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ERP Presentation Transcript
1.ERP
ERP is software that helps to manufacture the different parts of a company or business.
Aim is to improve the cooperation & interaction between all the departments.
In today’s era, there has to be much greater interaction between customer and manufacturer.
In order to achieve mfg. objectives manufactures need to have efficient planning and control system that enable very good synchronization & planning in all the process of the organization.
ERP is a strategic tool, which equips the enterprise with the necessary capabilities to integrate & synchronize the isolated functions in order to gain a competitive edge in the dynamic business environment.
ERP is software that helps to manufacture the different parts of a company or business.
Aim is to improve the cooperation & interaction between all the departments.
In today’s era, there has to be much greater interaction between customer and manufacturer.
In order to achieve mfg. objectives manufactures need to have efficient planning and control system that enable very good synchronization & planning in all the process of the organization.
ERP is a strategic tool, which equips the enterprise with the necessary capabilities to integrate & synchronize the isolated functions in order to gain a competitive edge in the dynamic business environment.
2.Evolution of ERP:-
Up to 1960 business had to rely on the traditional way of inventory management. Most popularly as EOQ.
In this method, each item in the stock is analyzed for its ordinary cost & the inventory carrying cost.
This method is a reactive method of managing inventories.
In 1960’s a new technique is developed called MRP.
In MRP fundamentally implodes the end product demand obtained from the master production schedule for a specified product structure (BOM) in to a detailed schedule of purchase orders tacking in to account the inventory on hand.
Up to 1960 business had to rely on the traditional way of inventory management. Most popularly as EOQ.
In this method, each item in the stock is analyzed for its ordinary cost & the inventory carrying cost.
This method is a reactive method of managing inventories.
In 1960’s a new technique is developed called MRP.
In MRP fundamentally implodes the end product demand obtained from the master production schedule for a specified product structure (BOM) in to a detailed schedule of purchase orders tacking in to account the inventory on hand.
3. MRP is a simple logic but the management of data involved in a realistic situation moves it computationally cumbersome.
Effectiveness of MRP Successfully demonstrated in
Reduction in period & delivery lead times by improving coordinate & avoiding delays.
Reduction of inventories.
Increased efficiency & Making commitments more realistic.
MRP proved to be a very good technique for managing inventory but did not take into a/c other resources of a co.
Effectiveness of MRP Successfully demonstrated in
Reduction in period & delivery lead times by improving coordinate & avoiding delays.
Reduction of inventories.
Increased efficiency & Making commitments more realistic.
MRP proved to be a very good technique for managing inventory but did not take into a/c other resources of a co.
4.This gave birth to a modified MRP logic, popularly known as closed loop MRP.
In this, the capacity to produce a particular product is also taken into a/c by incorporating a module capacity requirement planning (CRP).
Thus is a feedback loop is provide from CRP module to MPS if there is not enough capacity available to produce.
In 1980s, the concept of MRP-II comes, which is an enterprising of MRP. In 1990s MRP-II is further extended to cover more engg. Functions such as Finance, HR,project management etc. & a new term coined as ERP
ERP covers whole gamut of activities of business enterprise.
In this, the capacity to produce a particular product is also taken into a/c by incorporating a module capacity requirement planning (CRP).
Thus is a feedback loop is provide from CRP module to MPS if there is not enough capacity available to produce.
In 1980s, the concept of MRP-II comes, which is an enterprising of MRP. In 1990s MRP-II is further extended to cover more engg. Functions such as Finance, HR,project management etc. & a new term coined as ERP
ERP covers whole gamut of activities of business enterprise.
5.Features:
Feasibility
Modular & Open
Comprehensive
Beyond the requirement
Best Business Practice.
Simulative of reality
Feasibility
Modular & Open
Comprehensive
Beyond the requirement
Best Business Practice.
Simulative of reality
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