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GLOSSARY OF TERMS
GLOSSARY OF TERMS
ERP (enterprise resource planning) is an industry term for the broad set of activities supported by multi-module application software that helps a manufacturer or other business manage the important parts of its business, including product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders. ERP can also include application modules for the finance and human resources aspects of a business. Typically, an ERP system uses or is integrated with a relational database system. The deployment of an ERP system can involve considerable business process analysis, employee retraining, and new work procedures.


Manufacturing Resource PlanningMRP is a software based system that integrates most aspects of a manufacturing concern, such as ordering, manufacturing, shop floor job scheduling, purchasing, packing, shipping, receiving, and inventory as a unified whole.

It combines these functions in such a way that advantages and synergies of processing all information as a single system are exploited. These advantages are made possible only because of the added power over the process provided by applying computing power to the task.


Modern MRP systems (sometimes referred to as MRP-II) also close the loop, taking and feeding back measurements of important process metrics in order to make the MRP process more accurate. For example, in MRP each processing step required to manufacture an inventory item is assigned an estimated amount of time for completion.

The MRP system uses this information to determine a variety of things, including how long it will take to complete orders for that item, and how long each manufacturing machine on the shop floor must be reserved. It then schedules the manufacturing of the item along with other manufacturing jobs required, allowing an estimate to be made of when an order will be completed at the time the order is first taken.

In MRP-II the actual amount of time taken for each step in the manufacturing process is measured, and used to adjust the times on record for those steps.
In this way an MRP-II system continuously refines, and dramatically improves its ability to accurately schedule jobs and predict order delivery dates.

Customer Relationship Management or "CRM" systems are used to help support personnel 'know their customer'. At a minimum, such systems provide 'contract management': they track whether a given customer has actually purchased a support contract, what type of a contract it is (regular, premium, unlimited) and how much time/incidents are left before the contract expires.

They frequently rate customers by importance, priority, friendliness, and special treatment the customer may need. CRM systems are usually integrated with Help-Desk/Call-Tracking systems (below). At the low-end, CRM systems are no more than glorified address books, such as the contact management systems that salesmen use to collect and scan through sales leads.

 

 
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