Enterprise Resource Planning (ERP) Process

An Enterprise Resource Planning (ERP) Process is a business management process that include tracking business resources (cash, raw materials, production capacity) and the business commitments status (orders, purchase orders, and payroll).

• AKA: Organizational Resource Management.
• Context:
  • It can range from being a Generic ERP Task to being a Domain-Specific ERP Task.
  • It can be supported by an ERP System.
  • It can (typically) include Resource Usage Planning (for enterprise resources).
  • It can include
    • Financial Accounting: General ledger, fixed asset, payables, receivables cash application and collections, cash management, financial consolidation.
    • Management Accounting: budgeting, costing (such as activity based costing), cost management.
    • Human Resource Management Tasks: payroll, timesheets, recruitment, training, workplace rostering, payroll, employee benefits, diversity management, retirement management, employee exit management.
    • Manufacturing Management: Product Engineering, bill of materials, work order management, scheduling, capacity utilization, workflow management, quality control, manufacturing flow, product life cycle management.
    • Order Processing: order to cash, order entry, credit checking, pricing, available to promise, inventory, shipping, sales analysis, sales commissioning, procurement.
    • Supply Chain Management: Supply chain planning, supplier scheduling, product configurator, order to cash, purchasing, inventory, claim processing, warehousing, order picking and packaging.
    • Product Lifecycle Management: ...
    • Customer Relationship Management: commission managements, customer contact, call center business support.
    • Project Management: project planning, resource planning, project costing, work breakdown structure, billing, time and expense, performance units, activity management.
    • Data Services : Various "self–service" interfaces for customers, suppliers and/or employees
• Counter-Example(s):
  • Personal Resource Planning Task.
  • Household Resource Planning Task.
  • Enterprise Performance Management Task.
• See: Material Requirements Planning (MRP), Business Activity Transaction, Information Repository.

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References

2020

• (Wikipedia, 2020) ⇒ https://en.wikipedia.org/wiki/Enterprise_resource_planning Retrieved:2020-12-15.
  • Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology.

    ERP is usually referred to as a category of business management software—typically a suite of integrated applications — that an organization can use to collect, store, manage, and interpret data from many business activities.

    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. The applications that make up the system share data across various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the data. ERP facilitates information flow between all business functions and manages connections to outside stakeholders. Enterprise system software is a multibillion-dollar industry that produces components supporting a variety of business functions. IT investments have, as of 2011, become one of the largest categories of capital expenditure in United States-based businesses. Though early ERP systems focused on large enterprises, smaller enterprises increasingly use ERP systems. The ERP system integrates varied organizational systems and facilitates error-free transactions and production, thereby enhancing the organization's efficiency. However, developing an ERP system differs from traditional system development. ERP systems run on a variety of computer hardware and network configurations, typically using a database as an information repository.

2016

• http://www.fiscal.ca.gov/faqs/what_is_erp/index.html
  • QUOTE: Enterprise Resource Planning (ERP) has many definitions, but it is typically understood to be a set of software applications that integrate and streamline business processes that are generally used throughout an enterprise such as accounting, procurement, payroll, time sheets, and budgeting. ERP is a way to integrate the data, functions and processes of an organization into one single system. ERP systems have many components, including hardware and software, in order to achieve integration. Most ERP systems use a unified database to store data for various functions found throughout the organization.

2015

• (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/enterprise_resource_planning#Functional_areas_of_ERP Retrieved:2015-7-12.
  • An ERP system covers the following common functional areas. In many ERP systems these are called and grouped together as ERP modules:
    • Financial accounting: General ledger, fixed asset, payables including vouchering, matching and payment, receivables cash application and collections, cash management, financial consolidation.
    • Management accounting: Budgeting, costing, cost management, activity based costing.
    • Human resources: Recruiting, training, rostering, payroll, benefits, 401K, diversity management, retirement, separation.
    • Manufacturing: Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, manufacturing process, manufacturing projects, manufacturing flow, product life cycle management.
    • Order Processing: Order to cash, order entry, credit checking, pricing, available to promise, inventory, shipping, sales analysis and reporting, sales commissioning.
    • Supply chain management: Supply chain planning, supplier scheduling, product configurator, order to cash, purchasing, inventory, claim processing, warehousing (receiving, putaway, picking and packing).
    • Project management: Project planning, resource planning, project costing, work breakdown structure, billing, time and expense, performance units, activity management
    • Customer relationship management: Sales and marketing, commissions, service, customer contact, call center support  — CRM systems are not always considered part of ERP systems but rather Business Support systems (BSS).
    • Data services : Various "self–service" interfaces for customers, suppliers and or employees

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