ERP - Enterprise Resource Planning The focus of...

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Enterprise Resource Planning The focus of manufacturing systems in the 1960’s was on inventory control. In the 1970’s, it became increasingly clear that companies could no longer afford the luxury of maintaining large quantities of inventory. This led to the introduction of material requirements planning (MRP) systems. In the 1980’s, companies began to take advantage of the increased power and affordability of available technology and were able to couple the movement of inventory with the coincident financial activity. Manufacturing resources planning (MRP II) systems evolved to incorporate the financial accounting system and the financial management system along with the manufacturing and materials management systems. By the early 1990’s, continuing improvements in technology allowed MRP II to be expanded to incorporate all resource planning for the entire enterprise. Thus ERP came into picture (E.J. Umble et al. / European Journal of Operational Research) Enterprise Resource Planning a business management system that integrates all components of a business. “Enterprise resource planning software or ERP attempts to integrate all departments and functions across a company onto a single computer system” ERP can be implemented in any type of organization. ERP implementation refers to how large Industries and organizations planned to use their resources collectively To consider a software system as ERP, it should provide functionality for more than one system.ERP software integrates data from different departments of an organization and provides functionality to those departments.
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Enterprise Resource Planning Integration is Key to ERP Integration is an extremely important part to ERP's. ERP's main goal is to integrate data and processes from all areas of an organization and unify it for easy access and work flow. ERP's usually accomplish integration by creating one single database that employs multiple software modules providing different areas of an organization with various business functions. Although the ideal configuration would be one ERP system for an entire organization, many larger organizations usually create and ERP system and then build upon the system and external interface for other stand alone systems which might be more powerful and perform better in fulfilling an organizations needs. Usually this type of configuration can be time consuming and does require lots of labor hours. The Ideal ERP System An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include: Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.
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