Enterprise Resource Planning ( ERP )

Abstract

This chapter presents the main principles, features, applications, and future development of enterprise resource planning (ERP) systems. In more than 30 years of evolution, ERP systems have undertaken a significant transformation from function‐specific applications to fully integrated process‐driven systems that operate over the Internet. ERP is identified as an extended enterprise management system that integrates traditional ERP applications (manufacturing, distribution, financials, human resources, marketing, and sales) with supply chain management (SCM), customer relationship management (CRM), and B2B e‐commerce applications. The chapter describes the main ERP principles—integration and automation—as well as ERP features—process‐driven systems, single database, company‐wide information, scalability, etc. It also focuses on the ERP groups of applications emphasizing the core applications, application enhancements, and e‐commerce solutions. The chapter details ERP benefits and drawbacks. It discusses ERP solutions for various industries and small companies and presents ERP hosting utilizing applications service providers (ASP). Finally, the chapter describes the ERP selection and implementation process, concentrating on selection criteria and implementation measurements.

A Roadmap Towards the Smart Factory

“…ERP systems play a major role connecting day-to-day activities across the entire manufacturing facility providing essential insights into operations and manufacturing process (materials/inventory/production/operation/accounting) integrated into one database [37]. Beside ERP systems other common IT based platforms that are used in the manufacturing industry are Manufacturing Execution System (MES), Supply Chain Management (SCM), Product Lifecycle Management (PLM), etc.…”

Six-Gear Roadmap towards the Smart Factory

“…They have difficulty obtaining data across operational levels and they can't scale or sustain with the increasing complexity of manufacturers needs [72]. For example, enterprise resource planning (ERP) systems used in the business operation level play a major role in connecting day-to-day activities across the manufacturing facility, providing essential insights into operations and the manufacturing process integrated into one database [73]. In the operational management level, manufacturing operation management (MOM) systems and manufacturing execution systems (MES) operates to bridge the gap between the enterprise business level and the automation levels but there are limitations and complexities associated with connectivity and vertical integration of real-time production data [35,74].…”

“…IIoT platforms with built-in MOM/MES applications are a viable option. They are capable to seamlessly integrate with enterprise and industrial automation applications [73] and are accompanied with the elements of the IIoT stack (e.g., analytics tools, IIoT gateways connectivity, cloud scalability) [8]. Case studies in [78,79] shows examples of manufacturers implementation of such option.…”

Aspects of Selected Process Management Approaches and their Implementation in Enterprises of the Slovak Republic

“…According to [37] system ERP provides an integrated and continuously updated view of core business processes using common databases maintained by a database management system. ERP systems track business resources cash, raw materials, production capacity and the status of business commitments: orders, purchase orders, and payroll.…”

“…that provide the data. ERP facilitates information flow between all business functions and manages connections to outside stakeholders [37]. In the research question regarding the implementation of production management approaches, in the Just-Time response, all the monitored categories of enterprises participated in approximately equal percentages from 28.05% to 29.63%.…”