What is enterprise resource planning?

ERP(Enterprise Resource Planning system)

ERP (enterprise resource plan) was put forward by American companies in 199. The mainstream business education such as MBA, CEO's 12 required readings and EMBA all pay attention to the application and strategic significance of ERP in modern enterprise management. Enterprise resource planning is the next generation manufacturing system and resource planning software of MRPⅡ. In addition to the existing functions of MRPⅡ II, such as production resource planning, manufacturing, finance, sales and procurement, there are also quality management, laboratory management, business process management, product data management, inventory, distribution and transportation management, human resource management and regular reporting system.

I. Brief introduction to the concept

ERP is a supply chain management idea put forward by Gartner Group Inc, an American computer technology consulting and evaluation group. Enterprise resource planning (ERP) refers to a management platform that is based on information technology and provides decision-making operation means for enterprise decision-makers and employees with systematic management ideas. ERP system supports mixed manufacturing environments such as discrete and process, and its application scope has spread from manufacturing to retail, service, banking, telecommunications, government agencies and schools. It has effectively integrated enterprise resources by integrating database technology, graphical user interface, fourth-generation query language, client server structure, computer-aided development tools and portable open systems.

it combines the characteristics of discrete production and process production, faces the global market, includes all the leading and supporting capabilities in the supply chain, and coordinates the management departments of enterprises to carry out business activities more flexibly or "flexibly" around the market orientation and respond to market demand in real time. Therefore, the business relationship among suppliers, distributors and manufacturers is redefined, and the business and information flow and organizational structure of enterprises are reconstructed, so that enterprises can have greater initiative in market competition.

ERP is a kind of enterprise information management system which mainly manages material resources, capital resources and information resources for manufacturing industry. ERP is an enterprise management software with management accounting as its core, which can provide real-time information across regions, departments and even companies. Enterprise management software which integrates material resource management (logistics), human resource management (people flow), financial resource management (financial flow) and information resource management (information flow).

the proposal of p>ERP is inseparable from the high development of computer technology. Users have greater initiative in the system, and the functions involved as computer-aided management have far exceeded the scope of MRPⅡ II. The functions of ERP include not only MRPⅡ II (manufacturing, supply and marketing, finance), but also multi-factory management, quality management, laboratory management, equipment maintenance management, warehouse management, transportation management, process control interface, data acquisition interface, electronic communication, e-mail, regulations and standards, project management, financial investment management, market information management and so on. It will redefine various businesses and their interrelationships, adopt a more flexible way in management and organization, and respond to changes in supply and demand relations in the supply chain (including changes caused by laws, standards and technological development) synchronously, promptly and in real time; On the basis of accurate, timely and complete information, make correct decisions and take active measures. Compared with MRPⅡ ⅱ, ERP not only expands its management functions, but also adopts the latest achievements of computer technology, such as expanding the user-defined scope, object-oriented technology, client/server architecture, various database platforms, SQL structured query language, graphical user interface, 4GL/CASE, window technology, artificial intelligence, simulation technology and so on.

II. Technological development

The application of information technology in enterprise management can be divided into the following stages:

A. MIS system

The information management system of an enterprise mainly records a large number of original data, supports query, summarizes and other aspects.

B.MRP stage (Planning)

The information management system of the enterprise manages the product composition, and with the help of the computing power of the computer and the management ability of the system for customer orders, materials in stock and product composition, the material demand plan can be developed and calculated according to the customer orders and the product structure list. Achieve the management objectives of reducing inventory and optimizing inventory.

C. MRP ⅱ stage (Planning)

On the basis of MRP management system, the system has increased the management of enterprise production center, processing hours and production capacity, so as to realize the function of computer production scheduling, and at the same time, it also includes the financial function, forming a closed-loop management system with computer as the core in the enterprise, which has been able to dynamically monitor the whole production process of production, supply and sales.

D. ERP stage (Planning)

After entering the ERP stage, the enterprise-level management system with computer as the core is more mature, and the system has added functions including financial forecasting, production capacity, resource scheduling adjustment and so on. Cooperate with enterprises to realize JIT management comprehensive, quality management, production resource scheduling management and decision-making assistance. Become a platform tool for enterprises to carry out production management and decision-making.

e. ERP in the era of e-commerce

The maturity of Internet technology has increased the ability of information sharing and direct data exchange with customers or suppliers for enterprise information management systems, thus strengthening the relationship between enterprises, forming a survival chain of * * * development, and embodying the supply chain management idea of enterprises to achieve survival and competition. ERP system realizes this function accordingly, which enables decision makers and business departments to realize joint operations across enterprises.

iii. functional modules

ERP system includes the following main functions: supply chain management, sales and marketing, distribution, customer service, financial management, manufacturing management, inventory management, factory and equipment maintenance, human resources, reports, manufacturing Executive System (MES), workflow service and enterprise information system. In addition, it also includes supplementary functions such as financial investment management, quality management, transportation management, project management, regulations and standards, and process control.

ERP is a management information system that integrates and manages all the resources of an enterprise, simply speaking, it is a comprehensive and integrated management of the three major streams of an enterprise: logistics, capital flow and information flow. Its function module is different from the previous MRP or MRPII module. It can be used not only in the management of production enterprises, but also in many other types of enterprises, such as some non-production and public welfare enterprises, and can also be introduced into ERP system for resource planning and management.

in an enterprise, general management mainly includes three aspects: production control (planning and manufacturing), logistics management (distribution, procurement and inventory management) and financial management (accounting and financial management). These three systems are integrations themselves, and they have corresponding interfaces with each other, which can be well integrated to manage enterprises. In addition, it should be specially mentioned that with the strengthening of enterprises' emphasis on human resource management, more and more ERP manufacturers have incorporated human resource management into an important part of ERP system.

iv. supply chain management

refers to the management of enterprise supply chain, that is, the management of market, demand, order, raw material procurement, production, inventory, supply, distribution and delivery, including every link from production to delivery and from suppliers to customers. Supply chain is the business cycle system on which enterprises depend, and it is also the most important subject in the management of enterprise e-commerce. Statistics show that the enterprise supply chain can consume up to 25% of the enterprise's operating costs. SCM can bring the following benefits to enterprises: (1) Increase the accuracy of forecasting. (2) Reduce inventory and improve delivery and supply capacity. (3) Reduce workflow cycle, improve productivity and reduce supply chain cost. (4) Reduce the overall procurement cost, shorten the production cycle and speed up the market response.

with the rapid development of the internet, more and more enterprises begin to use the network to realize SCM. That is to say, the Internet is used to integrate the upstream and downstream enterprises, with the central manufacturer as the core, and the upstream raw materials and spare parts suppliers, downstream distributors, logistics transporters, product service providers and correspondent banks are integrated to form a complete e-commerce supply chain for the ultimate customers. The purpose is to reduce the procurement cost and logistics cost, improve the response speed of enterprises to the needs of the market and end customers, and thus improve the market competitiveness of enterprise products.

v. sales and market

the market is the product of commodity economy, which developed with the development of commodity economy. As long as there is commodity production and commodity exchange, there is bound to be a market, so there is an objective and inevitable connection between commodity sales and the market. Commodity production and commodity exchange of individual and private enterprises are not restricted by the state plan, but are completely produced and developed under the market environment. Therefore, individual and private enterprises must establish a correct market concept, especially pay attention to market research, which is a prerequisite for doing a good job in commodity production and sales and a guarantee for enterprises to be invincible in the fierce market competition.

the market concept is the guiding ideology that all production and business activities of an enterprise are based on meeting the needs of users. The concrete contents of modern market concept mainly include: (1) users are the center of enterprise activities, and enterprises determine their own production and operation direction according to users' needs; (2) The marketing activities of enterprises should be integrated and coordinated, focusing on meeting the needs of users; (3) while meeting the needs of users, realize the profits of this enterprise. In the strategy of making profits, we don't focus on the profit of each transaction, but consider the long-term development of the enterprise, and take winning customers, establishing a good corporate image, opening up markets and improving market share as the goals of the enterprise, so as to make profits.

market research, also known as marketing research, uses certain methods and procedures to collect, sort out and analyze the marketing materials of goods and services demanded by consumers, and make market analysis and planning to determine marketing strategies. To do a good job in financial management of enterprises, we must also pay attention to the market and strengthen marketing research. This is because: first, the market is the intermediary between production and consumption, which can sensitively reflect the changes and conditions of social demand. If enterprises want to be in a favorable position in the competition, they should grasp the market dynamics in time; Second, if an enterprise wants to achieve maximum financial benefits at the least cost, it must produce and operate marketable products that meet the needs of the market through market research; Third, the purchase and sale activities of enterprises must rely entirely on the marketing mechanism, which is determined by the production and operation characteristics of individual and private enterprises. The main contents of market research include market survey, market forecast and the formulation of sales strategy.

VI. Financial management module

Clear and distinct financial management is extremely important in enterprises. Therefore, it is an indispensable part of the whole ERP scheme. The financial module in ERP is different from the general financial software. As a part of the ERP system, it has corresponding interfaces with other modules of the system and can be integrated with each other. For example, it can automatically count the information input from production activities and procurement activities into the financial module to generate general ledger and accounting statements, eliminating the tedious process of inputting vouchers and almost completely replacing the traditional manual operation. The financial part of general ERP software is divided into accounting and financial management.

1. Accounting

Accounting is mainly to record, calculate, reflect and analyze the change process and results of funds in the economic activities of enterprises. It consists of general ledger, accounts receivable, accounts payable, cash, fixed assets and multi-currency system. General ledger module: its function is to process the input and registration of accounting vouchers, output journals, general sub-ledgers and general ledgers, and prepare major accounting statements. It is the core of the whole accounting, and accounts receivable, accounts payable, fixed assets accounting, cash management, salary accounting, multi-currency system and other modules all transfer information with it as the center.

2. Accounts receivable module: refers to the accounts receivable by enterprises due to the credit of goods. It includes invoice management, customer management, payment management, aging analysis and other functions. It is associated with customer order and invoice processing business, and at the same time automatically generates accounting vouchers for various events and imports them into the general ledger.

3. A/P module: A/P in accounting refers to the accounts payable by enterprises for purchase money, including invoice management, supplier management, check management and aging analysis. It can be fully integrated with purchasing module and inventory module to replace the tedious manual operation in the past.

4. cash management module: it mainly controls the inflow and outflow of cash and accounts petty cash and bank deposits. It includes the management of coins, banknotes, checks, drafts and bank deposits. ERP provides cash-related functions such as bill maintenance, bill printing, payment maintenance, bank list printing, payment inquiry, bank inquiry and check inquiry.

in addition, it is integrated with accounts receivable, accounts payable, general ledger and other modules to automatically generate vouchers and post them into general ledger.

5. fixed assets accounting module: namely, it completes the accounting of the increase and decrease of fixed assets and the depreciation related fund accrual and allocation. It can help managers to understand the current situation of fixed assets, and manage assets through various methods provided by this module, as well as carry out corresponding accounting treatment.

Its specific functions include: logging in fixed assets cards and subsidiary ledger, calculating depreciation, compiling statements, and automatically compiling transfer vouchers and transferring them to general ledger. It is integrated with accounts payable, cost and general ledger modules.

6. Multi-currency module: This is due to the increasing demand for foreign currency settlement business in order to adapt to the international operation of today's enterprises. Multi-currency system can express and settle all the functions of the whole financial system in various currencies, and customer orders, inventory management and procurement management can also use multi-currency system for transaction management. Multi-currency system and accounts receivable, accounts payable, general ledger, customer orders, procurement and other modules have interfaces, which can automatically generate the required data.

7. Wage accounting module: automatically settle, distribute and calculate the wages of employees in the enterprise, as well as withdraw all related funds. It can log in the salary, print the salary list and all kinds of summary reports, calculate and withdraw various salary-related expenses, automatically make vouchers and import them into the general ledger. This module is integrated with general ledger and cost module.

8. cost module: it will calculate various costs of products according to information such as product structure, work center, working procedure and procurement, so as to make cost analysis and planning. You can also use standard cost or average cost method to maintain costs by location.

2. Financial management

The function of financial management is mainly based on the data of accounting, and then analyzed, so as to make corresponding prediction, management and

structure chart

control activities. It focuses on financial planning, control, analysis and prediction:

Financial planning: making the next financial plan and budget according to the previous financial analysis.

financial analysis: it provides query function and carries out financial performance evaluation and account analysis through graphical display of user-defined differential data.

financial decision-making: the core part of financial management, the central content is to make decisions about funds, including funds.