ENTERPRISE RESOURCE PLANNING SYSTEMS IN MANUFACTURING:CONCLUSIONS

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CONCLUSIONS

ERP is a very complex subject. It marries technology, business practices, and organizational struc- tures. ERP systems are commercially developed software applications that integrate a vast array of activities and information necessary to support business operations and operations planning at the tactical level. ERP is software and not a business process or a set of business processes. However, as software, it enables better execution of certain processes. Although often presented as a single package, an ERP system is an envelope around numerous applications and related information. For manufacturers, those applications typically support the operations processes of materials sourcing, manufacturing planning, and product distribution. To its end users, an individual application of an ERP system may appear seamless; however, to those who procure, implement, and / or maintain ERP systems, they are complex software systems that require varying levels of customization and support both centrally and across each application. While ERP systems are commercial applications developed by individual vendors, they can hardly be considered off-the-shelf. They are part of a continuing trend of outsourcing IT solutions in which part of the solution is bought, part is configured, and part is built from scratch. Given their broad organizational and functional scope, ERP systems are unlike any other contemporary commercial manufacturing applications. They provide transaction manage- ment from both the business perspective and a database perspective. Additionally, they provide a basic level of decision support. Optionally, they enable higher levels of decision support that may be offered by ERP vendors or a third-party vendor.

This chapter presented an overview of ERP from the outside and from the inside. The outside view clarified the connection between ERP, electronic commerce, and supply chain management. The inside view describe the functional and implementation elements of ERP systems, particularly in the context of manufacturing enterprises, and identified the points at which ERP interacts with other software applications in manufacturing enterprises. Finally, we looked at open research problems surrounding ERP and identified those that are important to fitting ERP systems into current and future business processes.

Acknowledgments

This work was performed at NIST under the auspices of the Advanced Technology Program’s Office of Information Technology and Applications and the Manufacturing Engineering Laboratory’s Systems for Integrating Manufactur- ing Applications (SIMA) Program in the Manufacturing Systems Integration Division. We thank the many colleagues who shared their knowledge, experience and patience with us: James M. Algeo, Sr., Bruce Ambler, Tom Barkmeyer, Jeff Barton, Mary Eileen Besachio, Bruce Bond, Dave Burdick, Neil Christopher, David Connelly, Maggie Davis, Paul Doremus, Chad Eschinger, Jim Fowler, Cita Furlani, Hideyoshi Hasegawa, Peter Herzum, Ric Jackson, Arpan Jani, Al Jones, Amy Knutilla, Voitek Kozaczynski, Mary Mitchell, Steve Ray, Michael Seubert, and Fred Yeadon.

Disclaimer

Commercial equipment and materials are identified in order to adequately specify certain procedures. In no case does such identification imply recommendation or endorsement by the National Institute of Standards and Tech- nology, nor does it imply that the materials or equipment identified are necessarily the best available for the purpose.

Comments

  1. Kip DareMarch 10, 2025 at 9:16 PM

    thanks for sharing

    ReplyDelete
  2. Mac RoobMarch 11, 2025 at 5:06 AM

    Enterprise resource planning (ERP) systems play a crucial role in business efficiency and strategic decision-making. A Management Leadership Course equips leaders with the knowledge to integrate ERP systems effectively, optimizing operations and workflow.

    ReplyDelete

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