All of us have heard about the word
manufacturing, which basically means transforming raw materials into processed
and finished goods. Once ready, these goods are available for sale. A variety
of processing systems and equipment is used for this purpose. For proper and
effective management of manufacturing processes, a system that is based on a
software is developed that helps in carrying our production, purchase of raw
materials, planning of shipment, and a system for inventory control. This
system is referred to as MRP or Manufacturing Requirements Planning. Another
method that is the offshoot of the earlier method has been developed known as
Manufacturing Resource Planning wherein the resources are well planned and
distributed for its optimal utilization. From this system, another method has
been derived which is referred to as ERP or Enterprise Resource Planning.
Meaning
of ERP
ERP is one of the most commonly used
software. This software basically work across all kinds of business
organizations and brings about an immense improvement in various business
processes that includes management control, strategic planning and operational
control. Manufacturing ERP software
works across different functional departments along with their typical
activities.
How
ERP Software works?
The Enterprise Resource Planning Software
works for companies that manufacture as well as for those that do not
manufacture, especially for manufacturing companies, hence the name manufacturing ERF Software. When ERP
and MRP is combined, it results in an established application and device. The
software offered processes with integrated workflow that have been specifically
designed for the maximization of use of the resources of a manufactures while
at the same time minimizing total costs. It also manages entire life cycle,
right from the acquisition of raw material, op planning of production,
manufacturing, sales and marketing to final settlement of the resources. This
is why, this software is commonly used by a lot of companies.