inventory
Purchsing DFD
Price List

Items
Invoice
(Inventory System)

Purchse Order

(Account System) Return

Settlement
 Sales Management
System
 Sales management can manage the
complete sales cycle and handle sales
activities.
 The Sales ERP application addresses a
wide range of customer from selling
products and professional services to
handling Invoice, and returns.
 Sales System provides the most
complete, flexible sales order
management processes for fulfilling the
perfect order and satisfying your
 Sales Management
System
Customer: Tracking Customer Data Provides
access to information that is crucial to your
Customer Partnerships, including Sales
orders, accounts payable data, and other key
documents.
 Any Sales System must easily keep track of
Customers. Whether you would like to
increase sales, improve customer service,
reduce paperwork or streamline marketing,
the software will help you attain your
business goals.
 The software can store customer type,
contact information, postal address, email
address, contact history, notes, associated
 Key Purchasing Features
 Manual Requisition and Sales Order Entry
 Tracking Customer Data
 Tracking Customer Performance
 Control on Item price, quantity and unite on
Invoice
 Direct Sales Order Entry
 Detailed Reporting Integrated
 Sales Return Management
 Multiple Sales Order per Invoice
 Single Transaction to Create Invoice
 Flexible pricing on Invoice
 Multiple Unit of Measurement
 Banks
Sales ERD
BankID
... varchar(10) <pk>

SalesMans SalesTransactionType
S alesManID
... varchar(10) <pk> TransTypeID
... varchar(10) <pk>

C ustomers
CustomerID
... varchar(10) <pk>

PriceListHeader
P
...riceListID varchar(10) <pk> SalesTransactionHeader

PriceListDetail

Stores

Items
SalesTransactionDetail
...
ItemId varchar(10) <pk>

Units
 Sales DFD

Customer / Sales Man Sales Order Items

Invoice
(Inventory System)

(Account System) Return

Settlement
 ? What’s Next
 Enhance System Security, and Add
Password Policy
 Convert Application to Web Application
Using Java Applet.
 On inventory control system: To record
an inventory transaction, the system uses a
barcode scanner to automatically identify
the inventory object.
 Integrated bar-coding features.
 On Production System: Manage All
Production Cycle by ERP Application.
 Enhance Bilingual Option to be available to
every User.
