Implementation And Appliancation Of ERP In Foundry

Enterprise Resource Planning (ERP) is an information system engineering which combines computer technology and network communication technology. ERP can ameliorate the business environment, reduce the production cost, and enhance the competence of enterprise by means of ERP being applied to every factor and administrative level of enterprise management based on the advanced, appropriate and effective management system; ERP can improve the material flow, capital flow, information flow and make the data more effective, accurate, comprehensive and detailed, moreover ERP can make an in-depth analysis on all kinds of information. According to analysis, the decision-making becomes more reasonable, the administrators are easy to grasp the business opportunity and create more development for enterprises; ERP can upgrade the management which will become a scientific, reasonable, systemic and normative management and found a good base for enterprise's continual, healthy, steady development.Because of the complicated process and particularity of management, it is more difficult to develop an ERP system for foundries than for others industries. There are few foundries that apply the ERP system to management in China, but FAW First Foundry as the biggest automobile castings supplier in China is one of the pioneers. Based one the universal core modules, the special ERP system for FAW First Foundry is developed by Beijing Sysmagic Software Co., Ltd. according to First Foundry's actuality.Based on extensively research on domestic and foreign ERP theories and the actuality of FAW First Foundry, This study the implementation andapplication of ERP in foundry aims to systematically analyze the implementation effect and influence factors of ERP in FAW First Foundry, then put forward the problems existed at present, at last give the valuable suggestion.In addition to extensively absorbing the pith of domestic and foreign ERP theories, the implementation and application of ERP in foundry industry had been studied by means of abundant investigation and analysis. A very important conclusion that ERP is helpful on upgrading the enterprise management has been obtained.This paper stresses on ERP system solution for foundry and the implementation of ERP in foundry. The main contents consist of the following five items:1: Operation flow reform of foundry2: The structure of ERP system3: Function analysis on ERP system for foundry4.- Implementation effect and influence factors5: Problems existedFive pieces of advice about the establishment of ERP system in FAW First Foundry have been given in this paper:1. Most enterprises which have applied the ERP system in China just use the basic subsystems respectively, such as storage management subsystems, sourcing management subsystems, order form management subsystems, material expenditure management subsystems etc. These enterprises in which a period of time type of MRP have been applied can not take a further step to upgrade their management, because in the process of transformation from MRP to MRP II/ERP, It is strongly emphasized that all the subsystems in one enterprise must be integrative.So, such process that will change the traditional production management mode become the bottleneck of management which is hardly broken through. The performance is: firstly, subsystems can run respectively in their own areas; secondly, the information can not be shared in the enterprise, and many isolated information islands can be shown; the value flow, material flow and information flow can not be controlled simultaneously. There are three management systems existed in FAW First Foundry at the same time, they are facilities management system, closed loop financial management system and process management system which run respectively in their own areas. It is fortunate that the ERP system technicians have found these problems and stopped the establishment of facilities management and process management, but it is very difficult to integrate these subsystems.2. Implementation of ERP is a process that integrates the management with technology, and management is more important than technology. But basic management in most Chinese enterprises is the very weakness. The basic management in FAW First Foundry is comparatively strict than others. The top management in FAW First Foundry pays much attention to the basic management, as the result a comparatively strict management which is well maintained for a long term is shown.3. ERP can not resolve all the problems of management. Such fact should be clearly seen: as typical state-owned enterprise, FAW First Foundry faces to the synthetical problem which includes the reform of management system, objects of business and establishment of strategy etc. To be a management tool, only resolving the problems of concepts, management system, can ERP create great benefit.