| company or company representative reviews | | | | daylong or even multiple days in order to properly |
| manufacturing software options, the choices are ERP | | | | showcase each available feature. They may also be |
| software or MRP software. In the term ERP means | | | | vending other manufacturing software such as human |
| Enterprise Resource Planning, Enterprise refers to the | | | | resource packages, accountingpackages and the like. |
| entire organization. ERP systems are built around ERP | | | | This is where the prospective client needs to pay |
| software, which is modular in nature. This modularity | | | | close attention. |
| can be both strength, and a weakness. Some | | | | MRP systems can be sold a complete package or |
| businesses instead may opt for MRP. | | | | bundled with other manufacturing software. The end |
| MRP software on the other hand, refers to Material | | | | purchase decision may be based upon the budgetary |
| Resource Planning and does not focus on the support | | | | constraints, reorganization timing or both. |
| systems of a business. While an ERP system is built | | | | For budgetary constraints, the buyer will often buy the |
| around a central core, which contains data, which is | | | | best MRP system with a current budget with hopes of |
| central to the periphery processes, and is shared with | | | | upgrading as future funds become available, while not |
| those processes, an MRP system is stand alone with | | | | having the support system software to match the |
| interaction with other processes limited to processes | | | | restructuring. This is a dangerous gambit for two |
| required to manage material. | | | | reasons. First it requires the Enterprise to go without |
| Around the central core of ERP are modules for | | | | software in a function or area that it needs to have |
| various enterprise wide processes. These include | | | | some type of system, preferable software. This can |
| accounting, customer management, quality, human | | | | be phased in at a later date, however it runs the risk |
| resources, payroll and others. ERP systems are | | | | of the future funds never materializing. This leaves the |
| flexible in that the central core can be integrated with | | | | restructured enterprise with a hybrid system, which |
| third party modules. In MRP on the other hand, these | | | | ultimately means the original goal of the enterprise |
| peripheral processes are either stand-alone software | | | | failed, leaving a weakness in the missing software. The |
| or just managed by the business. We refer to these | | | | attending lowerperformance may then in fact make it |
| as peripheral not becausethey are lesser importance | | | | harder to get the future funding, and the enterprise will |
| to the business, but are not central to MRP activities. | | | | just live with the result. Worse yet, the Enterprise may |
| The peripheral business processes are important to | | | | be planning modification or elimination of the function |
| review since MRP implementation often goes with, or | | | | that is now left high and dry without the relevant |
| should go with Enterprise restructuring. This is | | | | manufacturing software. |
| compounded by the dynamics of the MRP software | | | | This strategy of stepped purchase/implementation |
| vendor approach to selling the system. | | | | should only be employed if the Enterprise makes a |
| Often, the prospective client will go to a demonstration | | | | structured financial commitment, and never as an |
| of the MRP software by a vendor, often concurrently | | | | undisclosed attempt to build the manufacturing system. |
| with other prospective clients. These demos may be | | | | |