chapter 5 erp modules-hr

8/2/2019 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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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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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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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.

chapter 5 erp modules-hr

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