| What is ERP system? | | | | various organizations. |
| The ERP system is a software system for computer | | | | Financial activities: They are used in account |
| which organises the data by integrating it into a single | | | | payments, general ledgers, managing cash etc. |
| system. Both hardware and software components | | | | Manufacturing: In functions of capacitance, controls of |
| are included in this system basically. This is because it | | | | qualities flow of works etc. |
| results in good data integration. The data integrated | | | | Human Resources: In rolls of pay, profit making, |
| is stored in a database which is highly unified for step | | | | processing of claims etc. |
| by step organizing function. | | | | Projects: They are also used in different projects for |
| How did the term ERP origin? | | | | timings, billings etc. |
| In the year 1990 the firm of analysis and researches | | | | How can be Productivity improve with ERP? |
| Gartner introduced this term. The term deals with the | | | | Before introduction of this system, each company |
| duration of usage of different organizational | | | | should have their own database and data in their |
| resources. But today the term can also be referred | | | | computer systems. Communication is not guaranteed |
| any variety of company. Presently they are | | | | with every system. This makes the process more |
| developed in all core functions of charter and | | | | complicated. |
| business organising, enterprising and low regarding. | | | | Once this system was introduced it found solutions |
| Recently business of non manufacturing and | | | | for these problems. This is because this system had |
| organization of non profits also take good | | | | no concerns on the compatibility of various computer |
| advantages of this system. | | | | systems. Hence the productivity will increase with |
| The package of software in consideration of ERP | | | | reduced amount of software. |
| must at least constitute the working of more than | | | | Some Very Important Advantages Of ERP Systems: |
| one system. Hence they are also titled as packages | | | | 1. The first and main advantage is that it is a system |
| of software of multifunction. Some examples of | | | | of total integration. |
| good ERP systems are: Warehouse Management | | | | 2. The process of streamline difference and rapid floe |
| (WM), Customer Relationship management (CRM), | | | | of work takes place easily. |
| Supply Chain Management (SRM) etc. | | | | 3. The data can be shared easily to any department |
| The key role is Integration. | | | | of their respective organisations. |
| Integration is the most important function of ERP. It | | | | 4. The rate of productivity and efficiency is highly |
| refers to the integration of the data. It is done for | | | | improved. |
| the accessing to be easier and the work to flow | | | | 5. The process of forecasting and trafficking takes |
| rapidly. Many bigger organizations create these | | | | place in a better and easy way. |
| systems for the interfaces which are external. This | | | | 6. The costs are at their best low rates. |
| will help it to be powerful and to fulfill all the needs of | | | | 7. The customer services of these systems are |
| the organizations. This is an extreme time consuming | | | | highly systematic with improved features. |
| process as the labour has to work for a long time. | | | | This system also poses some low amount of |
| They are mainly used in fields of: | | | | disadvantages too. |
| Data Warehouse: Used as module for accessing | | | | |