MANAGEMENT

Enterprise Resource Planning



Enterprise Resource Planning

What is ERP?

The short name is derived from the English acronym ERP "Enterprise Resource Planning”. This system aims to meet the demands of management, based on the concept of a solution that allows companies to unify different areas (Departments) of productivity. The companies operate or are organized by departments that are interrelated by the information shared and generated from their processes. With this, companies have a host of incompatible systems that allow an overview of all business processes in time necessary for taking optimal decisions. All components of an ERP accounting, logistics, purchasing, sales, and parts are already in business management. The functionality of the ERP is divided by separate modules, but with the ease is of interaction between them, according to customer needs. This will save time and minimize errors in the absence of independence between the operations Company, preventing data transfer or delivery of different processes information. Sometimes this operation is information transfer impossible.

One of the needs that now requires the acquisition of a system with these characteristics, it is because the market becomes larger, the borders are removed (Globalization), interaction with customers and suppliers from around the world, trade barriers disappear and companies are forced to increase their catalog are products and services. With these systems, it is administered efficiently bases Data and information is obtained online, date and accurate at the time being performing any operation. This is important for decision-making, current status is unknown and can identify the future situation, allowing develop strategic plans to be competitive, meet the financial position, acquire advanced technology, establish personnel policies, continuous improvement, etc.. Many know what an ERP, however, it is clear that companies understand always what their problem is really. The ERP implementation and success require a change the mindset of the company, which if not achieved, puts one at greater risk significant investment .

Concept

The concept of ERP is to create a single data repository (Repository), which contains all the business information stored in the organization of business, including financial information, data associated with the production, management, staff, and any other data. The presence of the repository eliminates the need to transfer data from application to application. In addition, any part of the information available to the organization becomes at the same time accessible to all workers with the appropriate authority.

The concept of ERP has been widely used as resource planning helps reduce production, reduce inventory and improve customer feedback, while reducing the administrative apparatus. Standard ERP brings together all the resources of the enterprise and improve management.

Now almost all modern Western production systems and the basic production management system based on the concept of ERP and respond to its recommendations, which are produced by an American NGO APICS, comprising of manufacturers, consultants in the field of production management software developers (Gill, 2011).

General Characteristics of ERP

The main purpose of ERP systems is to automate the processes of planning, accounting and management in key areas of the company ...