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Enterprise Resource Planning (ERP)
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Enterprise resource planning (ERP) is the planning of how business resources (materials, employees, customers etc.) are acquired and moved from one state to another. ERP is a way to integrate the data and processes of an organization into one single system. Usually ERP systems will have many components including hardware and software, in order to achieve integration,

The term ERP originally referred to how a large organization planned to use organizational wide resources. In the past, ERP systems were used in larger more industrial types of companies. However, the use of ERP has changed and is extremely comprehensive, today the term can refer to any type of company, no matter what industry it falls in. In fact, ERP systems are used in almost any type of organization - large or small.

In order for a software system to be considered ERP, it must provide an organization with functionality for two or more systems. While some ERP packages exist that only cover two functions for an organization (QuickBooks: Payroll & Accounting), most ERP systems cover several functions.

An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:

Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.
Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc
Human Resources:Benefits, training, payroll, time and attendance, etc
Supply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.
Projects: Costing, billing, activity management, time and expense, etc.
Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.
Companies have to clearly know what enterprise resource is planning before thinking of implementing them. The catch word of ERP implementation is speed. The faster it is implemented the quicker and better are the advantages and delivery in terms of results. This early process has another hold. The returns are sought at a shorter period. This deviation from the conventional practice has become the order of the day as far as many companies are concerned. Formerly Business process reengineering played a vital role with respect to implementation. It is important to know the components of Enterprise resource planning .Merely defining enterprise resource planning will not help in this. This naturally paved way to development of gaps between the actual results and the one derived during the process of foreseeing.
     
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