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Enterprise resource planning - Essay Example

Enterprise Resource Planning (ERP) is a managerial information system that integrates the different business functions of a company which include finance, accounting, marketing, production, etc.The use of an ERP can help manager make better decisions in their day to day operations. The ERP utilizes both internal and external information. When the broadband age started at the turn of the century the utilization of information became a critical success factor for companies. Large corporation benefit from the use of ERP because they system can help managers coordinate work among different divisions and business units. I have a brother that works in the fast food industry. The company he works for utilizes the ERP to determine when to purchase more food, to coordinate the schedules of the employees, and to determine if the prices of the food items are adequate to cover all overhead costs and achieve an adequate level of earnings for the owners. 2. Aggregate planning is concerned with determining the quantity and scheduling of production for the intermediate future, usually 3 to 18 months ahead (Heizer & Render, 1996). Operation managers determine the best way to forecast demand by adjusting production rates, labor rates, inventory levels, overtime work, subcontracting rates, and other controllable variables (Heizer, et al., 1996). About five years ago I worked at a start-up company. The operating manager utilized aggregate planning to determine the production levels of the company for the first

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year of operations. The company realized that the production level stipulate was barely enough to break even. The firm was working under the assumption that after the first year the company would be able to pick up additional work contracts that were going to generate additional income streams. The purchases of raw materials were made based on the forecasted sales numbers. Heizer, J., Render, B. (1996). Production & Operations Management (4th ed.). New Jersey: Prentice Hall. 3. A few years ago I was involved in a start up business project with a few colleagues. I was part of the original team that founded the enterprise. The company developed a new product which it wanted to bring to the marketplace. Since the company was new there production strategies to create the product did not exist. The first step in the production planning process was to develop a facility layout for the plant. Once the layout was in place the firm had to determine the best machinery in the marketplace to produce the product. Once the machinery was purchased the engineer had to test it and determine the production process. The floor employees had to be hired and trained by the manager. During the first month of production the output of the workers was below the expectations. It took three months before the employees mastered the learning curve. Out of the three production strategies (stable, chase, level) the company utilized a level strategy. 4. The chase strategy treats employees as if they did not matter. It is very impersonal due to the fact that the firm is looking out for their best interest instead of the interest of the employees. There is no job security under a chase strategy scenario since the company changes its workforce composition based on the amount of production it generates. Managers have to be careful because this strategy may lead to high employee turnover rates. 5. The scenario you described of the company hiring temporary employees is a trend that has caught a lot of popularity in the 21st century. Companies are looking for ways to reduce labor costs. The problem with temporary employees is that they are not able to produce the same output as experienced workers. It takes a few months sometimes longer for an employee to master the learning curve at a job. On many instances the savings that are achieved by not paying benefits to temporary employees are offset by the lower production. 6. In the healthcare industry information is extremely important. ERP systems help hospitals and healthcare providers achieve a better
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Enterprise Resource Planning (ERP) is a managerial information system that integrates the different business functions of a company which include finance, accounting, marketing, production, etc.The use of an ERP can help manager make better decisions in their day to day operations…
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