After more than 40 years of development, the enterprise management software industry is flourishing. By the 1990s, hundreds of companies specialized in enterprise management software development and sales have emerged in the world, forming a flourishing situation. The development of enterprise management software has gone through such stages as the period-type MRP system in the 1960s, the closed-loop MRP system in the 1970s, the MRPII system in the 1980s, and the ERP system in the 1990s.
I. The Management Idea of Enterprise Resource Planning ( ERP) MRP (Manufacturing Resource Planning) is the core function of ERP. As long as it is a manufacturing industry, it will inevitably buy raw materials from suppliers, manufacture them through processing or assembly, and sell them to demanders. This is also the difference between manufacturing, finance, commerce, extractive industries (oil, minerals), and service industries. The main features. Any manufacturing operation and production activity is carried out around its products, and the manufacturing information system is no exception. MRP starts from the product's structure or bill of materials (formula for food, medicine, and chemical industry) and realizes the integration of material information - a small and wide cone-shaped product structure: the top layer is the manufactured product and belongs to The business of the enterprise marketing department; the bottom layer is the purchased raw materials or accessories, and it is the business of the material supply department of the company; the manufacturing parts are in between, and the business of the production department. According to the priority of demand, under the guidance of a unified plan, integrating the company's "production and supply" information, it is inseparable from the basic structure of the product structure (or bill of materials). In the product structure, the subordinate relationship and quantitative relationship between various materials are reflected, and the connection between them reflects the process flow and time cycle; in other words, through a product structure, it can explain the common use of manufacturing production management. Period standard." MRP is mainly used in the manufacturing of "assembled" products. If the process flow (process, equipment or equipment) is integrated with the product structure, the characteristics of the process industry can be integrated. In layman's terms, MRP is a planning method that guarantees neither a shortage nor a backlog of inventory, solving the contradiction between missing parts and overstocking that the manufacturing industry is concerned about. All ERP software uses MRP as its production planning and control module. MRP is an indispensable core function of ERP system.
MRPII is an important part of ERP. MRP has solved the integration of supply and demand information for the company's materials, but it has not yet explained the operating benefits of the company. The main difference between MRPII and MRP is that it uses the concept of management accounting and uses currency to explain the benefits brought about by the implementation of the company's "Material Plan" and realizes the integration of material information with financial information. To measure the operating efficiency of enterprises, we must first calculate the actual costs of product costs and product costs. We must also use the product structure of the MRP system as a basis to start from the material cost of the lowest-level procurement parts and increase the material cost of each material layer by layer. The labor costs and manufacturing costs (indirect costs) are accumulated, and the cost of each layer of parts and components to the final product is calculated. The further combination of marketing and analysis of the profitability of various products. MRPII combines traditional accounting processing with accounting transactions, not only to explain the current status of accounting funds, but also to trace the origin of funds - for example, accounts payable that reflect debt claims, accounts receivable, procurement and sales operations. Integration, integration with the supplier or customer's performance or reputation, integration with sales and production plans, etc., defining “Transaction†according to the location, quantity, or value of the material, and directing production-related financial information Generated by production activities. In the definition of transaction-related accounting titles, according to the set of loan relations, automatic transfer of registration, to ensure the "fund flow (financial account)" and "logistics (physical)" synchronization and consistency, changing the lag of funds information The status of material information facilitates real-time decision making.
ERP (Enterprise Resource Planning enterprise resource planning) is a highly integrated information system, it will inevitably reflect the integration of logistics information and capital flow information. The three major components of traditional MRPII systems, including manufacturing, supply and marketing, and finance, are still an important component of the ERP system's insurmountability. Therefore, since the information integration content of MRPII is already included in the ERP system, there is no need to highlight MRPII. Graphically speaking, MRPII has "melted" in the ERP rather than "no longer exists."
So what is the difference between ERP and MRPII?
The world economic situation, management ideas, and information technology are all constantly evolving. With the formation of a globalized economy, the MRPII system oriented to the internal information integration of the enterprise has been unable to meet the requirements of a globalized business management model of diversified (multi-industry), multi-regional, multi-supply and sales channels. In the 1990s, with the rapid development and widespread use of network communication technologies, some multinational manufacturing companies are moving toward a higher level of management information systems, ERP.
ERP was first proposed by the Gartner Group Inc. in the early 1990s. At that time, the concept of ERP was based on the development of computer technology and the management of supply chain and demand chain, inferring that all types of manufacturing industries were managed in the information age. Information system development trends and changes. At that time, the Internet application was not widely used. With its implementation and development, ERP has had a deeper connotation so far, and summed up mainly in three aspects.
First, ERP is an integration of management information for supply chain management (Supply Chain Management). In addition to the traditional MRPII system's manufacturing, supply and marketing, and financial functions, ERP also adds support for the transport management and warehouse management of the material circulation system in terms of functionality (the management of transportation and warehousing exists between the supply chain, production, and demand Problems); Support On-line Analyti-cal Processing (OLAP), after-sales service, and quality feedback to accurately grasp the pulse of market demand in real time; Support quality assurance, laboratory management, equipment maintenance, and spare parts for production assurance systems Management; support multinational operations in multi-country, multi-plant, multi-language, multi-currency requirements; support multiple production types or hybrid manufacturing companies, converging the characteristics of discrete production, flow production and flow production; support for remote communications , Web/Internet/Intranet, E-commerce, E-business, Electronic Data Interchange (EDI); Supports the integration of dynamic model changes in workflow (business process) and information processing program commands. In addition, it also supports corporate capital operations and investment management, various regulations and standards management. In fact, the functions of some current ERP software have gone far beyond the application scope of the manufacturing industry and become an enterprise management information system with strong adaptability and wide application significance. However, manufacturing is still the basic application of ERP systems.
Second, the latest achievements in the use of computer and network communication technologies. The application of network communication technology is another major difference between ERP and MRPII. In addition to the ERP system has been widely used such as graphical user interface technology (GUI), SQL structured query language, relational database management system (ROBMS), object-oriented technology (OOT), fourth-generation language / computer-aided software engineering, client / In addition to technologies such as servers and distributed data processing systems, it is also necessary to implement more open and interoperable platforms, adopt programming software for network technologies, and enhance user-defined flexibility and configurability to adapt to different industries. The needs of the user. The application of network communication technology enables the ERP system to realize information integration of supply chain management.
Third, the ERP system is closely related to business process reengineering (BPR). The development of information technology has accelerated the speed and real-time of information transmission, expanded the coverage of business and the exchange of information, and provided extremely favorable conditions for enterprises to process information in real time and make corresponding decisions. In order to enable the business process of the enterprise to anticipate and respond to changes in the environment, the internal and external business processes of the enterprise must keep the information agile and smooth. Just as an information system confined to an enterprise cannot grasp the ever-changing global market dynamics in real time, multi-level and bloated organizations must not be able to respond effectively to market dynamic changes in real time. Therefore, in order to improve the competitive advantage of corporate supply chain management, it will inevitably bring about the reform of business processes, information processes and organizational structures. This reform is not limited to the company itself, but it includes the supply and demand partners on the supply and demand chain to systematically consider the entire supply chain business process. The technologies and operations used by ERP system applications must be able to adjust accordingly as the business process of the enterprise changes. Only in this way can the "active" of the traditional MRPII system to change the environment be changed to the "active" of the ERP system through the network information to the internal and external environment changes. The concept and application of BPR have been extended from within the enterprise to the reorganization of business processes and organizations throughout the supply and demand chain of the enterprise and demand markets and supply markets.
ERP focuses on
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