ERP-enterprise resource planning system refers to a management platform which is based on information technology and provides decision-making operation means for enterprise decision makers and employees with systematic management ideas.
ERP system integrates information technology and advanced management ideas, and becomes the operation mode of modern enterprises, which embodies the requirements of the times for enterprises to rationally allocate resources and create social wealth to the maximum, and becomes the cornerstone for enterprises to survive and develop in the information age. Further, we can define it from three aspects: management thought, software products and management system:
1. is a set of enterprise management system standards put forward by GarterGroupInc, a famous American computer technology consulting and evaluation group. Its essence is a supply chain-oriented management idea further developed on the basis of MRPII (Resource Planning).
2. It is a software product that comprehensively applies the achievements of information industry such as client/server system, relational database structure, object-oriented technology, graphical user interface, the fourth generation language (4GL), network communication and so on. And take ERP management thought as the soul;
3. It is an enterprise resource management system integrating enterprise management concepts, business processes, basic data, manpower and material resources, computer software and hardware.
BPR-Promoting Enterprises to Apply ERP Successfully
The implementation of ERP system is full of challenges and risks. One fact we can see is that many companies have invested huge amounts of money in ERP projects, but the results have been minimal.
The application of ERP is not only to introduce a set of modern management software to automate the daily management activities of enterprises, but also to fundamentally change the traditional management mode of enterprises, making it more reasonable and scientific, thus greatly improving the operating efficiency of enterprises. It is no exaggeration to say that the improvement of enterprise benefits after applying ERP comes from the ERP software itself on the one hand, and from the reengineering of business processes on the other.
ERP system application and management consulting
The application and implementation of ERP involves all departments of the enterprise, from top leaders to bottom operators. For such a costly, time-consuming and laborious system engineering, most enterprises have no experience in this field. Although some enterprises have their own internal staff and decision makers, they can organize their own business personnel, management personnel and IT personnel to conduct demand research, scheme design and software selection, or have strong IT personnel to develop and implement their own software. However, they encountered considerable resistance in the implementation process. Specifically:
1. There are too many stakeholders, and it is difficult for internal personnel to effectively promote the project;
2. Because of the fear of taking decision-making risks, the decisions made by internal employees are often not optimal, and sometimes they can't even reach the suboptimal choice;
3. Influenced by mindset and various conditions, internal employees often ignore or are unaware of the problems existing in the enterprise, and the needs of the enterprise cannot be clearly defined and described;
4. Limited exposure to ERP products;
5. The internal staff have insufficient experience in project management, and there is no mature methodological guidance for ERP system implementation;
When it comes to salary adjustment, internal employees have no confidence to stick to their opinions with their superiors.
Based on the above-mentioned problems that enterprises themselves can't overcome, the emergence and existence of professional ERP consulting companies is inevitable and necessary in ERP implementation. As an independent and objective "third party", the consultant of consulting company has a good interdisciplinary knowledge structure, supplemented by the guidance of correct implementation methodology, which can play a great role in helping enterprise management modernization and information construction.
Benefits brought by ERP
According to the data of American Production and Inventory Control Association (APICS), using MRPII/ERP system can bring the following economic benefits to enterprises on average:
1. Inventory decreased by 30% ~ 50%. This is the most talked about benefit. Because it can reduce the inventory investment of general users by 1.4~ 1.5 times and improve the inventory turnover rate by 50%.
2. Delayed delivery is reduced by 80%. When the inventory is reduced and stabilized, the customer service level is improved, which makes the on-time delivery rate of enterprises using ERP/MRPII increase by 55% on average and the delayed delivery rate decrease by 35% on average, which greatly improves the reputation of the sales department.
3. The procurement lead time has been shortened by 50%. With timely and accurate production planning information, purchasing personnel can concentrate on value analysis, source selection, research negotiation strategies, understand production problems, shorten procurement time and save procurement costs.
4. The downtime is reduced by 60%. Due to the transparency of parts demand, the plan has also been improved, which can be timely and accurate, and parts can arrive on time at a more reasonable speed. Therefore, the phenomenon of production line shutdown will be greatly reduced.
5. The manufacturing cost is reduced by 12%. Due to the reduction of inventory cost, labor saving, procurement cost saving and a series of human, financial and material effects, the production cost will inevitably be reduced.
6. With the improvement of management level, the number of managers decreased by 10%, and the production capacity increased by 10% ~ 15%. In addition, the rapid growth of ERP market in recent years also shows its great development potential: