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ERP Performance Measurements

Enterprise Resource Planning Performance Measurements:

Financial performance has been the primary measure of success in most manufacturing companies. Manufacturing companies have developed financial planning systems and financial statements for measuring their performance on a regular monthly, quarterly, and annual basis. Financial plans are generally stated in terms of Sales, Gross margin, Income, Investment and Return on Investment (ROI). These financial performance measurements have been developed and documented by the accounting profession and are well accepted by management and stockholders of manufacturing companies.

Manufacturing companies have not, however, done as well at developing effective operating systems and operating performance measurements. Today, manufacturing companies need to establish effective operating systems and operating performance
measurements to enable them to effectively manage business operations and meet business and financial objectives.

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