Manufacturing is defined as the transformation of raw materials into finished goods or product for sale by using machines and processing systems. In order to manage manufacturing processes, a software based production, purchasing, shipment planning and inventory control system called Manufacturing Requirements Planning (MRP), has been developed. From this system, Manufacturing Resource Planning (MRP II), a method for the effective planning of all resources like men, machine and materials of a manufacturing company, has been derived. And from MRP II, Enterprise Resource Planning (ERP) has evolved.
ERP integrate all the business functions into one database. It supports business organization needs and improves the business processes including strategic planning, management control and operational control. It also operates across functional departments and their particular activities. Cross functional activity is very important part of ERP. It reduces paper work and job completion time with full control.
ERP is available for manufacturing and non-manufacturing companies. Initially, ERP software is intentionally made for manufacturing industries. It is known as manufacturing ERP software. Combination of MRP and ERP gives more established device and application in these industrial sectors than ERP software. It has integrated workflow processes that are designed specifically to optimize the use of the manufacturer’s resources. It minimizes the total costs and administers resources, entire life cycle, from raw material acquisition, production planning, production, marketing, sales to finance.
Manufacturing ERP software is ideally suited for minor, mid-sized, make-to-order, engineer-to-order, made-to-inventory, discrete manufacturing, small and large manufacturing industries around the world. Manufacturing ERP can be purchased from all small niche market and major ERP vendors offering ERP software solutions that meet your requirements.
Getting right manufacturing ERP software for your manufacturing enterprise will help you optimize your all resources, carefully planning, decision through information based and prepare for unexpected hitches along the business cycle. It will also help you to manage your organization and all its departments effectively. It will reduce your expenditures and improve your manufacturing capacity.
Read more about What is a business strategy. Also know What is Change Management and other business terms.
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