Mrp-Erp
Integrated Management Systems: ERP – MRP Evolution…
ERP philosophy has evolved from MRPII philosophy. MRPII philosophy evolved from MRP philosophy. It is important to understand the difference between each term.
Effective ERP requires that integrated management processes extend horizontally across the company, including product development, sales, marketing, manufacturing, and finance. It must extend vertically throughout the company's supply chain to include the acquisition of raw materials, suppliers, customers, and consumers. The fundamental purpose of ERP is to establish a process that links projected demand plans to supply plans, so that the resources of manufacturers, their suppliers, and especially their customers are utilized in the most efficient and cost effective way.
To do so requires a process for anticipating demand and planning and scheduling resources in a manner that supports a company's strategic and financial goals. There are five major elements in this: 1. An integrated business operating process that links strategic plans and business plans to sales plans and operations plans. 2. A people-driven process that is supported by a computer system. 3. A formal resource planning process that involves all functions within a company. 4. Defined responsibilities and performance measurements for all functions in a company. 5. Communications among all functions in a company as well as communications among all divisions and sister companies. |
Strategies must be tied to tactics, supply is resolved with demand, the financial system is tied to the operating system, aggregate planning is translated into detailed planning, and planning and execution are linked together via a two-way flow of information and a spirit of cooperation among all functions.
ERP is a people process supported by the computer, rather than the other way around. People -- and their behavior and discipline in utilizing the ERP process -- is vital. When people
ERP philosophy has evolved from MRPII philosophy. MRPII philosophy evolved from MRP philosophy. It is important to understand the difference between each term.
Effective ERP requires that integrated management processes extend horizontally across the company, including product development, sales, marketing, manufacturing, and finance. It must extend vertically throughout the company's supply chain to include the acquisition of raw materials, suppliers, customers, and consumers. The fundamental purpose of ERP is to establish a process that links projected demand plans to supply plans, so that the resources of manufacturers, their suppliers, and especially their customers are utilized in the most efficient and cost effective way.
To do so requires a process for anticipating demand and planning and scheduling resources in a manner that supports a company's strategic and financial goals. There are five major elements in this: 1. An integrated business operating process that links strategic plans and business plans to sales plans and operations plans. 2. A people-driven process that is supported by a computer system. 3. A formal resource planning process that involves all functions within a company. 4. Defined responsibilities and performance measurements for all functions in a company. 5. Communications among all functions in a company as well as communications among all divisions and sister companies. |
Strategies must be tied to tactics, supply is resolved with demand, the financial system is tied to the operating system, aggregate planning is translated into detailed planning, and planning and execution are linked together via a two-way flow of information and a spirit of cooperation among all functions.
ERP is a people process supported by the computer, rather than the other way around. People -- and their behavior and discipline in utilizing the ERP process -- is vital. When people