ERP- Meaning , definition, features, evolution.

1. ENTERPRISE RESOURCE PLANNING

2. INTRODUCTION
ERP STANDS FOR ENTERPRISE RESOURCE PLANNING. ERP
SYSTEMS ARE THE KIND OF SOFTWARE TOOLS WHICH ARE USED TO MANAGE THE
DATA OF AN ENTERPRISE. ERP SYSTEM HELPS DIFFERENT ORGANIZATION TO
DEAL WITH DIFFERENT DEPARTMENTS OF AN ENTERPRISE.

3. DEFINITION
An enterprise resource planning system is a fully integrated
business management system covering functional areas of an
enterprise like logistics, production, finance, accounting and human
resource. It organizes and integrates operation processes and
information flows to make optimum use of resource such as men,
material, money and machine. ERP is a global, tightly integrated
closed loop business solution package and is multifaceted.

4. MEANING
 At its core, an ERP is an application that automates business process and
provides insights and internal controls drawing on a central database that
collects inputs from department including accounting, manufacturing
supply chain management, sales, marketing and Human Resource (HR).
 Once information is complied in that control database, leaders gain cross
departmental visibility that empowers discover process improvements and
generate major efficiency gains. That translates to cost savings and better
productivity as people spend less time digging for needed data.

5. FEATURES OF ERP
Some of the important features of enterprise resource planning :
 ERP provides multi-platform, multi-mode manufacturing, multi-currency, multi-lingual facilities.
 ERP bridges the information gap across organizations.
 ERP eliminates most business problems like material shortages, productivity enhancements,
customer service, cash management, inventory problems, quality problems, prompt delivery etc.
 ERP performs a core activities and increase customers service, thereby augmenting the corporate
image.
 ERP provides complete integration of system not only across departments but also across
companies under the same management.

7. EVOLUTON OF ERP FROM MRP
ERP system evolved out of MRP. MRP systems addressed the single task of
materials requirements planning. MRP extended the scope to the entire
manufacturing function. The manufacturing industry traditionally had a better
climate to use computes. First of all the manufacturing community being dominated
by engineers had no computer phobia. Second the extensive use of computer aided
drafting(CAD), computer aided design(CAD) and computer aided
manufacturing(CAM) had prepared the manufacturing engineers contribution
significantly to the theoretical computer science by way of contributions in the areas
of graphics, computational geometry, significant visualization, feature, recognition.

8. EVOLUTION OF ERP FROM MRP
 Large corporations like general motors(HP), and digital primarily viewed
themselves as manufacturing companies until the 1980’s naturally complex MRP
system were considered the ultimate in enterprise information system.
 With the globalization of computer networks, it was important that the
manufacturing organisation extend their information system across the supply
chain.

9. DIFFERENCE BETWEEN ERP & MRP
 The primary difference between ERP and MRP is that ERP system help to plan
and automate a variety of back-office business functions, whereas MRP systems
focus on materials management. ERP directly touches accounting,
manufacturing, supply chain, customer management, quality, processes and
planning.
 MRP, however has a more narrow scope of ordering and planning for
manufacturing materials. For that reason, users of each people system will be
different. People from a variety of department may use ERP software, but those
with a tie to manufacturing operations may use MRP tools.

10.  Another difference between ERP & MRP is that MRP is more of a standalone
system. Some system can be combined with others, but this can be a challenge.
ERP system, however, are relatively easy to integrate with other solutions.

11. DOES A COMPANY NEED AN ERP, MRP,
OR BOTH?
 Selecting an ERP vs MRP system depends on a few factors. If a company only
needs assistance with manufacturing operations and stock control, an MRP
system may be all you need. If your business requires more integration to manage
further processes, an ERP tool could be warranted, your business processes,
budget, and more will determine which technology will be right for your
operations but there are a few considerations that can help point you in the right
direction.

12. CONCLUSION
 There are as many reasons for successful ERP implementations as there are for
failed projects. However, success seems to often be measured by whether or not
the project came in on time and under budget. Whereas, fully utilizing the system
to achieve improved business practices appears to be ignored.