Answer to Question 1(a): MRP stands for Manufacturing Resource PLanning which incorporates the following tasks like identifying stocks, the time to achieve the stocks from the suppliers, calculation of stock levels, calculation of order quanitites, production of purchase orders in the right amounts etc. The evolution of manufacturing system shows the reordering of stocks by using a re-order point to systems which accepted production schedules to meet the needs of the customers. However, the previous manufacturing systems also had some big problems like lack of integration between production planning, sales, purchasing and accounting etc. Production must meet the demands of expected sales levels. Otheriwse, there might not be enough inventories to meet those demands. ERP, on the other hand, integrates the business processes and realign the supply chain so that the customers’ can easily access the needed information about their desired products and services. ERP systems incorporates the supply chain and the manufacturers are able to sell products straight to the customers. Regarding the matter of accepting an ERP system by a non-manufacturing company, it can adopt an ERP system because ERP system’s revolutionized the business processes and most of the processes has been automated and can be easily done without the need manufacturing resource planning. Since, it is a non-manufacturing company we are talking about, most of the processes like finance, marketing, human resources can be done by the ERP system with integrated modules which involves very less manufacturing processes. The ERP system can adapt with the business processes of the company and realign the tasks without any major changes within the system.
Answer to Question 1(b): We can see from the history of manufacturing system that they were created to help high-volume production of products. These manufacturing systems used huge databases and they were created to implement production plans to meet demands. HOwever, if production were over produced then the excessive inventories were a problem. HOwever, in the later years, the manufacturing system changed. Suppliers had to create new products and services to meet the customer’s expectations. Manufacturing Execution Systems (MES) were invented to provide continuous feedback and management over manufcaturing processes in order to estimate the chanmging market needs. MES offered parts to manage machine resources, to increase prosduction schedules, to control workforce, to control labor and to automate documentation flow. In the ’90s, ERP systems were invented to incor[porate manufacturing processes with other busines processes. ERP ssytems control the processes across the supply chain in order to meet the customer’s need for information about products and services. So, we can say that, manufacturing systems have been the basis for ERP systems.
Answer to Question 3:
- HUman Resources is related to Production Planning and Material MAnagement because organizations hire people to organiza tasks in the production planning. People work together in the production process and at different areas to meet the deadlines of gthe customer’s and to ensure that the products are delivered on time. THey are also heplful in Material Management because they have to make the recipe of materials neede to make products which is also known as BOM (Bill of Materials). ALso, they have to calculate stock levels, order quantities, purchase orders etc.
- Sales and Distribution is related because Production has access to sales estimation. So, people can determine how much sale has been made and how much are the expectations.
- Financial Accounting is related because purchasing maintains seller’s data which are categorized jointly with Finaancial Accounting.
