Introduction to Enterprise Resource Management

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1. ERP systems can be compared to the “fly-by-wire” operation of an aircraft. 2. ERP systems lead to significant cost savings by continuously monitoring the organizational health. 3. ERP systems have been evolved from Manufacturing Planning (MRP) systems of the 1970s and the material Resources Planning (MRP II) systems of the 1980s. 4. Since ERP implements the organizational processes, it is necessary to re-engineer the business process before introducing ERP. 5. ERP is a high-end-mission-critical application with significant investment in hardware and software. 6. Introduction of ERP software would need mostly customization rather than software building. 7. The skills for customization are more process-oriented rather than IT/ARE skill based. 8. Top Management commitment is not a critical success factor in ERP implementation. 9. Top Management commitment does not address the issue of empowering people to usher in changes. 10. ERP is coordination only between the hardware vendor and the consultant. ( 11. ERP solutions use technology to address business issues, at the same time striving to keep technology transparent to the users. 12. The very first step in implementation is mapping of the current business processes to the ERP solutions and arriving at the “to be” model. 13. ERP cannot help organizations in addressing needs like reduced cycle time, reduced inventories and sharing information seamlessly across the organization. 14. ERP provides the means to optimize the organizational resources. 15. ERP as it exists today, acts as the link between supply chain and the demand chain. 16. ERP is not a production-oriented information system.

17. ERP is the latest enhancement of MRP II with the added functionality of Finance, distribution and Human Resources Development, integrated to handle the global business needs of an integrated and networked enterprise. 18. ERP is supposed to provide timely and accurate production oriented information for long range planning and...
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