Apply ERP system can brings to the enterprise which benefit?

 

ERP-enterprise resource planning is a kind of 20 the world since the 90 s in the international practice, with modern advanced management ideas based, application of modern information technology management system, it is enterprise provides decision-making, planning, control and business performance evaluation of comprehensive management platform. ERP through to the enterprise have manufacturing resources (such as human, financial, material, information, time, space, etc) comprehensive balance management and optimization, and coordinate the production and operation of enterprises each link, take the market as the guidance in the business activities of enterprises, to improve the comprehensive enterprise in the fierce market competition ability, thus achieved good economic benefit. At present, ERP software in the domestic and foreign enterprises in a wide range of applications, and have achieved remarkable results. This proved the validity of the ERP software and service value, to improve the enterprise management level and economic benefit played an important role.

In recent years, ERP system in the world of the application of the enterprise is not bon voyage, due to various reasons make some of the enterprise ERP application did not reach the expected effect, causing some of the businesses to the benefit of the ERP system policymakers doubt, some of them even to the point of same grisly footage, this situation to the world of the enterprise's informatization development have a negative influence. The current, at the conclusion of the enterprise implement ERP successful experience and lessons, and discusses the effective method of implementing ERP success at the same time, we should also make great efforts to publicize positively the ERP system will give enterprise generation to benefit, analyze the ERP management model of benefit mechanism, enterprise management and decision makers to learn more about ERP, have confidence in ERP, believe that as long as the implementation of effective, ERP system will bring about significant benefit to the enterprise, improve the world the enthusiasm of the enterprise application ERP, and promote the management informatization rapid development.

ERP system brings to the enterprise benefit can be roughly divided into two groups; Direct benefit and indirect benefits. The so-called direct benefit is to show enterprise ERP later, through the application of advanced management mode and method to improve the management level of production and operation of the enterprise, and make the enterprise with the available digital expression comes out of the economic benefits. The following is a foreign consultation organization of some statistical data:

ERP economic benefits

• reduce stock by 10% ~ 40%

• stock error < 5%

• narrow assembly use area of 10% ~ 30%

• reduce work overtime working hours 5% ~ 50%

• increase productivity by 5% ~ 15%

• delivery rate of 100%

• purchasing plan order by 95%

These can use digital describe them economic benefits generally called direct economic benefits, the benefit is quite obvious, also easy to cause people to the attention of the door. Of course, direct benefit enterprise construction is an important goal of ERP system. But we must not ignore ERP system brings to the enterprise of additionally one kind of recessive benefit, it does not look like the direct benefit table as straightforward and quantified show, but it will give enterprise to bring the indirect, exerts a subtle influence on. For example, by implementing ERP system changes enterprise of traditional manual management as the mode of management and business process, change enterprise management idea and enterprise culture, make broad management personnel from heavy manual labor liberated the and so on. These changes usually called the indirect benefits, or called social benefits. These benefits, though can be traced directly with digital, but they to the enterprise management level of ascension in production and management, the improvement and to the future development of the enterprise will have significant influence. Therefore, in implementing ERP system analysis brings to the enterprise economic benefit of hou, should not be ignored indirect benefit to the enterprise impact, more should guide the efficiency.

ERP system to realize the enterprise integrated management

The traditional manual processing is the enterprise management mode of information processing way in backwardness. In the information acquisition, processing and transmission, storage, etc were slow, storage capacity, and little information processing quality not guarantee. In manual management mode of enterprise, because information communication is difficult, the departments of information collection and treatment in their own departments can only be stored in (to paper document mainly way), and even in the drawer of personal or mind, make the production and operation of enterprises management information become department or individual private private, not to realize information sharing. This kind of information "private" state, make each department formed a "information island".

In this case, if a department or someone need to understand and use another department (or a person) some information is very difficult, this information should pass complex flow path and complex examination and approval procedures, by a level to another level, by a department to another department to "document travel", such slow speed of information transmission, and in the long relay in inevitably occur distortion, reduce the management and decision-making level.

After the introduction of ERP system, through the computer databases and network system, to form the enterprise internal and external information the integration platform. Make the enterprise management enterprises to realize the sharing of data, have broken the traditional enterprise information isolation and information island state. That information to gain the maintenance of the unification of, and make the data and information to get, accurate, dynamically updated. ERP system is an integrated system, it in two levels completed integration: information levels, and function levels. Information integration is a foundation, namely ERP system is in the information integration based on the function of the complete integration. ERP system integration reflects in the following aspects:

(1) the ERP system to realize the integration of the longitudinal enterprise.

Many large enterprise organization is very complex, especially large enterprise group company organization of various levels FenBuMian wide, from the group company general manager to the factory workshop should pass 4 ~ 5 levels, or even more. In manual management environment, because the information transmission way backward, slowly, so senior leaders to understand basic department operation and collect relevant information is very difficult, and seriously affected the enterprise management and decision-making level. ERP system application support the large group enterprise distributed institutions of the style of management. ERP system to realize the company headquarters and branches, and branches of real-time, dynamic between information exchange, make a group within the sales, production, purchase, storage, finance and other information to get transfer. Through the computer and network system can make the department's operation information quickly passed to a senior department, so as to break the traditional management environment of time and space of bottleneck, greatly improving the enterprise management and decision-making level.

(2) ERP system to realize the integration of the enterprise horizontal.

Traditional enterprise according to the division of functions and divided organization, the functional departments formed a interest groups, each department of the respective boundary that make the enterprise production and management the connections between the links. Department of their only each position superior, is responsible for their respective to finish their work, seldom attend to the needs of to other department and influence. That should have been linked to the business process apart, other departments need information, need to be approved by layers of examination and approval, after a long process to spread to the requester hands. If a job involves several departments, will produce the phenomenon of mutual dispute over trifles, when interest conflict, various departments often have the overall interests of the enterprise put to one side, and just his own interests. This "warlord regimes" state, the serious influence on the enterprise quick response ability, in the fierce market competition the loss of advantage.

ERP system is based on business process management as the core of the management information system. ERP system will be the company's core business divisions into several independent and related business process, they formed the enterprise Lord value chain, support the enterprise's operation. With flow as the core of management thought, overcome traditional enterprise that is functional department division of the phenomenon, will the production and operation of enterprises each link, such as sales, production, procurement, finance and other even form an organic whole. Make the production and operation of enterprises business operation more fluent, speeding up the business processing activities of the reaction speed, in the fierce market competition has sorrow potential.

(3) ERP system to realize the integration of the enterprise supply chain.

ERP system support supply chain management, through the computer and network system will be the core enterprise and enterprise partner business connected. The computer and network technology replaced the enterprise in and partners in the use of traditional communication communication tools, such as the telephone, cable, telex etc, it greatly improve the efficiency and quality of the communication. The core enterprise's upstream of the market is sales partners, including distributors, agents, wholesalers, retailers and the final clients, etc. They bring sales market for the enterprise and customer information, is the enterprise production and management of basis. Enterprise in order to satisfy our customer order, in the production of the need when the outsourcing of raw materials, auxiliary materials, spare parts, and outsourcing parts, etc. The core enterprise to take these materials demand planning of information to the upstream supply market partners, such as enterprise suppliers, and receive the supply of suppliers, formed the integration of the supply chain system.

(4) ERP system, enterprise's four flow of integration.

The so-called four flow is to point to: logistics, cash flow, information flow and workflow. In a manual management of the business enterprise of the four flow is separate, such as pipe of the department that whatever money, inventory parameter just remembered material quantity don't record amount. Accounting information are always behind the material, the change of financial always settle accounts afterwards, so funds do not rise to the regulation effects of production and operation of enterprises. Manual management information flow is broken, mutilated, for enterprise management and decision making great difficulties. In the use of the ERP system will be greatly improved the situation, ERP system to make logistics and information integration system, logistics movement of each state, of the corresponding capital movement, logistics and cash flow are synchronous, tight integration. Sales of the products after sales income management through the accounts receivable management module and financial general ledger relationships; After purchasing material should be the payment management through the accounts payable management module and financial general ledger relationships; Delivery receipt after acceptance by material accounting management module take stock of maintenance financial general ledger subjects; Occurred in the production process of the cost through the cost management module, and with stock, financial, workshop management module, relating calculation of all kinds of the components and products manufacturing cost. So that through the financial indicators can fully reflect the dynamic logistics and enterprise production and management of the situation. Logistics and cash flow is the flow of information carrier, when logistics and cash flow and integrated to open up, attached it above the door information flow nature also clear and integrated. ERP system is a man-machine combination, interaction system, ERP system operation inseparable from the people's participation. Therefore, ERP and OA system combined with enterprise management personnel will be through workflow closely and ERP software and system integration.

ERP systems to improve the enterprise capability

With the rapid development of social economy, the market competition of the law has also undergone a fundamental change, from the past products "in short supply" development to now "demand". The past enterprise as long as there is a good product, become "the emperor's daughter not sorrow to marry", production of products not afraid don't sell. Therefore, the production and operation of enterprises is with "products as the center", the products "push" to the market. Today's market competition becomes increasingly fierce, because the product supply exceeds demand, the customer in to buy the product of hou have more choices, except products performance, quality, price factors beyond, the customer choice when the products in a more personalized needs, and the date of delivery, after-sales service and so on more demanding. The competition between enterprises in the race for the customer the evolution. The needs of the customers become the market orientation, the management of the enterprise policy from "with products as the center" into "take the customer as the center", by the market and the demand of customer "pull" moving enterprises. This kind of the business strategies by "push" into "pull" and changes of enterprise's response ability and strain capacity, put forward higher request. Due to the requirements of customer personalized tendency, make the product of the increasing number of designs and varieties, and the client purchase the lead time shrink and delivery date is shrinking. The market environment change, in order to survive, the enterprise must be thoroughly change the traditional management mode, the reorganization of the enterprise business process, USES the advanced management tool-the computer and network technology, introduces the advanced management application software ERP etc. Enterprise information operation mechanism change, use modern management idea, pattern and method. Make the enterprise and fast for market information and the needs of customers, enterprise management system management system can quickly according to the needs of the customers and market forecasts, develop the enterprise production plan and purchasing plan, organize production and fast procurement activities. Only by establishing up such rapid response and high efficient management system, to the fierce market competition to survive and develop.

ERP in material management have been benefits

Manufacturing enterprise application after ERP system, strengthening of the material management, make the material of this important manufacturing resources are optimized management. Through the strengthening of the material plan management, and to maintain the enterprise production running smoothly, under the premise of try to reduce the material consumption and inventory, so as to reduce enterprise use on material side capital to take up. According to the statistics, the success with ERP manufacturing enterprise can be made to reduce the stock 20 to 30% of the direct economic benefits. Analyzes the main reasons are the following respects.

(1) the ERP system realize the inventory of dynamic management information.

Apply ERP system completely changed by way of craft records of ledger inventory status, the system established including raw materials, auxiliary materials, spare parts, products, semi-finished products and other enterprise all materials of electronic inventory parameter. For enterprise management personnel to provide fast, accurate, convenient stock inquiry function, and offers a variety of inventory analysis functions, such as: ABC analysis, high and low storage reservoir analysis, and validity of the backlog analysis, capital takes up analysis, order point points, analyse and lack of a complete analysis, etc. Make the enterprise inventory information more timely and dynamic, stock situation more transparent, and at the same time in the whole enterprise to realization of inventory data sharing. Enterprise the managers of all departments, as long as need can at any time to want to search queries, the latest inventory dynamic data. Change the manual management that supplies numerous earned state, can in time inquires if any inventory need material and fully exploit the potential of the enterprise inventory, reduce duplication production and purchasing, make the stock material can be fully used. And at the same time through various stock analysis function, and may, according to the state of the change of the inventory automatically monitor and report to the police. Such as high and low reservoir in inventory exceeds the maximum control alarm level or below safety KuCunShui usually can be issued a warning signal, remind management personnel for processing, will maintain a reasonable inventory levels. And as the backlog and the validity of the inventory analysis can monitor the stock material is more than the period of validity of the preservation, inform the inventory management personnel to deal with the stock material so as to avoid the loss. In short, ERP system through to the stock dynamic and digital management, greatly improving the inventory management level, a change to the manual management enterprise material not pure chaos state, the stock supplies get the reasonable use, improve the economic efficiency of enterprises.

(2) ERP system to strengthen the material management planning.

To improve the enterprise material the effective utilization of resources, there is only a digital, dynamic inventory management means or not enough, that is to improve the material management planning. ERP system according to the different needs of enterprise of type puts forward corresponding materials demand planning model. As we all know, manufacturing enterprise in there are usually two needs: independent requirements and related requirements. The so-called independent requirements are those with the enterprise production of the final product quantity of no direct relationship between material requirements, such as equipment for maintenance spare parts, general tools, low-valued consumables, take-away product spare parts, etc. In the ERP system of this kind of material is through the order of demand collocation the demand plan, supervise and control the inventory in the reasonable inventory levels to ensure enterprise production running smoothly. And in the enterprise with a large another demand, namely related requirements. The so-called related demand means and enterprise production of the final product quantity of materials have a direct relationship, such as direct form of spare parts, raw materials, products, packing materials and have a clear the accessories, and other material consumption quota. This kind of material in the ERP system is also called BOM type materials (BOM, material list), they are part of the products, have a clear material consumption quota (or each machine number), such as a car with an engine, have four wheels, etc, the material of demand for the product out through yield is accurately calculated. Prepare the material requirements planning, in the ERP system using MRP (material requirements planning) model. According to the production plan MRP products production, product structure of the data (BOM), inventory data calculates the net requirements of material, as production plan and prepare purchase plan the basis. In this way, make this kind of material can be in strict plan under control, ERP system to strengthen the management of material plan provides convenient, quick, effective management tool, reduce the material management of production and blind purchasing the blind phenomenon, greatly improving the enterprise economic benefits.

(3) ERP system will reduce the workshop in products to take up.

Manufacturing enterprise workshop in products is the traditional management mode of the backlog of "some" problems, especially in many kinds of small batch production type of discrete manufacturing enterprise, because the product variety play in the same side workshop, in the backlog of workshop in products is out of control in the state. Because a lot of backlog in products, will take up a lot of liquidity, causing higher production costs, reduce the economic efficiency of enterprises. ERP system provides the scientific and advanced production plan management model, which can effectively solve the problem in products take up.

For many kinds of small batch production enterprise for, manufacturing enterprise to develop production plan of hou, the traditional manual management often sets the products issued the workshop production planning mode (such as accumulative total Numbers method), in the planning period (such as month) will each workshop production of various parts should be product, no matter the parts processing the lead time length, various parts of the investment issued a quantity and time. Such processing cycle time is long parts feed right, but processing cycle short parts in advance because material, it will cause a lot of raw materials, semi-finished products backlog.

In the ERP system, to many kinds of small batch production types of enterprise, prepare production operation plan using MRP (material requirements planning) model. According to the production plan MRP are products of the production task, and based on product material structure list (BOM) and inventory data, calculates the manufacturing these products of various components needed to raw materials and the net requirements; At the same time, according to every spare parts, raw materials, production and purchasing the lead time from the planned completion date began the process route directions, pushed forward the accurate calculation them out in time. This approach to planning, thoroughly changed the traditional manual management using that kind of product as object, with products sets based on the lead time planning mode, effectively reduce workshop in the occupation of the products (as shown). This kind of product sets the lead time control into the lead time by zero control plan mode of change, is the assembling discrete manufacturing production management on a revolution.

From the graph shows, input line 1 is the traditional sets of raw materials for the products plan into line. In this planning mode, in all kinds of spare parts, raw materials, production the lead time length, all in the beginning of investment plan. In this plan mode, workshop on the products and the occupation of the equal to the entire picture rectangular area. Input line 2 is by part of the plan in advance control mode of raw materials MRP into line, in this kind of planning mode of all the parts and material input time is according to the parts of the lead time calculated out of production, the lead time long early investment, the lead time short late investment. So, workshop in the occupation of the products is equal to the upper part of the centre-right graph triangle area, and lower left blank triangle area of the backlog in products represent to eliminate.

For a large water production types of enterprise, because this type of production capacity was heavy in general, and the material throughput is very big, so the backlog in products more serious. In the ERP system, this kind of production type enterprise production work plan recommended JIT plan model. JIT, known as "just-in-time production" mode, it comes from Toyota company adopted a "kanban" management methods. This method is the basic idea of customer demand production, in the enterprise of the workshop production after the order is followed in the demand of the principle of the preface to production. Generally speaking, only when the HouShangDao sequence need after when process to put into production. JIT planning mode is to pursue the goal of "zero inventory" and "zero in the system", that is to take up in the process of material is minimized.

ERP system to provide effective supervision and capital control.

ERP system of enterprise logistics and cash flow effectively integrated control, to make logistics of each activity in time for funds to reflect the changes. For example, sales department will products are sold to customers after, ERP system will automatically according to the corresponding information of accounts receivable information, and associated with financial general ledger. In another example, the purchasing department from suppliers in the materials after the arrival of the purchase, ERP system will automatically generate accounts payable information, and associated with general ledger. Also, such as inventory dynamic, fixed assets, personnel salary, workshop production parts or when the product cost (cost of raw materials, GongShiFei, manufacturing costs, etc) changes can dynamically reflect the dynamic changes of the information for accounting. Such financial and capital became control an enterprise to manufacture management activity economic levers. And ERP system combined budget mechanism, the financial system can effectively supervision departments in the use of funds, and in ChaoXianE cost when giving the alarm.

ERP system also set up perfect cost accounting and cost analysis function, in view of the different production provide different types of cost factors and accounting methods of the set. ERP system may at any time collection and record every product production enterprises in the manufacturing process of all kinds of manufacturing expenses happened (cost of raw materials and artificial cost and other manufacturing costs), and calculates the various products (or semi-finished products) actual cost. ERP system can also will the actual cost and standard cost, cost, plan cost the same period the analysis of this issue to find out the reasons of the fluctuation of the actual costs, so as to effectively control. So as to reduce the cost and improve the efficiency. According to some statistics, successful application ERP system can make the enterprise to reduce costs by 5% ~ 12%.

ERP systems to improve the assembly level and on time delivery.

In discrete manufacturing production process workshop management is the most difficult thing, this is because the product is the whole process of production assembly last stage, before production in several stages (workshops) produce problems arising in the course of accumulate in the assembly stage and have serious effects. For example, in front of the parts of the leak happened working procedure quality problem, often in assembly stage exposed; And as the workshop front not time completion of the production tasks according to plan, that this workshop production of adjusting parts delivery, will inevitably affect the final assembling; The raw materials procurement related and for some reason not punctual, will also affect on assembly etc. These problems together can severely affect parts before assembly's set of problems. Because of the variety of products and components number, in the traditional manual management, check the parts together and lack of parts of problem is very difficult, so will severely affect workshop punctual, reduce the customer service level.

ERP system effectively improve the process of the assembly together set of problems. ERP system in two each level strengthening of the parts of the complete management, first ERP system in the planning level through the MRP plan arranged strictly the product all parts of input and output time and its quantity, if workshop accident can not strictly implement the plan to ensure parts delivery on schedule. Second, ERP system in inventory management module provides all set and lack of parts function analysis, before assembly of spare parts stock ahead of whole and lack of parts analysis, timely warning, and print periods of a table, that lack of parts get beforehand control problem, take effective measures, to ensure the normal production. According to statistics, ERP system can make the assembling workshops productivity carry 20% ~ 40%, and improve the delivery schedule of 35% ~ 55%.

ERP system implementation of enterprise management is a rectification process.

As a kind of advanced enterprise management mode must be based on ERP system-a good management environment and basis, to effectively play its proper role. ERP application to the enterprise is the original management mode and business process a reform and innovation. ERP system implementation in the process, must provide for the process with ERP template, to the enterprise based on the traditional manual management of the existing business process restructuring; The current organization and function Settings make necessary changes; To formulate and ERP management mode to adapt the new management rules and regulations, the performance appraisal system and incentive mechanism; Gearing and supplement each management basic data, such as the norm, period of standard etc. For the success of the ERP system running lay a good foundation.

ERP system applications of enterprise management personnel from heavy repeatability of manual labor liberate, so they can have time to learn new knowledge, and improve enterprise management personnel's quality, so that they can be engaged in the higher level of management activities, which essentially improve the management level of enterprises.