1960 - Before MRP

During the 1960s most organizations

designed, developed and implemented
centralized computing systems, mostly
automating their inventory control
systems using inventory control
packages (IC).

These were legacy systems based on

programming languages such as
COBOL, ALGOL and FORTRAN .
 1970 - MRP
Material Requirements Planning (MRP) systems
used a master production schedule and a bill of
materials file with the list of materials needed to
produce each item.

Later, MRP systems were enhanced by adding tools

for sales planning, customer order processing, and
1910 rough-cut capacity planning- which provided input
into production scheduling, known as closed-loop
MRP.
 1980 - MRP 2
• *
■ In the 1980s, MRPII systems
incorporated the financial accounting
system along with manufacturing and
materials management systems.

1980 MRPII led the way toward an integrated

business system that developed the
material and capacity requirements for
production and translated these
requirements into financial information.
 1990 - ERP
ERP systems first appeared in the late 1980s
and the beginning of the 1990s with the power of
enterprise-wide inter-functional coordination and
integration.

Based on the technological foundations of MRP

and MRP II, ERP systems integrate business
processes including manufacturing, distribution ,
accounting , financial, human resource
management, project management, inventory
management, service and maintenance, and

1990 transportation , providing accessibility, visibility

and consistency across the enterprise.
During the 1990s ERP vendors added more
modules and functions as "add-ons" to the
core mod ules giving birth to the "extended
1

ERPs." These ERP extensions include

advanced planning and scheduling (APS), e-
business solutions such as customer
relationship management and (CRM) and
supply chain management (SCM).
-
 Limitation of ERP
• High cost
• Very complex software
• Lack of t rained people
■ De.
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knowledge and resources

• Education and training
• Resistance to change
• Lack of implementation strategy an d execution 1