Home About IUP Magazines Journals Books Amicus Archives
     
A Guided Tour | Recommend | Links | Subscriber Services | Feedback | Subscribe Online
 
The IUP Journal of System Management :
The Role of ERP Systems in Production and Purchase Sector
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 
 

The Enterprise Resource Planning (ERP) systems provide facilities to the users to integrate the entire organization. This technology helps the users to update their details very fast and also reduce replication of work. This paper sheds light on the use of ERP systems in production, purchase and management of stores in organizations.The Production Module of the Enterprise Resource Planning (ERP) system covers each and every process of production, such as production planning, shop floor management, machine allotment and maintenance, and human resource allocation. This application is geared towards providing the enterprise with an optimal production schedule according to a pre-determined plan so that Work In Progress (WIP) and lead times are reduced and productivity is enhanced.

The Stores and Purchase Modules of the ERP system are based on the detailed and extensive study of the stores of different companies and has enabled most of the features for the better management of the stores and inventory at the organizations by employing the best practices of managing the inventory and tracking the item movements in the manufacturing units, at each and every level. The ERP system provides the facility of planning the production of any manufacturing unit of the organization at any point of time and for any time period, such as weekly, monthly, quarterly or annual production plans can be generated. Production plan is prepared based on the sales order scheduling.

The material requirement planning helps in the optimum utilization of machines and accommodates the installed machine capacities in the production plan. It maintains information about the machine availability, machine downtimes, working shifts and allied data. It also keeps the enterprise informed about the manpower related to various production units. Material requirement plan is generated against the particular production plan. The ERP system generates the RM or other tools/machines requirement till the n-level of the BOM. It also generates the purchase advice for the user based upon the reorder levels. Thus the user can simulate the whole production cycle and the respective purchase cycle.

 
 
 

The Role of ERP Systems in Production and Purchase Sector, Enterprise Resource Planning, ERP systems, machine allotment and maintenance, human resource allocation, Work In Progress, manufacturing unit, Production plan, optimum utilization, Material requirement plan,ERP.