Thursday, March 22, 2012

Enterprise Resource Planning (ERP) – Manufacturing Resource Planning

Manufacturing Planning and Control Revision Article Series

ERP represents a comprehensive software approach to support decisions concurrent with planning and controlling the business.

About ERP Systems

Integrated enterprise resource planning (ERP) systems are now commonly used by large companies to support manufacturing planning and control (MPC) decisions. For managers, ERP represents a comprehensive software approach to support decisions concurrent with planning and controlling the business. IT professionals see ERP as a software system that integrates application programs in finance, manufacturing, logistics, sales and marketing, human resources and other functions in a firm. A common database is shared by all functions and the integration is achieved by the use of this common database. ERP systems provide an efficient way of handling many transactions that large companies do.

In ERP systems transactions are processed in real time. It means as soon as the transaction is entered, the effect of the transaction on items such as inventory status, order status, and accounts receivable is made known to all users of the system.

Description of ERP


Tom Wallace and Mike Kremzar, describe ERP in their book as:

  • An enterprise-wide set of management tools that helps balance demand and supply,
  • Containing the ability to link customers and suppliers into a complete supply chain,
  • Employing proven business processes for decision making, and
  • Providing high degree of cross-functional integration among sales, marketing, manufacturing, finance and other functions.
  • Enabling high levels and customer service and productivity,
  • Enabling e-commerce.

Components of ERP System

Manufacturing and Logistics Module

Sales and Operations Planning
Materials Management
Plant Maintenance
Quality Management
Production Planning and Control
Project Management Systems

ERP systems have components to take care of various planning and control activities undertaken in manufacturing planning and control function. Some the features of ERP will be covered in the chapters related to the various activities of MPC.

Sales and Marketing Module

Human Resources Module




Thomas E. Vollman, et al. Manufacturing Planning and Control for Supply Chain Management, McGraw Hill, New York, 2005.
Inmon, W.H., and Claudia Imhoff, and Ryan Sousa, Corporate Information Factory, 2nd Ed., John Wiley, New York, 2001.
Wallace, Thomas F., and Michael H. Kremzar, ERP: Making It Happen: The Implementer’s Guide to Success with Enterprise Resource Planning, John Wiley & Sons, New York, 2001.

Original knol - 1362


  1. Well put, its amazing though how much an ERP system can change based on the industry you're working in. I work alongside fashion ERP myself.

  2. Erp system takes care of various system in manufacturing planning & control activities.Eresource Manufacturing Resource Planning MRP II module helps to maintain a neat agenda for the manner in which the resources are to be allocated without any confusion.