The role of Enterprise Resource Planning(2)

3. Embodying the thoughts of pre-planning and controlling during the process
　
The planning structure in ERP system includes: main production planning, material requirement planning,
capability planning, purchasing planning, selling execution planning, interests planning, finance budget and
human resources planning, etc.. Furthermore, all of planning and value controlling functions have already
integrated into the entire supply chain. ( Avraham Shtub ,1999,p239 )

In conclusion, ERP system enables many advanced management thoughts into computer software systems which can be implemented and applied in the reality by the development and adoption of IT techniques in incredible speed.

The relationship between ERP system and an enterprise & ERP’s role in the enterprise.

ERP is based on the advanced and effective management thoughts and methods. It makes use of new management mode to rebuild old one in one enterprise. The relationship between ERP and the enterprise is supplementary to each other.

1．The implementation of ERP system is the revolution of an enterprise from all orientations.

　Conductors of an enterprise should be trainees at first. The second comes others who are responsible to carry out and implement. It should be motivated activities for conductors, the leaders’ level and stuff to regulate the management of the undertaking and other relevant sectors. Therefore, it helps modern management consciousness being planted into enterprise and becomes one part of company culture finally.

2．The manage mental level should reach the common sense on the ERP implementation
　　
It is important to notice and exercise fundamental works in the matters of one enterprise management. Applications and software suppliers can not offer any kinds of services on this, only can be obtained by hard-workings of the company itself gradually. The implementation of ERP has been regarded as ‘The Engineering of CEO’, which indicates that the company’s decision maker plays a special role during the implementation stage. ERP is the system on management which leads and supervises the entire enterprise. It would have not been effective if the CEO has not approved and authorized the system.

3．The investment of ERP system is the systematical engineering
　　
Compared with the investment and outcome of capital asserts and equipment, the investment of ERP system could not be redounded soon. The ERP system adoption is the systematical engineering process which needs time to realize benefits step by step. What it carries out is the thought of enterprise management which is the red line of the undertaking management. It acts and creates profits in the long turn; moreover, it can achieve benefits and profits form the result of effective management more and more (Chen Jian, 2002 August 7 ).

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