[ERP] core ERP management ideas

[ERP] core ERP management ideas

The following content is excerpted from the Internet, which helps clarify the understanding of ERP:

-- ERP is a management idea based on the "supply chain" and expands the management scope on the basis of mrp ii, integrating customer requirements with internal manufacturing activities and supplier manufacturing resources reflects the idea of completely manufacturing based on user requirements.
-- The core management philosophy of ERP is "Supply Chain" management. ERP regards the manufacturing process of manufacturing enterprises as a closely linked supply chain, including suppliers, manufacturing plants, distribution networks and customers; divides an enterprise into several supporting subsystems for collaborative operations, such as finance, marketing, manufacturing, quality control, service maintenance, and engineering technology, it also includes monitoring and management of competitors. ERP can effectively manage all links in the supply chain, such as orders, procurement, inventory, planning, manufacturing, quality control, transportation, distribution, service and maintenance, financial management, personnel management, laboratory management, project management, and formula management.

-- The supply chain is literally translated as "Supply Chain" in the original article, but each link on the chain contains the dual meaning of "supply" and "demand, "supply" and "Demand" are always relative and accompanied; also known as Demand/SupplyChain in foreign countries. In the market economy, supply always happens because there is demand and there is no demand. Why? Therefore, the supply chain is more accurate. As a supply system, it usually refers to the content of Logistics. The Logistics system is "from procurement to sales", while the supply chain is "from demand market to supply market ".

-- To maintain and expand market share, enterprises must first have relatively stable sales channels and customers, and ensure product quality and technical content, suppliers with relatively stable raw materials, accessories, and collaborators are required. The relationship between an enterprise and its sales agents, customers, and suppliers is no longer simply a business exchange object, but a partnership that shares interests. This is a major change in the modern management concept. This partnership forms the supply chain of an enterprise and is the core idea of "LeanProduction. When there are specific market and product requirements, the basic partner of an enterprise may not be able to meet the requirements of such new product development and production, an enterprise organizes a short-term or one-time supply chain composed of specific supply and sales channels to form a "Dynamic Alliance" (or "Virtual Factory "), the supply and collaboration units (including product research and development) are considered as an integral part of an enterprise. The new products can be put into the market in the shortest time using "synchronization engineering, this is the core idea of "Agile Manufacturing. At present, the competition between enterprises is no longer a competition between an enterprise, but a competition between the supply chain of an enterprise and the supply chain of its competitors. The ERP system is evolving to meet the needs of this competitive situation.

-The American Association for production and inventory management (APICS), known for its integrated management technology and information technology, will be qualified for production and inventory management (CPIM) from January 1, 1997) the supply chain management is added to the examination and listed as the first among the seven topics (the remaining topics are inventory management, JIT, main plan, material demand plan, and production operation control in sequence, system and technology. The supply and demand chain management exams cover both supply and demand. There are four aspects:
1. concept of business scope: supply chain elements; operating environment; financial foundation; manufacturing resource plan (mrp ii); JIT; TQM ); relationship Between mrp ii, JIT, and TQM.
2. Demand Plan: market-driven; definition of customer expectations and values; customer relationship; demand management.
3. Transition of demand and supply: design, capability management, planning, implementation and control, and performance evaluation.
4. Supply: Inventory, procurement, and material distribution system.

-- In addition to the "Logistics", "capital flow", and "information flow" that people are already familiar with in the supply chain, there are also "value-added flows" and "workflows" that are easy to ignore ". That is to say, there are five basic "flows" in the supply chain.

-- In terms of form, the customer is buying goods or services, but in essence, the customer is buying goods or services to provide benefits. Moving materials on the supply chain is a value-added process that constantly increases the technical content or value-added value. In this process, we should also pay attention to eliminating all ineffective labor and waste. Therefore, the supply chain also has the meaning of Value-AddedChain. It is self-evident that value-added products are meaningful only when they can be sold. It is not enough for an enterprise to price war based on the advantages of cost, productivity, or production scale. It is the only way out for competition that relies on the advantages of value, the ERP system should provide the function of analyzing value-added processes for enterprises.

-- Information, materials, and funds will not flow by themselves, and the value of materials will not be automatically added. It depends on human labor and business activities of enterprises-WorkFlow) or business flow (BusinessProcess), they can flow. A workflow determines the flow rate and flow of various flows. It is the object of business process reengineering. The ERP system provides effective business processes in various industries, and can adjust the application operations as enterprise workflows (business flows) change according to the competitive situation.

-- In short, the management ideas contained in ERP are very extensive and profound. The implementation of these advanced management ideas is inseparable from the development and application of information technology. ERP is not only oriented to the supply chain, but also reflects the spirit of lean production, agile manufacturing, and synchronization engineering, and must be combined with Comprehensive Quality Management (TQM) to ensure quality and customer satisfaction; combined with JIT to eliminate all ineffective labor and waste, reduce inventory and shorten delivery time; it also combined with constraints theory (TOC, TheoryOfConstraint, is the development of Optimized Production Technology OPT) to define bottlenecks in the supply chain and eliminate constraints to expand the effective output of the supply chain.