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					ERP System
Explain the concept of ERP is in English Enterprise Resource Planning (ERP) for

ERP system is built on the basis of information technology to the management of
systematic thinking, and staff for business decision-making tools to provide decision
management platform to run. It is from the MRP (Material Requirements Planning)
developed from a new generation of integrated management information system,
which extends the function of MRP, the core idea is to supply chain management. It
jumped out of the traditional enterprise boundaries, the scope of the supply chain to
optimize resources. ERP system focused on information technology and advanced
management ideas in one, a modern enterprise running mode, reflecting the age of the
enterprises to rationally allocate resources to maximize social wealth creation
demands a business survive in the information age, the cornerstone of development. It
is to improve business processes and improve their core competitiveness of the role is
?ERP system, management thought
ERP's core purpose is to achieve effective management of the entire supply
chain, mainly in the following three aspects:

1, reflect the resources of the entire supply chain management thinking

Their own businesses in the knowledge economy's resources alone can not
effectively participate in market competition, business processes must also be in the
Youguan parties to a supplier, manufacturing plants, distribution networks, customer,
should be included in a tight supply chain can effective arrangements for corporate
production, supply, and marketing activities to meet the corporate market using all the
resources the whole society to carry out rapid and efficient production management
needs to further improve efficiency and gain competitive advantage in the market. In
other words, modern business competition is not a single enterprise with a single
inter-firm competition, but an enterprise supply chain and other enterprise supply
chain competition. ERP system implementation of the entire enterprise supply chain
management, to adapt to the enterprise market competition in the knowledge economy

2, reflect the lean production, concurrent engineering and agile manufacturing ideas

ERP system to support mixed mode of production management, their management
thinking in two ways: one is "Lean Production LP (Lean
Production)" idea, it is by the Massachusetts Institute of Technology (MIT)
proposed a kind of business strategy system. The enterprise to organize the mass
production by production, to customers, sales agents, suppliers, cooperative partners
into the production system, companies with their sales agents, customer and supplier
relationships, is no longer simply a business relationship, but the benefit-sharing
partnership, the partnership formed a company's supply chain, which is the
core of Lean thinking. The second is "agile manufacturing"
(Agile Manufacturing) ideas. When the market changes, corporate event specific
market and product demand, business partners may not be able to meet the basic new
product development and production requirements, then, companies will organize a
specific component suppliers and sales channels, the short-term or one-time supply
chain, forming a "virtual factory" to supply and cooperative unit
as an integral part of business, the use of "simultaneous engineering
(SE)", organization of production, with the shortest time to market of new
products and keep product quality, diversity and flexibility, which is "agile
manufacturing" the core idea.

3, reflect the Plan in advance to control the thoughts and events

ERP system in the planning system include: master production scheduling, material
requirements planning, capacity planning, purchase planning, sales execution plans,
profit plans, financial budgets and human resources programs, functions and value of
those plans have been fully integrated into the control functions the whole supply
chain system.

On the other hand, ERP systems by defining the transaction (Transaction) related to
accounting courses and accounting methods for transactions that occurred while in the
automatic generation of accounting entries to ensure that the capital flow and logistics
of simultaneous recording and data consistency . According to financial capital in
order to achieve the status quo can be traced back the origin of funds, and further
trace the occurrence of related business activities, changes in the financial information
lags behind the status of material information, easy to implement things in control and
real-time decisions.

In addition, planning, transaction processing, control and decision-making functions
across the supply chain business processes to implement, requiring each process
business processes to maximize the potential of each person's work and
responsibility, between the processes and procedures stressed that the spirit of
cooperation between people in order to give full play to each organism's
subjective initiative and potential. Enterprise management from the "lofty
style" structure to "flat style" organizational change,
and improving the dynamic changes of market responsiveness.

In short, with the rapid development of IT technology and applications, ERP systems
can be a lot of advanced management ideas into reality applications can be
implemented in a computer software system.
?The core function of ERP
Principle for the initial understanding of ERP is the basis for our understanding of
ERP, the next, in order for everyone to have a perceptual ERP product knowledge, we
will from its function of giving further introduction.

We used to introduce a product for the background of ERP systems, but due to various
manufacturers products, different styles and focus, so its ERP product module
structure quite different. For the first time for readers to understand ERP and
sometimes may find it in the end not figure out which is the real ERP system. So, here
we disregard the actual product, from a business point of view briefly describe the
functions of ERP system structure, that is what ERP can do for the enterprise, it
contains what the module functionality in the end.


ERP is the integration of the enterprise integrated management of all resources,
simply is three business streams: logistics, capital flow, information flow and
management of a comprehensive integrated management information system. It is the
function module to the MRP or MRPII different from the previous module, not only
for the production of enterprise management, and in many other types of enterprises
such as non-manufacturing, public utilities can import ERP enterprise resource
planning and management system .

ERP system features:

? internal management of business applications needed, mainly refer to financial,
logistics, human resources and other core modules.

? logistics management system is based on MRP manufacturing management thought;
FMIS effective implementation of the budget management, business assessment,
management accounting, ABC Cost Absorption methods of modern basic financial
management; human resources management system in organization design, job
management , pay systems and human resources development, also incorporates
advanced concepts.

? ERP system is a company-wide applications, highly integrated systems. Data in a
high degree of sharing between the various business systems, all source data in one
system only enter once, to ensure data consistency.

? the company's internal business processes and management processes are
optimized, the main business processes automated.

? Using the latest computer technology and architecture of the mainstream: B / S,
INTERNET architecture, WINDOWS interface. Able to communicate in places where
you can easily access to the system.
? Integrated, advanced, unity, integrity, openness.

Functional Standards

American computer technology consulting and evaluation group with Gartner Group
ERP functions proposed standards should include four aspects:

1. Beyond the scope of integration MRP Ⅱ

Including quality management; laboratory management; process operations
management; recipe management; product data management; maintenance and
management; control reporting and warehouse management.

2. Support mixed mode manufacturing environment

Including both support for discrete manufacturing environment can support the
process; in accordance with the combination of object-oriented business model,
business process capabilities and international scope of applications.

3. To support dynamic monitoring capabilities to improve business performance

Including the use of control across the enterprise and engineering methods; analog
functions; decision support and analysis for the production and graphics capabilities.

4. Support an open client / server computing environment

Including client / server architecture; graphical user interface (GUI); Computer Aided
Design Engineering (CASE), object-oriented technology; use SQL relational database
query; internal integration of engineering systems, business systems, data acquisition
and external integration ( EDI).

ERP MRP Ⅱ is the transcendence, in essence, ERP is still based on MRP Ⅱ core,
but in the functional and technical but beyond the traditional MRP Ⅱ , it is
client-driven, time-based, for the entire supply chain management enterprise resource

Further, we can manage ideas, software products, management systems give it the
definition of three levels:

1. Proposed by the Garter Group system standard set of enterprise management
system, and its essence is in the MRP II (Manufacturing Resources Planning,
"Manufacturing Resource Planning"), formed the basis for the
further development of the supply chain (Supply Chain) of management thinking;
2. Is the comprehensive application of the client / server systems, relational database
structures, object-oriented technology, graphical user interface, fourth generation
language (4GL), network communications and other information industry results, to
ERP management as the soul of the software product;

3. Is an integrated enterprise management concepts, business processes, basic data,
human resources, computer hardware and software in the enterprise resource
management system.

It is from the MRP (Material Resource Planning) developed from a new generation of
integrated management information system, which extends the function of MRP, the
core idea is to supply chain management, it jumped out of the traditional enterprise
boundaries, the scope of the supply chain to optimize resources, is a new generation
of Web-based information system of economic times. It is to improve business
processes and improve their core competitiveness of the role is obvious. ERP is in the
20th century and early 80s began to emerge. From 90 years to SAP, Oracle,
represented the world's leading ERP products into China, and the rapid
expansion. Then, the country will also have appeared in some early ERP products,
such as open thinking ERP, Lima ERP, and the best ERP and ERP, etc. Brocade.


In business, the general management includes three aspects: production control
(planning, manufacturing), logistics management (distribution, procurement,
inventory management) and financial management (accounting, financial
management). System itself is the integration of these three bodies, they have the
appropriate interfaces between each other, are well integrated together to manage the
enterprise. In addition, with particular mention is that with business to strengthen
human resources management emphasis has been more and more ERP vendors of
human resources management into the ERP system, represents a important part, for
this feature, we will conduct a brief introduction about. Here, we will continue to be a
typical example of the production enterprises to introduce ERP function modules,
according to well-known search the annual report of war and hunting employed erp
lack of talent is in the talent stage, have a good employment prospects.

1, the financial management modules

Enterprises, with clearly defined financial management is extremely important.
Therefore, the ERP program is an integral part of it. ERP financial modules in general
different financial software, as part of ERP system, which the other modules and the
system corresponding interface, integrated with each other, for example: it can be
productive activities, procurement activities, information entered automatically into
account Finance module generates general ledger, financial statements, canceled the
cumbersome process of entering documents, almost entirely replace the traditional
manual before. General financial part of the ERP software is divided into two major
accounting and financial management block.

(A) Accounting

Mainly accounting records, accounting, reflect and analyze the economic activity in
the enterprise funds in the change process and its results. It consists of general ledger,
accounts receivable, accounts payable, cash, fixed assets, multi-currency and other

1, general ledger module

Its function is to deal with bookkeeping certificate enter, registration, export journal, a
breakdown of general and general ledger, preparation of accounting statements. It is
the core of accounting, accounts receivable, accounts payable, fixed asset accounting,
cash management, payroll accounting, multi-currency, and other modules to each
other as the center of its information delivery.

2, accounts receivable module

Refers to the business credit receivable arising as a normal commodity customer
accounts in arrears. It includes invoice management, customer management, payment
management, aging analysis and other functions.

It and the customer orders, invoices, dealing with business linked to the same time,
the event will automatically generate accounting documents, to import general ledger.

3, accounts payable module

Accounts payable accounting in the enterprise to meet the purchase price and other
accounts, which includes the invoice management, supplier management, check
management, and aging analysis. It can and procurement module, inventory module is
fully integrated to replace the cumbersome manual operation in the past.

4, the cash management module

It is mainly the control of inflow and outflow of cash and petty cash accounts and
bank deposits. It includes coins, banknotes, checks, money orders and bank deposit
management. Notes are provided in the ERP maintenance, ticket printing,
maintenance payments, bank list printing, payment check, bank check and check and
cash the check and other features.

In addition, it and the accounts receivable, accounts payable, general ledger and other
modules integration, auto-generated certificate, over into the general ledger.
5, fixed asset accounting module

To complete the changes on the increase or decrease in fixed assets and depreciation
and provision for the distribution of the fund accounting work. It can help managers
understand the current situation of fixed assets, and pass the module to provide a
variety of ways to manage assets and make the appropriate accounting treatment.

Ta specific functions are: Denglu Gudingzichan card Humingxizhang, Jisuan
depreciation, Bianzhibaobiao, Yijizidong Bianzhizhuanzhang Ping Zheng, Bing
Zhuanruzongzhang. It accounts payable, cost, general ledger module integration.

6, multi-currency module

This is to meet the current needs of international business operations, foreign currency
settlement business generated increased demand. Multi-currency enterprise of the
function of the entire financial system to represent a variety of currency and
settlement, and customer orders, inventory management and procurement
management can also use multi-currency transaction management.

Multi-currency and accounts receivable, accounts payable, general ledger, customer
orders, purchasing and other modules have interfaces that can automatically generate
the required data.

7, wage calculation module

Automated clearing wage employees, distribution, accounting and the related accrued
expenses. It can log wages, print the list and various summary reports wages to
calculate the provision for costs associated with wages, an automatic certificate,
import ledger. This module is and the general ledger, cost module integrated.

8, the cost of the module

It will be based on product structure, work centers, processes, procurement and other
information products, the calculation of all costs for cost analysis and planning. Can
also use the standard cost or average cost method, at the site maintenance costs.

(B) Financial Management

Financial management function is mainly based on accounting data, together with
analysis to predict accordingly, management and control activities. It focuses on
financial planning, control, analysis and forecasting:

Financial Plan: According to the preliminary financial analysis to make the next phase
of financial planning, budget.

Financial Analysis: Provides query functionality and data through user-defined
differences between the graphic shows the financial performance assessment, account

Financial decision making: the core of financial management, central decision-making
is to make the funds, including fund raising, running and fund management.

Second, production control and management module

This section is the core of ERP systems, it's the whole business organic
combination of the production process, so companies can effectively reduce inventory
and improve efficiency. Also had scattered in all production processes to
automatically connect, also makes the production process can be coherent, whereas
the production does not appear out of line, delay production delivery time.

Production Control Manager is a program-oriented, advanced production and
management methods. First of all, an enterprise that determines its overall production
plan, go through the system at every level, broken down, and reaches into all
departments to execute. This production is the production department, purchasing
department, etc. Click here to purchase.

1, master production scheduling

It is based on production planning, forecasting and customer order entry to schedule
future products available in each cycle, the type and quantity that will produce plans
into a product plan, the balance of material and capacity needs, accurate to the time,
the number of detailed schedule. Enterprise within a period of time the total activity
arrangement is a stable program, based on production plans, the actual orders and
sales analysis of historical forecast obtained produced.

2, Material Requirements Planning

Production planning decisions in the main production of the final product number,
then under the bill of materials, the entire enterprise to change the number of products
for the required number of parts produced, and the control of existing inventory, the
number of available processing needed , the number of the final purchase amount.
This is true throughout the department in accordance with the plan.

3, capacity requirements planning

It is reached after the initial material requirements planning, all the work centers of
the total work load, work center capacity with the balance resulting from the detailed
work plan, to determine whether the resulting material requirements planning is a
viable business productivity demand plan. Capacity Planning is a short-term, current
plans for practical application.

4, shop floor control

This is a time-varying dynamic work plan is to work all assigned to specific
workshops, further scheduling, job management, job monitoring.

5, manufacturing standards

In the preparation of production plans need a lot of basic information, such basic
information is to create standards, including parts, product structure, processes and
work centers, by a unique identification code in the computer.

a. part code, material resource management, materials for each unique code for

b. bill of materials, the definition of product structure of technical documentation for
the preparation of various programs.

c. process, describe the process steps and product manufacturing and assembly order
of operations. It contains the processing procedures in order to specify the working
procedure of the processing equipment and the required working hours and wage
scales, etc. rated.

d. work center, using the same or similar processes consisting of equipment and labor,
in production scheduling, accounting capabilities, the basic unit of calculation of the

3, Logistics Management

(A) Distribution Management

Sales management plans to begin from product sales, their sales products, sales
regions, sales of our customers a variety of information management and statistics, it
may also sell quantity, value, profit, performance, customer service is roundly
analysis, this In the distribution management module generally has three functions.

1, for customer information management and services

It can build a customer information file, its classified management, and to further
carry out targeted customer service, in order to achieve the most efficient and old
customers to retain, for new customers. Here, with particular referred to the recent
emerging of CRM software, customer relationship management, ERP and it alone will
benefit enterprises Dataizengjia.

2, for the management of sales orders

Is the ERP sales order entry, all production plans are issued and carried out in
accordance with its scheduling of. The sales order management through the entire
production process. It includes:

a. customer credit review and inquiries (customer credit rating, to review order

b. inventory check (to decide whether to delay delivery, partial delivery or substitute
delivery, etc.).

c. Product purchase (for the customer to offer different products).

d. order entry, change and track (order entry, the change of the amendment, and order
tracking analysis).

e. delivery confirmation and delivery processing (decision due date and shipping
arrangements of things).

3, for the sale of Statistics and Analysis

Then the system according to the completion of sales orders, according to statistics
made by the various indicators, such as customer classification statistics, statistics of
sales agents, etc., then these results to actual sales of the company to evaluate the
effect of:

a. Sales Statistics (under the form of sales, products, agents, local, sales staff, amount,
the number of separate statistics).

b. sales analysis (including comparison targets, delivery of orders over the same
period and to quantify the amount of profit and performance to such things as the
corresponding analysis).

c. Customer Service (customer complaint records, cause analysis).

(B) inventory control

Used to control the number of stored materials to ensure the stability of the logistics
support normal production, but minimal occupation of the capital. It is a relevant,
dynamic, and real inventory control system. It can be combined to meet the needs of
the departments, with time and dynamically adjust the inventory, accurately reflect the
inventory status. The function of the system also involves:

a. for all materials in stock, to decide when purchasing orders, delivery and
procurement departments at the same time as purchasing, production department for
production planning basis.

b. Order materials received through quality inspection in storage, the products also
have to pass a test storage.

c. send and receive the daily operational processing of materials.

(C) procurement management

Determine a reasonable volume set, excellent suppliers and maintain the best safety
factor. Readily available to order, acceptance of information, tracking, and pressed for
the outsourcing or outsourcing of processing of materials, to ensure the goods arrive
in time. The establishment of supplier files, using the latest cost information to adjust
the cost of inventory. Specifically:

a. Supplier Information query (query capabilities of suppliers, credit, etc.).

b. reminder goods (for outsourcing or outsourcing of processing of the material to
follow reminders).

c. Procurement and outsourcing processing statistics (statistics, create files,
calculating costs).

d. price analysis (analysis of raw material prices, adjusted inventory costs).

Fourth, human resource management module

Previous ERP systems are basically manufacturing and sales process (supply chain) as
the center. So long to the resources and manufacturing resources as the core resources
management. But in recent years, the human resources within the enterprise, began to
focus more and more enterprises are considered resources of the enterprise. In this
case, human resources management, as an independent module, was added to the
ERP's system, Zhong Lai, and ERP in the finance, production system
composed of a highly efficient, highly integrated system of enterprise resource
systems. It under the traditional personnel management is fundamentally different.

(A) Human resources planning decision support

For business people, organizational structure prepared by a variety of programs,
compare and operation of the simulation, supplemented by an intuitive graphical
assessment, support managers to make a final decision.

Development of job models, including job requirements, promotion paths and training
programs, according to the post of staff qualifications and conditions, the system will
propose a series of training for the staff recommendation, once the institutional
restructuring or job changes, the system will propose a series of posts proposed
changes or promotions.

Analysis of personnel costs, can be past, present and future personnel costs to analyze
and predict, and ERP integration by the environment, provide the basis for the
enterprise cost analysis.

(B) Recruitment Management

Talent is the most important resource. Talents to ensure the competitiveness of
enterprises sustainable. Recruitment system to provide general support from the
following aspects:

a recruitment process management, optimization of the recruitment process, reduce
operational workload;

b on the cost of recruiting scientific management, thereby reducing recruitment costs;

c to select the position of staff employed to provide supplementary information, and
effective human resources to help enterprises tap.

(C) pay accounts

according to the company a regional, cross-sectoral, cross-trades of different pay
structures and processes to develop corresponding salary accounting.

b direct integration with time management, timely updates, staff salaries account for

c back calculation function. Through the integration of other modules, automatically
adjust the salary structure and data requirements.

(D) Work Management

a calendar in accordance with national or local arrangements for the operation of
enterprise time and labor in the work schedule.

b the use of remote attendance system, employees can record actual attendance status
to the host system, and to the staff salary, bonus time data into the payroll system and
cost accounting.

(E) Travel Accounts

System to control applications from the travel, travel reimbursement approval to
travel the entire process. And accounting data through the integration of environment
will lead to go into the financial cost accounting module.

ERP instance

We give a practical example to illustrate what is ERP.

One day at noon, her husband out to call home: "Dear wife, I would like to
take a few colleagues at home to eat you?" (Order intention)

Wife: "Of course, to some people, a few years, wanted to eat

Husband: "6 individuals, we come back around 7:00 to prepare some wine,
duck, tomato scrambled eggs, cold dishes, egg soup ... .... You can see it?"
(Business communication)

Wife: "No problem, I will be ready." (Order confirmation)

His wife to record the menu needs to be done (mps plan), the specific things to
prepare: duck, wine, tomatoes, eggs, spices ... ... (bom BOM), found that it needs: a
duck, 5 bottles of wine, 4 eggs ... ... (bom to expand), scrambled eggs need six eggs,
egg soup need 4 eggs (sharing materials).

Open the refrigerator for one to see (the Treasury), only two eggs (lack of material).

To the free market, his wife: "I ask how to sell eggs?" (Purchase

Hawker: "a 1 yuan, 5 yuan half a dozen, a dozen 9.5 yuan."

His wife: "I only need eight, but this time to buy a dozen."
(Economic bulk purchases)

His wife: "It is a bad, for one." (Acceptance, return materials,

Home, ready to wash mining, chopping, cooking ... ... (process line), kitchen with gas
stove, microwave oven, rice cooker ... ... (work center). Dial feather his wife found
the most time-consuming (the bottleneck process, the key process routes) in the
microwave may be too late to duck myself (capacity planning), so in the downstairs
restaurant to buy ready-made (product outsourcing).

16:00, the phone rang: "Mom, some students want to come home at night
to eat, you help make some preparations." (Emergency Order)

"Well, what you eat, and my father at night there are guests, you want to
eat you with them?"

"Dish I'll leave it, but there must be tomato scrambled eggs, and
adults we do not eat, come back around 6:30." (Can not, and

"Yes, definitely make you satisfied." (Order confirmation)

Eggs has not enough, called a hawker sent. (Emergency procurement)

6:30, all ready to duck yet delivered, hastily called to ask: "I am Lee too,
how the duck is not set sent?" (Procurement Outsourcing single with

"Excuse me, delivery people have gone, it may be congested, will be to the

The doorbell rang. "Mrs. Lee, it is you want the roast duck. Please sign in
on a single word." (Acceptance, storage, switch accounts payable)

6:45, the daughter of the phone: "Mom, I want to bring some friends home
for dinner now can you?" (Oh, it is the intention of an emergency order to
require stock)

"No, ah, daughter, mother today, two tables have been needed to prepare
meals, and time is too late, really sorry, next time say it earlier, must be ready for
you." (Ha ha, this is the use of erp limitations have stable external
environment, have a minimum lead time)

Bid farewell to all the guests, tired of his wife sitting on the sofa said to her husband:
"Honey, we are now very high frequency of family dinner, buy some
kitchen supplies should be the (equipment purchase), the best little longer employed
nanny ( with human resources systems also interface to a). "

Husband: "You call the shots at home, what you need to go get
it." (Through audit)

His wife: "Moreover, recent home spending too much, use your own
money to subsidize it, will you?" (The last is the receivables of the