CRTICAL REVIEW

Portfolio of critical review on ERP and SCM

Portfolio of critical review on ERP and SCM

Article about Implementation of an ERP

Introduction

It is a critical review of an article, Enterprise resource planning (ERP), a brief history, Journal of Operations Management written by Robert Jacob and Tedwestonjr. In this article an implementation of an Enterprise resource planning is discussed in a very detailed manner.

More than just software, ERP is a real project requiring a full integration of a software tool within an organization and a specific structure, and therefore significant cost engineering. On the other hand its implementation in the company leads to significant changes in work habits of a large number of employees. Thus we consider that the cost of the software tool is less than 20% of the total cost of setting up such a system.

Summary

Enterprise Resource Planning Enterprise Applications Suites Integrated Management Systems Automated control systems. Corporate Information Systems Enterprise Resource Planning, designed to automate accounting, planning and management in the enterprise. Universally accepted definition of ERP-systems and a clear set of criteria to identify it does not exist. As a result, under the ERP mean a huge range of solutions, including accounting systems with a few additions. Typically, ERP-systems are built in a modular fashion, and more or less cover all key processes of the company (Rashid, 2002).

The prevalence of IT systems - is the only guarantee that the system can be implemented in real time with a real budget. This also ensures that the customer can dial specialists - they are in some amount will be on the market. Sometimes pointless to compare systems on the modules as module names as their real description are nothing useful. Filling modules makes sense in the application of the system to the tasks. But this process is the basis of the project. Unfortunately, the recommendation to "choose common ERP" is not conducive to the development of the market and exacerbating the problem dictates the Giants, but this is the reality.

An Enterprise Resource Planning serves as a cross-functional enterprise backbone that integrates and automates many internal business processes and information systems within the manufacturing, logistics, distribution, accounting, finance, and human resource functions of a company. Large companies throughout the world began installing ERP systems in the 1990s as a conceptual framework for reengineering their business processes1. They have come to realize the importance of having such system in place to help them sustain their competitive advantage and to be ahead of other players in the market. It is true that the benefits that come with successful implementation are great but if not handled carefully, the risks involved are equally great (Tedwestonjr, 2007).

Conclusion

This article emphasizes on the practical implementation At present, most of the corporations can no longer disregard the significance of Information Technology in their organization to get competitive benefit. The companies are seriously depending on IT for processing their work because IT has supremacy to alter the whole organization such as size, net-profit, efficiency, human activity competence ...