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ERP: Simulating Technologies Print E-mail
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ERP generally symbolizes a class of business level automation products that integrates the business processes by what is called mapping or modeling. The definition is very broad indeed. It conceals more than what it reveals. The definition conjures of a myriad of visions about the power and limitations of ERP. It is not immediately clear whether the products offered under the ERP brand name are really capable of simulating the complex industrial processes it is supposed to automate and integrate. There some more commonly rumored perceptions making their rounds in the process automation domain that need to be debunked for the benefit of everybody. Let’s take the case where ERP is termed not as an Information Technology project, but a Process Automation project, be it a business process or other wise. The statement is both true and false. As an ERP project essentially integrates and automates the business processes, it is predominantly a process oriented phenomenon. But the very automation aspect of ERP makes it an IT project too. The IT back bone in the form of servers, storage devices and networking equipment of adequate capacity and configuration plays a complimentary role essential for the success of an ERP system. Thus, an ERP system can better be defined as an IT driven Process Oriented system. It is also said that ERP refers to Business Process Automation having little brush with the Technology like the Iron & Steel manufacturing technology that it tries to map. This statement is also party true. The role of ERP in the formative years was confined to the functions of Finance & Costing, Sales & Distribution, and Material Management etc. - all coming under the domain of business level automation. This was in contrast with the hardware intensive process control automations where ERP had a limited presence. However, ERP has over the years made much bigger strides forward. Transcending the traditional boundaries of business process automation, ERP today made deep inroads into the process level automation as well. The functions of Productions Planning, Plant Maintenance and Quality Management are now an integral part of the bouquet of business solutions offered by the core ECC engine of ERP. All these modules are capable of mapping the various features of a shop or mill level operations of an intergraded steel plant. Hence it wouldn’t be factually correct to label ERP as a business process automation tool only. ERP of today is a process level automation software capable of modeling the in underlying technology of an industrial enterprise in its entirety. By adopting the modules of Production Planning (PP), Plant Maintenance (PM), Quality Management (QM) along with those of FI, MM and SD, BSP today stands on the brink of making history in the world of Iron & Steel technology. Admittedly enough, ERP is yet not all pervasive. It is yet to come out with products that can address the shop specific issues like Production Scheduling, Sequencing, Optimization, Resource & Yard Management etc. Such problems are usually addressed by a separate class of programmes called the Manufacturing Exclusion System or MES. The MES bridges the communication gap between the lower level process automation and the higher level business automation systems. ERP-MES symbolizes a generation change in the way the business processes are carried out in an enterprise. Currently the world is witnessing a race among the ERP and MES vendors to develop products penetrating into each others’ traditional domains. ERP vendors are showing greater enterprise in developing technology specific products to map the unique characteristics of different technologies like Oil & Petrochemicals, Iron & Steel, Food Processing & Beverages etc. The MES vendors in spite of being more process automation intensive are also not lagging behind. They are also coming up with new products, especially in the Production Planning & Scheduling, Resource Optimization and other shop or mill related areas proving their superiority over their counterparts in the ERP domain. It is hearting to note that the line of demarcation between the ERP and MES application domains are fast vanishing into the blues giving greater freedom of choice to the industry managers to look for a more comprehensive and integrated solution to their operations related problems. Notwithstanding its potential threat from MES side, ERP is fast consolidating its position in the automation sector by spreading its wings in simulating the production technologies of the manufacturing companies.


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