ERP -- Enterprise Resource Planning System

Source: Internet
Author: User
ERP -- Enterprise Resource Planning: an enterprise resource planning system is a management platform that provides decision-making and operation means for decision-making and employees based on information technology and systematic management ideas. The ERP system integrates information technology with advanced management ideas and becomes the operating mode of modern enterprises, reflecting the requirements of the times for enterprises to rationally allocate resources and maximize social wealth, it has become the cornerstone of the survival and development of enterprises in the information age.

Further, we can define it at three levels: management philosophy, software products, and management systems:

1. it is garter Group Inc, a famous American computer technology consulting and evaluation group. the essence of a complete set of enterprise management system standards is a Supply Chain Oriented Supply Chain developed based on mrp ii (Manufacturing Resources Planning, "Manufacturing Resource Planning ").Management Philosophy;

2. it is a comprehensive application of the client/server system, relational database structure, object-oriented technology, graphical user interface, the fourth generation language (4gl), network communication and other information industry achievements, taking ERP management as the soulSoftware Products;

3. It is an enterprise resource that integrates enterprise management concepts, business processes, basic data, human and material resources, computer hardware, and software.Management System.

Specifically, the relationship between ERP and enterprise resources, the role of ERP and the development of information technology can be described as follows:

1. Enterprise Resources and ERP

Factories, production lines, processing equipment, testing equipment, and transportation tools are the hardware resources of enterprises, human resources, management, credibility, financing capability, organizational structure, and employee enthusiasm are the software resources of an enterprise. In the development of enterprise operation, these resources interact with each other to form the basis for enterprises to carry out production activities, complete customer orders, create social wealth, and realize enterprise value, reflecting the status of enterprises in competition for development.

The management object of the ERP system is the above various resources and production factors. Through the use of ERP, the enterprise's production process can complete the customer's orders in a timely and high quality, maximize these resources and make resource adjustment decisions based on customer orders and production conditions.

2. Adjust and use enterprise resources

An important symbol of enterprise development is the rational adjustment and use of the above resources. Without modern management tools such as ERP, the enterprise's resource status and adjustment direction are unclear, it is quite difficult to make adjustment arrangements. The adjustment process will be quite long. The organizational structure of an enterprise can only be pyramid-shaped, and collaboration and communication between departments are relatively weak, resource operation is difficult to grasp and make adjustments. The development of information technology, especially the ERP system designed for the management of enterprise resources, is designed for these problems. The successful implementation of the results will enable enterprises to make better use of resources.

3. Stage Development Process of the role of information technology on resource management

The development of computer technology, especially database technology, has played an immeasurable role in establishing management information systems for enterprises and even changing management ideas, the development of management ideas and the development of information technology are links to mutual causation. Practice has proved that information technology has played an increasingly important role in the enterprise's management layer.

The application of information technology in management is also very simple. It mainly records some data for convenient query and summarization. It has now evolved to cross-country development based on the global Internet, the cross-enterprise operating system can be divided into the following phases:

A. Management Information System)

The Information Management System of an Enterprise records a large amount of raw data, supports queries, and summarizes data.

B. MRP stage (material require planning)

The Information Management System of an enterprise manages the product structure, and uses the computing capability of the computer and the management capability of the system to manage customer orders, materials in the database, and product composition, so as to implement the management capability based on customer orders, expand and calculate the material demand plan according to the product structure list. Achieve inventory reduction and optimized inventory management goals.

C. MRP Stage II (Manufacture Resource Planning)

Based on the MRP management system, the system manages the production center, working hours, and production capacity of enterprises to implement the production scheduling function of computers, at the same time, it also includes financial functions to form a computer-centric closed-loop Management System in the enterprise, which can dynamically monitor all production processes, supply and sales.

D. Enterprise Resource Planning)

After entering the ERP stage, the computer-centered enterprise-level management system is more mature, and the system has added functions including financial prediction, production capacity, and resource scheduling adjustment. It works with enterprises to implement comprehensive JIT management, quality management, production resource scheduling management, and auxiliary decision-making. Become a platform tool for enterprises to conduct production management and decision-making.

E. ERP in the e-commerce era

With the maturity of Internet technology, the enterprise information management system is able to share information with customers or suppliers and exchange data directly. This strengthens the relationship between enterprises and forms a survival chain for common development, it reflects the enterprise's ideal supply chain management for survival and competition. The ERP system can implement this function to enable joint operations between decision makers and business departments across enterprises.

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