ERP

• ERP - enterprise resource planning

Intro

• how a typical business works
  • first customer talks with -> sales department
  • sales department -> asks from inventory department for the information on product
  • if not available -> asks form production planning for the products
  • the production planning -> asks from inventory management if raw material is available
  • if not available -> asks for the vendors to provide the raw material
  • then it provides shop floor execution with the details for the products to be made
  • shop floor execution asks for the hr department if they need more team members
  • in the end
    • all the department report to the finance department for their expenses and sales
• that means a business have different business units, and each of them have their responsibility, and they all share some data.
• how erp helps here
  • it helps to maintain all the data ans transaction which takes place

Types

• ERP are of two types
  • decentralized
  • centralized

Decentralized

• here data is stored locally at each instance
• data duplication takes place
• more data maintenance cost
• easy to setup
• nod good for business, as it leads to multiple points of failure

e.g.

• customer comes with queries about a product

  • sales teams forward the query to inventory team
  • this takes time
  • customer leaves for another business

• customer asks for some products

  • while creating products data inconsistency takes place
  • wrong information may be shared
  • this leads to more loss

Centralized

• data is stored in central location and shared between the departments
  • each bu (business unit) has certain level of access over the data.
• data is shared in real time so everyone get update data.