In the 1980\'s cutting edge technology was MRP (Materials Requirements Planning)
ID: 467144 • Letter: I
Question
In the 1980's cutting edge technology was MRP (Materials Requirements Planning). It used "netting" of inventory with supplier lead times to to develop a computer-based schedule of purchase orders that streamlined purchasing and materials management. In the 1990's manufacturing industry moved up to MRP II (Materials Resource Planning) which included MRP and people and machine resource scheduling to develop an integrated manufacturing plan. In the 21st century it is all ERP which does all that MRP II can do and communicate the information to the enterprise, integrating the working of all departments within the organization. This integration moves away from the manufacturing environment and makes it possible to use ERP in any organization. Thus, Toyota can use SAP (one ERP leader) for manufacturing near LA, and Towson University can use PeopleSoft (another ERP leader, now Oracle) near Baltimore.
Think of what you can do on PeopleSoft. PeopleSoft manages your enrollment in classes in all its aspects, i.e. putting you on the class roster, managing accounts, transmitting grades, and managing grades till graduation and beyond. It does a lot more, e.g. managing budgets and accounts for departments and administration, managing schedules of construction projects, etc. Discuss how this integration benefits an organization and how it would contribute towards competitive advantage for a business.
The single largest disadvantage of ERP is the cost of acquisition and maintenance of the system and the infrastructure needed to support the system. A new approach to bypass this disadvantage and make ERP available to small businesses and startups is Cloud Computing, where the ERP system is in the cloud and all you need is a subscription. Discuss how you would take advantage of this if you were to start a small business. What would bother you? Remember that the Cloud is everything. You have no control.
Explanation / Answer
Discuss how integration of MRP with ERP benefits an organization and how it would contribute towards competitive advantage for a business.
The integration of MRP with ERP has helped business to many folds by improving the visibility and better reach. Some of the key advantages are listed below:
Discuss how you would take advantage of ERP + cloud if you were to start a small business. What would bother you?
Now with new technology coming in place many of the ERP disadvantages like (higher cost, customization, and migration) can be reduced in great extent.
As a small business the biggest challenge firm can face is:
I hope your question is addressed satisfactorily.