Question

Consider a manufacturing and a service business you know that would benefit from enterprise resource planning (ERP) or from materials resource planning (MRP) improvements. What specifically would the ERP fix in each case (manufacturing and service arenas) and how will the organizations get payback from implementing the ERP changes? What hidden costs would you caution higher management to consider in each case?

PS please provide an answer different from the one already presented on this website

Answer 1

Answer: Enterprise resource planning (ERP) is a method to integrate various verticals and standardized the system for the whole organization. In the manufacturing and service business we will have different verticals say as Finance, HR, IT, Operations, supply chain etc. By implementing ERP they we will reduce the repetation of same process and try to form standard method to be implemented in all the verticals.

ERP will standardized and speed up the manufacturing process - Mnufacturing organizations—particularly those with a craving for mergers and acquisitions—frequently locate that numerous specialty units over the organization make a similar gadget utilizing diverse strategies and PC frameworks. ERP frameworks accompany standard techniques for robotizing a portion of the means of an assembling procedure. Institutionalizing those procedures and utilizing a solitary, incorporated PC framework can spare time, increment profitability and lessen head check. ERP will aslo help to reduce inventory in the manufacturing & service organizations by enabling the assembling to process stream all the more easily, and it enhances perceivability of the request satisfaction process inside the organization. That can prompt lessened inventories of the stuff used to make items (work-in-advance stock), and it can enable clients to more readily design conveyances to clients, diminishing the completed great stock at the distribution centers and delivering docks. To truly enhance the stream of your inventory network, you require production network programming, yet ERP helps as well.

In the similar way Materials resource planning (MRP) Will also help to control the system of which will include the inventory schedulling and production. This will help an organization to optimize the production and reduce the cost which comes due to storing the excess inventory.