Manufacturing Module:
Manufacturing or production management is the core function of a manufacturing firm. The growing competition among firms to deliver customer-specific products with less lead-time has made it imperative for them to use information technology to make their manufacturing processes more efficient. ERP vendors too keep this in mind and deliver manufacturing modules that support multiple manufacturing processes such as build-to-order or build-to-stock. A good manufacturing module integrates the technology and the business processes and provides all the production information based on which the manager can take decisions.
SAP's production planning and execution process module is integrated with other modules such as financial accounting, sales and distribution, materials accounting and controlling, and materials management. This is a real time system and has a production controller which reacts quickly to the changes in demand and supply. SAP R/3 has a highly integrated production planning system. It looks after the master data such as material master, bill of materials (BOM), cost center, and work center, and stores it in a separate component. This module is further divided into two sub-modules - PP-PI and Production General. It helps in capacity planning, addresses various manufacturing methods like Kanban, repetitive manufacturing, and planning strategies such as build-to-order and build-to-stock.
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