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Definition
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ERP - is an attempt to apply the rigid discipline of MRP (Manufacturing Resource Planning) to the entire enterprise and also to non-manufacturing organizations. ERP, therefore is an industry term for the broad set of activities supported by multi-module application software that help businesses manage the majority of activities that make up their business as a unified whole. These activities include product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders. ERP promises one database, one application, and one user interface for the entire enterprise, where once disparate systems ruled. Taking information from every function it is a tool that assists employees and managers plan, monitor and control the entire business. A modern ERP (or, in the case of manufacturing, the MRP-II component) system enhances manufacturers' ability to accurately schedule production, fully utilize capacity, reduce inventory, and meet promised shipping dates.
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