Enterprise Resource Planning (ERP) is known as a set of applications, components and elements

about the business that carry out common business functions such as an accounting, a management
order and a general ledger. Aside from it also covers techniques, methods, procedure and concepts that
a business can use in order to have an improvement, effective and efficient business enterprise. It is said
that ERP is a common application that uses in a manufacturing industry that helps and supports business
in terms of managing and planning. These days, aside from manufacturing industry, it also covers
different type of industry. ERP is currently a progressive application in a global level because many
business and diverse type of industry are continuously using, implementing and innovating this specific
business application. It also provides some considerable benefits on the business, it has a centralized
data base that was share by different business application function, it also includes the process of
different transactions and reporting less for the information system set-up in the enterprise and
appropriate interactions with the intended customers, suppliers, employees and shareholders.

Enterprise Resource Planning (ERP) is an evolution of Manufacturing Requirements Planning

(MRP), from business prospective it develops and expands into a coordination about the process of
manufacturing to an enterprise integration. It is the reason why it explains that ERP is an application
that are now commonly uses by a manufacturing industry and different type of industry. It was said that
ERP from technological aspect, has evolve from legacy implementation to more flexible third cline of
architecture. In 1950’s and 1960’s, it was said that the data processing of an ERP was slow, complicated
and involve so much processing transaction. I think the main reason why the processing data on that day
is complex and slow is simply because on that time technology has not improved that much and lack of
materials and knowledge. In year 1960, the system was called Inventory, Management and Control
where it is a combination of two different aspects this are the combination of information technology
and business process in order to maintain the appropriate level of stock in the store room or also known
as a warehouse. There are many activities that includes in terms of inventory management, these are
the: monitoring item usages, reporting inventory status, identifying inventory requirements, providing
replenishment, techniques and options, reconciling the inventory process and setting targets. At the end
of 1960’s, accounting and payroll were invented which would not enough to satisfy growing business
needs. The next stages were on 1970’s, in that year the system was called Material Requirement
Planning (MRP) it utilizes the software application for the scheduling of production processes. For
further explanation, MRP creates and produces schedules based on the operating and purchases of raw
materials that was required on the production of finished goods. Aside from that, it also covers the
structure of the production system, the level of the current inventories and on the operation in its sizing
procedure. The proper management of inventory was acquired in order to improve the performance
and reducing inventory current cause. To fulfill the needs of going business environment, the
Manufacturing Resource Planning II (MRP II) was invented on the year of 1980, it was involved in the
business activities such as purchasing orders, personal planning, inventory, distribution planning and so
much more. It is said that MRP II utilizes software application for coordinating manufacturing process,
form product planning, parts of purchasing, inventory control to product distribution. The last evolution
was called Enterprise Resource Planning (ERP) on 1990’s, it is a software which is design to model and
systematizes the basic process and functions of an enterprise in finance with the integrating across
company and eliminating complex computer system.