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ERP IMPACT ON ORGANIZATIONS

ERP IMPACT ON ORGANIZATIONS

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Published by rameshmba

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Published by: rameshmba on May 01, 2008
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03/01/2013

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ENTERPRISE RESOURCE PLANNING
2008
CHAPTER 1INTRODUCTION
Government RC College Commerce & Management Bangalore-011
 
ENTERPRISE RESOURCE PLANNING
2008
A CONCEPTUAL FRAME WORK ON ERP
1. ENTERPRISE RESOURCE PLANNING:
“ERP
 
is an industry term for the broad set of activities supported by multi-moduleapplication software that help a manufacturer or other business mange theimportant parts of its business, including product planning, parts purchasing ,maintaining inventories, interacting with suppliers, providing customer service,and tracking orders. ERP cans also include application modules for the humanresources aspects of a business. Typically, an ERP system uses or is integrated witha relational database system.”
2. ERP – AN INTEGRATED SUITE OF APPLICATIONS:
ERP is a term coined in the early 1990s. It began as a group of applications or software focused on combining multiple systems in to one integrated system wheredata could be shared across the enterprise, presumably reducing redundant dataentry and processes. It was originally proposed for manufacturing and production planning.Almost any discussion of enterprise resource planning starts with materialrequirement planning (MRP) and MRP II systems of the 1970s and 1980s. In themanufacturing environment of old, the ability to produce the product was thefocus. As manufacturing evolved over time, the number of difficult questionsincreased. Such questions largely focused on the areas of component procurementfor the finished product and on strong the material necessary to make the products.Organization were trying to understand both the finished manufacturing totals andhow to get to the finished product
Government RC College Commerce & Management Bangalore-012
 
ENTERPRISE RESOURCE PLANNING
2008
MRP II added a focus on the planning aspects of this processes these systemintegrated capacity, design engineering and management, cost and long range planning of the enterprise in to the equation. Many organizations that implementedthis approach instituted mechanisms to correlate the planning and forecasting process with the actual production numbers this allowed the organization toachieve higher level of over all efficiency in the manufacturing arena. The realissue is that while the organization had a better handle on the manufacturingaspect of the business, it was still missing integration to other components of finance, sales, marketing, customer satisfaction and distribution to name a few.ERP is massive software engine that seeks to provide one seem less interface to alldepartments, systems and existing data with in organization sp that eachdepartment understands how it fits with in the organizations macro structure andhow it impacts that macro structure. Such understanding in crucial in facilitatingenhanced communication between departments, better knowledge management,and improved processes. Such enhancement is the foundation for fundamental business changes.ERP sits between all of the systems and users regardless of where they are in the pipeline. It knows all the different data collection points, and it must interface withall the different formats of the particular data. It also intelligently routes the order to the appropriate department at the appropriate time; reducing the number of times a human has to enter data can dramatically reduce errors. ERP also takes allthe data and formats it so that each department can perform its required function.
Government RC College Commerce & Management Bangalore-013

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