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Companyƞs strategic Concerns
ƥ How to grow the business
ƥ How to satisfy customers
ƥ How to out compete rivals
ƥ How to respond to changing in market
conditions
ƥ How to manage each functional piece of the
business and develop needed organizational
capabilities
ƥ How to achieve strategic and financial objectives
ƥ An Enterprise Resource Planning system is
a packaged business software system that
allows a company to:
ƥ Automate and integrate the majority of its
business processes
ƥ Share common data and practices across the
entire enterprise
ƥ Produce and access information in a real-time
environment
°hy Integration?
ƥ An application can interact with data of
different departments
ƥ Non-duplication of data
ƥ No data inconsistency
Integration: A Closer Look
ƥ Sales Order Confirmation
ƥ Needs to find:
ƛ °hat is in stock
ƛ °hat is in Production
ƛ °hat is the cost of production
ƥ Commit Stock
ƥ Interaction with Inventory, Production and
Costing
 ARCHITECTURE OF AN MRP SYSTEM

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 MRP--II or Closed Loop MRP
MRP
Sales&Operation Plan
Marketing Production F
Plan Plan
e
e
d
Resources
OK? No b
a
Yes
c
k
Master
Sales Schedule
Plan

F
e
Material
Requiremant e
Plan
d
b
Resources
OK?
No a
c
Yes
k
Production
Purchasing Activity
Control

Performance
Measures
 Legacy Systems

Accounts
Invoicing Receivable

Customer Product Sales Customer Ledger

Details Details Details

DBMS Based Systems

Accounts
Invoicing Receivable

Customer Product Sales Ledger

Details Details

DBMS
 ãajor Types of Systems

ƥ Executive Support Systems (ESS)

ƥ Decision Support Systems (DSS)
ƥ ãanagement Information Systems (ãIS)
ƥ Knowledge °ork Systems (K°S)
ƥ Office Systems
ƥ Transaction Processing Systems (TPS)
cRP Functionality
ƥ General Ledger
ƥ Inventory
ƥ Purchasing
ƥ Accounts Payable
ƥ Accounts Receivable
ƥ Sales Order ãanagement
ƥ ãanagement Accounting
ƥ Production / Project Execution
ƥ Distribution
ƥ ãaintenance
ƥ Human Resource ãanagement
ERP Elements
Enterprise resources planning software
  Industry





 Best Practices

§ level of sys.(ESS,ãIS,TPS,Ʀ) +ãRPII

c pected Benefits, Performance
Measures
‡ Common Performance Measures
± Inventory related
± Quality related
± Delivery time related
± Accuracy Related
± Productivity Related
± Customer satisfaction
± Competitiveness
± Fle ibility