The erp system contains all corporate information. ERP systems: what is it in simple words, the pros and cons of ERP, an overview

07.02.2022

Translated from English, Enterprise Resource Planning (ERP) means "enterprise resource management". The ERP system is designed to plan the company's resources needed in production, procurement and sales.

The principle of operation of the ERP system is based on the creation, filling and use of a single database, which includes information necessary for all departments of the enterprise: accounting, supply departments, personnel, etc.

The functionality of ERP systems differs, however, there are functions that are common for all software products:

1. Development of plans for production, sales.
2. Maintenance of technological specifications that provide for the operations and resources necessary for the production of a particular product.
3. Determining and planning the needs for the production of components and materials, costs and deadlines for the implementation of the plan.
4. Purchasing and inventory management.
5. Managing production resources at various scales: from an enterprise or a separate workshop to a specific machine.
6. Financial management of the enterprise, management, accounting and tax accounting.
7. Project management.

Compared to other software solutions, an ERP system has a number of advantages:

Creation of a unified information environment that greatly facilitates and optimizes the work of departments and management.
The ability to distribute access rights between employees of any departments, from the head to the junior manager of the sales department.
Availability of a wide range of solutions for organizations of various types and sizes.
Ability to manage multiple divisions, enterprises, concerns, corporations.
Compatible with various software products and platforms, high reliability, flexibility, scalability.
Possibility of integration with the systems and applications already used at the enterprise, in particular, with systems of automation of design, management technological processes, sales, document management.

Along with other systems that automate production, ERP greatly simplifies the process of enterprise management, resource allocation and sales planning.

When do you need an ERP system?

At the first stages of the company's existence, there are no special needs for automation: all documents are developed using conventional office programs, and in order to receive this or that information, the manager just needs to call the employee. Gradually, the number of documents, the number of employees, the volume of operations is growing, and there is a need to create storages and systematize data.

In an enterprise operating without ERP, all documents are often stored haphazardly, which greatly complicates management. There are also cases when some systems are still installed, but they work exclusively for a specific department.

Accounting, personnel, supply and other departments have their own databases, the workflow between which is difficult. This directly affects the efficiency of work: in order to find out this or that information in the personnel department, the accountant has to make a request by e-mail or call the personnel officer.

It is impossible to achieve effective management, optimization of resources of the entire enterprise and, finally, an increase in the productivity of various departments in such conditions.

ERP system - optimal choice for enterprises of any scale, groups of companies, firms with geographically distributed branches.
ERP system:

Significantly speeds up document flow between departments
allows an employee with certain rights to get instant access to information
makes it possible to effectively manage the work of remote branches and employees.

Also, various accounting programs are often offered as alternatives, created exclusively for the formation of financial and tax reporting.

Distinguishing ERP from other systems is quite simple. ERP system:

integrates databases and tasks of ALL departments of the enterprise: from accounting and customer service to production and logistics;
can help in the performance of any tasks of the enterprise;
allows you to create a single information environment.

The main task of an ERP system is to optimize the management of ALL enterprise resources, regardless of the form in which they are presented. This is a single system that includes solutions for accounting, engineering department, supply department, personnel, warehouse, etc.

Such different ERPs

At the moment, there are two main concepts of ERP-systems. These are ERP and ERP II.

The first is understood as software that allows you to organize the work of an enterprise of any type and covers all production processes.

ERP II is a specialized management system that takes into account the key features of an enterprise. It is developed taking into account the tasks that need to be solved by a company of a certain size, type of activity, form.

There is a huge number of ready-made software developments specializing in small firms, manufacturing enterprises, companies operating in the service sector, trade organizations etc. There are ERP systems designed for one standard enterprise, a company with geographically remote branches, and even a multinational company.

ERP systems may have different structure. In particular, recently cloud ERP has gained the most popularity - more convenient, scalable and easy to use for medium and small businesses.

How to avoid unnecessary costs for an ERP system with the online program Class365

The implementation of a full-function ERP system in small and medium-sized businesses may not be cost-effective, both because of the high cost and the long implementation period.

You can automate the processes of a small company and avoid high costs using the Class365 online program. The online service allows you to automate the work of the warehouse, retail outlets, customer relationships. In the program, you will also be able to manage all financial flows. This solution is optimal for wholesale and retail trade enterprises, companies providing services, engaged in online sales.

The online solution is beneficial for the manager, since he does not need to additionally train the staff. The program, despite the wide functionality, is surprisingly simple and employees can master it on their own in no more than 15 minutes. In addition, the company does not have to squeeze into a tight budget to purchase a standard licensed application.

The concept of ERP introduced by analyst Gartner Lee Wylie in 1990 in a study on the development of MRP II. Wiley predicted the emergence of replicable multi-user systems that provide balanced management of all resources of the organization, not only related to the main activity of the manufacturing enterprise, but also combining data on production, purchasing, sales, finance, personnel through a common data model. In the early 1990s, the concept gained prominence through the support of manufacturers of applied software.

Thus, ERP - Enterprise Resource Planning(English) - Information system, created to process business transactions (business processes), the use of which helps to increase the competitive advantages of the company. In a broader sense, an ERP system is understood as a methodology for effective planning and management of company resources.

If in the early 1990s ERP systems were implemented primarily in industry, and, as solutions that implement MRP II as a component, by machine-building enterprises, then in the second half of the 1990s, the use of ERP systems became widespread in the service sector. , including telecommunication enterprises, power supply companies, and even authorities state power and non-profit organizations. By the same time, due to the rapid growth in the number of modules in ERP systems and their functionality, the idea of ERP systems as a comprehensive software for organizations, fundamentally replacing all other application programs, was replaced by the early 2000s with the allocation of such functions as CRM and PLM into software packages separate from ERP and outlining the scope of ERP as universal systems for back office processes and resource management.

As a characteristic feature of an ERP strategy there is a fundamental approach to the use of a single transactional system for the vast majority of operations and business processes of the organization, regardless of the functional and territorial fragmentation of the places of their occurrence and passage, the obligation to bring all operations into a single database for subsequent processing and obtaining balanced plans in real time.

Replicability, that is, the ability to apply the same software package for different organizations (possibly with different settings and extensions), appears as one of the prerequisites for an ERP system. One of the reasons for the widespread use of replicated ERP systems instead of custom development is the possibility of introducing best practices through business process reengineering according to the solutions applied in the ERP system. However, there are also references to integrated systems developed for a particular organization to order as ERP systems.

The need for a comprehensive application of the ERP system in geographically distributed organizations requires the support of multiple currencies and languages in a single system. Moreover, the need to maintain multiple organizational units (several legal entities, several enterprises), several different charts of accounts, accounting policies, various taxation schemes in a single copy of the system is necessary condition for use in holdings, TNCs and other distribution companies.

Applicability across industries imposes on ERP systems, on the one hand, the requirements for universality, on the other hand, support for extensibility by industry specifics. The main large systems include ready-made specialized modules and extensions for various industries (specialized solutions are known within the framework of ERP systems for machine-building and manufacturing industries, mining enterprises, retail, distribution, banks, financial institutions and insurance companies, telecommunication companies, energy companies, organizations of the sector government controlled, education, medicine and other industries).

Capabilities and functions of ERP-systems.

Enterprise resource planning processes are cross-functional, pushing the firm beyond traditional, functional, and local boundaries. In addition, various business processes of an enterprise are often interconnected. Moreover, data previously located on various heterogeneous systems is now integrated into single system.

ERP systems use "best practices".

Enterprise resource planning systems have incorporated more than a thousand better ways organization of business processes. These best practices can be used to improve the performance of firms. The selection and implementation of ERP systems requires the implementation of such best practices.

ERP systems make organizational standardization possible.

Enterprise resource planning systems enable organizational standardization across geographically separated divisions. As a result, departments with non-standard processes can be made the same as other departments with effective processes. Moreover, the firm may be brought before outside world as a single organization. Instead of receiving different documents when a firm deals with different branches or enterprises of a given company, this company can be presented to the world in the form of a single common image, which leads to an improvement in its image.

ERP systems eliminate information asymmetry.

Enterprise resource planning systems put all information into the same master database, eliminating numerous information inconsistencies. This leads to several results. First, it provides increased control. If one of the users does not do his job, the other sees that something has not been done. Secondly, access to information is opened for those who need it; ideally, improved information for decision making is provided. Thirdly, information ceases to be the subject of mediation, as it becomes available to both management and employees of the company. Fourth, the organization can become "flat": since information is widely available, there is no need for additional low-value employees whose main activity is preparing information for distribution to the management and employees of the company.

- ERP-systems provide information in real time. In traditional systems a large number of information is recorded on paper and then transferred to another part of the organization, where it is either re-arranged (usually aggregated) or transferred to a computer format. With ERP systems, a large amount of information is collected from the source and placed directly on the computer. As a result, the information immediately becomes available to others.
- ERP systems provide simultaneous access to the same data for planning and control.

Enterprise resource planning systems use a single database, where most of information is entered once and only once. Because the data is available in real time, virtually all users in an organization have access to the same information for planning and control. This can lead to more consistent planning and management than traditional systems.

ERP systems facilitate communication and collaboration within an organization.

Enterprise resource planning systems also facilitate communication and collaboration within an organization (between different functional and geographically separated divisions). The presence of interrelated processes brings functional and geographically separated units to interaction and cooperation. Process standardization also encourages collaboration, as there is less conflict between processes. In addition, a single database facilitates collaboration by providing each geographically separated and functional unit with the information they need.

ERP systems facilitate interaction and collaboration between organizations.

The ERP system provides an information highway for organizing interaction and cooperation with other organizations. Firms are increasingly opening their databases to partners to facilitate procurement and other activities. For this system to work, a single archive is needed that partners can use; and ERP systems can be used to facilitate such exchanges.

Most modern ERP systems are built on a modular basis, which gives the customer the opportunity to select and implement only those modules that he really needs. Modules of different ERP-systems may differ both in name and content. However, there is a certain set of functions that can be considered typical for ERP class software products. Such typical functions are:

Maintaining design and technological specifications. Such specifications define the composition of the final product, as well as the material resources and operations necessary for its manufacture (including routing);
Demand management and formation of sales and production plans. These functions are intended for demand forecasting and production planning;
planning of material requirements. Allows you to determine the volume various kinds material resources (raw materials, materials, components) necessary to fulfill the production plan, as well as delivery times, batch sizes, etc.;
management of stocks and purchasing activities>. They allow organizing the maintenance of contracts, implementing a scheme of centralized purchases, ensuring accounting and optimization of warehouse stocks, etc.;
planning of production capacities. This function allows you to control the availability of available capacities and plan their loading. Includes advanced capacity planning (to assess the feasibility of production plans) and more detailed planning, down to individual work centers;
financial functions. This group includes the functions of financial accounting, management accounting, as well as operational financial management;
project management functions. Provide planning for project tasks and the resources needed to implement them.

The structure and main functions of ERP systems are also clearly shown in the figure. (Fig. 1)

Fig.1

The main features of ERP-systems can be represented as four blocks: planning, accounting, analysis, management.

Planning. Planning the activities of the enterprise at various levels means:

· Develop a sales program.
· Carry out production planning (a refined and approved sales program is the basis of the production plan, the integration of these plans data greatly facilitates the production planning process and ensures their inseparable connection).
· Form the main production schedule (detailed operational production plan, on the basis of which the planning and management of purchase and production orders is carried out). Build purchasing plans.
· Carry out a preliminary assessment of the feasibility of the formed plans at various planning levels in order to make the necessary corrections or make a decision on attracting additional resources.

Accounting. If the plans have been confirmed, they acquire the status of current plans, and their implementation begins. The previously modeled flow of dependent orders turns into a real one, generating needs for materials, labor resources, capacities and money. Satisfaction of these needs gives rise to accounting activities that ensure prompt registration of direct costs related to manufactured products (material, labor, operating costs in relation to tasks, technological operations, design work, maintenance work), and indirect costs distributed by financial responsibility centers. All operations for registering direct costs are entered, as a rule, in kind of standard consumption (material - in the appropriate units of measurement, labor - time, etc.). To reflect the corresponding financial result, ERP systems offer powerful means financial integration settings that allow automatic conversion of consumed resources into their financial equivalent.

Analysis. Due to the prompt reflection of the results of activities, managerial personnel get the opportunity to carry out real-time comparative characteristic plans and results, and the presence of additional modules for calculating key indicators and building mathematical models greatly simplifies the process of business planning.

Control. Availability of operational information feedback about the state of the control object, as you know, is the basis of any control system. ERP-systems provide this kind of feedback (reliable and operational) information about the status of projects, production, stocks, availability and cash flow, etc., which, as a result, allows you to make informed management decisions.

Thus, we can talk about the extensive naming of the functions and capabilities of ERP systems that allow modern companies to manage their activities efficiently, stably and reliably.

An ERP system is a unified data warehouse that contains all corporate business information and provides simultaneous access to this information for all employees of the enterprise with the appropriate authority. Changing system data occurs through its functions.

The ERP system consists of the following elements:

IT flow management model in the company;
hardware and technical base and means of communications;
software products that automate the management of IT flows;
regulations for the use and development of software products;
IT department.

Functions of ERP systems and issues they solve:

maintaining specifications that determine the composition of manufactured products, as well as the material resources needed for their manufacture;
formation of production and sales plans;
planning the needs for materials and components, volumes and terms of deliveries;
inventory and procurement management (implementation of centralized purchases, maintenance of contracts, accounting and optimization of stocks);
production planning from enlarged planning to the use of equipment and machines;
operational financial management, which includes drawing up a financial plan, as well as monitoring its implementation, management and financial accounting;
project management, which includes planning resources and stages.

The main functions of ERP systems (Fig. 1.2):

1. Maintenance of design and technological specifications that determine the composition of manufactured products, as well as the material resources and operations necessary for its manufacture.

2. Formation of sales and production plans.

3. Planning the needs for materials and components, terms and volumes of deliveries to fulfill the production plan.

4. Inventory and procurement management: maintaining contracts, implementing centralized purchases, ensuring accounting and optimization of warehouse and workshop stocks.

5. Capacity planning: from the strategy of the entire enterprise to plans for the use of individual machines and equipment.

6. Operational financial management, including drawing up a financial plan and monitoring its implementation, financial and management accounting.

Rice. 1.2 Main functions of ERP systems

The main functions of ERP can be divided into technological and functional. The technological functions of ERP are the presence of a three-level system architecture, which includes a database server, an application server and a client part, a single database (or a distributed database with a data replication mechanism), system openness, the use of relational DBMS and CASE tools to create these systems. Technological features include a graphical user interface, but almost all modern systems have this interface.

Functional features include:

· automation of production resources management;

automation of supply chain management;

· automation of advanced volume-calendar planning;

automation of technological documentation management;

automation of final resource planning;

automation of customer relationship management;

· business analytics;

· system configuration.

1.3 Enterprise resource planning system modules

Enterprise resource planning systems can provide a wide variety of functionality using what are often referred to as "modules" components. The modular principle of the organization allows the implementation of ERP systems in stages, sequentially putting into operation one or more functional modules, and also choosing only those that are relevant to the organization. In addition, the modularity of ERP-systems allows you to build solutions based on several ERP-systems, choosing from each best-in-class module (English best-of-breed). The breakdown of modules and their grouping is different, but most of the main suppliers have groups of modules: finance, personnel, operations.

In the 1990s, solutions for customer service, project management and product lifecycle management were delivered as modules of large ERP systems, but with the rapid development of independent solutions of the CRM, PPM (Project portfolio management) and PLM classes, respectively, these modules were either redesigned as separately delivered products, and, in fact, maintaining continuity within business application packages, they simply ceased to be positioned as part of an ERP product, or were replaced in product lines with separate, specialized solutions.

The following main functional modules are implemented in ERP systems:

1. Sales and production planning. The result of the action of the block is the development of a plan for the production of the main types of products.

2. Demand management. The block is designed to forecast future demand for products, determine the volume of orders that can be offered to the client at a particular point in time, determine the demand of distributors, demand within the enterprise, etc.

3. Enlarged capacity planning. Used to specify production plans and determine the degree of their feasibility.

4. The main production plan (production schedule). Products are determined in final units (products) with the terms of manufacture and quantity.

5. Planning for material requirements. The types of material resources (prefabricated assemblies, finished units, purchased products, raw materials, semi-finished products, etc.) and the specific timing of their delivery to fulfill the plan are determined.

6. Specification of products. Determines the composition of the final product, the material resources necessary for its manufacture, etc. In fact, the specification is the link between the main production plan and the material requirements plan.

7. Planning for capacity requirements. At this stage of planning, production capacities are determined in more detail than at previous levels.

8. Routing / work centers. With the help of this block, both the production capacities of various levels and the routes in accordance with which products are produced are specified.

9. Verification and adjustment of workshop plans for capacity.

10. Management of purchases, stocks, sales.

11. Financial management. In this subsystem, the tasks of managing financial activities are solved. In almost all foreign systems, it includes four subsystems of a deeper level - "General ledger", "Settlements with customers", "Settlements with suppliers", "Fixed assets management". Automation of financial management at the enterprise allows you to:

· enhance financial control by summarizing all financial activities;

· Improve cash flow by ensuring full management of loans and accounts receivable;

Optimize cash management by automating settlements with suppliers;

· Maximize the return on capital investment by ensuring more efficient management of fixed assets, leased property, repair base, capital construction in progress.

12. Cost management (accounting for all costs of the enterprise and costing of finished products or services).

13. Project/program management. In production systems designed to produce complex products, the actual production is one of the stages of the complete production cycle. It is preceded by design, engineering and technological preparation, and the manufactured products are subjected to testing and modification. Complex products are characterized by: a long cycle time, a large number of related enterprises, the complexity of internal and external relations. This implies the need for project management in general and the inclusion of relevant functions in the management system.

14. Personnel management.

Additional ERP modules (APICS standard):

supply chain management - SCM (Supply Chain Management);

· advanced planning and production scheduling - APS (Advanced Planning and Scheduling);

· customer relationship management - CRM (Customer Relationship Management);

e-commerce - EC (Electronic Commerce);

product data management - PDM (Product Data Management) or PLM (Product Lifecycle Management);

· Business Intelligence add-on, which includes tools in the field of intellectual business intelligence (building data warehouses, OLAP, data mining, visualization and reporting) and other modules.

The abbreviation ERP comes from the English expression Enterprise Resource Planning which literally means enterprise resource planning. Theoretically, such a system is a general strategy for the company, which takes into account the following areas:

Management of financial resources - tax reporting, accounting, budget planning;
Human resources management;
Asset Management;
Interaction with partners and accounting for the history of customer transactions.

On the practical side, speaking of ERP business systems, they mean software for automating each of the listed areas, as well as other processes of the company's activities to bring them into a common interconnected database necessary for the operation of the enterprise.

In simple words ERP system They are sets of measures that include: models of information flow management in the enterprise, equipment for its storage and processing, software, IT department and specialists technical support, as well as directly to users.

The structure of the enterprise resource planning IT system

Being a complex software, an ERP system consists of the following elements:

Platform- the main environment (core) that ensures the operation of the program components, as well as the basic functionality (reference information, functions) of the company. This is the basis of the system, without which its work is impossible.
Data management tools- this includes storage on the server, programs for processing information and transferring them for the operation of modules.
Plugins- programs independent of each other that connect to the platform and use the main databases in their work. It is the presence of independent modules that can be disconnected and connected without disturbing the operation of the entire complex that distinguishes ERP systems from other types of software used in automating business processes.

Modules connected to the main platform of the production resource planning system are conventionally divided into three groups:

Internal- programs used within the enterprise, to which employees have access.
External- programs to which clients and partners have access (for example, Personal Area intermediary dropshipper).
Connectors- programs for connecting with other software products that are not part of the ERP system, but used by the company in its activities. They perform data exchange.

Where to get an ERP system for an enterprise

There are three ways to purchase resource planning software:

Creating your own product. It often turns out to be an irrational method, since the lack of a professional approach can lead to a situation where only one direction will be taken into account, which will not give a tangible effect. At the same time, the system introduced in this way, as a rule, is difficult to replace or supplement.
Purchase of a ready-made platform and its implementation in the work of the enterprise. Here you need to do right choice according to the activities of your company. High-quality and well-known products are quite expensive and require constant support from the developer.
Professional development of ERP systems individually for the company. Only 20% of programs created on the domestic market are successfully integrated into the work of enterprises. This means that the company's risk of receiving a low-quality product at an inflated cost is quite large.

How to choose and implement an ERP system

There is no universal resource planning system suitable for all companies. For each production, its most optimal product is selected, which is then adjusted during the implementation process.

Types of ERP systems for enterprises

Classification of enterprise resource planning systems is carried out according to several parameters, the consideration of which will help you in choosing the right product. So, according to their purpose, they can be sectoral and general. The first option is suitable for very large companies, as well as for enterprises that produce a unique product or use non-standard business practices.

By type of organization, systems of the following formats are distinguished:

public- access to the general functionality of the program has many users, but your data is available only to employees of your company.
Private- the program is isolated and can be changed and finalized according to the tasks of the company.
hybrid is a combination of two types.

By type of information storage:

Cloud- databases are located on external servers.
Internal- data is stored on the company's own server.

By user interface format:

Stationary (desktop)- software for connecting to databases is installed on a PC and can work autonomously from the Internet, using only internal communications.
Browser (working only online)- access to the system is carried out through the company's website and the personal account of an employee, client or partner.

By software architecture:

Modular- consist of many components (modules) designed to solve various problems.
Monolithic- uniform complex programs.

By license class for use:

Proprietary- closed software, for the use of which you need to pay for a license.
open source- free open source programs.

Errors in choosing a resource planning system

The wrong choice of ERP enterprise management system will not only entail additional costs, but may also adversely affect the operation of the enterprise. To avoid mistakes, you need to know the main ones:

Lack of a well-chosen and clearly articulated goal. It is important to understand that ERP - should improve the work of the company, adopting positive sides and offset the negative ones. Therefore, when choosing, it is necessary to determine exactly what effect from the implementation should be obtained. If your goal is to optimize the business as a whole, you will not get the desired result. All tasks must be specified in the terms of reference (TOR). At the same time, the system should be adapted to the company, and not vice versa. It is a mistake to completely rebuild a business, especially if it is profitable, under an ERP system.
Wrong choice of methodology for solving tasks. Each ERP system is built for a specific area of business. It can be adapted for the manufacturing sector or exclusively for trade.
One-sided view of system selection. The team of specialists who make up the technical specifications, who select and control the process of implementing the system, should include representatives of various departments of the company (IT, sales, personnel, production). Otherwise, the final product will be chosen from the standpoint of the convenience of only one link of users and will not bring proper efficiency to the enterprise as a whole.
Insufficient qualifications of the developer and specialists implementing the implementation. The process of creating and integrating a resource planning system is expensive and many companies, in an effort to reduce costs, turn to firms with little experience or use free ERP systems, which is quite risky.
Low level of control over the process of integrating the program into the system.
Interface complexity. If the program is too complex to understand intuitively, you may face the problem of having to train your staff on how to use it. It also increases the risk of accidental errors when entering data, which entails incorrect planning and all the ensuing consequences.

What functions should a resource planning system provide

The main tool in business planning that allows you to make a decision is reporting documentation. It is she who is the basis of the work of ERP, which in turn should provide the ability to analyze report data from various positions. Therefore, an effective ERP system should have a number of the following functions:

Providing convenient document flow. The main purpose of ERP systems is to provide quick documentation (invoices, invoices, reports, price lists), as well as subsequent operations with them (search, access, forwarding, editing).
Planning. The algorithm of the system, especially for production, should allow planning payments, deliveries, warehouse operation, seasonal changes, production volumes. For each company, production planning is individual and is tied to a volume-calendar strategy.
Information transparency. The program should record all transactions, parties, volumes and dates of their implementation, which will make the company's work more transparent for analysis.
Access control for different levels . Since the system covers a very large amount of information about the work of the company, most of which must remain closed to lower-level employees, customers and partners, it must allow part of the data to be closed to users with different permissions.
Unified data network. The ERP system should provide the ability to track all processes separately (for example, transactions) at all levels from the purchase of raw materials and production, to the registration of the sale and the payment of tax.
Personnel accounting. The program should provide for the possibility of controlling the number of personnel, planning the schedule of exits and hours worked, taking into account the level of qualifications of employees and scheduling vacations, taking advanced training courses. Also, an effective planning system provides for the possibility of calculating salaries and bonuses, taking into account the form of remuneration.
Work with providers. The functionality of the system should allow you to store and process the database of suppliers, send requests for availability, plan the formation of orders, release working capital and pay bills, control the delivery process, and keep records on purchases.
Work with clients. The system should allow keeping a complete record of data for each client, regardless of how many legal entities are included in the structure of the latter. This implies not only the possibility of allowing the client to work through his own account, but also the storage of data on completed transactions, accounts receivable, supply planning, invoice processing, cooperation history. This allows you to study the demand and the level of profit received from each client.
Service and repair. If we are talking about production, this part of the program should ensure the planning of technical inspection of equipment, the schedule for scheduled repairs, modernization or replacement of enterprise equipment. For trade enterprises, the system should provide for the possibility of accounting for service maintenance of sold goods and repair under warranty.

Features of ERP implementation

The resource planning system operates with databases, which, as a rule, are very numerous. The information itself can be located on various media, including paper documentation, and therefore its transfer to an electronic format is a huge job. The data itself is divided into two groups:

Important- information that is the basis of the enterprise. These are data on the work and management of production, reporting from the sales department and personnel officers. They must be used in the ERP system without fail.
Are common- information that is relevant to a particular company, which is not used by the company constantly, but is also important. This data is added to the system as needed or at the request of the company's management.

The ideal ERP should include the ability to use all types of data, but in practice, to simplify the implementation process, the important ones are taken into account first, and then the common ones are gradually integrated.

Based on what data should be used and the required functionality of the system, a technical task is drawn up. It is an official document (instruction) demonstrating what tasks and goals need to be implemented in the implementation process. On the basis of the TOR, a calendar plan of work on integration is drawn up.

There are three strategies for implementing an enterprise resource planning system:

Step by step integration- first, the main modules are launched into operation (for example, accounting for finance, accounting and document management), and then, after debugging their work, the rest are gradually being introduced. This method is very time consuming and may not show results immediately. It is often used by companies in the independent development of the system.
Integrated implementation- the system is applied immediately in all directions and in full, and then a gradual debugging of work is carried out. This method allows you to quickly integrate an enterprise resource planning system. It is used when buying ready-made software.
Combined method- The introduction of ERP systems occurs immediately in all areas of activity, but in stages. This strategy allows you to minimize the time for implementation with the least loss of quality of work. Most often, this technique is used by private companies offering services for the development of individual software.

How an ERP system works and who needs it

Given the complexity and high cost, the introduction of ERP will be appropriate only for large companies, where the amount of data for accounting is very large and requires systematization. Such systems demonstrate high efficiency for large-scale production, in various corporations and holdings. If the company does not produce a wide range or is engaged in the manufacture of small batches, it does not need such a serious resource planning system, and it will only slow down the process and lead to unjustified losses.

The only exception, according to specialists of consulting agencies, is the use of ERP systems by small companies operating in a very competitive environment, where automation of all processes creates an additional advantage.

To understand whether you need such a system, you need to calculate the economic efficiency of its implementation. It can be determined by various parameters (decrease in stocks, speed of production, reduction in staff, increase in labor productivity), and as a result, for the enterprise itself, it should bring additional profit or, at least, cost reduction.

A Brief Overview of Popular ERPs

Most often, the main ERP systems of companies are finished products, adjusted to the activities of the enterprise. They can be paid and free. With proper implementation, you can achieve efficiency in both cases.

Popular Free Products:

ERPNext- a minimalistic program for the work of a private entrepreneur (IP). The main disadvantage is the limited disk space, which can be increased for an additional fee.
Galaxy ERP- designed for the domestic market and allows you to take into account frequent changes in legislation.

Paid programs:

SAP ERP- one of the most popular systems offering wide functionality and user-friendly interface.
1C:Enterprise- a fairly popular and affordable system that offers a large number of specialized solutions.
OpenBravo ERP- a program for the middle level with convenient scaling and affordable cost.

Advantages and disadvantages of ERP

Most of the shortcomings of ERP systems stem from its basic qualities, since the main problems that companies face when implementing a program are related to making mistakes when deciding whether to use and directly choose software.

Negative aspects of integrating a resource planning system

Despite the fact that the purpose of ERP systems is to improve the process of production activities, they have their drawbacks. Among the latter:

Program complexity and, as a consequence, the high cost of purchase and implementation.
Increased requirements for data storage and processing equipment, including servers for storing backups. It must be reliable and fast, which determines the high cost.
The need for additional data protection, careful control of the security system and setting up an access hierarchy. Storing information in an electronic format, and especially when accessed via a network, increases the risk of the theft or destruction (intentional or accidental) of important documents.
Dependence on the energy supply of the company. If there is a problem with the electrical network in the offices, warehouses or trading floors of the company, the work of the company can completely stop.

Practical advantages of an ERP system

The implementation of strategy and software for accounting and resource planning is effective method to achieve improvements in the work of the company, which has the following advantages:

Ability to integrate into various types of production and quickly adapt to wide range activities of enterprises. The ERP system is suitable for industrial complexes, banking organizations, trade enterprises, service industries.
Support for planning methods in various areas of the company's activities.
Ability to build a virtual enterprise.
High-quality financial accounting for all departments.
The ability to manage corporations with a large number of international divisions and remote employees.
Scalability and flexibility for implementation in enterprises of various sizes.
Ability to work with other programs and applications used in the enterprise.
Integration of data into a single system, which makes it available to multiple departments.

Understanding the features of the ERP system, what it is in simple terms and how to choose for your company, you will be able to prevent yourself from mistakenly buying an expensive product you do not need, choosing the most effective one, you will be able to competently implement it, achieve an increase in efficiency and company profits.