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In the past decade the business environment has changed dramatically. The world has become a small and very dynamic marketplace. Organizations today confront new markets, new competition and increasing customer expectations. This has put a tremendous demand on manufacturers to; 1) Lower total costs in the complete supply chain 2) Shorten throughput times
3) Reduce stock to a minimum 4) Enlarge product assortment 5) Improve product quality 6) Provide more reliable delivery dates and higher service to the customer 7) Efficiently coordinate global demand, supply and production. Thus today's organization have to constantly re-engineer their business practices and procedures to be more and more responsive to customers and competition. In the 1990's information technology and business process re-engineering, used in conjunction with each other, have emerged as important tools which give organizations the leading edge.
ERP Systems Evolution
The focus of manufacturing systems in the 1960's was on inventory control. Most of the software packages then (usually customized) were designed to handle inventory based on traditional inventory concepts. In the 1970's the focus shifted to MRP (Material Requirement Planning) systems which translated
the Master Schedule built for the end items into time-phased net requirements for the sub-assemblies, components and raw materials planning and procurement,
In the 1980's the concept of MRP-II (Manufacturing Resources Planning) evolved which was an extension of MRP to shop floor and distribution management activities. In the early 1990's, MRP-II was further extended to cover areas like Engineering, Finance, Human Resources, Projects Management etc i.e. the complete gamut of activities within any business enterprise. Hence, the term ERP (Enterprise Resource Planning) was coined.
In addition to system requirements, ERP addresses technology aspects like client/server distributed
architecture, RDBMS, object oriented programming etc. ERP Systems-Bandwidth ERP solutions address broad areas within any business like Manufacturing, Distribution, Finance, Project Management, Service and Maintenance, Transportation etc. A seamless integration is essential to provide visibility and consistency across the enterprise.