What are typical ERP Software System Processes?

ERP software systems comprise a variety of different software modules and each of these ERP modules in turn comprises a set of business processes that the particular ERP software package supports. A useful starting point for compiling and ERP software system spec / RFQ / RFI / ITT listing the required system functionality a list of business processes that ERP software systems tend to support such as the list of processes given below. Rather than viewing the full list of ERP system processes it may be more helpful to view the high level ERP Software Modules that house these business processes and then view the processes of the selected ERP module.

The typical ERP system processes are listed underneath. Clicking the short description of an ERP process allows you to view a more detailed description of the selected process and the other business processes contained in the same ERP software module as it.

An effective and integrated ERP software package should be able to cover as many or as few of your business processes as you wish to include. The above list can be used as first pass list of ERP software system functional requirements that can be filtered to arrive at a high level ERP system spec of required functionality to assist your ERP selection process and subsequent implementation.

• Adjust production schedules.
• Allocate component stock to orders.
• Allocate finished goods to orders.
• Amend BOMs and routings.
• Analysis of quality inspection results.
• Appropriate order policies for materials.
• Arrange sub-contract activities.
• Assess supplier capabilities / capacities.
• Assess time phased cash flows.
• Assess viability of order enquiries.
• Authorise invoice payment.
• Backflush to determine material usage.
• Batching techniques.
• Blend orders and forecasted demand.
• Calculate and project market trends.
• Calculate capacity requirements.
• Calculate resource profiles.
• Calculate the material requirements.
• Capacity requirements (long leadtime).
• Carry out MPS.
• Change purchasing / shop orders.
• Collect charges relating to an order.
• Communicate shop floor status to customers.
• Communicate supply delays to the shop floor.
• Compare forecasted with actual demand.
• Complex order dispatching.
• Confirm delivery dates with suppliers.
• Consider resource constraints.
• Control of final dispatch of products.
• Control of historic data / file purging.
• Control stock usage (FIFO etc.)
• Control warehousing operations.
• Co-ordinate incoming materials.
• Co-ordinate returns processing.
• Create a formal production plan.
• Create new item records / BOMs.
• Creating Where-Used lists.
• Cumulative material lead times.
• Customised product production needs.
• Design details needed for customisation.
• Detailed forecasting of customer orders.
• Details of changed / customised products.
• Details of orders awaiting delivery.
• Determine the resource requirements.
• Disaggregate the production plan.
• Eng. change control function performance.
• Engineering change control history.
• Engineering change implementation date.
• Establish shop floor reporting procedures.
• Estimate lead times per order.
• Expected order completion dates.
• Explode product family forecasts.
• Feasibility of product customisation.
• Frequency / costs of stockouts.
• Full trial Material Requirements Plan.
• Generate quotes.
• Generate shop orders.
• Generate the MPS.
• Generate works order documentation.
• Generate work-to lists.
• Identify bottlenecks.
• Identify items needing careful control.
• Identify resource shortages.
• Identify surplus and obsolete items.
• Identify the parts requirements.
• Impact of the engineering changes.
• Inspect incoming goods.
• Instructions for finished goods storage.
• Inventory replenishment requests.
• Investigate alternative suppliers.
• Lead times and costs of customisation.
• Lead times, batch sizes etc.
• Maintain item details.
• Maintain lead time information.
• Maintain operations file.
• Maintain phantom BOMs data.
• Maintain routing details.
• Maintain sales history records.
• Maintain work centre details.
• Make vs buy and eng. design decisions.
• Manage and confirm firm planned orders.
• Manage engineering change orders.
• Manage materials requisitions.
• Manage relationships with customers.
• Marketing and operational strategies.
• Measure accuracy of the BOM data.
• Measure planned vs actual costs.
• Modify manufacturing processes.
• Monitor age of works orders.
• Monitor and record stock movements.
• Monitor breakdowns etc.
• Monitor changed engineering drawings.
• Monitor customer complaints.
• Monitor customer delivery performance.
• Monitor demonstrated capacity.
• Monitor part finished goods.
• Monitor personnel attendance.
• Monitor pPfunction.
• Monitor queue sizes at work centres.
• Monitor scrap.
• Monitor slow moving inventory items.
• Monitor stock on multiple locations.
• Monitor subcontracting activity.
• Monitor the rate of turnover of inventory
• MOPs for evaluating shop floor activities.
• MPS adherence to the production plan.
• MRP function performance.
• MRP system parameters (time horizons).
• Multi-level finite capacity analysis.
• Negotiate with suppliers.
• Non-routine manufacturing incidents.
• Operate MRP system.
• Perform adjustments to inventory records.
• Perform capacity planning.
• Perform Vendor Rating.
• Performance of the MPS function.
• Planned work centre output vs actual.
• Process inventory transfers.
• Process issues and receipts.
• Process order backlogs.
• Process the BOM (effectivity dates).
• Process the BOM (lead time offsets).
• Produce bids for tender.
• Produce picking lists for kitting purposes.
• Product standard cost simulation.
• Production planning function performance.
• Provide ATP information.
• Purchase orders for suppliers.
• Quote vs actual product costs.
• Rationalise MPS against production plan.
• Register material returns to suppliers.
• Report early and / or late deliveries.
• Requests for quotations.
• Risk associated with the production plan.
• Safety stock sizes for inventory items.
• Sales Order Processing function performance.
• Schedule work around bottlenecks.
• Schedule work to be carried out.
• Set MPS time fences / frozen zone.
• SFM and Control function performance.
• Shortages / excesses of inventory.
• Simulate different MPS scenarios.
• Stock control function performance.
• Suppliers, orders and purchase history.
• Time phased resource requirements.
• Trace items back to the ultimate parent.
• Use information to forecast demand.
• Use pricing / discounting procedures.

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The 4ETO web site is being used to fulfil three purposes, firstly, it is a vehicle to recruit engineer to order manufacturers to take part in the research project concerned with improving how ETO manufacturing companies plan production and manage their jobs / projects. Secondly, the 4ETO web site is being used a means of disseminating the results of the research project as well as good practices employed by successful engineer-to-order manufacturers. Thirdly, the 4ETO site will be developed into a portal site for ETO manufacturers.

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Please contact Austen Jones with any questions, comments or suggestions.

Last Updated: 27-Mar-2008