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Evolution of ERP Systems
This document discusses the evolution of enterprise resource planning (ERP) systems from the 1960s to the 2000s. It describes how ERP systems originated from separate inventory management, materials requirements planning, and manufacturing resources planning systems and integrated various business functions and processes into a single software package. The document also outlines some of the key modules in modern ERP systems like financials, human resources, distribution, sales and marketing, and manufacturing.
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Evolution of ERP Systems
- 1. EVOLUTION OF ERPSYSTEMS A HISTORICAL PERSPECTIVE PITHIRATH P. 5310189
- 2. Davenport (1998) American Production and InventoryControl Society (2001)
- 3. WHAT IS ERP? ENTERPRISERESOURCE PLANNING INTEGRATION OF MODULES SOLVE INFORMATION FRAGMENTATION
- 4. INFORMATION FRAGMENTATION SEPARATE COMPUTERSYSTEMS INDIVIDUAL FUNCTION BUSINESS UNIT REGION FACTORY OFFICE REDUNDANT DATA INTEROPERABILITY PROBLEMS
- 5. INFORMATION INTEGRATION ERP SOFTWAREPACKAGE SINGLE APPLICATION SINGLE COMPREHENSIVE DATABASE SINGLE USER INTERFACE OPERATE IN REAL-TIME
- 6. ERP SOFTWARE MODULES FINANCIALS HUMANRESOURCES AND PAY ROLL DISTRIBUTION/LOGISTICS SALES & MARKETING MANUFACTURING PRODUCT DATA MANAGEMENT MATERIAL PLANNING RESOURCE & CAPACITY PLANNING SHOP FLOOR MANAGEMENT QUALITY MANAGEMENT, ETC.
- 7. EVOLUTION OF ERP 1960s •InventoryManagement and Control 1970s •Material Requirements Planning (MRP) 1980s •Manufacturing Resources Planning (MRP II) 1990s •Enterprise Resource Planning (ERP) 2000s •Extended ERP
- 8. IT + BUSINESSPROCESSES MAINTAIN LEVEL OF STOCK IDENTIFY REQUIREMENTS & SET TARGETS PROVIDE REPLENISHMENT TECHNIQUES & OPTIONS MONITOR ITEM USAGE RECONCILE BALANCES REPORT STATUS EVOLUTION OF ERP 1960s • Inventory Management and Control
- 9. SCHEDULING PRODUCTION PROCESSES OPERATIONS RAW MATERIAL PURCHASES PRODUCTION STRUCTURE INVENTORY LEVELS LOT SIZING PROCEDURE EVOLUTION OF ERP 1970s •Material Requirements Planning (MRP)
- 10. COORDINATING MANUFACTURING PROCESSES PRODUCT PLANNING PARTS PURCHASING INVENTORY CONTROL PRODUCT DISTRIBUTION EVOLUTION OF ERP 1980s •Manufacturing Resources Planning (MRP II)
- 11. MULTI-MODULE APPLICATION SOFTWARE IMPROVE INTERNAL BUSINESS PROCESSES PERFORMANCE CROSS FUNCTIONS INTEGRATED WITH MARKETING FINANCE ACCOUNTING HUMAN RESOURCES EVOLUTION OF ERP 1990s •Enterprise Resource Planning (ERP)
- 12. BASED ON ERP CONNECTEDTO VALUE CHAIN AND MORE SUPPLY CHAIN MANAGEMENT CUSTOMER RELATIONSHIP MANAGEMENT PRODUCT LIFECYCLE MANAGEMENT E-COMMERCE IP BASED INFRASTRUCTURE EVOLUTION OF ERP 2000s •Extended ERP
Editor's Notes
- #6 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.
- #8 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.
- #9 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.
- #10 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.
- #11 MRP II utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution.
- #12 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.