Sunday, December 26, 2010

Introduction to ERP

ERP (Enterprise Resource Planning) attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments' particular needs.
ERP is evolved over the last 40 years. In 1960's the focus was on Inventory control. Most of the software packages then were designed to handle inventory based on traditional inventory concepts. In the 1970's the focus shifted to MRP (Material Requirement Planning) systems. In the 1980's the concept of MRP-II (Manufacturing Resources Planning) evolved which was an extension of MRP to shop floor and Distribution management activities. In the early1990's, MRP-II was further extended to cover areas like Engineering, Finance, Human Resources, Projects Management etc i.e. the complete gamut of activities within any business enterprise. Hence, the term ERP (Enterprise Resource Planning) was coined.