ERP Enterprise Resource Planning
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ERP Enterprise Resource Planning Günther Schuh Forschungsinstitut für Rationalisierung (FIR) e. V, RWTH Aachen, Aachen, Germany
Synonyms PPC (Production Planning and Control)
Definition Enterprise Resource Planning (ERP) The term enterprise resource planning (ERP) sums up the different tasks within a company to plan and control the internal and external resources (capital, personnel, and capital equipment) of a company efficiently. ERP System ERP systems execute these tasks in practice and can therefore be considered the information backbone of the company. In addition to the core of production planning and controlling (PPC), ERP systems integrate all entities (e.g., purchase, finance and controlling, sales) of a company and their corresponding business processes. ERP systems can be defined as business software solutions that consist of several modules such as PPC,
materials planning, accounting, human resource, or logistics. They interact via a central database.
Theory and Application Enterprise Resource Planning for Production Planning and Controlling Order processing includes the entire range of activities which have to be performed by a company during the period between customer request and the delivery of an item. Technical order processing, according to its classic definition, comprises all departments of a company which are directly involved in the fabrication of an item, starting from the placement of an order up to the final assembly of the product. According to the enhanced definition of technical order processing, in addition to the departments of design, operations planning, parts production, and assembly, also the departments which act as a direct interface between customer and company (e.g., sales, distribution, and purchasing) belong to the technical order processing. PPC supports the entire technical order processing from the receipt of a customer request to the delivery of the desired item and has in every field of activity the task to plan and control the process of production on a quantity, time, and capacity basis. The origin of PPC conceptions is represented by the concept of material requirements planning (MRP), which was developed in
# CIRP 2017 The International Academy for Production Engineering et al. (eds.), CIRP Encyclopedia of Production Engineering, DOI 10.1007/978-3-642-35950-7_6673-3
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the middle of the 1960s. In addition to this onesided material-related or rather quantity-related concept, capacity planning combined with the coordination of quantity and capacity was realized in the MRP II concept (MRP II: Management Resources Planning). The MRP II concept (Zäpfel 1994) belongs in its original form to the “traditional” control concepts (Glaser et al. 1992) with which a possibly high utilization of capacities was given special emphasis (Haupt and Nöfer 1994). A hierarchical, backwards scheduled gradual planning concept forms the basis with which the company is divided up into several planning levels. The results of one planning level form in each case the target-input for the subordi
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