Reference Guide to Discrete Manufacturing ERP Software Functions and Features
So, you’re a discrete manufacturer looking for an enterprise resource planning (ERP) system.
This reference guide, based on TEC’s Discrete ERP Request for Proposal (RFP) Template, provides insight into the discrete manufacturing ERP features and functions currently available on today’s market. It will help you to determine which ERP features are a high priority for your organization, and which features are a lower priority.
You can download a detailed guide in Excel format at TEC’s Discrete ERP System RFP Template page.
Before we get started, here is a short overview:
What Is Discrete Manufacturing ERP Software?
Discrete ERP addresses discrete manufacturing requirements (according to APICS: “the production of distinct items such as automobiles, appliances, or computers” [APICS Dictionary, Eleventh Edition, 2005]). The goal of discrete ERP systems is to fully integrate organizational management and resources. Discrete ERP manages all aspects of production, inventory, purchasing, etc., within a manufacturing environment, as well as other enterprise management modules.
Other modules (quality, sales management, and product technology) can be integrated with the system according to your needs.
To learn more about the distinction between discrete ERP and process ERP, see Process ERP vs. Discrete ERP Differentiation.
About this Discrete ERP Guide
Our ERP discrete RFP template contains about 4,000 criteria; consequently, we’ll focus here on the “big picture” features.
You’ll note that we’ve brought discrete ERP features together by broad category:
1. Financials
2. Human resources
3. Manufacturing management
4. Inventory management
5. Purchasing management
6. Quality management
7. Sales management
8. Product technology
These categories correspond to a high-level functional breakdown of software features. In this reference guide, we give a short explanation of how each category impacts your discrete manufacturing processes.
If you would like more information about full listings of enterprise software functions and features, please see TEC’s RFP Templates.
Reference Guide to Discrete Manufacturing ERP System Functions and Features
1. Financials
General ledger
General ledger keeps centralized charts of accounts and corporate financial balances. It supports all aspects of the business accounting process. In this module, financial accounting transactions are posted, processed, summarized, and reported. It maintains a complete audit trail of transactions and enables individual business units to view their financial information, while parent companies can roll up all business subsidiaries and view the consolidated information.
Accounts Payable (AP)
Accounts payable (AP) schedules bill payments to suppliers and distributors, and keeps accurate information about owed money, due dates, and available discounts. It provides functionality and integration to other areas such as customer service, purchasing, inventory, and manufacturing control. The software should support the following functionality: AP company policies and procedures; suppliers/voucher master data; payment controls; invoice processing and aging analysis; payment processing; journal voucher processing; AP ledger posting; check processing; AP transactions and controls; and AP reporting.
Fixed Assets
Fixed assets manage depreciation and other costs associated with tangible assets such as buildings, property, and equipment. The software should support the following functionality: fixed assets records; asset transactions; asset depreciation; depreciation books; revaluation and interest calculation; and tax reporting.
Cost Accounting
Cost accounting analyzes corporate costs related to overhead, products, and manufacturing orders. It provides a variety of costing approaches such as standard, first-in-first-out (FIFO), last-in-last-out (LIFO), average, target, and activity-based costing (ABC). The software should support the following functionality: cost data; cost allocation definitions; cost allocation process; cost management; cost and sales price calculation; ABC; and ABC tracing and tracking.
Cash Management
Cash management involves the capability of the system to record cash charges or deposits, recording of cash payments and receipts, cash projection reporting, calculation of expected cash uses/sources, current cash availability, etc. It monitors and analyzes cash holdings, financial deals, and investment risks.
Budgeting
Budgeting involves budgetary controls, budget accounting, budget development, and budget allocation. The software should provide sufficient tools to enable detailed budget development and analysis. Additional functionality should be available to integrate with project management software applications, either natively or with external interfaces.
Accounts Receivable (AR)
Accounts receivable (AR) tracks payments due to your company from your customers. It contains tools to control and expedite the receipt of money from the entry of a sales order to posting payments received. The software should support the following functionality: AR company policies and procedures; customers/voucher master data; bill processing and aging analysis; credit management; cash/payment application, receipt processing; journal voucher processing; AR ledger posting; multicurrency accounting and conversions; AR transactions and controls; and AR reporting.
Financial Reporting
Financial reporting enables robust analysis of company performance through delivered reports. These reports allow individual business units to view their financial information, while parent companies can roll up all business subsidiaries and view the consolidated information. Additionally, solutions should provide you generated reporting tools that are easy to use and provide sufficient depth of and access to the financial data to permit comprehensive analysis.
Project Accounting
Project accounting uses financial practices to monitor the schedules and spending of projects process.
2. Human Resources (HR)
Personnel Management
Personnel management automates personnel processes including recruitment, personnel profile, organizational structure, career development and training, reward management, job position and wage profiles, and business travel and vacation allotments. The software should support the following functionality: recruitment management; personnel information and tracking; organizational structuring; job position and salary profile; career development, training and performance management; compensation management; budgeting and cost control; government compliance reporting; expenses management; union information; discipline actions and grievances tracking; and employment history/personnel reporting.
Benefits
Benefits functionality is used to administer a diverse range of benefit plans. Such plans typically cover accidental death and dismemberment (AD&D), disability, life, medical, retirement plans, flexible benefits, and profit sharing plans.
Payroll
Payroll handles accounting and preparation of checks related to employee salaries, wages, and bonuses. The software should support the following functionality: employee payroll profile; earnings and deductions; eligibility controls; user balances; tax deductions and calculation; payroll calculation; payroll and payment processing; check processing and printing; labor distribution and accounting; payroll and regulatory reporting; IRS documentation; security and audit; and automated timesheets.
Employee Self-service
Employee self-service lets workers access their personal information and benefit allocations on-line to manage life events and benefit selections without having to send forms to human resources. The software should also support benefit enrollment programs and new hire initiation.
Employee Metrics
Employee metrics allow HR managers to analyze and report on such variables as staff headcount and movement, workforce planning, absences and leaves, wage and salary costs, competency profiles, and training requirements and histories.
Health and Safety
Health and safety provides the tools to administer compliance with the health and safety regulations, accident and injury reporting, and tracking of lost time by employee.
Workforce Management
Workforce management enables organizations to efficiently plan and organize their labor resources. It helps employers assess part-time employee labor, evaluate and project the contribution from individual employees, track time and expenses, as well as manage contracts.
Training
Training functionality covers the planning and administration of employee training programs, and allows administrators to track training schedules, training budgets, training costs, and more.
SOURCE:
http://www.technologyevaluation.com/research/articles/reference-guide-to-discrete-manufacturing-erp-software-functions-and-features-20587/
This reference guide, based on TEC’s Discrete ERP Request for Proposal (RFP) Template, provides insight into the discrete manufacturing ERP features and functions currently available on today’s market. It will help you to determine which ERP features are a high priority for your organization, and which features are a lower priority.
You can download a detailed guide in Excel format at TEC’s Discrete ERP System RFP Template page.
Before we get started, here is a short overview:
What Is Discrete Manufacturing ERP Software?
Discrete ERP addresses discrete manufacturing requirements (according to APICS: “the production of distinct items such as automobiles, appliances, or computers” [APICS Dictionary, Eleventh Edition, 2005]). The goal of discrete ERP systems is to fully integrate organizational management and resources. Discrete ERP manages all aspects of production, inventory, purchasing, etc., within a manufacturing environment, as well as other enterprise management modules.
Other modules (quality, sales management, and product technology) can be integrated with the system according to your needs.
To learn more about the distinction between discrete ERP and process ERP, see Process ERP vs. Discrete ERP Differentiation.
About this Discrete ERP Guide
Our ERP discrete RFP template contains about 4,000 criteria; consequently, we’ll focus here on the “big picture” features.
You’ll note that we’ve brought discrete ERP features together by broad category:
1. Financials
2. Human resources
3. Manufacturing management
4. Inventory management
5. Purchasing management
6. Quality management
7. Sales management
8. Product technology
These categories correspond to a high-level functional breakdown of software features. In this reference guide, we give a short explanation of how each category impacts your discrete manufacturing processes.
If you would like more information about full listings of enterprise software functions and features, please see TEC’s RFP Templates.
Reference Guide to Discrete Manufacturing ERP System Functions and Features
1. Financials
General ledger
General ledger keeps centralized charts of accounts and corporate financial balances. It supports all aspects of the business accounting process. In this module, financial accounting transactions are posted, processed, summarized, and reported. It maintains a complete audit trail of transactions and enables individual business units to view their financial information, while parent companies can roll up all business subsidiaries and view the consolidated information.
Accounts Payable (AP)
Accounts payable (AP) schedules bill payments to suppliers and distributors, and keeps accurate information about owed money, due dates, and available discounts. It provides functionality and integration to other areas such as customer service, purchasing, inventory, and manufacturing control. The software should support the following functionality: AP company policies and procedures; suppliers/voucher master data; payment controls; invoice processing and aging analysis; payment processing; journal voucher processing; AP ledger posting; check processing; AP transactions and controls; and AP reporting.
Fixed Assets
Fixed assets manage depreciation and other costs associated with tangible assets such as buildings, property, and equipment. The software should support the following functionality: fixed assets records; asset transactions; asset depreciation; depreciation books; revaluation and interest calculation; and tax reporting.
Cost Accounting
Cost accounting analyzes corporate costs related to overhead, products, and manufacturing orders. It provides a variety of costing approaches such as standard, first-in-first-out (FIFO), last-in-last-out (LIFO), average, target, and activity-based costing (ABC). The software should support the following functionality: cost data; cost allocation definitions; cost allocation process; cost management; cost and sales price calculation; ABC; and ABC tracing and tracking.
Cash Management
Cash management involves the capability of the system to record cash charges or deposits, recording of cash payments and receipts, cash projection reporting, calculation of expected cash uses/sources, current cash availability, etc. It monitors and analyzes cash holdings, financial deals, and investment risks.
Budgeting
Budgeting involves budgetary controls, budget accounting, budget development, and budget allocation. The software should provide sufficient tools to enable detailed budget development and analysis. Additional functionality should be available to integrate with project management software applications, either natively or with external interfaces.
Accounts Receivable (AR)
Accounts receivable (AR) tracks payments due to your company from your customers. It contains tools to control and expedite the receipt of money from the entry of a sales order to posting payments received. The software should support the following functionality: AR company policies and procedures; customers/voucher master data; bill processing and aging analysis; credit management; cash/payment application, receipt processing; journal voucher processing; AR ledger posting; multicurrency accounting and conversions; AR transactions and controls; and AR reporting.
Financial Reporting
Financial reporting enables robust analysis of company performance through delivered reports. These reports allow individual business units to view their financial information, while parent companies can roll up all business subsidiaries and view the consolidated information. Additionally, solutions should provide you generated reporting tools that are easy to use and provide sufficient depth of and access to the financial data to permit comprehensive analysis.
Project Accounting
Project accounting uses financial practices to monitor the schedules and spending of projects process.
2. Human Resources (HR)
Personnel Management
Personnel management automates personnel processes including recruitment, personnel profile, organizational structure, career development and training, reward management, job position and wage profiles, and business travel and vacation allotments. The software should support the following functionality: recruitment management; personnel information and tracking; organizational structuring; job position and salary profile; career development, training and performance management; compensation management; budgeting and cost control; government compliance reporting; expenses management; union information; discipline actions and grievances tracking; and employment history/personnel reporting.
Benefits
Benefits functionality is used to administer a diverse range of benefit plans. Such plans typically cover accidental death and dismemberment (AD&D), disability, life, medical, retirement plans, flexible benefits, and profit sharing plans.
Payroll
Payroll handles accounting and preparation of checks related to employee salaries, wages, and bonuses. The software should support the following functionality: employee payroll profile; earnings and deductions; eligibility controls; user balances; tax deductions and calculation; payroll calculation; payroll and payment processing; check processing and printing; labor distribution and accounting; payroll and regulatory reporting; IRS documentation; security and audit; and automated timesheets.
Employee Self-service
Employee self-service lets workers access their personal information and benefit allocations on-line to manage life events and benefit selections without having to send forms to human resources. The software should also support benefit enrollment programs and new hire initiation.
Employee Metrics
Employee metrics allow HR managers to analyze and report on such variables as staff headcount and movement, workforce planning, absences and leaves, wage and salary costs, competency profiles, and training requirements and histories.
Health and Safety
Health and safety provides the tools to administer compliance with the health and safety regulations, accident and injury reporting, and tracking of lost time by employee.
Workforce Management
Workforce management enables organizations to efficiently plan and organize their labor resources. It helps employers assess part-time employee labor, evaluate and project the contribution from individual employees, track time and expenses, as well as manage contracts.
Training
Training functionality covers the planning and administration of employee training programs, and allows administrators to track training schedules, training budgets, training costs, and more.
SOURCE:
http://www.technologyevaluation.com/research/articles/reference-guide-to-discrete-manufacturing-erp-software-functions-and-features-20587/
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