MRP Ii
MRP Ii
MRP Ii
Requirement Planning
Application of Computers
MRP Inputs MRP Processing MRP Outputs
Changes
Order releases
Master
Planned-order
schedule
schedules
Primary
reports Exception reports
Bill of Planning reports
materials MRP computer Secondary Performance-
programs reports control
reports
Inventory
records Inventory
transaction
MRP Evolution
MRP Schedule Materials
ERP
MRP II
4
MRP II
ERP Systems
Service Human
Applications Resource Inventory
Management And Supply
Applications Applications
Employees
11
Major ERP Providers
Market
Firm HQ Acquisitions
Share
SAP Germany 40%
Oracle US People Soft
22%
JD Edwards
Sage Group UK 7%
Microsoft US 3%
Infor US SSA
Baan
Reasons to Implement ERP
Desire to standardize and improve
processes
To improve the level of systems
integration
To improve information quality
ERP Drawbacks
Cost
$250M+ for a large scale company
Transition pain
Implementation resources
Training
Resistance to change
An ERP Example: Before ERP
Orders
Parts
Sends report Customer
Demographic
Sales Dept. Files Customers
Accounting
Sends report
Invoices
Sends report
accounting
Ships parts
Vendor
Warehouse
Order is placed
We Need parts #XX
with Vendor
Inventory
Purchasing Files
Files We ordered the parts
Purchasing
16
An ERP Example: After ERP
Orders
Parts Inventory Data
If no parts,
order is placed
Customers Sales Dept. through DB Accounting
Order is submitted
to Purchasing. Database
Purchasing record Books inventory
order in DB against PO
Order is placed
with Vendor
Warehouse
Vendor Purchasing
Ships parts
And invoices accounting 17