Proceedings

capacity requirements planning (CPR). But computers with reduced capacities didn’t
allow adding in the calculation of CRP equation, variables such as downtime or
maintenance. As a result, each work station was modeled as having infinite capacity
and the planning still remained unclear. The next step was the development of
manufacturing resource planning (MRPII), which integrated business planning, sales,
support activities and other functions, so that they can be coordinated.
In the '90s, each functional department of the company benefited from computer
support. Programs and departments' databases were not connected, repeated
introduction of the same data meant loss of time, data arising from individual
applications were inconsistent and attempts to analyze them only lead to chaos at the
decisions level. In addition, consumers increasingly required reduced delivery times.
All this, combined with the Japanese philosophy of the production process, have led
Western businesses to reassess the production process. "Just in time" (JIT), which was
aimed at eliminating wastage and unproductive time, required the development of
much closer relationships between suppliers and manufacturers. On the one hand,
producers had to know the cost of materials when an order was settle. On the other
hand, those who dealt with the supply had to know the sales plan in advance. There
was the need to develop a common database and this is the moment that can be
considered the birth of ERP systems.
When we talk about ERP, we rarely think about planning how to spend resources.
Rather we think of a company's vision on business, in other words, the company and
all the components seen as a unified whole, rather than isolated segment of activity.
On the one hand, ERP refers to software infrastructure that provides internal cohesion
in a company, and on the other hand, it supports external business processes in which
the company is involved.
4.2.1. How can ERP improve business performance?
An ERP system enables decision makers to achieve full analysis of a business plan, to
achieve better communication within the company, to improve cooperation and
interaction between various departments. Through the option of simulation and trough
the flexible and dynamic nature of applications, we can make forecasting plans,
assessments, pre-definitions of the evolving trends for the industry which includes the
company, qualitative analysis, all this integrated with e-business technologies and
communication on-line.
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Figure 4. Conceptual diagram of an ERP system
Sales and
distribution
After-selling
Services
“Front-office”
Applications
Reports for
management
Unic data
base
Staff
payroll
~ 1104 ~
Financial
Accounting
Production
Stocks
“Back-office” Applications
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