ERP is a software system that has tremendous impact on organization computing.
ERP is enterprise resource planning as a business solution to integrate all operations through information.
ERP coverage:
Procurement& Inventory, Mfg, Sales, finance, HR, Quality, Engineering, Project management.
ERP modules/ ERP evolution
MRP (1960- 1970s)
One of the most popular computer system supporting mfg before ERP was MRP i.e material requirement planning. MRP began as an inventory reordering tool in operations involving dependent demand. The capability of MRP system evolved to support planning of all company resources & currently can support business planning, production planning, purchasing, inventory control, shop floor control, cost management, capacity planning & logistics management. The use of MRP resulted in better inventory & raw material control, reduced lead times in obtaining materials & improved communication & better integration of planning.
MRP II (Manufacturing resource planning) in 1980s
It is a method to plan all resources for a manufacturer.
Business functions included in MRP were
Order Processing
Business Planning
Sales & Operation Planning
Master production scheduling
Capacity requirement planning
MRP II was integrated with accounting & finance sub systems.
APICS def of MRP II was
A method for effective planning & control of all resources needed to take, make, ship & account for customer orders.
ERP- 1990’s
Focused on clients , real time transactions, asset management
ERP is a software system that have tremendous impact on organization computing.
Advantages of ERP:
1) centralized efficiency
2) improved productivity
reduces response times & cycle time
Automation of various procedures & takes
Data can be entered once at the most accurate source, so that users share the same data
ERP extended or ERP II
ERP ERP II
Role
1) Enterprise optimization 1) e-commerce enablement
Domain
2) Mfg & distribution 2) All sector/ segments
Function
3) mfg, sales & distribution &finance 3) Cross industry, industry sector
Process
4) Internal, hidden 4) Externally connected
Architecture
5) Web aware, closed 5) web based, open
Data
6) Internally generated & consumed 6) Internally & externally published & subscribed.
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