This chapter presents the following content: What is ERP? connecting functional units with ERP, the need for standardization, support of MPC decisions, transaction processing, performance metrics, the ERP experience. | Enterprise Resource Planning MPC 6th Edition Chapter 1a Enterprise Resource Planning A comprehensive software approach to support decisions concurrent with planning and controlling the business. ERP systems are, first and foremost, integrated. Agenda What is ERP? ERP software is Multifunctional Integrated Modular Able to facilitate MPC activities Multifunctional The ability to track financial performance in monetary terms ($, €) Can track purchasing activity in material units (pounds, kilos, tons) Follows sales in terms of products or services Reports manufacturing activity in terms of products, resources, or people ERP Scope Manufacturing and logistics Manufacturing planning and control Sales and operations planning (front end) Material and capacity planning (engine) Material and vendor management (back end) Enterprise resource planning Enterprise planning models Enterprise performance measures Data warehousing Report generation Transaction processing Human resource management . | Enterprise Resource Planning MPC 6th Edition Chapter 1a Enterprise Resource Planning A comprehensive software approach to support decisions concurrent with planning and controlling the business. ERP systems are, first and foremost, integrated. Agenda What is ERP? ERP software is Multifunctional Integrated Modular Able to facilitate MPC activities Multifunctional The ability to track financial performance in monetary terms ($, €) Can track purchasing activity in material units (pounds, kilos, tons) Follows sales in terms of products or services Reports manufacturing activity in terms of products, resources, or people ERP Scope Manufacturing and logistics Manufacturing planning and control Sales and operations planning (front end) Material and capacity planning (engine) Material and vendor management (back end) Enterprise resource planning Enterprise planning models Enterprise performance measures Data warehousing Report generation Transaction processing Human resource management Finance Sales and marketing Integrated Modular Functional units (finance, sales, manufacturing, etc.) are narrowly focused Functional units can be combined to create a single system Software from other sources can be connected as well Process Standardization Without standard terminology, integration is impossible What is demand? What is inventory? How are exchange rates determined? What transfer costs apply (for internal transactions)? What labor rates are applied? Decision Support Helping users make decisions about running the business People make the decisions, software provides them with better tools and information Transaction Processing An ERP system is designed to process business transactions in real time, working from a single database Data warehouse software may be added to facilitate queries not built into the ERP system Performance Metrics Integrated Supply Chain Metrics Developed by the Supply Chain Council Designed to measure the impact of decisions on the entire supply chain .
