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ROLE AND FUNCTION OF ERP IN MANUFACTURING

Enterprise Resource Planning (ERP) system is a type of business management software that enables companies to manage all internal processes through a single centralized system.

An ERP software consists of a system of integrated applications that work in tandem to manage the business as a whole. All facets of the organization are included under the same roof with a special focus on data management and report churning to aid the decision-making process.

For example, if you are a manufacturing company in Punjab, a dedicated ERP system can help you improve your production planning and material management processes in a way that the costs are minimized!

Here are the various functions that an ERP system undertakes inside an organization:

1. Financial Accounting

The Financial Module of the ERP system aids the management by taking care of the company finances. It does so by helping to take care of the accounting process of the organization that is usually handled by the Accounts Department.

Various documentation processes and reports that can be carried out include:

  • Balance Sheet: Gives the account balance snapshot at a particular point in time and indicates the financial health of the company.
  • Income Statement: Shows the overall sales, marketing costs, and overall profit for a fixed period of time.
  • Cashflow Statement: Tracks the amount of liquid funds entering and leaving the company at regular intervals of time.
  • Ledgers: A financial book that provisionally tracks all transactions.

The role of Financial Accounting in Manufacturing includes:

  • Optimization of cash flows
  • Improvement of the financial reporting system
  • Achieving faster closes
  • Single integrated view of cost accounts
  • Multiple ledger entries
  • Reducing cost of finance management

All this is done in real-time and automatically carried out by the ERP software.

2. Payroll Management

An extensive ERP system has a dedicated module for Payroll Management that keeps a track of all the employees of an organization and the remuneration that they are drawing. Additionally, it handles various other functions like the whole HR management process, ledger entries related to payroll, compliance with legal hiring regulations, etc.

The role of Payroll Management in Manufacturing includes:

  • Minimizing paperwork related to human re management
  • Tracking the history of tax related to employees
  • Increasing ease of employee management
  • Employee managerial reporting
  • Faster processes and closes
  • Single integrated views of cost accounts
  • Management of a diverse workforce

3. Production Planning

This module of the ERP software helps to manage the day-to-day functioning of the production processes of the company. Information and reports about various heads like the delivery schedule, inventory management, and production control can be easily and quickly shared among the company management.

This eliminates human errors to a large extent and helps to save critical information about each product.

The role of Production Planning in Manufacturing includes:

  • Real-time updates about the production processes
  • Optimization and tracking of production processes
  • Updates information about product configuration
  • Required re planning in manufacturing
  • Active tracking of supply to meet the demand
  • Prevention of errors in manual entries

4. Material Management

Material Management is the process of taking care of the transfer of materials from the manufacturer to the consumer. This includes management, optimization, and tracking of the whole supply chain and simple warehouse management solutions to handle the transportation and delivery with the help of an inventory control software.

The role of Material Management in Manufacturing includes:

  • Supply chain management through software solutions
  • A to Z Inventory Control
  • Real-time reports about the inventory
  • Automated inventory management
  • Master database of materials
  • Cloud-based inventory management

Conclusion

A reliable ERP software will be able to take care of all the above-mentioned roles and functions. If you are searching for one, take a look at Zenscale ERP and the powerful features that it offers!

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