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ERP Perspective
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MINI SUMMARY

 

One of the catalysts for the evolution of ERP to extended ERP has been the enhancement of ERP to address the specific needs of various segments of the manufactur­ing industry.

 

Another has been the competition landscape within the manufacturing industry and the adoption of vari­ous philosophies, concepts, and techniques such as the virtual enterprise, time-based competition, mass cus­tomization, and the lean enterprise.

 

Advanced computing technology has played a signifi­cant role in the evolution of extended ERP. Our plan­ning and scheduling capabilities have the potential to be greatly improved through advanced planning systems (APS). Key benefits accruing from APS are greatly re­duced planning cycles, improved consistency in decision-making, and the consideration of constraints formerly beyond our ability to recognize or resolve. The prereq­uisite to securing improvements from APS is a world-class implementation.

Workflow makes possible the connecting of the in­formal administrative processes with the formal pro­cesses managed traditionally within the enterprise's business system. Workflow facilitates business process improvement and time-based competition by eliminat­ing delays in the processing of business requirements. Workflow increases velocity throughout the enterprise. Finally, workflow assists in identifying non-value-added activities and processes operating at less then efficient levels. Workflow can eliminate organization "fat" and is an important tool in achieving "lean en­terprise" status. Unfortunately, most think of workflow as only an underlying messaging technology and imple­ment it as such.

The Internet is an every-person technology. People understand it, it's friendly, and the manufacturing in­dustry is actively pursuing its potential for reducing costs of company-to-company trading and the produc­tivity benefits associated with the human engineering of the Web browser. The Internet is an enabler of time-based competition, the virtual enterprise model and supply chain management.

What we have covered so far in our discussion:

     Extended ERP's evolution

     The major influences driving the evolution to ex­
tended ERP

     How extended ERP relates to concepts and techniques
as advanced planning systems (APS), e-business, sup­
ply chain management, etc.

     What extended ERP really does for the manufactur­
ing enterprise.

To Be Continued

For balance of this article, click on the below link:

Lean Manufacturing Articles and click on Series 13


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