ERP system - effective method business management, which helps to manage the workflow as a whole, plan the activities of individual business elements of the enterprise, and improve the operation of all production facilities.
To better understand the meaning of the ERP system, it is not enough just to know the decoding of these letters (Enterprise Resources Planning) and the translation of this definition into Russian (enterprise resource planning), it is better to study the history of its occurrence.
At the end of the 20th century, mass business process automation: PCs were rapidly spreading, programs for financial and accounting, electronic document management, checking the functioning of machinery and equipment were developed for them.
The difference in business principles was not only in the digitization of information, but also in the emergence of new methods for analyzing and exchanging data, combining initially different types information. The result of this was the opportunity to see the entire work of the enterprise as a whole and to analyze the functioning of its individual areas (the work of the main production, warehouse, accounting). The information obtained allowed us to more intelligently distribute the use of production capacity and make the right decisions.
It was this way of doing business that was called ERP, and the software used for this purpose was defined as an EPR system.
Thus, all programs designed for accounting, personnel management, etc., are parts of the ERP system, while CRM (customer relationship management system) also refers to ERP and translates as "customer relationship management system."
All of the components listed above are currently basic configuration ERP systems are often used as standalone programs. For example, only accounting can be automated at an enterprise, while all other information is stored in various programs of the standard MS Office package.
There is no point in arguing about whether CRM and electronic accounting are components of an ERP system, however, it is clear that over time, the level of automation of business workflows will only grow along with the number of software licenses sold, as well as the volume of services for installation and further maintenance.
In a situation where the company started its activities quite recently, there is no need for deep automation of work processes. Documents can be prepared in standard computer applications, and the director will be able to clarify the necessary information from one of the staff. However, along with the expansion of the entire business, the number of operations, documentation, and employees increases, which entails the need to store and analyze all information in electronic form.
If the company as a whole does not use an ERP system, then, as a rule, all information is stored randomly, which makes it difficult to find it. Sometimes there are situations in which the work of the ERP system is established only in some separate division.
The functionality within which it is possible to use an ERP system depends on the scale and direction of a particular company, the specifics of its work, but in general it should be aimed at general business management. The standard functionality is:
1. Production
2. Finance
3. Logistics
4. Frames
6. Projects. Reporting
A full-fledged implementation of an ERP system in an organization can take from a couple of weeks to several years (depending on the volume and scale of the company's activities). At the same time, both the company's own IT specialists and employees of the developer company can install the ERP system.
The implementation of an ERP system can be divided into the following steps:
Stage 1. Primary organization
The stage in which tasks are defined, goals are set, after which a technical project plan.
Stage 2. Project development
Further, the work of the enterprise is studied: development plans, production processes. This information is the basis for selecting the structure of the ERP system, as well as for making adjustments to the technical plan (if necessary).
Stage 3. Project execution
The procedure for implementing business processes in the enterprise will be based on the installed ERP system, so at this stage it is necessary to transfer data from the accounting systems that were used earlier to the ERP system, unify them with each other. In a situation where it turns out that the modules of the ERP system are not enough for a given enterprise, at this stage it is possible to refine it. Upon completion of the installation, the basic principles of the ERP system are brought to the employees of the organization and trial tests are carried out.
Stage 4. Commissioning
On the final stage you can find and fix problems that arise during the operation of the ERP system.
The following methods can be used to implement an ERP system:
The choice of the method of implementing an ERP system for each enterprise should be made very carefully, by analyzing the possible costs, as well as taking into account the experience of other companies.
Explaining the basics of working with an ERP system is one of the most difficult stages of its implementation. Doing business using an ERP system can change business processes in an enterprise, which entails the need to carry out on a par with official duties as well as the functionality associated with the use of this software package. Thus, the main point for the company's management is to prepare the staff morally to work with the ERP system.
When implementing an ERP system, there may be a problem with the lack of desire among ordinary employees to learn how to work with it, because such automation makes the work of management easier. In this situation, the way out is the transfer of such workers to other positions. Most of the staff, as a rule, thinks in the future and understands the need for training in order to use the acquired knowledge in work.
From the quality of the learning will depend on the efficiency of using the ERP system. Employees should have a good understanding of the basics of its work and have the appropriate motivation, because if the staff does not understand for what purposes such innovations are used, then the results of the implementation of the ERP system will not be noticeable. Thus, employees should understand that the use of this software package can be an important lever to improve the efficiency of the entire enterprise.
Training employees in the basics of working with an ERP system should begin in advance. You can conduct an internal advertising campaign, prepare accessible information about the goals that will be achieved after the start of using this software package. In a specially developed document - "Personnel Training Strategies" - this task is designated first. In this document, all employees of the enterprise are divided into groups depending on the amount of necessary training activities, and all other training steps are listed.
As a rule, several groups are allocated into which the entire staff is divided. For example, a separate group can be distinguished company management and middle managers who will directly manage the operation of the enterprise and make the necessary decisions. Another group is that part of the users who perform the main functionality in working with the ERP system, without delving into the details of business processes, but having deep knowledge of the software package. And the third group is the main part of the employees who will enter the primary data into the program.
The first two groups should be trained by employees of the organization that developed the ERP system, while the bulk of the personnel from the third group can learn the basics of the program remotely or through colleagues who have already received the necessary knowledge.
Training can be carried out both in the training centers of consulting agencies, and directly at the enterprise. In some cases, the developers of the ERP system determine the obligatory condition for obtaining the appropriate certificate from employees of the second group.
Consulting agencies enter into agreements with major vendors such as SAP, Microsoft, Oracle, Sun, Cisco, which gives them the right to train how to work with the program and issue supporting documents upon completion of training. Information about this can be found on the official websites of such companies. Domestic developers - "Sail" and "Galaktika" - have their own training centers.
One of the enterprises engaged in the production and sales of refrigeration equipment - Howe Corporation(USA) – in order to conduct business more efficiently, it decided to implement an ERP system based on a service-oriented architecture (SOA) of the 2nd generation. This made it possible to immediately get results and see the benefits of using this ERP system, since the quality and profitability of all business processes have significantly increased.
This organization got the opportunity to more qualitatively analyze the volume of material reserves and the need for their replenishment. After the implementation of the ERP system, Howe Corporation has everything necessary tools for planning activities both in the short term and in the longer term, which eliminates the use of an unreliable calendar method of planning.
Also, all the possibilities of using the ERP system were evaluated and international company Alfa Laval, which has set itself the goal of achieving improved performance by improving the efficiency of business processes. In one of the Alfa Laval offices in Bulgaria, the Epicor iScala ERP system was used, which helped to carry out a detailed analysis of the use of materials and raw materials, control the timing of their purchase to fulfill the relevant orders, which affected reduction of industrial waste. At the same time, since the ERP system fully automated all business processes, this made it possible to reduce the volume of excess products in warehouses, as well as to minimize downtime in production.
Another company is IO Electronics- can also serve as an example of the successful use of an ERP system. Their goal was to successfully achieve the targets set for the next 4 years.
As the director of IO Electronics said, with the rapid development of activities and the development of other production areas, the profitability of the enterprise can significantly decrease if there are failures in the exchange of information between internal divisions. However, when using an ERP system, all information becomes available online. Upon completion of the task, the ERP system undergoes updates, which allows you to trace the entire production process and see the actual availability of a particular product, as well as avoid an overabundance of inventories in warehouses.
Practitioner tells
Sergei Sukhinin,
Since earlier our company did not have an ERP system, it was impossible to quickly note changes in the business process, which entailed a lack of materials for the assembly of finished products, uncoordinated activities of workshops, deterioration in the quality of the final product and increased consumption of raw materials. All these unnecessary costs could only be reduced by implementing an ERP system.
The main activity of our organization is production, so the tasks of automating planning and managing business processes were top priorities. Having determined that an ERP system would help us in solving our tasks, we wanted to achieve such goals as:
Only after the introduction of the ERP system, we were able to correctly plan the volume of materials needed for production based on the analysis of stocks in warehouses, which led to a reduction in working capital costs by 40%. Further, such an analysis helps to purchase only those materials that are necessary for a particular business process. The organizational structure of the company was also optimized, which contributed to the reduction of employees in the production and dispatching department by 50% without compromising the quality of work.
We can sum up the following results of the implementation of the ERP system in our company:
Software systems that currently exist on the IT technology market can be developed by domestic and foreign companies. At the same time, they differ not only in the country of development, but also in the built-in functionality.
Foreign ERP systems, such as programs from SAP, Oracle, PeopleSoft, Sage, Baan, Microsoft Business Solution, can be used in enterprises of any category and are examples to follow. However, when working with such systems in Russia, some difficulties may arise:
However, Russian developers are also trying to expand the capabilities of their own software systems in accordance with the needs of customers. Such ERP-systems successfully cope with the tasks set in the case when it is necessary to automate certain areas of the organization's work and it is not necessary to introduce a software package into the work of the entire enterprise as a whole. An example is the software of 1C and Galaktika companies.
To improve the efficiency of the enterprise, installing an ERP system is almost the most expensive and most difficult task. The final price of implementation, as well as the time required for this, will depend on the number of errors that occur in the process.
Mistake 1. Poor planning.
This fact may lead to a misunderstanding of the present and future state of the ERP system, incorrect automation of business processes.
Mistake 2. Superficial analysis of organizations-developers of ERP-systems.
As a rule, the main criterion is low cost, but sometimes developers deliberately underestimate the cost of services in order to test the implementation process on the first customer. Upon such an installation, serious flaws and failures in the system can be identified.
Mistake 3. Misunderstanding the needs of the enterprise.
After deciding that it is still necessary to implement an ERP system, the customer company does not fully understand which software modules they need to install. This can be used by unscrupulous vendors who will include a lot of unnecessary components in the ERP system or, on the contrary, the installed functionality will not be enough.
Error 4. Underestimation of time and material costs.
Incorrect determination of the timing of implementation and the cost of installing an ERP system can lead to unreasonable expectations of a rapid increase in the efficiency of business processes.
Mistake 5. Lack of qualified employees at the customer enterprise.
The team of the enterprise should include employees with a sufficient level of knowledge in any field, from management and accounting to accounting in a warehouse, purchasing materials, etc.
Mistake 6. Lack of priorities.
If you do not set the right priorities initially, then during the installation of an ERP system you will often have to switch between different tasks, and this can lead to a delay in the installation process, unforeseen problems, etc.
Mistake 7. Insufficient staff training.
If you do not show employees all the functionality of the ERP system and how to use it, the staff of the organization may refuse to work in the system altogether or use its capabilities only partially.
Mistake 8. Underestimating the accuracy of primary information.
Because key point Since the work of the ERP system is the analysis of information, the result of its work will largely depend on the correctness of the initial data. Avoid typing errors and carefully check the information provided.
Mistake 9. Using outdated applications.
Very often, enterprises use both an ERP system and previously installed software in parallel - there is a duplicate data entry. Thus, the time for the final implementation of the ERP system is increased.
Mistake 10. Lack of a test period.
Sometimes testing of the installed software package is carried out only on a few users, which does not allow you to see all the shortcomings and the current load on the ERP system in a timely manner.
Mistake 11. Lack of a plan for maintenance and implementation of updates.
Without this, the software package will very soon become irrelevant. For the hardware component of the ERP system, it is necessary to regularly increase production capacity, since the volume of information processed will also grow. The program component may require adjustment in the event of, for example, changes in legislation.
These mistakes are the most common, but each company may have individual problems. To minimize them, you need to carefully prepare a plan for installing an ERP system at each stage.
The final price of the ERP system will be a combination of the following components:
To reduce the cost of implementing an ERP system, it is necessary first of all to pay attention to Russian suppliers, since foreign programs have a higher acquisition price and require significant changes to comply with domestic legislation.
Expert opinion
Sergei Sukhinin,
Head of the Department of Automated Control Systems of OJSC Scientific and Production Complex Elara, Chuvashia
The license to install the ERP system cost us $470,000, and the total implementation cost was $2,500,000. However, already in the process of using the ERP system, a positive effect was achieved, while the costs were fully reimbursed 1.5 years after the installation of this software package.
Sergey Bratukin, director of practice "Distribution" Columbus IT&Russia, Moscow. Sergey Bratukin in 1997-2005 worked as a consultant in the Russian division of Columbus IT. Participated in the implementation of large-scale projects for the implementation of ERP systems in companies such as Torgovaya Ploshchad, Moscow Military District, Old Man Hottabych, Formula Kino, Avtomir, etc. The international consulting company Columbus IT provides consulting services for the selection, implementation and maintenance of corporate information systems, as well as management consulting. Founded in 1989 in Denmark, currently has offices in 28 countries around the world. Over the eight years of Columbus IT's work in Russia, more than 200 enterprises have become clients of the company, including SSM-Tyazhmash, Trade House Perekrestok, Dixy, L'Etoile, Unimilk, Istok, Toyota and many others
Sergei Sukhinin, Head of the Department of Automated Control Systems of OJSC Scientific and Production Complex Elara, Chuvashia. JSC "Scientific and production complex "Elara"" is the leading Russian manufacturer flight and navigation systems, automatic and remote control systems, on-board computers and display systems for aircraft military and civil aviation. Within the framework of the cooperation agreement with JSC Russian Railways, JSC Elara is preparing for the production of devices and systems for Russian railway transport.
V last years ERP systems have become the standard in all areas of business. Today there is no unambiguous generally accepted definition of ERP. You can find different definitions of this class of solutions, as well as many synonyms: integrated enterprise management systems (IMS), automated enterprise management systems (AMS).
Let's try to answer the question: "ERP - what is it and what is it for?".
ERP stands for Enterprise Resources Planning, i.e. " enterprise resource planning". The Russian translation of the abbreviation does not help to immediately understand the essence of the term, so let's turn to history.
The spread of personal computers in the 80-90s of the last century opened up wide opportunities for business in automation. Software solutions have replaced manual labor and paper media in accounting tasks, warehouse accounting, workflow, monitoring the operation of technological equipment.
Important features of the new approach are not only the conversion of data into a "digit", new opportunities for the transfer and analysis of information, but also the integration of data flows of different nature. Now top management and line managers got a complete picture of the company's work, the ability to analyze production load, stocks and financial flows. Based on this data, more informed decisions were made, it became possible to effectively plan resources.
This approach to organizing information systems in an enterprise is called ERP, and applied solutions for its implementation are called EPR systems. Perhaps this is the most simple and comprehensive answer to the frequently asked question: "CRM, ERP - what is it?".
You will be surprised, but accounting automation programs, project management, personnel applications - all these are components of an ERP system, its basic functions. Customer relationship management systems, or CRMs (customer relationship management systems) are also part of ERP.
However, today listed functional systems referred to ERP infrequently. This is because accounting, project management, CRM and some other functions have become popular as independent software modules. Indeed, many companies use only electronic accounting, and the rest of the data is simply entered into Excel.
Arguing about whether to attribute accounting and CRM to ERP or consider them as separate solutions is a thankless task. Let's leave it to market analysts. It is obvious that the trend towards automation is increasing every year. The listed systems will only gain popularity: sales of licenses and the volume of implementation services will increase.
ERP systems contribute to solving monitoring and planning tasks. In addition, they speed up the work of each department and individual employees. Here are the results of some ERP implementations:
ERP systems immediately reduce the cost of maintaining production and business processes. In the long term, a positive effect is achieved due to the fact that strategic decisions are made more carefully. A business without an ERP system can be compared to a driver who drives a car with his eyes closed.
The enterprise resource management system is not only the driver's vision, but also the summary data of all devices, recorded and taken into account in a single system. ERP is the control of the interaction of mechanisms and engine systems over time, thanks to which the driver can easily determine when to slow down and where to accelerate to achieve maximum results.
If ERP systems are so good, then the question is natural: why today not all enterprises have carried out total informatization, and many are generally limited only to electronic accounting?
The reason is as follows. For an ERP system to be effective, it must take into account the business processes of the enterprise as clearly as possible. Some companies simply cannot formalize their business processes due to a low business culture. Others find it difficult to make any changes in their activities, especially if "everything works anyway."
In any case, the process of implementing individual ERP is not fast and not cheap. In addition to money, it also requires the time of key managers. And if the wrong logic is put into the system, then automation can negatively affect both the company's performance and the morale of employees. That is, when implementing it, it is important to attract experienced and competent specialists. It may actually make more sense for some companies to continue working in Excel.
ERP systems as large integrated systems can be classified according to the following criteria:
The abbreviation ERP comes from English expression Enterprise Resource Planning which literally means enterprise resource planning. Theoretically, such a system is a general strategy for the company, which takes into account the following areas:
On the practical side, speaking of ERP business systems, they mean software for automating each of the listed areas, as well as other processes of the company's activities to bring them into a common interconnected database necessary for the operation of the enterprise.
In simple terms, ERP systems are sets of activities that include: information flow management models in the enterprise, equipment for its storage and processing, software, IT department and specialists technical support, as well as directly to users.
Being a complex software, an ERP system consists of the following elements:
Modules connected to the main platform of the production resource planning system are conventionally divided into three groups:
There are three ways to purchase resource planning software:
There is no universal resource planning system suitable for all companies. For each production, its most optimal product is selected, which is then adjusted during the implementation process.
Classification of enterprise resource planning systems is carried out according to several parameters, the consideration of which will help you in choosing the right product. So, according to their purpose, they can be sectoral and general. The first option is suitable for very large companies, as well as for enterprises that produce a unique product or use non-standard business practices.
By type of organization, systems of the following formats are distinguished:
By type of information storage:
By user interface format:
By software architecture:
By license class for use:
Wrong choice of control system enterprise ERP not only entail additional costs, but may also adversely affect the operation of the enterprise. To avoid mistakes, you need to know the main ones:
The main tool in business planning that allows you to make a decision is reporting documentation. It is she who is the basis of the work of ERP, which in turn should provide the ability to analyze report data from various positions. Therefore, an effective ERP system should have a number of the following functions:
The resource planning system operates with databases, which, as a rule, are very numerous. The information itself can be located on various media, including paper documentation, and therefore its transfer to an electronic format is a huge job. The data itself is divided into two groups:
The ideal ERP should include the ability to use all types of data, but in practice, to simplify the implementation process, the important ones are taken into account first, and then the common ones are gradually integrated.
Based on what data should be used and the required functionality of the system, a technical task is drawn up. It is an official document (instruction) demonstrating what tasks and goals need to be implemented in the implementation process. On the basis of the TOR, a calendar plan of work on integration is drawn up.
There are three strategies for implementing an enterprise resource planning system:
Given the complexity and high cost, the introduction of ERP will be appropriate only for large companies, where the amount of data for accounting is very large and requires systematization. High efficiency such systems are demonstrated for large-scale production, in various corporations and holdings. If the company does not produce a wide range or is engaged in the manufacture of small batches, it does not need such a serious resource planning system, and it will only slow down the process and lead to unjustified losses.
The only exception, according to specialists of consulting agencies, is the use of ERP systems. small companies operating in a very competitive environment, where the automation of all processes creates an additional advantage.
To understand whether you need such a system, you need to calculate the economic efficiency of its implementation. It can be determined by various parameters (decrease in stocks, speed of production, reduction in staff, increase in labor productivity), and as a result, for the enterprise itself, it should bring additional profit or, at least, cost reduction.
Most often, the main ERP systems of companies are finished products, adjusted to the activities of the enterprise. They can be paid and free. With proper implementation, you can achieve efficiency in both cases.
Popular Free Products:
Paid programs:
Most of the shortcomings of ERP systems stem from its basic qualities, since the main problems that companies face when implementing a program are related to making mistakes when deciding whether to use and directly choose software.
Despite the fact that the purpose of ERP systems is to improve the process of production activities, they have their drawbacks. Among the latter:
The implementation of a strategy and software for accounting and resource planning is an effective way to achieve improvements in the work of the company, which has the following advantages:
Understanding the features of the ERP system, what is it in simple words and how to choose for your enterprise, you will be able to warn yourself against the erroneous purchase of an expensive product that you do not need, choosing the most effective one, you will be able to competently implement it, achieve an increase in efficiency and profit of the company.
Historically, the concept of ERP has evolved from the simpler concepts of MRP (Material Requirement Planning) and MRP II (Manufacturing Resource Planning). The main goal of the ERP concept is to extend the principles of MRP II (Manufactory Resource Planning, production resource planning) to the management of modern corporations. The ERP concept is an add-on to the MRP II methodology. It has such an important feature as the possibility of global management of production, goods and services. This feature is very important for large international corporations, where affiliated companies and divisions interact with each other, while being in different countries and regions.
The ERP concept includes:
The methodology of ERP (Enterprise Resource Planning, enterprise resource planning) has not yet been fully systematized.
Many firms have a wide network of remote manufacturing and non-manufacturing units., which significantly complicated their organizational structure. The consequence of this was an increase in the cost of maintaining complex and intricate logistics schemes for the supply of products.. As a result, there was a need to look for ways to solve the problems of minimizing these costs.. The solution to this problem was the systemERP.
The ERP methodology is based on the principle of a single data warehouse (repository) containing all business information accumulated by the organization in the course of doing business, including financial information, data related to production, personnel management, or any other information. This eliminates the need to transfer data from one information system to another and creates additional opportunities for analysis, modeling and planning. In addition, any part of the information held by the organization becomes simultaneously available to all employees with the appropriate authority.
ERP-system – this is a set of computer programs that implement the MRP II methodology and are supplemented with tools for optimizing the management of production and sales departments located in different countries.
The software tools used in ERP systems make it possible to carry out production planning, form a flow of orders and evaluate the possibility of their implementation in the company's divisions.
The concept of ERP assumes that the system uses only one integrated program instead of several separate ones. A single system manages processing, distribution, logistics, inventory, shipping, invoicing and accounting.
The information access differentiation system implemented in ERP systems, in combination with other company information security measures, is designed to prevent both external threats (for example, industrial espionage) and internal ones (for example, theft). Implemented together with CRM-system and quality control system, ERP-systems are aimed at maximum satisfaction of the needs of the enterprise in business management tools.
According to the APICS (American Production and Inventory Control Society) Dictionary, the term " ERP-system» (Enterprise Resource Planning - Enterprise Resource Management) can be used in two meanings. First, it is - an information system for identifying and planning all enterprise resources that are necessary for sales, production, purchases and accounting in the process of fulfilling customer orders. Secondly (in a more general context), it is - methodology for effective planning and management of all enterprise resources that are necessary for sales, production, purchases and accounting when executing customer orders in the areas of production, distribution and provision of services.
In the latest edition of APICS: "ERP is an approach for organizing, defining and standardizing the business processes necessary for an enterprise to use internal knowledge to seek external advantage."
The concept of ERP is still not standardized. When the question arises of classifying a specific management information system as a class of developed MRP II systems or as an ERP class, experts disagree, since they distinguish various criteria for belonging to the ERP class. However, summing up the various points of view, you can specify the main features that ERP systems should have.
Integrated enterprise systems. Levels of management of the integrated enterprise.
Automated system enterprise management m.b. presented as a set of AS, interacting levels: ERP enterprise management, MES production management, SCADA TP management.
ERP - Enterprise Resource Planning. Information system to determine and plan the resources of the enterprise, necessary for the receipt, manufacture, shipment and accounting of consumer orders.
ERP II - management of resources and external relations of the enterprise. It has two control loops: traditional internal, control internal processes enterprise, and external - managing the interactions between the customer and the supplier. That. ERP II - ERP system with the ability to closely interact with customers and suppliers.
MRP is a material requirements planning system that allows you to optimally load production capacities, and at the same time purchase as many materials as necessary to fulfill the order plan.
MRP II - production resource planning system. The main goal is to take into account and analyze all events in production: everything that happens in this moment and everything that is planned for the future. As soon as a defect is admitted in production, as soon as the production program is changed, the system instantly reacts to what happened, indicates problems that may be. as a result of this, and determines what changes need to be made to the production plan to avoid these problems.
MES - production management system. A system covering together all the processes of an enterprise with a production process.
SCADA systems - supervisory control and data collection. System providing program control and dispatcher control in the management of TP.
ERP - system. ERP evolution.
ERP systems are the result of 40 years of evolution of management integrated systems. The concept of the BOM product specification and the MPS production program systems formed the basis for the functioning. BOM showed the product in the context of components, and MPS contained information about the time, quantity and type of products programmed for release. With the help of BOM and MPS, the company received information about the required amount of materials. The need for planning is due to the fact that most of the delays are due to the delay in the receipt of individual components, as a result of which, with a decrease in production efficiency, an excess of materials appears in warehouses.
In practice, an MRP system is a computer program that can logically represented by the following diagram:
Description of the state of materials is the main input element of the MRP program. In it d.b. reflects the most complete information about the components necessary for the production of the product.
The production program (MPS) is an optimized schedule of time allocation for the production of the required batch of products for the planned period.
The use of MRP allows you to achieve: 1) Reducing the level of stock of materials in warehouses; 2) Reducing the level of inventory in work in progress; 3) Reducing the order fulfillment time. MRP has one drawback - they do not take into account the production capacity of the enterprise. This has led to the expansion of the functionality of MRP systems into CRP capacity requirements planning modules. Later, a new enterprise resource planning class, MRP-II, appeared. The main difference between MRP-II is that they are designed to plan all production resources in the enterprise. The improvement of MRP-II systems led to the creation of ERP systems. They are intended not only for manufacturing enterprises, but also for companies providing services. ERP systems are based on the principle of creating a single data warehouse containing all information about the organization. ERP-II - integration of the enterprise information environment with suppliers and customers through information channels.
ERP functions.
ERP systems are based on the principle of creating a single data warehouse containing all the information and providing simultaneous access to it by any number of employees of the enterprise. Data changes are made through the system functions. The ERP system consists of the following elements:
Model of information flow management (IP) in the enterprise;
Hardware and technical base and means of communications;
DBMS, system and supporting software;
Kit software products, automating IP management;
Regulations for the use and development of software products;
IT department and supporting services;
Software users.
Functionality integrated ERP systems:
1) Formation of sales and production plans;
2) Planning of production capacities from enlarged planning to the use of individual machines;
3) Operational financial management, including drawing up a financial plan and monitoring its implementation;
4) Project management, including planning stages and resources;
5) Management of stocks and purchases: maintaining contracts, implementation of purchases, ensuring accounting of warehouse stocks;
6) Planning the needs for materials, terms and volumes of supplies to fulfill the production plan;
7) Maintenance of design and technological specifications that determine the composition of manufactured products;
8) Demand management;
9) Cost management;
10) Routing or logistics;
11) Personnel management.
4. Classification of ERP - systems. ERP examples.
1) Large integrated systems. They have the capabilities of integrated management of all processes in large holding structures. Systems of this class cover the following areas of the enterprise:
Production Management;
Financial management;
Supply chain management;
Personnel Management;
Implementation of such systems takes more than a year. Cost: $500,000;
Large integrated systems include:
Oracle E-Business Suite;
SAP Business Suite.
2) Medium integrated systems. Designed for managing medium-sized manufacturing enterprises. In these systems, the main link of automation is procurement, production and sales. A feature of the systems is their more rigid setting compared to flexible financial and management systems. The implementation time of such systems is longer and ranges from six months to a year. Cost: $100,000-500,000; Medium integrated systems include: Infor ERP SyteLine; Symex; Compaq computer; Galaxy ERP;
3) Financial and management systems. To a greater extent, they are aimed at automating non-production enterprises (small and medium-sized enterprises in the field of trade and services). Cost: $50,000-100,000; Financial management systems include: Compass; Sail - Enterprise 8; 1C: Trade management 8; Galaxy;
4) Local systems. Most of the accounting programs include the function of automating warehouse activities and settlements with personnel. Local systems automate accounting at the enterprise in one or more areas. Price:<50000$; К системам локального класса относятся: 1С: Комплексная автоматизация 8,
1C: Management of a small firm 8.
5. Large ERP - systems. The main ERP modules are BAAN, SAP systems.
Large integrated systems. They have the capabilities of integrated management of all processes in large holding structures. Systems of this class cover the following areas of the enterprise:
Production Management;
Product life cycle management;
Management of material flows;
Fixed asset management;
Financial management;
Sales and purchase management;
Supply chain management;
Personnel Management;
Customer relationship management.
Implementation of such systems takes more than a year. Cost: $500,000; Large integrated systems include: SAP R/3; Oracle E-Business Suite;
SAP Business Suite.
Main ERP modules - BAAN systems:
1) Enterprise modeling. Helps reduce implementation time.
2) Production module. Requirements planning, product configurator, batch production management.
3) Module of processes. Supports the production process from research and development to production, supply, sales.
4) Finance module. Financial accounting system.
5) Supply and warehouses. Manages sales and purchases.
6) Module projects. It is intended for work of projects and preparation of the commercial offer.
7) The module of the enterprise activity administrator. Toolkit for improvement of economic activity.
8) Transport module. Transportation.
9) Service module. Management of all types of services.
The main modules of ERP - SAP systems:
1) Finance module. It is intended for the organization of accounting records.
2) Control module. Provides accounting for the costs and profits of the enterprise.
3) Fixed asset management module. Designed to account for fixed assets and manage them (maintenance, depreciation).
4) Project management. Supports planning, managing and monitoring projects.
5) Production planning. Used to organize the planning and control of the production activities of the enterprise (introduction of specifications, production management).
6) Management of material flows. Supports supply functions (purchase of materials, warehouse management).
7) Sales. Solves distribution problems.
8) Quality management.
9) Maintenance and repair of equipment. Takes into account costs and plans resources for maintenance.
10) Personnel management. Personnel administration, salary calculation, travel expenses calculation.
11) Management of information flows. Associates application modules with common ones for all applications (office system with e-mail).
12) Industry solutions. Combines application modules and additional functionality specific to a particular industry.
13) Basic system. Foundation of SAP R/3. Guarantees the integration of all application modules and independence from the hardware platform.
6. Architecture of ERP - systems. Client-server architecture type.
It is built on a client-server architecture. It consists of 3 levels:
1) The level of presentations. Manages the dialog between the end user and the application.
2) Application level. Performs data transformation.
3) Database level. Stores, updates, and presents data at the application layer.
Depending on the location of these levels, 5 types of system are distinguished: 1) Distributed representation x / x in that the operations associated with the application level are carried out both on the server and on the terminal. 2) Remote view x / xia by the fact that the applications and the database are on the server, and the application program is on the terminal. 3) Distributed level - logical operations distributed between the server and the terminal. 4) Remote data management - the user interface and logical operations are carried out on the terminal, the DBA is located on the server. 5) Distributed database - a database that is divided into 2 parts: server, terminal.
7. Light, medium, heavy ERP systems. architecture classification.
Light ERP- a system capable of using only 1 database server and 1 application server. Disadvantage: the impossibility of simultaneous work of a large number of users. To serve a large number of users working simultaneously, complexes are used, launched by II light ERP systems, each of which works with its own type of user.
The use of a complex of light ERP is advisable in the following cases: 1) All peripheral divisions are engaged in the same type of activity and use a single standard for accounting for information transmitted to the central office.
2) Not all functionality of the ERP system is used at peripheral facilities.
3) Access to the actual data of all objects in the ONLINE mode is not required.
| DB |
| DB |
| DB |
| DBMS |
| DBMS |
| DBMS |
| DBMS |
| joint venture |
| joint venture |
| joint venture |
| joint venture |
| PC |
| PC |
| PC |
| PC |
| PC |
| PC |
| PC |
| PC |
| PC |
| PC |
| PC |
| PC |
