Comparison of the ERP with traditional information systems

Comparison of the ERP with traditional information systems

Enterprise resource planning software helps integrate management, staff, and equipment, combining all aspects of the business into one system in order to facilitate every element of the manufacturing process. ERP groups traditional company and management functions (such as accounting, human resources, manufacturing management, and customer relationship management) into a coherent whole. Manufacturing management also includes inventory, purchasing, and quality and sales management.
ERP goes ahead of technological tools. The system connects to all the offices of a group of Business throughout the entire world. This program allows the companies to design products with the entrance of engineers all over the globe, installing factories in various areas to produce pieces and components for many countries, and the information of all the parties involved.
The traditional systems are limited to planning the assignment of the resources for one industrial plant or company, while ERP plans the resources for all the sectors of an enterprise. ERP can also apply to specific services related to the business.
Is it known that a traditional enterprise bases its manufacturing processes with four pillars: the material, machines, manpower and money. The present needs count another resource as indispensable for manufacturing: the information to manage the rest of the resources. ERP takes into account this new resource and includes the main files of planning and transactions.
The master files contain details or routes, processes, accountancy, personnel, inventory, etc. The planning files include the production plan, the requirements of demand planning, master plans of production, request of material planning and capacity planning. Finally, the transaction files bring together the information regarding the operations like client orders, purchasing orders, working orders, among others.