Tuesday, April 21, 2009

The Evolution of ERP

In the earlier days of Manufacturing there was no concept of planning in advance.

After receiving a job order in the shop floor, a Foreman was typically the end responsible person for planning and executing how to make the item, what tools to use, and whom to assign for executing the work.

Foreman used to be the troubleshooter when the workers face problems, either with machines, or about how to execute certain activity etc.

For any major changes such as changing the layout, proposing a new machine, changing the design of the product, ENGINEER came in to picture.

This practice continued as long as it was possible, because those were the times when whatever was produced was sold and supplier was at the dictating position. So the long time taken for planning and making the item was not at all an issue.

However with time, the situation was gradually changing and very soon the industry realized that the process of making items for fulfilling an order was taking long time and in that way they cannot meet the demand.

It was also experienced that there was repetitive effort while planning for materials, other resources and for ways to make the items. Then onwards the Manufacturing Planning systems went through progressive refinement in the last 5 decades.

1 comment:

  1. Interesting article. I am happy to know about how ERP came into existence. I was keen to know how people felt the need for it. Now so many organization have already adopted it and is also trying to implement it.
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