Enterprise Resource Planning (ERP)
ERP is helping to manage the different departments (Product, order,
purchase, production, stock, economy) of a fashion business organization.
In the ERP system, there will be a common/central database. This database will collect, process the information from the different are of a industry and then it will distribute information within a Industry as well. The information is updated continuously and is collected in one system and it is easy to access. It is not mandatory to have PDM and ERP system together in an organization. Some companies are doing the work of PDM software with their official technique. Then they are sending it to the ERP software. PDM software works until a collection is finalized in common. After that, data will be processed in the ERP system.
Enterprise Resource Planning (ERP)
Working Process of ERP System:
• Product: First need to forecast the consumption rate of a material by primary calculation. Then have to make a decision for the price set up of the material.
• Order: In this case, retailers know the demand of the particular garments by POS data, EDI, Internet web shop. When something will be sold in the shop, it will be updated automatically in the central database system by ERP. Retailers have a salesman in the business area to collect order from shops. Shop get customer demand from sales and make order it to salesman. Then salesman carry this order to the manufacturing plant. This is called B2S business. If shop gives the order directly to the manufacturing plant by internet web shop to the ERP system of the manufacturing plant, it is called B2B system. If the customer orders directly by e-mail, it is called B2C business system. So company can
maintain the CRM (customer relationship management) by this way. Current stock of a material can be monitor by ERP.
Working Process of ERP System:
If material stock is finished, following steps should be done:
✔ Product requirements, customer order, forecast order items.
✔ Manufacturing order then
✔ Purchase of raw materials
✔ But if the supplier has the backup materials, then he will not go to the
manufacturing, purchase steps. He will get the order and supply it for the
customer again. In this way Supplier Relationship Management (SRM)
are maintain.
Working Process of ERP System:
Purchase: Shortage of material are calculated by the ERP system.
Automatic/Manual purchase order for material can be made.
Production: time plan for the production can be set up. After production it will move to the stock.
Stock/Distribution: The stock will transfer to the customer for selling.
Economy: Organization has all the necessary documents of transaction with customer, supplier, stock, production which is automatically save into the accounting system.
Characteristics of ERP
ERP (Enterprise Resource Planning) systems typically include the following characteristics:
An integrated system that operates in real time (or next to real-time), without relying on periodic updates
A common database, which supports all applications
A consistent look and feel throughout each module
Installation of the system without elaborate application/data integration by the Information Technology (IT) department.
Capacity Requirement Planning
• Capacity Requirements Planning, also known as CRP, is the technique that allows business to plan ahead to determine how large their future inventory capacity needs to be in order to meet demand.
• CRP also helps companies determine how much space they will need to hold these materials. It verifies that they have the sufficient capacity
available to meet the capacity requirement for the MRP plans. It thus helps the planners to make the right decisions on scheduling before the problem develops.
Inputs for CRP Process
1. Planned orders and released orders from the MRP systems.
2. Loading information from work centre status file.
3. Routine information from the shop routing file.
4. Changes which modify capacity, give alternative routines or alter planned
orders.
Outputs of CRP
Apart from information for modification of capacity or revision of MPS, The major outputs of CRP systems are:
1. Verification of planned orders for the MRP systems.
2. Load reports.
