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ERP Perspective
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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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