Evolution of ERP Systems
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Evolution of ERP Systems

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  • At the core of an ERP software system is a single comprehensive database, which streamlines the flow of information throughout a business.The database collects data from and feeds data into modular applications supporting virtually all of a company’s business activities.
  • In 1960,inventory Management and control is the combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse.In 1970's,materials Requirement Planning (MRP) utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods.In 1980's.manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing.In1990s ,enterprise Resource Planning or ERP uses multi-module application software for improving the performance of the internal business processes.
  • Inventory Management and control is the combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory management include identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.
  • Materials Requirement Planning (MRP) utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.
  • MRP II utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution.
  • ERP uses multi-module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for supporting marketing, finance, accounting and human resources.

Evolution of ERP Systems Evolution of ERP Systems Presentation Transcript

  • EVOLUTION OF ERP SYSTEMSA HISTORICAL PERSPECTIVEPITHIRATH P.5310189
  • Davenport(1998)American Production andInventory Control Society (2001)
  • WHAT IS ERP?ENTERPRISE RESOURCE PLANNINGINTEGRATION OF MODULESSOLVE INFORMATION FRAGMENTATION
  • INFORMATION FRAGMENTATIONSEPARATE COMPUTER SYSTEMS INDIVIDUAL FUNCTION BUSINESS UNIT REGION FACTORY OFFICEREDUNDANT DATAINTEROPERABILITY PROBLEMS
  • INFORMATION INTEGRATIONERP SOFTWARE PACKAGE SINGLE APPLICATION SINGLE COMPREHENSIVE DATABASE SINGLE USER INTERFACE OPERATE IN REAL-TIME
  • ERP SOFTWARE MODULESFINANCIALSHUMAN RESOURCES AND PAY ROLLDISTRIBUTION/LOGISTICSSALES & MARKETINGMANUFACTURING PRODUCT DATA MANAGEMENT MATERIAL PLANNING RESOURCE & CAPACITY PLANNING SHOP FLOOR MANAGEMENT QUALITY MANAGEMENT, ETC.
  • EVOLUTION OF ERP1960s•Inventory Management and Control1970s•Material Requirements Planning(MRP)1980s•Manufacturing Resources Planning (MRP II)1990s•Enterprise Resource Planning (ERP)2000s•Extended ERP
  • IT + BUSINESS PROCESSESMAINTAIN LEVEL OF STOCK IDENTIFY REQUIREMENTS & SET TARGETS PROVIDE REPLENISHMENT TECHNIQUES & OPTIONS MONITOR ITEM USAGE RECONCILE BALANCES REPORT STATUSEVOLUTION OF ERP1960s • Inventory Management and Control
  • SCHEDULING PRODUCTION PROCESSES OPERATIONS RAW MATERIAL PURCHASES PRODUCTION STRUCTURE INVENTORY LEVELS LOT SIZING PROCEDUREEVOLUTION OF ERP1970s•Material Requirements Planning(MRP)
  • COORDINATING MANUFACTURING PROCESSES PRODUCT PLANNING PARTS PURCHASING INVENTORY CONTROL PRODUCT DISTRIBUTIONEVOLUTION OF ERP1980s•Manufacturing Resources Planning (MRP II)
  • MULTI-MODULE APPLICATION SOFTWARE IMPROVE INTERNAL BUSINESS PROCESSES PERFORMANCE CROSS FUNCTIONS INTEGRATED WITH MARKETING FINANCE ACCOUNTING HUMAN RESOURCESEVOLUTION OF ERP1990s•Enterprise Resource Planning (ERP)
  • BASED ON ERPCONNECTED TO VALUE CHAIN AND MORE SUPPLY CHAIN MANAGEMENT CUSTOMER RELATIONSHIP MANAGEMENT PRODUCT LIFECYCLE MANAGEMENT E-COMMERCEIP BASED INFRASTRUCTUREEVOLUTION OF ERP2000s•Extended ERP