Enterprise Resource Planning for Construction Business Management

Enterprise resource planning ~ERP! was originated in the manufacturing industry. It provides a general working environment for an enterprise to integrate its major business management functions with one single common database so that information can be shared and efficient communications can be achieved between management functions. This paper first briefs the ERP technology, its origin, and its current development in general. Based on the needs of running a construction enterprise, ERP shows its potential for the construction industry. However, the unique nature of the industry prevents a direct implementation of existing ERP systems, which are primarily developed for the manufacturing industry. This paper underlines the importance of the establishment of the basic theory for developing construction enterprise resource planning systems ~CERP!. A CERP must address the nature of the general industry practice. Fundamental features are identified and discussed in the paper. A three-tiered client/server architecture is proposed, with discussions on the functions and major components of each tier. Needed research issues are discussed, including CERP architectures, project management functions, advanced planning techniques, standardization of management functions, and modeling human intelligence. Construction management examples are incorporated into the discussions. DOI: 10.1061/~ASCE!0733-9364~2003!129:2~214! CE Database subject headings: Construction management; Construction industry; Planning. Enterprise Resource Planning Enterprise resource planning ~ERP! has its origins in manufacturing and production planning systems ~Fitzgerald 1992!. The early systems were created three decades ago with the advent of materials requirement planning ~MRP!, which primarily organized the storage and allocation of production materials. Later, manufacturing resource planning, or MRP II, systems expanded those organizational efforts to include the allocation of production equipment and labor. The term ERP was born when the productionoriented systems were integrated with purchasing, financials, human resources, and other front-office applications to enhance management of all business operations across the enterprise. The scope of ERP offerings expanded in the mid-1990s to include other back-office functions such as order management, financial management, warehousing, distribution, quality control, asset management, and human resources. The range of functionality of ERP systems has further expanded in recent years to include more front-office functions, such as sales force, electronic commerce, and supply-chain systems ~Hare 1999!. PhD, Associate Professor, Dept. of Civil and Architectural Engineering, Illinois Institute of Technology, 3201 South Dearborn St., Chicago, IL 60161-3793. PhD, Professor and Head, Division of Construction Engineering and Management, School of Civil Engineering, Purdue Univ., West Lafayette,