Introduction to ERP

Full name

ERP is short for enterprise resource planning.
It refers to a management platform that provides decision-making and operation means for enterprise 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.

Functional standards

Gartner Group proposed that the functional standards of ERP should include four aspects:
1. integration functions beyond the range of MRP II
Including quality management, laboratory management, process operation management, formula management, product data management, maintenance management, control report and warehouse management.
2. Support Hybrid Manufacturing Environments
This includes a manufacturing environment that supports both discrete and flows; the ability to combine business processes according to object-oriented business models and international applications.
3. Support active monitoring capabilities to improve business performance
Including the adoption of control and engineering methods throughout the enterprise; simulation functions; Decision Support and graphical capabilities for production and analysis.
4. supports open Client/Server Computing Environments
Including the client/server architecture, graphical user interface (GUI), computer-aided design engineering (CASE), object-oriented technology, and query relational databases using SQL; internal Integration of engineering systems, business systems, data collection and external integration (EDI ).
ERP is beyond mrpⅱ. In essence, ERP is still based on mrpⅱ, but its functions and technologies surpass the traditional mrpⅱ, it is a customer-driven, time-based, enterprise resource plan oriented to the entire supply chain management.

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 the proposed enterprise management system standard is the supply chain developed based on the mrp ii (Manufacturing Resources Planning, "Manufacturing Resource Planning) management ideas;
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, software products with ERP management as the soul;
3. It is an enterprise resource management system integrating enterprise management concepts, business processes, basic data, human and material resources, computer hardware and software.
It is a new generation of integrated management information system developed from MRP (material resource planning). It extends the MRP function. Its core idea is supply chain management, which jumps out of the boundaries of traditional enterprises, optimizing enterprise resources from the supply chain is a new generation of information system based on the network economy era. It plays an obvious role in improving business processes and core competitiveness of enterprises. ERP began to appear in early 1980s. Since 1990s, the internationally renowned ERP products represented by SAP and Oracle have entered China and expanded rapidly. Then, some early ERP products, such as kms ERP, Lima ERP, Hejia ERP and brocade ERP, emerged in China.

Features and core content

The features and core contents of the ERP system include:
• Business application systems required for internal enterprise management mainly refer to core modules such as finance, logistics, and human resources.
• The logistics management system adopts the MRP management philosophy of the manufacturing industry. FMIS effectively implements modern basic financial management methods such as budget management, business evaluation, management accounting, and ABC cost collection; the human resource management system also integrates advanced concepts in organization design, job management, compensation system, and human resource development.
• The ERP system is a highly integrated system applied throughout the company. Data is highly shared among various business systems. All source data only needs to be input once in a system, ensuring data consistency.
• Optimize the company's internal business processes and management processes, and automate the main business processes.
• Adopts the latest mainstream computer technology and architecture: B/S, Internet architecture, and Windows interface. You can easily access the system wherever you can communicate.
• Integration, advancement, uniformity, integrity, and openness.

Details

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 their position in competitive 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 stages:
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. With the help of the computing capability of the computer and the management capability of the system to manage customer orders, in-stock materials, and product composition, the information management system can 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 enterprise-level management system with computer as the core is more mature. 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, reflects the enterprise's supply chain management philosophy for survival and competition. The ERP system can implement this function to enable joint operations between decision makers and business departments across enterprises.
It can be seen that the application of ERP can effectively promote the modernization and scientific management of existing enterprises and adapt to the increasingly competitive market requirements. Its import has become the trend of the times.
F: ERP in the proletarian age
Incorporating the entire country into the overall planning ERP will form a new socialist planned economics.
G: ERP in the current age
The ERP of the current era closely grasps the main line of enterprise information process, and provides highly professional ERP for the industry for the purpose of production and operation.
The emergence of such ERP has made positive contributions to the construction of ERP in various industries in China. ImageKailong it2000ERP, business soft ERP and other ERP. It is the story of ERP in the current age.

Example

For example:
At noon one day, my husband called at home: "dear wife, can I bring some colleagues home for dinner at night ?" (Order intention)
Wife: "Of course. How many people are there? What kind of food do you want to eat ?"
Husband: "six people, we will be back around to prepare some wine, roast duck, tomato scrambled eggs, cold dishes, egg soup ....... Can you see it ?" (Business Communication)
Wife: "No problem. I will prepare it ." (Order confirmation)
The wife records the menus (MPS Plan) to be prepared: Duck, wine, tomato, eggs, spices ...... (BOM material list): 1 duck egg, 5 bottles of wine, 4 eggs ...... (BOM expansion). It requires 6 eggs for scrambled eggs and 4 eggs for egg soup (shared materials ).
Open the refrigerator and check (warehouse). There are only 2 eggs left (out of stock ).
When I came to the free market, my wife said, "How can I sell eggs ?" (Procurement inquiry)
Hawker: "1 yuan, 5 yuan for half a dozen, 9.5 yuan for one dozen ."
Wife: "I only need eight, but this time I bought one dozen ." (Economical batch procurement)
Wife: "This is a bad one, for another ." (Acceptance, return and exchange)
Go home and prepare for washing, cutting, and cooking ...... (Process line), the kitchen has a gas stove, microwave oven, rice cooker ...... (Work Center ).
My wife found that it was the most time-consuming (bottleneck process and key process routes) to use a microwave oven to cook roast duck by herself (insufficient production capacity ), so I bought a ready-made restaurant (out-of-service) in the restaurant downstairs ).
At four o'clock P.M., I received a call from my son: "Mom, I want to come to dinner at night. Please help me prepare ." (Urgent order)
"Okay, what do you want to eat? Dad has guests at night. Would you like to eat with them ?"
"You can do it, but you must have tomato scrambled eggs. We will not eat it with adults. We will return around ." (Cannot be handled separately)
"Okay, you must be satisfied ." (Order confirmation)
"The eggs are not enough. I called the store to deliver them ." (Urgent procurement)
At, everything was ready, but the roast duck had not been delivered yet. He hurriedly called and asked, "I am Li Tai. Why didn't I order the roast duck ?" (Procurement outsourcing ticket Reminder)
"Sorry, the shipping person has already left. It may be a traffic jam. It will arrive immediately ."
The doorbell rings.
"Mrs Li, this is your roast duck. Sign one word on the ticket ." (Acceptance, warehouse receiving, transfer to account payable)
At, my daughter called: "Mom, can I bring some friends home for dinner now ?" (Oh, it's an urgent order intention, and the spot is required)
"No, daughter. Today, Mom needs to prepare two meals. It is too late. I am really sorry. I will say it later and I will be ready for you ." (Haha, This is the limitation of ERP usage. A stable external environment is required, and a minimum advance period is required ).
After all the guests were sent away, the tired wife sat on the sofa and said to her husband, "dear, we have a very high frequency of buying kitchen supplies (equipment purchase ), it is best to hire another nanny (even the HR system has a gap ).
Husband: "You are the master at home. You can do whatever you need ." (Approved)
Wife: "also, my family has spent too much money recently. I will use your private room money to subsidize it, OK ?" (Finally, the reminder for receivables)
Remember, every qualified housewife is a strong competitor of the production director.
But the husband is the leader.