How Production Module is useful in ERP?


By now we all understand how Enterprise Resource Planning (ERP) helps the business to integrate the information from different departments and boost the firm’s business decision making process. ERP is further divided into several modules which are assigned with a cluster of similar functions that will streamline the process and makes the business fast and efficient. Some of the modules are: HR, Finance, Inventory, Production and Customer Relationship Management.

The Production Module is designed for production planning, receiving orders and to assist in delivering the same to the customers on time. Listed below are few of the features of the module:

  • One of the key features of this module is that it provides an exact process definition and considers the whole procedure in detail. It helps in ascertaining the precise raw material requirement, helps to maintain appropriate inventory level, measures the production figures and helps in controlling the overhead costs of the firm.
  • Sales forecast is something that every manufacturing wants to have. It helps in planning the related factors thereby making the overall production system efficient. With this module customer wise reports can be collated and the data can be manipulated to get realistic information.
  • This module helps in creating the MRP (material requirement planning). It calculates the raw materials and other resources required for production considering the existing resources in stock. It also considers lead time which makes it reliable and a dependable source to plan and execute.
  • The module ensures that the efficiency of each resource is checked and is used accordingly. It also offers the flexibility to adjust the production plan based on any unexpected situations.
  • Helps in creating the production schedule on a timely basis. It also helps to create the jobs on a daily basis. The best part about this module is that it also generates the job orders for production automatically. This saves a lot of time and ensures that there is absolutely no break in the entire production process. It also ensures that the resources are never idle and are utilised to the best extent possible.

The production module in itself has a range of sub-modules. To name a few are:

  • Production control: This helps to supervise the overall production operations of the manufacturing firm.
  • Capacity planning: Helps in ascertaining the maximum production capacity of the firm in a given timeframe.
  • Time and attendance: Helps to keep a track of the working hours invested by the employees and calculates the shift timings and breaks hours too.
  • Quality control: This helps in determining the error percentage that is acceptable and keeps a track of the quality details associated with the production.
  • Cost control: Keeps a tab of all the overhead costs involved in the manufacturing processes stage by stage. It also helps the firm to analyse and cut down the unnecessary expenses.
  • Job costing: Helps to know how much each job specifically costs. Considers the direct and indirect costs to calculate the same.
  • Engineering project management
  • Service and repairs

Some of the advantages of using Production Planning Module:

  1. It saves time. As the entire process of collecting data and information is automated and real-time it helps the business to get any information within few minutes.
  2. Helps business decision making: Based on the frequent data reports received by the management it can clearly see the direction in which the company’s manufacturing is heading to. Based on the data the firm can make quick changes as and when required. This will help the firm stay ahead with a rigorous decision-making process.
  3. Production control: Depending on the orders the production is planned and scheduled. It helps the management to gain control over the entire chain of activities. Resources and the order of production can be planned accordingly.
  4. Various planning tools: The existence of several instruments makes production planning as flawless as possible and helps the firm to achieve the best with what exists.
  5. Demand forecast: The module helps to formulate MRP (material requirement planning), sales forecast and based on these also get the demand forecasts.
  6. Integration with other modules: Given the fact that the module can be integrated with other existing modules that belong to other departments, it helps to create a robust information system.

Thus the Production planning module will help the firm to utilise the existing resources optimally and workout feasible plans based on the derived demand.

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