This bachelor's degree thesis focuses on the subject of an ERP system application in a production company, specifically in the area of operations management in manufacturing. The thesis consists of two parts – theoretical approach to the subject and practical presentation and description of main activities in the system. The subject of production management is described in the beginning of theoretical part, with main focus on terms and activities that will be discussed later in practical presentation. After that, an introduction to an ERP system is given with its definition and information about its evolution and implementation, as well as its benefits and disadvantages. Second part of thesis begins with a description of WAM Product company and its production. This is followed by an introduction to SAP ERP system used in company and its management of material masters, bills of material, routings and MRP as the most important parts of the system related to production. The rest of the thesis describes activities of inserting customer orders into system, creating production orders and accompanying documentation, production monitoring, and also certain activities of procurement and warehouse with a view of issues related to material discharging.