Manufacturing software modules.The manufacturing modules in ERP solutions track the various activities involving manufacturing operations and products by allocating costs to the manufactured goods. Manufacturing software (also called production control or factory management software) started in the 1950s, with a number of early computer applications designed by large corporations, such as General Electric and IBM, to meet their manufacturing needs. As computers became more mainstream and companies discovered different ways to use computers, a growing number of information systems (IS) capabilities related to production appeared in office automation software. These application areas resemble the modern concepts of materials requirements planning (MRP), manufacturing resource planning (MRP), material requirements planning (MRP II), production control, shop floor control, and Enterprise resource planning (ERP). The technology for ERP evolved throughout the 1980s and 1990s. The MRP II integrated model was predominant throughout the 1980s, whereas more recent models such as Enterprise Production Planning/Dispatcher Operations-International Standardized Program for Production Control (EP/DC-ISPC) were developed in the 1990s. With a change from one paradigm to another model, it is not uncommon for gaps to appear in processes that previously worked properly.

Manufacturing software modules help to make a more efficient and profitable production. Modules can include planning, scheduling, lean manufacturing and automation support, the ERP Clarity manufacturing software offers a full suite of integrated modules designed to ensure companies are running efficiently and profitably.

manufacturing ERP modules to look for in your next ERP

Modules in manufacturing ERP

Manufacturers need an ERP with the manufacturing ERP modules that support their business needs including managing and tracking inventory, workflow, workforce management, order management, asset management, and logistics.

Manufacturing modules we’ll look at include:

• Operations and production management
• Inventory control
• Purchasing and supply chain management
• Sales and order management
• Human resources
• Customer relationship management
• Supplier relationship management
• Business intelligence
• Engineering management

Operations and production management

Operations management is the heart of a manufacturer.  Products must be made that work for the customers and meet their needs.  Those products must be ready based on a schedule so they arrive when the customer wants a delivery.  People and material components or ingredients need to be delivered so that operations can achieve the schedule. Financial management is connected too so that cash to pay the suppliers and employees is available at the right time.

A discrete manufacturer will use a bill of materials to break out all the component parts required for production.  Those materials are assembled over time based on a routing or bill of operations, and eventually, they become a finished product.

A process manufacturer mixes ingredients based on a recipe.  Combining those ingredients often follows equipment and the capabilities of the machinery but there are steps that must be followed to get the desired finished products.  There can be different grades of product at the end where ”grade A” yield goes to certain customers and lower grades to other customers.

Inventory control

All manufacturers use and maintain inventory. Inventory often is the single greatest value asset for a manufacturer and it must be controlled and used optimally. They purchase materials based on forecasts or unique order requirements. Perfect inventory moves continuously until the product is completed but perfect inventory is an elusive goal. Management of inventory is necessary for both process and discrete manufacturers.

Inventory not in motion is a waste to be controlled. Inventory can become obsolete when customer demands evolve or when better materials become available. Control of obsolete and excess inventory is a constant effort. Good inventory control allows a manufacturer to dispose of unneeded inventory while it still has some value avoiding the need to scrap material with no value.

Any unnecessary material movement is also a waste. Inventory control requires that materials be kept where they can be moved to and from production with the least effort. Slotting is the term used to describe keeping materials in the optimum location.

Purchasing and supply chain management

Manufacturing runs on inventory and purchasing is at the core.  This module starts with sales order and forecast demands. Then it moves from the product parent demands to the individual component demands to support those products. Next, it schedules those demands based on the production schedule and alerts the supply chain manager when the time is right to place a purchase order on a supplier.

The same module helps that manager watch that order until it arrives on the receiving dock, providing alerts as needed to prompt necessary follow up actions. It also tracks and records all the transactions. Purchasing management systems track incoming material through complex flows. An order might be placed with a distributor who, in turn, places an order on a foreign producer.  That order moves from a factory in one country to another factory in another country for completion. It moves onto a ship and to port in the country where the manufacturer operates. It still needs to process through customs and transport showing up at receiving at the time needed.

Manufacturers who outsource production use purchasing management tools as well.  The outsource producer needs to maintain inventory, and purchasing needs to know it is on hand or available when needed. Often components are consigned to that producer – physically moved and stored at the producer’s site while still owned by the manufacturer.  The producer uses jobs or work orders within their shop and the manufacturer should track progress toward completion and return of the finished work so that the order can be checked and delivered to the customer who is waiting. That outsource producer must follow prescribed processes and quality standards and purchasing management allows that within ERP.

Sales and order management

Customers place orders for products they need. Those customer purchase orders become sales orders at the manufacturer. ERP signals operations to schedule work and purchasing to order component materials needed to fulfill those customer demands. ERP also alerts sales management informing them if the order is on schedule providing an opportunity to alert the customer when there is any risk. ERP records all the transactions required with links to the sales order demand. This allows for intelligent reporting.

Sales orders can be exact repeats of previous orders or they can be unique, quoted items ordered on a one-time basis.

Human resources

People produce the products all manufacturers sell. The human resources module in ERP supports those people. ERP helps by controlling the payroll rates and benefit packages each employee earns.  Management knows when an employee is due for an appraisal or raise, and the new pay rate can be immediately used to calculate payroll costs. The HR module works with the quality module tracking what training and certifications an employee needs to perform their current work or to become eligible for a promotion. Workers who fall behind in their certifications cannot be scheduled for work in the production scheduling module.

HR modules are where management uses future employee characteristics as a model helping locate and hire employees with the skills that will be required tomorrow.

Customer relationship management

Your ERP includes a customer relationship module or CRM. This module provides tools to track every communication between a manufacturer and a customer. Those communications can be verbal by telephone or in-person. They can be simply advertising materials sent by mail or digitally, and any other form. A phone conversation might begin with a simple, “How are things today?” and continue through several follow ups to a quote and sales order.

An outbound email is part of a promotion campaign. CRM records the date and time the message was sent and to whom. CRM then follows that message as it is opened and read, and possibly forwarded to others within the same or a different organization. CRM tracks the results of the campaign within a customer or prospect organization. CRM also tracks the overall results of the campaign.

Supplier relationship management

SRM or supplier relationship management comes as a part of your ERP. This module is where we track requests for quotations from suppliers, and keep a rating of those quotes to enable better quote management in the future.

SRM is also an important part of a manufacturer’s quality assurance system. The manufacturer requires suppliers to maintain quality standards and international certifications. Those certifications and standards are kept in SRM and alerts come whenever updates are needed.

Business intelligence

BI or business intelligence is a key module for any manufacturer. ERP systems track every transaction in any module. The time and date, and who entered the transaction are recorded. These transactions make up the audit trail, which is a necessary part of management control systems.

ERP also runs on configurations and setup records within each module. These might be simple defaults for specific transactions. The configuration for a make to order business will establish links to sales orders as a default.  A make to stock manufacturer, on the other hand, will have those defaults linked to inventory replenishment forecasts.

BI allows users to use any data table in the ERP and link to any other table, while applying filters, so that reports and dashboards that focus users and management toward actions and decisions chosen to move the business toward the goals that business set.  That data can be displayed in spreadsheets or charts as needed.

BI might show a top executive the orders booked within the last hour.  BI can also let a worker on the shop floor know which job they should start next with confidence that one is already optimized to meet customer demands.

Admin and Masters Management Module

This is one of the most important and the first module that a user comes across while using an ERP software. The admin and masters management module allows users to create and carry out all admin related tasks such general details of the company, details about the employees including names, rights relevant to work, working hours and so on. An admin management module would generally contain the following sections:

• Company Creation

This section allows users create the basic company profile. For instance, a user creating a profile for a new company would input details about the company’s name, full address (name of state, name of city, name of area, post box number etc.), PIN code, email ID, phone and fax numbers, and a link to the company’s website. Users can add, edit, search for, as well as entirely export this section to other devices.

• Branch Creation

The branch creation option is useful in case the company has stores/offices located in several places. As the name suggests, this section allows users to input the name, location, address and other relevant details about the one or more branches of the company.

• Employee Creation

This section allows users to create profiles for employees and add details such an employee’s name, address, department, designation, role, mobile number and email address. This section also provides the user with an option to choose whether an employee is active, has retired, and whether or not the employee has permission to use the ERP.

• Employee Hierarchy

This section is perhaps one of the most interesting and useful parts of the admin management module. This feature allows the user to input all employees’ names and designation as well as specify who reports to whom. This can help track employees and their activities more effectively.  

• Financial Year

Allows the company/organization to define the starting and end dates of each financial year, sorted by branch names.

• Login Page Configuration

This page allows users to add the company logo, pictures and information that they want featured on the login page.

• Role Access Rights

This section allows users to assign roles and rights to individual employees or relevant personnel. Rights include company wise rights, branch wise rights, module wise rights, and so on. Users can use checkboxes to decide who has access to which rights and this helps the company’s data to be more secured since only authorized personnel can access and control different portions of the company’s profile.

• Role Master

Allows user to set specific codes to the roles assigned to the employees of the company.

• Voucher Number Configuration

Aids in the creation of voucher numbers in accordance to branch name, module number, form number, and so on.

• Voucher Number Setup

Allows user to setup all the information that they want displayed on the voucher.

• Workflow Configuration

This is the section where all transaction settings are done. It also allows users to set automated messages, emails and notifications.

Production Management

Products are manufactured to meet customers’ needs. Therefore, they must be ready when the customer expects their delivery. The manufacturing module in ERP ensures that machinery, workforce and material components are available in order to yield the desired finished products as scheduled.

Conclusion

Manufacturing modules are business modules of erp .ERP solution is required for selection,planning,controlling and organizing of enterprise functions.Manufacturing module of erp covers manufacturing activities such as work order management, job costing , materials requirement planning , procurement and inventory control etc. Manufacturing module takes care of most of the manufacturing tasks including creating work orders, job cost, material requisition plans etc.