Enterprise Resource Planning

Definition

Enterprise Resource Planning. (ERP) It is the extension of the Manufacturing Resource Planning II to the remaining functions in the organization, such as engineering, finance, and personnel administration and management.

It consists of a software package with a single data model that facilitates the horizontal and vertical integration of all inter-organizational processes and improves process efficiency. It supports the monitoring of processes through special key performance (or process) indicators (KPIs) according to quality, economic values, service levels, and timeliness.

Some components of an ERP are accounting,industrial accounting, payrolls, sourcing, warehouse management, production, project control, sales, distribution, and facility maintenance.