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There Are Many ERP Modules in ERP Software Solution

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    What is ERP?

    ERP attempts to integrate all departments and

    functions across a company onto a single

    computer system that can serve all those

    different departments particular needs.

    A single software program that serves the

    needs of people in finance as well as it does

    the people in human resources and in the

    warehouse. Each of those departments

    typically has its own computer systemoptimized for the particular ways that the

    department does its work.ERP combines them

    all together into a single, integrated software

    program that runs off a single database so

    that the various departments can more easily

    share information and communicate with each

    other.

    ERP vanuishes the old standalone computer

    systems in finance, !R, manufacturing and

    the warehouse, and replaces them with a

    single unified software program divided into

    software modules that roughly appro"imate

    the old standalone systems. #inance,

    manufacturing and the warehouse all still get

    their own software, e"cept now the software is

    linked together so that someone in finance

    can look into the warehouse software to see if

    an order has been shipped. $ost vendors

    ERP software is fle"ible enough that you can

    install some modules without buying the

    whole package. $any companies, for

    e"ample, will %ust install an ERP finance or !R

    module and leave the rest of the functions for

    another day.

    How can ERP improve a

    companys business

    performance?

    ERP is often referred to as back&office

    software. 't doesnt handle the up&front selling

    process (although most ERP vendors have

    developed )R$ software or acuired pure&

    play )R$ providers that can do this*+ rather,

    ERP takes a customer order and provides a

    software road map for automating the different

    steps along the path to fulfilling it. hen a

    customer service representative enters a

    customer order into an ERP system, he has

    all the information necessary to complete the

    order.

    People in these different departments all seethe same information and can update it. hen

    one department finishes with the order it is

    automatically routed via the ERP system to

    the ne"t department. -o find out where the

    order is at any point, you need only log in to

    the ERP system and track it down. ith luck,

    the order process moves like a bolt of

    lightning through the organization, and

    customers get their orders faster and with

    fewer errors than before. ERP can apply that

    same magic to the other ma%or business

    processes, such as employee benefits or

    financial reporting.

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    Evolution of

    ERP

    ERP is an outcome of 40 years of trial and

    error. It has evolved as a strategic tool

    because of continuous improvement in the

    available techniques to manage business and

    the fast growth of information technology.

    Prior to 1!0s" business had to rely on the

    traditional ways of inventory management to

    ensure smooth functioning of the

    organi#ation. $hese theories are called

    classical inventory management of scientific

    inventory control methods. $he most

    popularly %nown amongst them is E&'

    (Economic &rder 'uantity).

    In this method" each item in the stoc% is

    analy#ed for its ordering cost and the

    inventory carrying cost. * trade off is

    established on a phased out e+pected

    demand of one year" and this way the most

    economic ordering quantity can be decided.

    $his technique in principle is a deterministic

    way of managing inventory.

    *long with E&'" we find various inventory

    models such as fi+ed order quantity" periodic

    order method" optional replenishment

    method" etc." which were in practice earlier.

    $hese theories were very popular in pre,

    -RP era.

    In 1!0s" a new technique of -aterial

    Requirements Planning" popularly %nown as

    -RP" was evolved. $his was a proactive

    manner of inventory management. $his

    technique fundamentally e+plodes the end

    product demand obtained from the -aster

    Production chedule (-P) for a specified

    product structure (which is ta%en from /illof -aterial) into a detailed schedule of

    purchase orders or production orders" ta%ing

    into account the inventory on hand. -RP is

    a simple logic but the magnitude of data

    involved in a realistic situation ma%es it

    computationally cumbersome. If underta%en

    manually" the entire process is highly time,

    consuming.

    -RP successfully demonstrated its

    effectiveness in reduction of inventory"

    production" and delivery lead times by

    improving coordination and avoiding delays"

    thus ma%ing commitments more realistic.

    -RP proved to be a very good technique for

    managing inventory" but it did not ta%e into

    account other resources of an organi#ation.

    In 10s" this gave birth to a modified -RP

    logic" popularly %nown as closed loop -RP.

    In this technique" the capacity of the

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    organi#ation to produce a particular product

    is also ta%en into account by incorporating a

    module called capacity requirements

    planning (RP).

    In 120s" the need was felt to integrate the

    financial resource with the manufacturing

    activities. 3rom this evolved an integrated

    manufacturing management system called

    -anufacturing Resource Planning (-RP II).

    $ransition from -RPII to ERP happened

    during 120,0. $he basic -RP II system

    design was suffering from a few inherent

    drawbac%s such as limited focus to

    manufacturing activities" assumption of the

    mass or repetitive production set ups" and

    poor budgetary and costing controls.

    $he shortcomings of -RP II and the need tointegrate new techniques led to the

    development of a total integrated solution

    called ERP" which attempts to integrate the

    transactions of the organi#ation to produce

    the best possible plan. $oday we see further

    development in the ERP concept and

    evolution web,based ERP.

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    ERP Modules

    Enterprise Resource Planning ERP

    Enterprise Resource Planning (ERP)

    software is usually pac%aged in functional

    pieces5 that can be implemented in various

    combinations. $hese ERP software

    modulesaddress specific functions li%e

    inventory control" planning" customer ordermanagement" purchasing" production

    control" general ledger" accounts payable"

    etc.

    $his functional organi#ation adds to the

    fle+ibility of the ERP product. * distribution

    company that does little or no manufacturing

    can license and install the financial

    applications" purchasing" customer order

    management and inventory" for e+ample"

    and have a solution tailored5 to their needs.

    If at a later time they e+pand into

    manufacturing" they can license additional

    modules that will essentially snap in place

    and e+pand the system as needed.

    $his modular design also allows software

    developers to put together product offerings

    for specific industries. /y adding a module

    of food safety software" quality management

    and lot trac%ing" or product configuration"

    for e+ample" an otherwise general purpose

    ERP system becomes a niche product that is

    well suited for a company in the food

    industry. /y developing modules with

    specific functionality" an ERP vendor can

    assemble a variety of niche products li%e

    ERP for automotive suppliers" ERP software

    for life sciences" ERP for chemicals" etc.

    -odular design helps developers focus on

    specific industries and functional needswhile not re,inventing the wheel by

    duplicating the more universal functions li%e

    inventory control and purchasing.

    ustomers benefit by not having to buy and

    maintain functionality that they don6t want

    or need.

    -ost ERP software has grown and

    broadened over the years in part by adding

    new modules to the product offerings. ome

    of these are developed from scratch to

    capture demand opportunities and some in

    response to customer requests. ome

    modules are the result of acquisition7 the

    ERP developer might buy a company with a

    point solution5 that can be converted into a

    module of the ERP system.

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    $here are many ERP modules in ERP

    software solution. Each ERP software

    module corresponds to a ma8or functional

    area of an organi#ation. 9enerally it

    includes" modules for material purchasing"

    inventory control" product planning" product

    distribution" trac%ing the order" financial

    ERP module" accounting" mar%eting" and

    human resource. &rgani#ations implement

    the modules in ERP that are both

    economically and technically feasible and

    profitable. $his document of &E: (ite

    &pen ource ERP) will focus on each ERP

    software modules in detail. $o %now more

    about ERP systems refer other pages of this

    site.

    ERP finance module

    *ll %ind of organi#ations small scale" large

    scale organi#ations benefit from the

    implementation of ERP financial module.

    $he financial module is the core of many

    ERP software systems. It can gather

    financial data from various functional

    departments" and generates valuable

    financial reports such general ledger" trail

    balance" as balance sheet and quarterly

    financial statements.

    ERP HR (Human Resources) Module

    ;uman Resources is another widely

    implemented ERP module. ;R module

    streamlines the management of human

    resources and human capitals. ;R modules

    routinely maintain a complete employee

    database including contact information"

    salary details" attendance" performance

    evaluation and promotion of all employees.

    *dvanced ;R module is integrated with

    %nowledge management systems to

    optimally utili#e the e+pertise of all

    employees.

    ERP Production Module

    In the process of evolution of manufacturing

    requirements planning (-RP) II into ERP"

    while vendors have developed more robust

    software for production planning" consulting

    firms have accumulated vast %nowledge of

    implementing production planning module.

    Production planning optimi#es the

    utili#ation of manufacturing capacity" parts"

    components and material resources using

    historical production data and sales

    forecasting.

    ERP Purchasing Module

    Purchase module streamline procurement of

    required raw materials. It automates the

    http://www.open-source-erp-site.com/erp-finance-module.htmlhttp://www.open-source-erp-site.com/erp-hr-module.htmlhttp://www.open-source-erp-site.com/erp-production-planning-module.htmlhttp://www.open-source-erp-site.com/erp-purchasing-module.htmlhttp://www.open-source-erp-site.com/erp-hr-module.htmlhttp://www.open-source-erp-site.com/erp-production-planning-module.htmlhttp://www.open-source-erp-site.com/erp-purchasing-module.htmlhttp://www.open-source-erp-site.com/erp-finance-module.html
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    processes of identifying potential suppliers"

    negotiating price" awarding purchase order

    to the supplier" and billing processes.

    Purchase module is tightly integrated with

    the inventory control and production

    planning modules. Purchasing module is

    often integrated with supply chain

    management software.

    ERP Inventory Module

    Inventory module facilitates processes of

    maintaining the appropriate level of stoc% in

    a warehouse. $he activities of inventory

    control involves in identifying inventory

    requirements" setting targets" providing

    replenishment techniques and options"

    monitoring item usages" reconciling the

    inventory balances" and reporting inventory

    status. Integration of inventory control

    module with sales" purchase" finance

    modules allows ERP systems to generate

    vigilant e+ecutive level reports.

    ERP Sales and Marketing Module

    ales module implements functions of order

    placement" order scheduling" shipping and

    invoicing. ales module is closely integrated

    with organi#ations6 ecommerce websites.

    -any ERP vendors offer online store front

    as part of the sales module. ERP mar%eting

    module along with RP supports lead

    generation" direct mailing campaign and

    other mar%eting wor%s. cheduling of the

    promotion is possible using this. &E: is

    free website which will guide you in

    selecting and implementing different ERP

    systems and modules in ERP. Primary focus

    is on open source ERP systems. /ut it help

    in commercial ERP systems too.

    ERP TransitionStrategies

    http://www.open-source-erp-site.com/erp-inventory-module.htmlhttp://www.open-source-erp-site.com/erp-sales-module.htmlhttp://www.open-source-erp-site.com/erp-inventory-module.htmlhttp://www.open-source-erp-site.com/erp-sales-module.html
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    *n ERP implementation strategy determines

    how the ERP system will be installed.

    . $he same industry may implement

    different software in the same approach.

    $here are several transition strategies but

    most of them are variants of the five basic

    types7

    a) /ig /ang b) Phased c) Parallel d) Process

    ?ine e) ;ybrid

    $hese techniques focus on the strategy of

    how to ma%e the transition from a legacy

    system to a new ERP system. ERP

    implementations all begin with the simple

    question, how do we ma%e the transition

    from our inheritance ERP system to new

    ERP system@ $he selection of the transition

    strategy that is best suited for each industry

    is crucial as a wrong strategy can result in a

    failed or flawed implementation. $hree

    pillars,people" process and technology are

    the base of any ERP implementation. 3ailure

    to use one of these or failure to use it in the

    best possible manner can result in failure.

    Anderstanding the relationships of ERP

    transition strategies between the process"

    people" and technology will assist the ERP

    implementers to better understand what type

    or combination of types of ERP transition

    strategy is best.

    Big Bang Transition Strategy:

    In this strategy industries layout a

    magnificent map for their ERP

    implementation. $he installation of ERP

    systems of all modules happens across the

    entire organi#ation at once. $he big bang

    approach promised to reduce the integration

    cost in the condition of thorough and careful

    e+ecution. $his method dominated early

    ERP implementations and it partially

    contributed to the higher rate of failure in

    ERP implementation. *ll the business

    functions performed in the inheritance

    system across the entire enterprise are

    concurrently transferred to the new legacy

    system during a period of one day or awee%end. /ut now a day6s industries are

    wavering to use big bang approach as it

    consumes too many resources to support the

    go,live of the ERP system. uccess in using

    the big bang approach comes with careful

    preparation and planning prior to using big

    bang. /ut many industries struggle to decide

    whether the big bang approach is the right

    selection or not for their endeavor.

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    Phased Transition Strategy:

    $he phased approach" implements one

    practical element at a time" in chronological

    order as shown in fig. *utonomous modules

    of ERP systems are installed in each unit"

    while integration of ERP modules is done at

    later stage of the pro8ect. $his has been the

    most commonly used method of ERP

    implementation. Each business unit may

    have its own instances5 of ERP and

    database. -odular (phased) implementation

    reduces the ris% of the installation"

    customi#ation and operation of ERP systems

    by reducing the scope of the

    implementation. $he unbeaten

    implementation of one module can help the

    overall success of an ERP pro8ect. $he

    interface programs that are used in this

    strategy bridge the gap between the

    inheritance ERP system and the new ERP

    system until the new ERP system becomes

    fully purposeful. $his strategy is often used

    in situations that not have strong centrali#ed

    synchroni#ation in the ERP pro8ect.

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    Parae Transition Strategy:

    $he parallel approach %eeps both the

    inheritance system and the new ERP system

    active concurrently for a length of time as

    shown in fig. $he amount of time for which

    both the systems are in operation ranges

    from one day to several months and may be

    to years. Portions of the same functional

    business areas (including software) such as

    finance" manufacturing" mar%eting etc. are

    operating at the same time for both the

    legacy and ERP systems. *n advantage to

    the parallel strategy is that it has good

    improvement options in case something

    goes off beam. /ecause both the inheritance

    ERP system and the new ERP system are in

    function at the same time for a particular

    module" the industry6s business processes

    will not be bro%en up if the new ERP system

    brea%downs. $he parallel approach also

    provides the most sensible number,to,

    number comparisons to authenticate that the

    new ERP system is performing the

    necessary business process flows. $his

    strategy is ideally suited for mission critical

    situations that cannot survive a ma8or brea%

    down of an ERP system.

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    Process !ine Transition Strategy:

    $he process line transition strategy brea%s

    the implementation strategy to handle

    similar business process flows or product

    lines. Asing the process line strategy" the

    first product line and related assets go first

    in ma%ing the transition from the inheritance

    system to the new ERP system. &nce this

    transition is achieved successfully" the

    second product line is moved from the

    inheritance system to the new system. $his

    initial success helps to build industrial faith

    in the new ERP system" increasing its

    overall prospect of success. Apon

    achievement of the first process line"

    resources are loaned to the more

    complicated and challenging process lines.

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    Hybrid Transition Strategy:

    It is the combination of any of the

    implementation strategy li%e process line"

    phasing and parallel implementation

    strategy. ;ybrid strategies tend to evolve

    into the needed agreement as ERP team

    members study and consider information.

    $he comple+ity of a hybrid strategy varies

    tremendously depending upon the state.

    mall single,site ERP implementations tend

    to have simpler hybrid strategies than those

    used by large conglomerate corporations

    with many dissimilar environmental

    locations. -any implementations use hybrid

    strategies because they are fle+ible in

    adapting to the specific needs of the

    situation. Bith the hybrid strategy" industries

    can e+clusively ad8ust implementations for

    their needs.

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    Advantages

    Increased Costeffectiveness

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    other average business software" the training

    becomes necessary and e+pensive. $he

    employees of the company have to perform

    their daily tas%s and learn the usage of the

    ERP software system at the same time. $o

    lessen the companyCs burden" there are many

    training firms which are speciali#ed in

    coaching employees about the functionality

    of the ERP software from different vendors.

    Enhanced !ork Efficiency

    ERP systems enhance the efficiency of the

    whole organi#ation by smoothly integrating

    its various divisions. It also helps in

    reduction of paper documents and provides

    an online format for quic% storage and

    retrieval of information. ERP ensures a

    quic% response to changes in mar%et

    conditions and also improves the

    productivity of the company by providing

    each department with their own computer

    system" data and database. ross computer

    system communication can also be done

    within these departments" in order to store or

    retrieve information. $his results in a unified

    wor%ing of all aspects of an organi#ation"

    instead of every single system needing to be

    compatible with each other.

    Integration of "usiness #unctions

    *s the ERP system integrates data and

    process from different divisions of an

    organi#ation" it enables easier access and

    wor% flow. Its multiple software modules aid

    the coordination of various business

    functions in an organi#ation. $his

    integration provides an opportunity for the

    various divisions to share a unified database

    and ensures proper business communication

    within the organi#ation. $his centrali#ation

    of data in one place eliminates the problem

    of synchroni#ing the changes made by

    different departments and people. It also

    reduces the ris% of loss of confidential data"

    by applying difficult,to,crac% networ%

    security models. ERP systems also provide

    an efficient method for data recovery" in

    case of a system crash.

    Im$roved International %$erations

    ERP systems support a variety of ta+

    structures" different currencies of the world

    and multiple languages" which ma%es it a

    truly international software. It is suitable for

    global operations because of its diversifiedaccounting standards and the ability to

    manage world,wide clients and resources.

    ERP also assists the improvement of the

    supply , demand lin%ages with the remote

    locations and branches in different regions

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    or countries.

    Disadvantages

    ompared with traditional more archaic

    methods current ERP systems several

    disadvantages have been identified

    , It is difficult to incorporate changes

    and customi#ations required as business

    processes change. $he systems encode

    process definitions in proprietary source

    code. hanging this code is difficult" ris%y"

    e+pensive" and therefore rarely done. *s a

    result most organisations forego

    opportunities to optimi#e their processesD

    , $he systems focus on what

    organisations have in common and not on

    processes where real value is created for

    individual customers. $his is due to ERP

    systems being developed for hori#ontal

    operational processes in the value chain but

    unable to effectively support or automate the

    many vertical specific business processes

    where real value is createdD

    , Inability to grow or wor% with other

    systems. urrent systems do not integrate

    well with other feeder systems from third

    party suppliers. $his ma%es the initial

    deployment difficult since certain aspects

    cannot be easily and cheaply integrated and

    subsequently upgraded without soaring

    deployments costs.

    ERP Vendors

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  • 7/25/2019 There Are Many ERP Modules in ERP Software Solution

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    ERP

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    Ouali

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    http://en.wikipedia.org/wiki/Kuali_Foundationhttp://en.wikipedia.org/wiki/Kuali_Foundationhttp://en.wikipedia.org/wiki/Educational_Community_Licensehttp://en.wikipedia.org/wiki/LedgerSMBhttp://en.wikipedia.org/wiki/LedgerSMBhttp://en.wikipedia.org/wiki/GPLhttp://en.wikipedia.org/wiki/OFBizhttp://en.wikipedia.org/wiki/Apache_Licensehttp://en.wikipedia.org/wiki/Openbravohttp://en.wikipedia.org/wiki/OpenERPhttp://en.wikipedia.org/wiki/Affero_General_Public_Licensehttp://en.wikipedia.org/wiki/Phreedomhttp://en.wikipedia.org/wiki/GPL#Version_3http://en.wikipedia.org/wiki/Postbookshttp://en.wikipedia.org/wiki/CPALhttp://en.wikipedia.org/wiki/XTuplehttp://en.wikipedia.org/wiki/Qt_(framework)http://en.wikipedia.org/wiki/SQL-Ledgerhttp://en.wikipedia.org/wiki/SQL-Ledgerhttp://en.wikipedia.org/wiki/GPLhttp://en.wikipedia.org/wiki/Trytonhttp://en.wikipedia.org/wiki/GPL#Version_3http://en.wikipedia.org/wiki/WebERPhttp://en.wikipedia.org/wiki/GPL#Version_2http://en.wikipedia.org/wiki/LAMP_(software_bundle)http://en.wikipedia.org/wiki/Kuali_Foundationhttp://en.wikipedia.org/wiki/Kuali_Foundationhttp://en.wikipedia.org/wiki/Educational_Community_Licensehttp://en.wikipedia.org/wiki/LedgerSMBhttp://en.wikipedia.org/wiki/LedgerSMBhttp://en.wikipedia.org/wiki/GPLhttp://en.wikipedia.org/wiki/OFBizhttp://en.wikipedia.org/wiki/Apache_Licensehttp://en.wikipedia.org/wiki/Openbravohttp://en.wikipedia.org/wiki/OpenERPhttp://en.wikipedia.org/wiki/Affero_General_Public_Licensehttp://en.wikipedia.org/wiki/Phreedomhttp://en.wikipedia.org/wiki/GPL#Version_3http://en.wikipedia.org/wiki/Postbookshttp://en.wikipedia.org/wiki/CPALhttp://en.wikipedia.org/wiki/XTuplehttp://en.wikipedia.org/wiki/Qt_(framework)http://en.wikipedia.org/wiki/SQL-Ledgerhttp://en.wikipedia.org/wiki/SQL-Ledgerhttp://en.wikipedia.org/wiki/GPLhttp://en.wikipedia.org/wiki/Trytonhttp://en.wikipedia.org/wiki/GPL#Version_3http://en.wikipedia.org/wiki/WebERPhttp://en.wikipedia.org/wiki/GPL#Version_2http://en.wikipedia.org/wiki/LAMP_(software_bundle)
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    Next generation

    ERP strategies

    & ali!ation

    QEarly on" the ERP philosophy was to ma%e

    sure your business wor%ed around the

    software" but I donCt thin% that model was

    very successful"Q says /rad -anning" I&

    at 'ua%er hemical" a onshohoc%en" Pa."

    chemicals manufacturer. Q$he evolution of

    ERP is to move toward being more fle+ible

    and dynamic so you can configure the

    systems around your business.Q

    ERP II

    ERP II is regarded as the ne+t generation5

    of ERP (enterprise resource planning) and

    offers several advantages over traditional

    ERP systems. ERP systems have historically

    been mostly limited to 3inance and

    *dministration" primarily serving logistics"

    supply chain" and warehousing functions.

    ERP II e+pands the scope of ERP to offer

    solutions for a broader range of industries

    and sectors. *n ERP II solution offers

    greater fle+ibility in the integration of

    functions between departments and even

    industries. *nd" generally spea%ing" an ERP

    II system is a much more Beb,friendly5

    application that ma%es better use of the

    Internet" especially as a means for support.

    ERP II encourages user participation"

    facilitating interaction between customers

    and vendors" which effectively eliminates

    the difficulties that resulted from limited

    communication. ERP II evolved from its

    predecessor. It originated due to ERPCs

    failure. $he contribution of ERP in

    redefining enterprise operations is still

    significant but not enough. ;ence ERP II

    has been devised to overcome the drawbac%s

    of ERP. $hey have been devised by wor%ing

    on the wea%ness and disadvantages of ERP.

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    $he comparative study of ERP II and ERP

    shows that it overplays its successor in all

    areas. $he significant advancement ma%es

    one call into question if ERP II will

    completely replace ERP from the mar%et

    entirely as users become more and more

    informed and less impressed with the well

    recogni#ed logo6s that have come to

    symboli#e endless customi#ation" ris% and

    rigidity.

    ERP iii "the ne't

    generation of Enterprise

    Resource Panning$

    $his will encompass the integration of social

    media with new mar%etplace intelligence

    and analytics into the ERP ii enterprise.

    Bith a very simply hub and spo%e5 idea"

    the enterprise will constitute the hub5 and

    the e+tended supply chain vendors"

    engineers" and designers" together with

    customers and mar%et analysis as some of

    the spo%es.5 $his will be enabled by the

    ERP application that is e+tended with

    collaboration and social media tools. $he

    ERP" ERP ii" and ERP iii functions will all

    be integrated with new analytics and smart

    source5 search methods to integrate and

    synthesi#e trend" mar%et" and product or

    service information. $his will close the loop

    on the ERP ii innovation and will bring a

    new customer focused business paradigm

    into the enterprise that goes far beyond

    today6s R- applications.

    ERP iii state companies will be mar%etplace

    disrupters who are agile" nimble" and

    global. $hey will be able to spot emerging

    trends and unmet customer demands (needs

    or wants) far more quic%ly and with greater

    ability than their peers. 3rom those trends

    and customer needs these companies will be

    able to quic%ly e+ecute innovation programs

    to develop new products and services to

    quic%ly fill those customer demands. $he

    most advanced of these new disruptive

    innovators5 will be the companies who can

    intelligently synthesi#e all of the various

    data points to understand customer demands

    that are not even articulated.

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    MaterialsResour!ePlanning

    Unlike many other approaches and

    techniques, material requirements planning

    works which is its best recommendation.

    Goseph &rlic%y" 14

    'escri$tion

    -aterial Requirements Planning is a time

    phased priority,planning technique that

    calculates material requirements and

    schedules supply to meet demand across all

    products and parts in one or more plants.

    !hat is Material Reuirements

    Planning* %ey question to a -RP process is the number

    of times a company replenishes (or turns

    around) inventory within a year. $here are

    accounts of inventory annual turnover ratios of

    greater than 100" mainly reported by Gapanese

    companies. &ne can readily reali#e that the a

    high inventory ratio is li%ely to be conducive to

    lowering production cost since less capital is

    tied up to unused inventory.

    It is information system that translatesmaster schedule requirements for finished

    products into time,phased requirements for

    subassemblies" parts and raw materials.

    In$uts to the MRP

    S /ill of -aterials (/&-)

    S $he -aster Production chedule (-P)

    S Inventory record

    %ut$uts from the MRP

    S E+ported orders reports

    S Planned orders reports

    S &rder releases

    "ill of Materials ("%M)

    * record of all the components of an item"

    the parent,component relationships" and

    usage quantities derived from engineering

    and process designs.

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    *he Master Production Schedule (MPS)

    * detailed plan that states how many E


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