What is an ERP?
Today we are in an era in which information is generated every second instantly in all organizations and at each of their levels, in the business environment, having the necessary information at hand could mean a profit or a monetary loss, through the last decades, business resource planning systems have appeared and evolved to help in this sector, better known as ERP, they are a type of software that allows companies to control the information that is generated in each department and each level of it.
The purpose of ERPs is to INTEGRATE departments, where before there was a specialized information system for each organ of the company, ERPs are capable of generating a clean database, where information is managed in real time and can be obtain the required data at the time you want.
How does an ERP work?
Like any software, it works on the basis of a programming platform, followed by the management of an endless number of databases corresponding to the different departments to be integrated. ERP systems are organized through MODULES, which are connected to different databases, depending on what is required for each department, there are 2 types of ERP, proprietary and open source, proprietary ones are made by for-profit companies that sell their software and implement them to companies that request it at a high cost, to be able to use them you need obtain a license plus the cost of implementing the software in the company. Unlike open source ERPs, these are made by communities of programmers who, without profit, distribute their ERPs at no cost, although this does not mean that it is completely free, since the implementation generates a cost in the company and It is necessary for a trained person to do it (known as "partners").
The hardest work of an ERP is its development, although there are the same ERP's for different companies, it does not mean that they perform the same functions, this happens because each company is different and therefore needs a personalized development of the different modules that the company uses the most. The second step of ERP is the integration of the same within the company, there are really very few companies that manage to integrate these systems from the beginning of it, that is why the implementation lasts longer than expected, but the true success of the ERP is based on the following, once the system has been correctly implemented, the development of new modules, departments and systems is much easier, as is the case of companies where their products, sales areas, supplies, etc. are constantly changing.
Advantages of ERP
As mentioned above, the main advantage of ERPs is the real-time management of information, an advantage that companies greatly appreciate for its strong interaction with information and product logistics, the supply chain, financial statistics, and other areas that use constantly changing information.
The correct implementation of ERP results in increased productivity of all departments, as well as better use of time, where before it was needed time to take a report from one department to another, now that time is used in other functions.
Disadvantages of ERP
Although ERP systems can generate an increase in productivity, for many companies it is almost impossible to pay the cost of licenses, implementation and especially its maintenance, since they are dynamic systems, it is useless to have the same system in a company that grows and changes day by day.
In addition to the cost, the time suggested for implementation is a problem for companies, this problem begins with the rigidity of ERPs, it is difficult for a particular company to develop its own system, ERPs that are generic systems have to be adapted to companies from their main structure.
The management of the ERP has its disadvantages, it is necessary to instruct the workers of each module that is going to be assigned, the specialization of the workers generates a cost and time that the person has to use to make a change in their operating structure, unfortunately the resistance to change presents a very big problem at this point.
Relationship with Planning in Process
The flow of information within ERPs can influence production decisions within a day, week or year, since information and statistics are always at hand, and production is based on the amount of inputs with which it is used. account, ERP efficiently manage inputs, through information logistics you can have what you want when you need it and produce what you want.
Within process planning, ERPs have their greatest influence on the management of manufacturing and production databases, depending on the company and the modules, they are sufficiently capable of creating data estimation environments and saving the information that is need in these departments.
