what is erp system?

Answer 1

ERP, or enterprise resource planning, is an integrated system that allows a company to fully manage the manufacturing process to be able to hold on to less inventory and obtain more data to better manage the situation.

The idea is everything, from sales orders and quotes, all the way to manufacturing progress, to vendor purchase orders for machinery and material, to labor, are all entered into the system. This way, the program can better calculate all the variables and plan better for the future.

For example, if you only get orders for 2000 products at a time, there's no point in storing materials to make 20000 products in the warehouse, unless you get a huge discount on the super-large order. By entering the vendor price tables, the ERP software can actually FIND the optimum quantity to order, thus saving you money AND avoid tying up a huge chunk of your capital in raw materials.

Another example, by defining the manufacturing process step by step and require people to enter progress step by step, a manager can immediately see which step is taking the longest, which is the shortest, and where the bottlenecks are, and attempt to improve the process throughput, and thus minimize labor costs. With enough info, ERP program can calculate the optimum line size depending on urgency of the order and quantity required (should we bring in more people? Or just let the people work overtime? Questions like that)

Another thing that's sometimes needed is what are the individual parts and materials and partial assemblies worth? (Physical costs plus labor to put it together) If you got the process properly defined, ERP has enough data to give you that sort of report.

As ERP runs in real-time and is definitely multi-user (in fact, in a factory enviroment you'd have dozens of simultaneous users). You need security level, ability to customize screens and reports, and much more. It is a really complex system, and different companies have different flavors of it. Oracle, SAP, J.D.Edwards, and more are just some of the bigger names in this field, and there are thousands of smaller ones.

Answer 2

Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate) all data and processes of an organization into a unified system. A typical ERP system will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules

Answer 3

Enterprise Resource Planning

Answer 4

Enterprise recourse planning