Enterprise Resource Planning
ERP
(Enterprise Resource Planning)
(Enterprise Resource Planning)
for Material inventory control
( Written by N. R. Jayaraman )
PART – I
The ERP called Enterprise Resource Planning is one of the very useful tools in many organizations to integrate external as well as internal data pertaining to the productive programme of the organization that desires to establish ERP to centralize the databases and functions of every department in a single system.
However the ERP will be very useful tool in respect of Stores inventory and spare parts management in large organizations which has more than one unit in various parts of the country producing the same product with same or similar type of machines. The purpose of ERP is to facilitate the flow of information between the units and to centralize the purchases effectively to have better control on inventory. An properly programmed ERP software can integrate all facets of the operation to give the best available data to the users in all the points of operation. With proper use of ERP, the organizations can decrease their losses and increase their profits.
Even though several reputed firms have developed ready to use ERP software modules, depending on the size of the organization and need, the ERP software modules can be got developed to suit the requirement of the organization. Let us see how the ERP can be more useful in an organization that is engaged in productive activity with same set of machines installed in different locations.
Let us assume for example a printing plant functioning in four locations (A, B, C and D Units) and engaged in the process of printing four to five sets of labels for a mass selling consumer product. Each day the units print around four to five million labels in each unit. Each unit has five to six printing machines supported by many auxiliary machines. There are twenty separate departments that need to be catered with the spare parts, consumables and other items of say one thousand varieties to process the printed material including that of packing. Every year the plant procures several thousand reams of paper, spare parts for the maintenance of the machines, consumables, stationery and other items required for the day to day activities of the press and for the functioning of the organization including the administration.
Can the ERP be made more simpler and effective? The task will not be easy to begin with, but once the dressing is well done, then the system will flow smoothly to meet the requirement. Let us analyze how it can be done, what information can be generated and how it will be useful ?
……..To be continued next week
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