ERP origin and development

 basic MRP stage;

 closed-loop MRP stage;

 MRP-II stage;

 ERP stage.

Basic MRP stage

The 1960 s manufacturing industry in order to break the "issued orders, and then CuiBan" plan management mode, set up safety stock, for the lead time demand and provide buffer. In the 1970 s, enterprise managers have know clearly that the real need is effective order delivery date, produce the material list management and utilization, formed the material requirements planning-MRP.

 material requirements planning theory

(Material Requirement Planning)

In the 1960 s, IBM Joseph • oliver doctor puts forward to material needs into independent requirements and related requirements concept: the product structure of the material in demand is related.

 in time of need

 provide the number of need

 product structure

MRP logical process

The closed-loop MRP stage

The closed-loop MRP theory is that master production plan and material requirements planning (MRP) should be feasible, namely consider the constraints of ability, or to the ability is raised demand plan, and to meet the demand of the premise ability, to ensure the implementation of the materials demand planning and implementation. In this thought request, the enterprise must to input and output control, also is the ability of the enterprise to the school inspection, implementation and control.

The closed-loop MRP calculation flow chart

MRP-II stage

In September 1977, by the famous American production management experts Mr Lev Wright, (Oliver W • Wight) put forward a new concept-manufacture resource Planning (Manufacturing Resources Planning) called MRP-II. MRP-II is to the manufacturing enterprise resources for effective plan set of methods. It is a basic management goal around enterprise, in order to production plan as the main line, to the enterprise manufacturing all kinds of resources for unified planning and control, make enterprise logistics, information, capital flow unimpeded dynamic feedback system

• MRP-II logic flow chart

The formation of ERP

MRP-II limitations

 the competition between the enterprises range widening, it is required in the enterprise management of various aspects of strengthening management and require the enterprise the information construction should have high levels of integration, at the same time the enterprise information management category is calling for the expanded to enterprise's resources to the integrated management and not merely to enterprise manufacturing resources integration management;

 enterprise scale enlargement, many many factory group, with requirements of combat, unified arrangements, and this is beyond the scope of management of MRP-II;

 information globalization trend between the requirements of the development of enterprise information exchange and strengthen information sharing, between enterprise that is competition and cooperation partners, information management is calling for the expanded to the entire supply chain management, which is MRP-II can solve

 the 1990 s MRP-II development to a new stage: ERP (Enterprise Resource Planning-Enterprise Resource Planning)

 enterprise all the resources in including three flow: logistics, cash flow, information flow, ERP is also on the three resources integrated management of comprehensive management information system.

 sum, ERP is based on information technology, based on the use of modern enterprise of the advanced management ideas, comprehensive integration of the enterprise all resources information, to provide enterprises with decision-making, planning, control and business performance evaluation of comprehensive and systematic management platform.

ERP principle

Enterprise resources and ERP

 workshop, production lines, processing equipment, test equipment, transportation and so on all is enterprise hardware resources, human, management, credit, financing ability, organization structure, the employee is enterprise software enthusiasm and resources.

 enterprise operation in the development of these resources interaction, forms the enterprise production activities, complete customer orders, create social wealth, realize the foundation of the enterprise value, reflect in the position of the enterprise competitive development.

 ERP system management object is the above all kinds of resources and factors of production, through the use of ERP, make the enterprise production process, high quality and timely to complete the customer's order, the greatest degree to develop these resources, and the effect of according to customer orders and the production status of the decision to make adjustments resources.

Two minutes to make you understand what is the ERP

- - - the professional problem popularization

A day of noon, the husband out to call home: "dear wife, evening I want to take a few colleague go home to have a meal can?" (order intentions)

Wife: "yes, of course, to several people, several to, want to eat what food?"

Husband: "the six men, we come back around 7, prepare some wine, duck, tomato scrambled eggs, cold dishes, egg drop soup.... You see?" (business communication)

Wife: "no problem, I'll be ready." (order confirmation)

His wife record need to do the menu (MPS plan), specific to prepare things: duck, wine, tomato, eggs, condiment...... (BOM material list), found that need: one egg, five bottles of wine, four eggs...... (BOM spread), Fried egg need six eggs, egg drop soup need four eggs (common material).

Open the refrigerator a look (Treasury), only 2 eggs (short of materials).

Came to the free market, wife: "excuse me, how do you sell eggs?" (purchasing inquiry)

Seller: "1 1 yuan, half a dozen 5 yuan, a dozen 9.5 yuan. If it says 8 yuan 1 catty" (double units purchasing)

Wife: "I just need to eight, but this time to buy a dozen." (economic batch purchase)

Wife: "this have a bad, change a." (acceptance, and withdrew materials, refueling)

Back home, ready to wash the dishes, cut vegetables, cooking...... (process line), the kitchen stove, microwave oven, electric cooker is...... (work center).

His wife found dial the duck wool the most time consuming (bottleneck process, key technology route), with microwave oven own the roast duck may be too late (capacity), so the downstairs in the restaurant to buy ready-made (" products outside).

At 4 PM, received the son call: "mother, evening a few students want to come home for dinner, you help to prepare." (emergency order)

"Well, you want to eat what, daddy evening also have guests, would you like to eat with them?"

"Food do it at your, but must have scrambled egg with tomato, adult eat together, we will not be back around 6:30." (can't and single treatment)

"Good, be sure to make you satisfied." (the order sure)

"Eggs and not, call brought shop." (emergency purchase)

6:30, everything was ready, but roast duck haven't arrived and hurriedly call to ask: "I am LiTai, how order of roast duck is not sent?" (purchasing outsourcing with single rush)

"Embarrassed, delivery people have already walked, may be traffic it, right now will be to."

The doorbell rang.

"Mrs. Lee, this is your roast duck. Please sign in a single word." (acceptance, storage, transfer accounts payable)

6:45 PM, the daughter's phone: "mother, I want to bring some friends now go home to have a meal can?" (ha ha, and emergency order intention, request spot)

"No, daughter, today mother is need to prepare two table the rice, time is far too late, really very sorry, next time, said earlier certain to you ready." (ha ha, this is the use of ERP limited, want to have a stable external environment, want to have a period of at least in advance).

...... ......

Send away all the guests, tired wife sitting on the sofa said to her husband, "dear, now let's family treat the very high frequencies, should buy some kitchen supplies (equipment procurement), best can then hired a little babysitter (even human resources system also has gap).

Husband: "home, need what you call the shots you to do it." (through the audit)

Wife: "and recently home is too big, use your spending pin money to support it, please?" (the last is traversing the receivables)

Now there are people not understanding ERP?

Remember that every qualified housewives are factories long strong competitors!

Enterprise why want to implement ERP?

Enterprise challenges:

 quality, cost, delivery date and new product development speed of decision enterprise competitive advantage

 customer requirements changes, to product customization demand more and more

Short delivery time order  increase, production cycle more and short

 delivery by mass standardization management to many varieties, small batch and not standardized management, enterprise is hard to adapt to the market development needs.

 technical innovation and new product development process too fast, it is difficult to achieve production process stable state

 economic and market internationalization, multinational enterprise more and more competition

ERP role

Enterprise why want to implement ERP?

The enterprise common problem

 market supply can't supply on time or are in short supply.

 plan rough, change frequently, only on inventory adjustment, lead to inventory at length

 quality management is bad, only on inspection to ensure the quality, quality cost is too high

By increasing  batch improve safety stock, to meet the delivery time

 management information system flexible is poorer, lack of contingency ability

 information integration degree is poor, too little information available for decision making

Solutions is: implement ERP system

ERP can help us to do???????

Help us:

 enterprise functions and resources integration

 enterprise resources visualization

 use of the present resources, do more business

 standardize enterprise management, the future development

 improve the quality of employees

The role of ERP is???????

ERP role:

 reduce inventory, improve inventory turnover

 reduce delay delivery, improve the service level

 purchasing the lead time shorten, cost savings

 downtime should reduce

 manufacturing cost reduction

 management level

 improve customer satisfaction

Knowledge transfer in the learning curve

Now to control yourself at which stage

Why ERP in some enterprise implementation will incur fail?

 top leaders' lack of attention, expectations and actively participate in attitude

Not willing to give up  accustomed way of working

 data is not accurate

 implementation team organization well, lack of user input ownership of the spirit

 key positions and personnel dispatched

 loose programs, between departments coordination is bad

 implementation cycle is too long, employees lost enthusiasm

 insufficient training

ERP application process of ten advice

 leadership to fully support, be consistent, and keep the relatively stable ERP system team

 attaches great importance to the accuracy of the data and to establish the necessary responsibility system

 the clear goal, and constantly testing, continuous improvement, evaluation system operation effect, review and continuous improvement process

 don't will not have experience in key positions

 don't compression personnel training expenses, training, training, and training

 seek professional help

Don't put a manual system  way of working copy to the computer system

 should calmly, and pressing

 set up the full participation consciousness, editing, publishing and issuing the ERP system running situation of the journal, knowledge contest held

 ERP not cure all ills, don't myth ERP

 ERP system of data must be accurate, if you say false words, that it necessary for you that crap. Garbage in, garbage out.

Several F18 Cardiff furniture ERP system flow profile

F18 system introduced universal functions

• software installation after the path;

• system authority distribution recognition;

• system to the Lord, and fine, fine fine table structure and delete, amend, add to its impact

• system filter function;

• system inquires the function;

• system network rapidly search function

• three window function