Page 9 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 1: ERP Overview

1.2 overview of erp notes

ERP is much more than just a computer software. An ERP System includes ERP Software,
Business Processes, Users and Hardware that run the ERP software. An ERP system is more than
the sum of its parts or components. Those components interact together to achieve a common
goal - streamline and improve organizations’ business processes. Most important factor for ERP
system is the users. Successful implementation of any ERP System depends more on intelligent
users who are going to use them, because any standard ERP Software would consist hundreds
of input information for any particular business activity. Thus good knowledge of each entity of
system by the users is the most important factor in ERP Software.
figure 1.2: functional Departments of erp

Enterprise Resource Planning (ERP) is the evolution of Manufacturing Requirements Planning
(MRP) II in 1980s, which was mainly related to Manufacturing Industry and was designed to
control manufacturing process and planning the required production with efficient output.
MRP is the evolution of Inventory Management & Control conceived in 1960s, which was
mainly designed for management of Stocks in any particular industry. ERP has expanded from
coordination of manufacturing processes to the integration of enterprise-wide backened processes
like production planning and scheduling of delivery. In terms of technology, ERP has evolved
from legacy implementation to more flexible tiered client-server architecture.

1.3 What is erp?

It serves as a Cross-functional Enterprise Backbone that Integrates and Automates many Internal
Business Process and Information Systems covering all functional areas.

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