(BY AMT ERP Research Group)
In the 1990s, with the further intensification of market competition, the further expansion of corporate competition space and scope, the 80s MRPI mainly faces the idea of comprehensive planning management of internal resources into how effective use and manages overall resources in the 1990s. ERP (Enterprise Resource Planning) - Enterprise Resource Plan also produces. ERP is an extended management scope on the basis of MRP-II and gives a new structure.
1. ERP is the main difference with MRPI
Differences in resource management
MRP II mainly focuses on the management of internal people, financial, and other resources, and ERP system expands management scope on the basis of MRP II, which integrates customer needs and manufacturing activities within the company, and supplier manufacturing resources. To form a complete supply chain and all links on the supply chain such as orders, procurement, inventory, production, manufacturing, quality control, transportation, distribution, service, and maintenance, financial management, personnel management, laboratory management, project management. , Formula management, etc. effective management.
Differences in production methods management
The MRP II system is classified into several typical production methods, such as repeated manufacturing, mass production, according to order production, according to order assembly, according to inventory production, etc., there is a set of management standards for each type. In the late 1980s, in the early 1990s, in order to keep up with the market change, multi-variety, small batch production and watch-type production, the company's main production method is mainly produced by a single production method, and ERP It is possible to support and manage the hybrid manufacturing environment to meet the multi-angiocitation needs of the enterprise.
Differences in management functions
In addition to manufacturing, distribution, financial management functions of the MRP II system, ERP has increased transportation management and warehouse management supporting the entire supply chain material circulation system; the quality management of various links is required; the quality management of the production and security system , Laboratory management, equipment maintenance and spare parts management; support management of workflow (business processing processes).
Differences in transaction control control
The MRP II is to control the entire production process through the planned timely scrolling, and its real-time performance is generally only controlled. The ERP system supports online analysis to process OLAP (Online Analytical Processing), after-sales service, quality feedback, emphasizing the current control capability of enterprises, which can make a variety of related homeworks by integrating design, manufacturing, sales, transportation, etc. Providing companies with real-time analysis capabilities for key issues such as quality, adaptation, customer satisfaction, performance.
In addition, in the MRP II, the financial system is only a summary of information. Its function is to convert the number of information in supply, production, and pin into value information, is the value of the logistics. The ERP system integrates financial programs and value control functions to the entire supply chain.
Differences in transnational (or region) business transactions
Now the development of the company has enabled the coordination between enterprises and external business units to become more and more important, and the complete organizational architecture of the ERP system can support transnational operations. Demand for multi-country, multi-factory, multi-language and multi-coin system.
Differences in computer information processing technology
With the rapid development of IT technology, the application of network communication technology makes the ERP system to integrate management of the entire supply chain information. The ERP system adopts customer / server (C / S) architecture and distributed data processing technology, support Internet / Intranet / EXTRANET, E-Business, E-Commerce, Electronic Data Exchange (EDI). In addition, interoperability can be implemented on different platforms.
2. ERP system management ideas
The core management of ERP is to achieve effective management of the entire supply chain, mainly reflected in the following three aspects: reflecting the idea of management of the entire supply chain resources
The competition of modern enterprises is no longer competition between single enterprises and single enterprises, but a competition between a supply chain of enterprise supply chain and another company. It is necessary to rely on its own resources, but also must regard the business process. All parties such as suppliers, manufacturing plants, distribution networks, customers, etc., in order to get competitive advantages in the market. ERP system is adapted to this market competition, achieving management of the entire enterprise supply chain.
Reflecting the thoughts of lean production, synchronous projects and agile manufacturing
The ERP system supports the management of all hybrid production methods, and its management ideas are in two aspects: one is the idea of "Lean Production", that is, enterprises in the company, sales agents, suppliers, collaboration units The production system, which establishes a partnership with interest sharing, which in turn constitutes a company's supply chain. The second is the idea of "agile manufacturing". When there is a new opportunity on the market, and the basic partner of the company does not meet the requirements of new product development and production, the enterprise organizes a short-term or disposable supply chain consisting of specific suppliers and sales channels to form a "virtual factory". The supply and collaboration units will be part of the enterprise, using the Synchronization Project (SE) ", organizational production, use the shortest time to enter the market in the market, always maintain the high quality, diversification and flexibility of the product. This is the core idea of "agile manufacturing".
Reflect the idea of prior plans and things in things
The planning system in the ERP system mainly includes: the main production plan, logistics demand plan, capacity plan, procurement plan, sales execution plan, profit plan, financial budget and human resources plan, etc., and these plan functions and value control functions are completely integrated The entire supply chain system. On the other hand, the ERP system automatically generates accounting records in transaction processing by defining accounting accounts related to transaction processing, and automatically generates accounting records while transaction processing, ensuring synchronous records and data of fund flow and logistics. Thus, according to the status quo of financial funds, the dragon debolates that can be trace the funds, and further trace the relevant business activities that occur, facilitate realization of the control and real-time decisions.
So we finished introduction of the principle of the entire ERP. Of course, ERP is still in the process of evolving changes. For its latest developments, we will also give a detailed introduction in the next series. Finally, as a summary, we can conduct a brief review through several major stages of ERP development through Figure 1:
Figure 1 ERP development phase diagram
