ERP \ MRP

ERP is Enterprise Resource Planning; the current evolution of manufacturing resources planning (MRP and MRPII) systems. ERP provides the foundation for integrating enterprise-wide information systems. These systems will link all aspects of a company's operations including human resources, financial planning, manufacturing, and distribution, as well as connect the organization to its customers and suppliers.

ERPS (Enterprise Resource Planning Systems) comprises of a commercial software packages that promises the seamless integration of all the information flowing through the company - financial, accounting, human resources, supply chain and customer information.

ERP Systems provide information management and analysis to organizations.

Benefits

There are five major benefits of ERP:

1. On-line/real time information throughout all the functional areas of an organization.
2. Data standardization and accuracy across the enterprise.
3. Best-practices or optimized solutions are included in the applications.
4. Creates efficiencies that organizations would not otherwise have. 
5. The analysis and reporting that can be used for long-term planning.

Examples of ERP packages are HRMS, Financials, Manufacturing, Distribution, and Sales. Each ERP Package may offer different functionality for different industries.

In implementation, ERP systems include several basic features. They are installed on a Database Management System. Database platforms to chose from are: DB2/400, DB2/MVS, DB2/Unix, Informix, MS SQL Server, Oracle, SQLBase, and Sybase. They require initial setup according to the organization's process. They may be customized according to the organization's process through the ERP's tool set. Work flow can be setup to automate approval processes through chains of command. Once installed, the user only enters data at one point, and the information is transferred through processes to other modules. Finally, the ERP system includes reporting tools for main reports as well as ad hoc reporting.

ERP systems, fundamentally, integrate the different processes necessary in a business into a centralized pool that facilitates data sharing and eliminates redundancy.

Advantages of an ERP system

1. Information entered once into system
2. Forces use of the best practices
3. Allows customization
4. Based on reliable file structure
5. Provides functionality to interact with other elements in the process
6. Provides tools for ad hoc queries