ERP per definition

Enterprise Resource PlanningFrom Wikipedia, the free encyclopedia

Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate) all data and processes of an organization into a single 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 single, unified database to store data for the various system modules.

Technically, a software package that provides both Payroll and Accounting functions (such as QuickBooks) would be considered an ERP software package. However; the term is typically reserved for larger, more broadbased applications.

Examples of modules in an ERP which formerly would have been stand-alone applications include: Manufacturing, Supply Chain, Financials, CRM, Human Resources, and Warehouse Management.

A single ERP database would contain all data for the software modules, which would include:•Manufacturing

Engineering, Bills of Material (BOM), Scheduling, Capacity, Workflow Management, Quality Control (QC), Cost Management, Manufacturing Process, Manufacturing Projects, Manufacturing Flow

•Supply Chain Management (SCM) Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain Planning, Supplier Scheduling

•Financials General Ledger, Cash Management, Accounts Payable (A/P), Accounts Receivable (A/R), Fixed Assets

•Projects Costing, Billing, Time and Expense, Activity Management

•Human Resources (HRM) Human Resources, Payroll, Training, Time & Attendance, Benefits

•Customer Relationship Management (CRM) Sales and Marketing, Commissions, Service, Customer Contact and Call Center support

•Data Warehouse (DW)

•And various Self-Service interfaces for Customers, Suppliers, and Employees

APICS (American Production and Inventory Control Society) defines ERP as:

'An accounting-oriented information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders. An ERP system differs from the typical MRP II system in technical requirements such as:

• Graphical User Interface (GUI), • Relational Database Management System (RDBMS), • use of Fourth-Generation Language (4GL), • and Computer-Aided Software Engineering (CASE) tools in development, client/server architecture, and open- system portability.'

Production

Planning

Integrated

Logistics

Accounting

and

Financials

Human

Resources

Sales

Distribution

(Order Entry)

ERP ElementsRavi Kalakota & Marcia Robinson “E-Business”