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Enterprise Resources Planning (ERP) Definition

Enterprise resource planning (ERP) is a method for effectively planning and controlling all resources needed to fulfill customer orders across manufacturing, distribution, or service companies. ERP integrates typical MRP II functions along with sales force automation, engineering, quality, field service, financial, human resources, distribution, logistics, and management reporting functions into a single, tightly integrated system. ERP provides functionality across key areas like engineering, manufacturing, sales and operations planning, advanced planning and optimization, distribution, logistics, human resources, quality, finance, and field service.

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Saket Singh
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65 views21 pages

Enterprise Resources Planning (ERP) Definition

Enterprise resource planning (ERP) is a method for effectively planning and controlling all resources needed to fulfill customer orders across manufacturing, distribution, or service companies. ERP integrates typical MRP II functions along with sales force automation, engineering, quality, field service, financial, human resources, distribution, logistics, and management reporting functions into a single, tightly integrated system. ERP provides functionality across key areas like engineering, manufacturing, sales and operations planning, advanced planning and optimization, distribution, logistics, human resources, quality, finance, and field service.

Uploaded by

Saket Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Enterprise Resources Planning (ERP) Definition 1

Enterprise Resource Planning

A method for the effective planning and controlling of ALL these sources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company.

Enterprise Resources Planning (ERP) Definition 1 (Cont.)


Includes:

Typical MRP II Functions


Sales Force Automation Engineering Function / PDM

Quality Functions
Field Service Functions Complete Financial Functions

Advance Manufacturing Function Human Resources Functions Distribution / Logistics Functions Management Reporting ERP is a System for the Entire Company A Global Tightly Integrated Closed-Loop System (1) Source: APICS Complex Industries Special Interest Group

Typical ERP Functionality

Engineering / Product Date MGT.


Document Creation, Management & Control CAD Interface / Image Management Configuration Management - Change Order Creation & Control - Revision Control Engineering Data Management

Engineering / Product Date MGT. (Cont.)


Product Information Management
Technical Data Management Technical Information Management Engineering Item Data & BOMs

Manufacturing
MRPII Functionality - MPS, BOM, Routings, MRP, CRP, PAC Sales & Operations Planning Integrated Production Configuration Statistical Inventory Control Flexible Product & Job Costing Options Kanban / JIT / Flow Manufacturing Support Theory of Constraints / Advanced Planning Systems

Sales and Operations Planning


Balance market demand with resource capability
Develops a contract between Manufacturing and Marketing A single set of numbers upon which to base plans and schedules Manages Inventory and Backlog Forecasting

Advance Planning and Optimizing Systems


Supply Chain optimization
Constraint-based multi-location master planning - Generation of feasible production plans across

multiple plants

Advance Planning and Optimizing Systems (Cont.)


Constraint-based factory level scheduling - Generation of feasible schedules (integrated with feasible production plan) Optimized distribution and transportation planning

- Intelligent allocation of inventory through a


network

Distribution / Logistics
Purchasing Supplier Reliability Analysis Distribution Requirement Planning Global Transportation Management Fleet Management

Shipping & Receiving


Import / Export Warehouse Management

Human Resources
Requisition Management Applicant Tracking Employee Master Job Descriptions Employee Evaluations

Training & Certification Management


Payroll Deduction Accounting Benefits Tracking

Quality
Quality Management Plans
Quality Specifications / Requirements Test / Inspection Results Cause and Corrective Action Tracking Process / Product Certification Statistical Quality Control Cost of Quality Reporting Equipment & Tool Calibration Mgt

Finance
Financial Budgets General Ledger Accounts Payable

Accounts Receivable
Payroll Fixed Assets Cash Management Activity Based Costing Financial Statements

Field Service
Installation Management As-maintained BOM Warranty Tracking

Preventative Maintenance Scheduling & Control


Service Order Planning & Control

Typical ERP Integration

Typical ERP Integration


System Wide Elements Project Management & Project Costing (EVM) Executive Management Information System Work Flow Management

Multi-Company

Typical ERP Integration


Multi-Currency Multi-Lingual Multi-Mode EDI / Electronic Commerce

Web Enabled / Internet Communications


Imaging & Multi Media

Typical ERP Technology

Why ERP ?
There are several reasons why a company will consider the Implementation of a New Backbone Business System:
To improve the profitability of the company To solve problems of legacy systems (year 2000) To be able to cope with new production requirements

To provide the architectural anchor for rationalization of


acquisitions To provide interoperability of its organizations

To provide the means for Supply Chain Management

Why ERP ? (continued)


Reduce Costs How will ERP Help?
Enable Reduced Resource Requirements due to: Fully integrated systems where everyone has instant access to the latest accurate information

One data base, date is added only once and used by


All The system allows interoperability of the internal and external supply chain

Why ERP ? (continued)


Reduce Costs How will ERP Help?
Enable Reduced Resource Requirements due to: On line (vs Batch) systems elements data is there automatically Work flow is managed efficiently through system action messages and routing of decisions Paperless systems allow efficient on-line approvals

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