ENTERPRISE RESOURCE PLANNING

ENTERPRISE RESOURCE PLANNING

Enterprise – group of people with common goal, have resources to achieve the goal.

ERP – Integrates all the functions of the organization.

Integrated Information System – Accurate and timely data are shared between functional areas.

Evolution of ERP:

• 1960’s – Inventory Management & Control.
• 1970’s – Material Requirement Planning (MRP)
• 1980’s – Manufacturing Requirements Planning (MRP II)
• 1990’s – Enterprise Resource Planning (ERP)

Advantages of ERP:

• Business integration
• Flexibility
• Better analysis and planning capabilities
• Use of latest technology (open systems, client/server technology, computer aided acquisition and logistics support, electronic commerce, etc).

Benefits of ERP:

• Information integration
• Reduction in lead-time
• On-time shipment
• Cycle time reduction
• Better customer satisfaction

Limitations of ERP:

· Managers cannot generate custom reports without the help of programmer

· ERP systems provide current status only.