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History of ERP

History of ERP. Some components of this lecture is based on: Watson, E. & Schneider, H. (2000) “Using ERP Systems in Education”. Communications of the AIS . 1(9). Evolution of ERP Systems. ERP systems have evolved over the past 30 years. ERP systems grew out of MRP II systems.

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History of ERP

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  1. History of ERP Some components of this lecture is based on: Watson, E. & Schneider, H. (2000) “Using ERP Systems in Education”. Communications of the AIS. 1(9).

  2. Evolution of ERP Systems • ERP systems have evolved over the past 30 years. • ERP systems grew out of MRP II systems. • Thus to understand the history of ERP systems, we must review MRP and MRP II systems.

  3. MRP Systems • Material Requirements Planning (MRP) is a computerized inventory control and production planning system for generating purchase orders and work orders of materials, components, and sub assemblies.

  4. Components of a MRP System • MRP is a CBIS designed to handle the ordering and scheduling of dependent demand inventories. • Major components of a MRP system: • Bill of materials - composition of the finished product. • Master schedule - how much of the finished product is desired and when. • Inventory records file - the amount of inventory on hand or ordered.

  5. Components of a MRP System • Example of a MRP system.

  6. MRP II Systems • Manufacturing Resource Planning (MRP II) is an expansion of MRP, originating during the early 1980s. • MRP II helps to plan all the resources necessary for manufacturing; including financial analysis, feedback loops, and marketing plans.

  7. MRP II Systems • MRP II is simply an expansion of the scope of MRP to include other functional areas in the planning process. • These other functional areas are usually marketing and finance. • Example of a MRP II system.

  8. ERP and MRP II Systems • The major differences between ERP and MRP II systems are: • Use of a GUI. • Relational Database. • 4GL. • Client/server architecture. • Open-systems portability. • Much more integrated than MRP II.

  9. ERP and MRP II Systems • Some definitions of ERP systems reference MRP II systems. • ERP is an updated manufacturing resource planning system (MRP II) with relational database management, GUI, and client/ server architecture.

  10. ERP and MRP II Systems • Diagram of the relationship between MRP, MRP II, and ERP systems. • ERP systems are still growing. They are now considered a strategic business solution.

  11. Recent ERP Trends • ERP systems are now linking groups and applications external to the organization. • We are now linking ERP systems with web and E-commerce applications, b-to-b, b-to-c, and b-to-s. • ERP systems are now beginning to use web browsers as the GUI.

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