This work report mainly presents the theoretical background prepared for designing a production module of an ERP system developed for Malati Founders Pvt. Ltd. (MFPL), a small scale company based in Laxmi industrial estate of Hatkanangale, Dist.-Kolhapur,MS,India.System design starts with software specification requirement study (SRS). The module is divided into major sub modules like Forecasting sub module, Aggregate Planning sub module, Master Production Schedule (MPS) sub module, Material Requirement Planning (MRP) sub module, Capacity Requirement Planning (CRP) sub module and Production Activity Control (PAC) sub module. The said module uses Windows Server 2003 operating system. SQL Server 2003 has been used for database management while Visual Basic 6.0 is used for front end development.Finally, system validation and verification has been carried out and the results have been discussed and documented. This work helps to underline importance of tailor made ERP systems or few of its relevant modules, from application point view, for small scale enterprises as it saves the development/implementation cost as well as time substantially.