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Industrial Systems Management Assignment MSc Module Number: MNM101

Name: Sheikh Uddin & Annapurna Singh KU ID: K0108607; K0952751 Printed in the United Kingdom for Kingston University, London.

Copyright 2009

Contents
Contents................................................................................................................ 2 Preface................................................................................................................... 6 Abstract................................................................................................................. 7 Introduction........................................................................................................... 8 2 Evolution from Materials Requirements Planning (MRP) to Extended Enterprise Resource Planning (ERP)........................................................................................ 9 3 Materials Requirement Planning (MRP).............................................................11 3.1 Functions of MRP........................................................................................ 11 3.2 Problems with MRP..................................................................................... 11 4 Manufacturing Resource Planning (MRPII) ....................................................12 4.1 Functions of MRP II..................................................................................... 12 4.2 Disadvantages............................................................................................ 13 5.1 Functions of ERP ........................................................................................ 14 5.2 Disadvantages of ERP................................................................................. 14 6 Extended Enterprise Resource Planning (EERP)...............................................14 7 Case Studies..................................................................................................... 15 7.1 Case Study 1: Rolls Royce plc.....................................................................15 7.1.1 Company Background..........................................................................15 7.1.2 Challenges............................................................................................ 15 7.1.3 Solution................................................................................................ 16 7.2 Case Study 2: Auto Systems ......................................................................16 7.2.1 Company background...........................................................................16 7.2.2 Challenges............................................................................................ 16 7.2.3 Solution................................................................................................ 16 7.3 Case Study 3: Sherbourne..........................................................................17

7.3.1 Company background...........................................................................17 7.3.2 Challenges............................................................................................ 17 7.3.3 Solutions............................................................................................... 17 8 Future of ERP.................................................................................................... 19 9 Radio Frequency Identification (RFID)..............................................................20 9.1 Introduction................................................................................................ 20 9.2 RFID System Architecture...........................................................................21 9.2.1 RFID Tag/Transponders ......................................................................21 9.2.2 RF Antenna .......................................................................................... 21 9.2.3 RFID Receivers/Reader ........................................................................21 9.2.4 Controller ............................................................................................. 21 9.2.5 RFID Host.............................................................................................. 22 9.3 Design ....................................................................................................... 22 9.4 Benefits of using this system......................................................................23 10 Coding and Classification system...................................................................25 10.1 Introduction.............................................................................................. 25 10.2 Examples for other Coding and Classification system..............................26 10.2.1 Example 1: Pro/Engineering ..............................................................26 10.2.2 Features............................................................................................. 27 10.2.3 Functions........................................................................................... 28 10.2.4 Benefits ............................................................................................. 30 10.3 Example 2: CATIA (Computer Aided Three-Dimensional Interactive Application)....................................................................................................... 30 10.3.1 Industries using CATIA........................................................................31 10.3.2 Features ............................................................................................ 31 10.3.3 Cost.................................................................................................... 32 11 Caliach MRP Software Experience..................................................................33 11.1 Introduction.............................................................................................. 33 11.2 Benefits............................................................................................ 34

11.3 Drawbacks................................................................................................ 35 11.4 Solutions .................................................................................................. 37 Conclusion........................................................................................................... 37 References .......................................................................................................... 39

Preface
The purpose of this report is four fold, firstly to explain the evolution of software development and implementation within the industry. From Materials Requirements Planning (MRP), Manufacturing Resource Planning (MRPII), Enterprise Resource Planning (ERP) and Extended Enterprise Resource Planning (EERP). Explaining how each of these technologies function, why the evolution took place and looking into how ERP will evolve in 5 years time. Three case studies have been examined from different industries to demonstrate, how ERP can be utilised in the practical world. Secondly, research into Radio Frequency Identification (RFID) has been carried out to explain how this technology is currently used in the industry. Thirdly it will be looking into coding and classification systems and how they have benefited engineering companies to organise parts. The final part of the report is concerning the advantages and disadvantages of Caliach MRP software found in using such a system on a daily basis, according to the authors experience.

Abstract
Advancements in modern technology, has changed the way in which we run businesses today. Software development has led to Information Communication Technology (ICT) being at the forefront of many successful businesses. Thus, in order to compete in the 21st century with global leading companies. Implementation of information systems has become incumbent upon all companies that wish to retain the efficiency, quality and performance to be able to remain competitive in their markets. Over time businesses developed and their capacities grew. A breakthrough was needed to manage these business operations and processes more efficiently. Materials Requirements Planning (MRP) was one of the first industrial management systems that took away relying solely upon manual processing. There are many disadvantages related to manual processing such as inaccurate date entry, misinterpreted and misrepresented data commonly due to human error. The requirements of businesses changed to meet the demands and needs of the time. The concept evolved from MRP, Manufacturing Resource Planning (MRPII), Enterprise Resource Planning (ERP) and now to Extended Enterprise Resource Planning (EERP).

Introduction
Prior to the 1970's businesses as a whole were reliant on manual paper based systems for their operation. Originally computers were designed to help scientists in their calculations. However automating data processing of businesses processes such as stock control, payroll, purchase inventory and accounting via information storage, processing and retrieval of data on servers lead to efficient business performance. Data, information and knowledge have become the forces that drive successfully managed businesses. Having the ability to provide the right information at the right time leads to good management decisions. This can give the business a competitive advantage over its rivals. However the data flow within the organisation needs to be streamlined so that useful data can be utilized and processed to output quality information.

2 Evolution from Materials Requirements Planning (MRP) to Extended Enterprise Resource Planning (ERP)
Before MRP was introduced Inventory Management and Control systems were used for managing basic business activities. This system was a combination of business processes and information technology. One of the functions of this system was to maintain the required level of stock in the warehouse in order to prevent dead stock. The activities of inventory management include identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory

balances and reporting inventory status [1].

Figure 2.1: Chronology of EERP (Source from Assignment Brief) Since the 1970s the MRP software was used by the industry for schedule production processes. One of the key functions of MRP was to generate schedules for the operations that is required for purchasing raw materials which is determined by the production requirements. This includes other factors such as the current levels in the inventory, the production system structure and for each operation, the lot sizing procedure. It can be seen from Figure 2.1 initially MRP consisted of a very basic system having inputs such as orders and payments of goods from customers (Accounts), delivery of materials from suppliers (Ledger) and paying the salaries of the staff (Salary system). This framework sufficed for Small to Medium Sized businesses (SMB) but was not attractive and did not fulfil the needs and requirements for manufacturers that wanted to grow.

In the 1980s MRPII software was utilized for coordinating manufacturing processes for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution [1]. It can be seen from figure 2.1 business departments developed and Electronic Data Interchange (EDI) resulting to the need of relational databases between different departments which needed to be intergrated to gather the overall picture of the company. However all the applications from the different departments was not designed to be fully integrated, which led to the creation of ERP.

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From the 1990s ERP software systems used for business management, encompassed modules supporting functional areas such as planning, manufacturing, sales, marketing, distribution, accounting, financial, human resource management, project management, inventory management, service and maintenance, transportation, and e-businesses. The architecture of the software facilitates transparent integration of modules, providing flow of information between all functions with in the enterprise in a consistently visible manner [2]. It is shown from the figure 2.1 other important success factors of ERP have been identified such as Supply Chain Management (SCM), E commerce and Customer Relationship Management (CRM). That are becoming important factors for businesses to implement in order to competing in the demanding market. The presence of the internet can be felt and seems to be becoming a more centralised part of how businesses operate. Currently the ERP systems that are most popularly found being used in the market are SAP, Oracle and People Soft.

3 Materials Requirement Planning (MRP)

Manufacturing information systems have helped companies simplify, automate and integrate many of the activities needed to produce products of all kinds...They are also used to help plan the types of materials needed in the production process which is called Materials Requirement Planning (MRP) [3]. The basic inputs of the MRP system include Bills of Materials (BOM), Master Production Schedule (MPS) and inventory control. The outputs typically include planned orders, order releases and changes.

3.1 Functions of MRP

The MRP system provides accurate and tight control over the many complex and interdependency activities of the plant. All activities are synchronised such that parts are being manufactured or received from vendors if purchased. Exactly when they are needed in the next stage of production. This system avoids the process of excess work in progress inventory, unavailability of components when needed and grossly under utilisation of resources [4]. Other advantages include low levels of in process inventories, the ability to track materials efficiently. It is a means of allocating production time and provides the staff with the information that is required for finishing that particular production line. Therefore everyone knows where they stand with that particular job.

3.2 Problems with MRP

MRP does not take into consideration the shop floor and capacity requirements predominantly focusing on materials. This effects the quality of the informations and results that the system produces. Therefore the information being outputted may include suggestions

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that are not possible or feasible to implement due to being restricted by manpower and capacity. Secondly the output information that is produced from the system relies on accurate data that is required to be inputted. Inaccurate data will have a catastrophic knock on effect to the outcome of the BOM and MPS. Thus making data integrity a key to the success of MRP. The accuracy of the inventory and work in progress (WIP) information also depends on whether the prescribed procedures are followed in the operation; otherwise the accuracy will be reduced. Lead times are commonly assumed to be fixed but they are not and are required to be monitored. Problems also arise from orders that have been completed but have not yet been completed by the bookings; this affects the day to day operations. Down time from implementing the software and retraining employees to operate the system will cost the business. It seems practically the smaller companies would not benefit largely from MRP in comparison to larger companies, due to the cost. MRP is ideal for businesses with more complex multistage production steps and longer processing times for it to be a good long-term investment. Finally there is no integration with other business functions in the planning process and no software extensions offered.

Manufacturing Resource Planning (MRPII)

MRP II was developed with all the features of MRP, however due to manufacturers identifying additional needs. Other elements were required in addition to those contained in MRP. Therefore essentially MRPII is MRP but with more added, signifying that we are concentrating upon the manufacturing resources (e.g. people, machines, storage), rather than limiting ourselves to the planning of materials requirements. Typically, an MRPII package will include the features such as cost information, management reports and easy 'what if' analysis. It may also include capacity requirements planning [5]. In comparison to MRP which focused on materials, MRPII went a step further by integrating all manufacturing processes including human relations and finance. Feedback from the shop floor is also another important development from the original MRP. MRPII has allowed the possibility to trace work in progress through all the different levels with in the schedule.

4.1 Functions of MRP II

MRPII has additional modules such as Shop Floor Control (SFC) and Capacity Requirements Planning (CRP) which will provide more accurate business planning. MRPII focuses primarily on manufacturing therefore from a manufacturers perspective. The tools provided by MRPII are very powerful in fulfilling the needs, objectives and requirements for

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manufacturers. One of the reasons, why MRPII has become popular in the manufacturing industry. The concept of developing the schedule according to the resources that are available with in the company is beneficial. Tighter control can be maintained on detailed product plans and this can be monitored every step of the way from each processes of production to delivery. By taking into consideration the capacity requirements, this allows machinery not to be overloaded and to be run safely. In order for resource scheduling to be carried out, batch rules were required. This led to the development of Lot for Lot batching which involved matching batches with order requirements. Economic Batch Quantity (EBQ) where the batch size is calculated by a mathematical formula to minimise the cost through balancing the set up cost against the cost of stock and Part Period Cover which makes batches whose size cover a fixed period of demand for example a weeks requirement in one batch. [6]

From a finance point of view it has reduced companies net working capital by the combination of the following; keeping accurate records, providing timely information with regards to cost and profit. As well as improving the cash flow through the business through quicker deliveries, leading to increasing the efficiency of the business. Finally in terms of software extensions there are a number of programmes that can be added to MRPII. The Rough Cut Capacity Planning (RCCP) is an example of a popular bolt on which attempts to match the order load to the capacity available, by calculating the load per source. Overloads are identified and orders can be moved to achieve a balance. This has been described as knocking the mountains (the overloads) into the valleys (periods of under load) [6]. Thus this gives businesses the opportunity to invest in the modules which appeals to them rather then paying for a full MRPII package, which can be costly and not of use to them. Providing clients with choice and control on what theyre investment whilst ensuring the modules meets the businesses specific needs.

4.2 Disadvantages
Software bugs or viruses can cause the system to crash and this would disrupt the businesses operations. Some may argue the MRPII is a trial and error model rather then a mathematical model; therefore it will still have flaws.

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Enterprise Resource Planning (ERP)

ERP a further development of MRPII and is the technological backbone of e-business an enterprise wide transaction framework with links into sales order processing, inventory management and control, production and distribution planning and finance [7] In the manufacturing module of Enterprise Resource Planning (ERP) many of the processes are included within the manufacturing resource. What ERP really does is organise standardise and codify a businesses processes data. The software transforms transactional data into useful information and collates the data so that it can be analysed. In this way all the transactional data becomes the information that companies can use to support business decisions. [8]

5.1 Functions of ERP

ERP has a common database management system which has accurate and consistent data with a good reporting system. By improving the decision making process there is now better control of the organisation. Thus reducing time and inevitably result in cost saving opportunities. Currently with so much business transactions and processes carried out on line, ERP supports e commerce business and finally the vender will support the business with a long term contract to maintain this system.

5.2 Disadvantages of ERP

Clearly expense will be a barrier to entry for many of the businesses when considering implementing the ERP system. Choice could also be another with too many features and modules to choose from. Therefore making it more time consuming and complex to select the vendor to meet the particular requirements and needs of the organisation. There will more than likely be features in the system that will not used, as it is not related to the operations of that business. High dependency on one vendor for support rather then multiple vendors for such a long term investment could be risky and a threat to the company.

6 Extended Enterprise Resource Planning (EERP)

The evolution of the internet and the dependency upon businesses for using this form of communication to interact with factors outside the enterprise environment has become a necessity in the modern world. The external factors being referred to as customers, partners and suppliers which has led to the formation of EERP. The ERP system is focussed with fulfilling the needs of the internal operations of the enterprise. However it was not designed to manage relations with external factors of the enterprise. These external application requirements involve establishing better relationships with customer and partners. This has been achieved by providing access to scheduling, delivery, inventory, manufacturing, invoicing and planning information.

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This requirement resulted in incorporating applications such as Supply Chain Management (SCM), Customer Relationship Management (CRM) and Product Lifecycle Management (PLM). Better management of relations with has been achieved. A better service to partners and a long term relationship with customers. Therefore ERPII has incorporated the internet as the medium to manage the interaction with the external factors of the enterprise through e business as a need aswell as to gain a competitive advantage over its rivals. The systems will improve B2B and B2C business.

7 Case Studies
7.1 Case Study 1: Rolls Royce plc
7.1.1 Company Background
Rolls Royce plc has been in the private sector from 1987 since then it was acquired with two other companies called Northern Engineering Industries in 1989 and the Allison Engine Company in the United States in 1995. They are based in 14 different locations worldwide with their registered address in London, UK. The company manufactures integrated power systems for use on land, at sea and in air. It caters for the aerospace, energy and marine industries. It also provides after sales total care and support services such as mechanical overhaul and spare parts distribution. Rolls Royce had operated 1500 systems in their company prior to the implementation of System Analyse und Programmentwicklung (SAP) ERP system. These systems included Merchandised, Evaluation of Resources, Logistics and Inventory (MERLIN), Inventory Based Instructing System (IBIS) and Co operate Cost Accounting (CCA) [9]

7.1.2 Challenges
The Challenges encountered by Rolls Royce included expense and difficulty in maintenance and development. The information systems were not accurate and consistent. There was poor accessibility data that was required for making good and timely decisions. Even during the year 2000 these legacy systems had compliancy problems. The departments were working in isolation as they could not integrate using the MERLIN system. The IBIS system was an

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inadequate tracking application which led to problems in inventory and stock control. These legacy systems did not provide for communication amongst their customers, partners or suppliers. The countless individual systems lead to problems with systems interfacing each other as they were created in house by developers in the company and they did not support growth. The previous system was not capable of keeping pace with the changing business environment of the 21st Century.

7.1.3 Solution
The solution was the introduction to SAP and one of the first changes to company was to break down of the Operational Business Units (OBU), which caused segregation of departmental business operations. Cultural and technical problems of implementing SAP was counteracted by training users in the new working practices of using SAP and modifying the processes to fall in line with SAP. One thousand additional PCs were acquired and 6000 end user licences. The installation of SAP inevitably lead to accurate data, integrated business applications, improvements in operating effectiveness, reduction of inventory costs and facilitated the retrieval of accurate information in the correct context at the right time.

7.2 Case Study 2: Auto Systems

7.2.1 Company background
Auto systems is an automotive lighting designer and manufacturer, established in 1986. They are located in Belleville, Ontario, Canada. The company currently employs over 800 workers in 3 plants and has won the Ford Q1 and GM Supplier of the year awards. The trading partners of Auto systems include General Motors, Ford and Bombardier [8].

7.2.2 Challenges
The company is currently running an ERP system however it manages a manual shop floor processes by paper documentation. This practice encountered many problems in relation to accuracy, timing, efficiency, organising and planning. Therefore Auto systems is looking for an alternative ERP solution to counter these problems.

7.2.3 Solution

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In order to overcome these challenges the company decided to invest in installing a new ERP module called TRANS4M purchased from Infor Global Solutions, which is a Shop Floor Management (SFM) module which revolutionalized and gave major cost saving benefits to the company. Their scrap rate significantly improved in the 3 plants by 2.7 % within 6 months. The floor is more visible helping planners to meet delivery dates and the employees have become more aware of their environment. They are now able to contemplate how their actions would in affect save or make a loss to their company. This led to a more intuitive workforce that could shut down a scrap problem, saving the company money. The TRANS4M software displays the information of all 3 plants and enables capturing information related to labour, production and efficiency to be analysed through the generation of reports. This provides managerial controlling mechanisms allowing regular meetings to be held depicting the current status of the company with accurate, up to date and real time information.

7.3 Case Study 3: Sherbourne

7.3.1 Company background
Shebourne is a furniture manufacturer established since 1930. It is based in Clayton near Bradford and it is one of the most successful upholstery companies in the UK [10]. The challenges the company face, was to create improved production processes. They needed a system that will facilitate the ever growing market changing requirements. The software was required to help the company retain a competitive advantage over their rivals by manufacturing a diverse range of products to cater for a wider audience of consumers and keep on top of market demands and the demanding timescales.

7.3.2 Challenges
The solution was to implement an ERP system called Unity, which was capable of intergrating business processes and increasing the visibility across the production, which can be viewed instantly and at anytime. Unity can interpret the data more intelligently and provide vital and relevant information. The Unity system provides a comprehensive solution to Shebournes challenges.

7.3.3 Solutions
The adoption of Unity has lead to automated ordering processes and achieved 100% delivery services via the instant generation of order schedules. There was complete visibility of production processes and order progresses. The delays of materials encountered in the previous system led to the inability to deliver on time. However due to the stock level being live in Unity, the system orders the materials in time for production without delays. The duplication of entries has been minimised and the stock control is better managed.

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Manufacturing problems are now dealt immediately and capacity requirements are being met by real time scheduling as opposed to before. The Unity software is also easier to update and other modules can just be bolted on without any technical problems. This enables the system to always improve the efficiency and capability of the software and enhanced in the near future.

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8 Future of ERP
Research and development will play a key role in the future success of ERP. Currently the price tag of implementing and maintaining ERP software is expensive. Five years down the line we see ERP with lower implementation costs and maintenance costs. The time taken to implement and update the software will also be significantly reduced. Future ERP systems will allow transferring of data from legacy systems to ERP systems to be carried out with less time and effort. ERP is does not control technology, therefore in future it must be able to adapt to new technological changes, which it can incorporate. Secure ERP clouding facility could introduce unlimited database storage hosted by internet providers. Conversely better protected security software will be designed because there will be higher risks of security with so much information being shared online. Computer based training facilities available online would make save costs on training. Allowing training to be completed from remote locations and at times that would suit the companies best interests. Integration of work flow from scratch ie from design, manufacture, commercial sales of the products and customers. This will then integrate all the aspects of the business. Suppliers and customers will have the opportunity to access sections of the systems which is relevant to them. For example it will give suppliers and customers the opportunity to track their orders. ERP will provide managers with options of selecting management solutions and decisions. Globalised companies with branches all over the world that require sharing of information at a particular instance in time can need to be met. For example the company requires materials or components for a specific order however the parts or materials are available at another branch in a different location. The system should flag up the stock level held in another branch. However due to the difference in location and therefore time zones it will prove difficult to keep track of the stock level of other and the shipment.

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9 Radio Frequency Identification (RFID)

Abstract

This case study mainly discusses the challenges and opportunities of tracking inventory control in retail industry. Wall mart a well known company in retail industry has already requested that all its supplies adopt the RFID technology. We are trying to introduce RFID to track the product on store shelves, in inventory, reduce stock loss and waste, and improve safety & security. We begin with introduction, propose a design for the process which incorporates radio frequency identification and finally will discuss the benefits of this system.

9.1 Introduction
Radio Frequency Identification (RFID) is a generic term which is used to describe a system which transmits identity in form of unique serial number of an object or person wirelessly, using radio waves. In short it refers to a small electronic device that consists of a chip (tag) and an antenna. The chip on an average capable of carrying 2,000 bytes of data or less. Also the chips (tags) are used for identification. These chips store a unique identifier that can be read independent of line of sight. It is also broadly classified under automatic identification (Auto-Id) technology [12]. It makes it possible to synchronise the substantial flow of supplies and the associated information flow without the need of human intervention. This system will help to keep a track of products on shelves, in inventory, products sold, rate of the sale of the products, items selling quickly, tracking expiry of the products, track of items purchased, stock replenishment on time and will improve safety. The system will feature RFID tags and readers. Readers can be located in the store rooms, on shelves and point of sales (POS). The software can be developed accordingly or can be outsourced. The retail industry usually operates open systems i.e. labels with the packing are discarded at the end of the process with the RFID, unlike the closed loop ex. RFID in library where tags are used time and again within the organisation. [11] This case study aims to discuss how RFID technology can be used in inventory management/supply chain management in retail industry, with a basic design & benefits of introducing RFID to the whole process.

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9.2 RFID System Architecture

A typical RFID system is composed of four components, as shown in Fig 9.2.1

Figure 9.2.1: RFID Architecture [13]

9.2.1 RFID Tag/Transponders

Tag: Rid that did not actively transmit to a reader was known as Tag. Transponders: These RFID devices actively transmits to a reader and are known as Transponders (Transmitter + responder).The function of an RFID transponder is to reply to an cross-examination request from an reader by returning data such as an identity/unique code. [11]

9.2.2 RF Antenna
The function of the antenna is to promulgate energy between the tag and the reader. The tag is attached to an antenna.

9.2.3 RFID Receivers/Reader

The function of the reader is to manage all RF (radio frequency) communications with the transponders and to handle all consecutive interactions with an attached host computer controller.

9.2.4 Controller

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The function of the controller is to manage communications between the Receiver/Reader and the database.

9.2.5 RFID Host

A host may be a Personal Computer, Workstation or Portable data terminal (PDT) where the RFID controlling function resides. The RFID reader is connected to the host computer, which is used to store information received from transponder and program the reader. The host is basically the box on which we put our RFID enabled applications after they have been developed, supported with a file to provide and categorize repository or collection of data. [14]

9.3 Design
Figure 9.3.1 shows a nearly perfect supply chain visibility, which eliminates human error from data collection, reduces inventories, keeps product in-stock, reduces loss and waste, and improves safety and security. [11] It also clearly depicts by using this RFID technology in the process we can easily track items selling quickly, items with their expiry duration, stocks to be ordered, rate of sale and many more that to without human interventions i.e. with lesser possibility of errors.

Figure 9.3.1

Supply Chain using RFID System [15]

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9.4 Benefits of using this system

Lead-time reduction RFID systems provide clear visibility of movement of products in supply chain. While the conventional system limit tracking of items while in movement or transportation. As result of RFID usage in the system we can make early decisions about inventory which can result in lead-time for arrival of items. Products reducing lead time help to increase total useful shelf life for that item. Smart shelf In replenishment based stores RFID readers on top of each shelf help to track low inventory levels and reorder new stock automatically to avoid out-of-stock situations, expiry dates of products can also be monitored and action can be taken before hand. Reduced Bullwhip Effect Due to inaccurate tracking of actual sales of items by conventional tracking methods, demand figure are exaggerated in upward direction of the supply-chain, this is called bullwhip effect. As RFID gives real-time information accurately of the sales bullwhip effect can be reduced resulting in financial savings for the company.

Figure 9.3.2: Benefits of RFID in Inventory Control ([16]

Higher sort-pick

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Sorting and picking of items in a store is more time consuming and can cause errors. Initially to issue an item, person has to find it out by physically moving to the location & also sorting gets tougher as there is no accurate details of the products been moved or sold. RFID system gets it easier as it records and captures all the movement of products within its sight of range. Hence, it provides accurate information about product availability with effective warehouse management.

Reduced inventory shrinkage Inventory shrinkage features theft or misplacement of items which can be avoided with RFID technology as it continuously monitors items.

Issuing policies As RFID system provides exact count of items and location, it can be used for issuing policy such as FIFO (first in first out) for items such as vegetables or bread or LIFO (last in first out) for blood banks. Point Of Sale (POS) RFID can also be used at the point of sale to study trend in demand/highest number of sale for particular item. This application could be useful for apparel industry or IT technological industry to study products exhibiting ongoing demands in the market. [17]

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10 Coding and Classification system

Abstract Manufactures use coding and classification is a method adopted by the industry in order to distinguish between different components supplied by different manufacturers. Many components that purchased have marks, unique numbers to enable then to identified. Coding a yet another method used to group together the different similar family of components for the purposes of making it easier to design and manufacture components. This helps engineering companies to organise their parts effectively.

10.1 Introduction
Coding and classification is used in manufacturing to identify materials, products or components by giving them a unique identification. Its apparent in the aircraft maintenance industry were a component has a serial number, part number and batch number enabling the traceability of a component from the date, time and batch details of when and where it was manufactured . The benefit of this sort of coding systems is that a defective batch can be removed and all the purchases of these defective items can be informed and removed in order to prevent any further damage. The codes give the component specific description that makes the alpha numeric codes to have meaning. This code would provide details such as dimensions, strength, raw material description, purpose and processes. Grouping similar items into families with common attributes allow easier recollection, preventing duplication of parts and making it easier to produce new components without the need of depending highly on Design Engineers.

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Figure 10.1.1 coding and classification in manufacturing [28]

10.2 Examples for other Coding and Classification system

10.2.1 Example 1: Pro/Engineering
Pro/ ENGINEER is an integrated CAD/CAM/CAE software program, to create precision three dimensional model. The system uses solid modelling technique to create 3-D parts. In pro/E we can easily access part files, manipulate the display, and orient the parts. Pro/E is also a fully parametric CAD program, this means any geometry of the part feature like ( hole, slots, milled surface et.c.) need to be fully specified in terms of size, shape, orientation and location. The specifications allow users to relate features on individual or group part to relate each other. For example, in an engine, if the diameter of the piston is increased or decreased, the corresponding engine block is automatically modified to match the specifications of the new piston. [18]

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Figure 1 0.1.1 shows introductive screen of Pro/ENGINEER [19]

10.2.2 Features
Pro/ENGINEER can help user optimizing: Theoretical design System design

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Comprehensive design Verification and rationale Design outsourcing Alternative design and creation Manufacturing tool and equipment design

Pro/Engineering role in industrial and conceptual design : Pro/E designs can be directly sent to a rapid prototyping machine or can be downstream to Pro/ENGINEER applications. User-friendly tools, with an option to blend 2D/3D, curves and surfaces, and can export sketch for concept and design Interoperable with other cad systems

Pro/Engineering role in detailed design : Full geometry capabilities that include assembly modelling, solid, sheet metal, framework and mechanisms. 3D feature fast, intelligent, automated capabilities such as auto round, dimensions in 3D drawings and feature recognition. Inter-operability with industry standard file exchange formats, which includes IGES,STEP, DXF, DWG, JT and ASIC import. [20]

10.2.3

Functions

Figure 10.2.1 shows the main components of Pro/ENGINEER window. The part we currently work on is shown in the graphics area, tool bar contains options to create desired part and different features. The top menu bar is almost similar to tool bar with added feature of file,

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applications, analysis et.c. in the form of menus rather than icons unlike in tool bar. While creating part dashboard appears in the bottom to allow selection of options. The model tree features everything which is been done in the part that is currently displayed. [19]

Figure 10.2.1 model window for Pro/E [19]

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10.2.4 Benefits
Simple Easier to learn, use and adapt. User-friendly allowing user to learn the software in a very short span of time. Powerful Pro/ENGINEER with CAD/CAM/CAE associated with it creates flawless digital Products which also can be interfaced directly to the production machines or stations Where it can be converted to finish products. Connected This is enabled with embedded web browser which offers instant connectivity to valuable resources. Storage of data and extraction of parts saved is also easier. Attainable benefits Due to its more enhanced tools and features it enables higher quality of products faster in the market. Improves quality of product collateral Improves productivity by making easy and fast designing and developments of parts and group products. Fast and easy developments of part or group design resulting in faster manufacturing and reduction in time. Improves association of multiple CAD systems. Reduction in design and development cost with eliminating human interventions & errors. Optimizes product designs to achieve required performance. Reduces or eliminates prototyping costs.[20]

10.3 Example 2: CATIA (Computer Aided ThreeDimensional Interactive Application)

CATIA is the most powerful widely used CAD (computer aided design), quite similar to Pro/ENGINEER multiplatform i.e. CAD/CAM/CAE commercial software suite, developed by French company Dassault Systems and marketed worldwide by IBM.

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Some of the CATIA supported operating systems and the platforms are mentioned below: CATIA V3 only on the mainframe CATIA V4 Unix and IBM MVS and VM/CMS mainframe platforms CATIA V5 Microsoft Windows (32 bit- 64 bit). Ex. Windows vista 64,IBM AIX, Hewlett Packard HP-UX, Sun Micro Systems Solaris are supported. CATIA V6 only on Microsoft windows.[21]

10.3.1 Industries using CATIA

Following are some of the 20,000 + companies using CATIA worldwide: Aerospace : 87% of civilian/commercial plane designers use CATIA, 79% of helicopter designers, 76% of worlds aircraft designers and 50% of military plane designers uses CATIA, it clearly shows CATIA is world standard for aerospace. Some of the examples are: Airbus, Boeing, Lear-Jet, Kelsey-Hayes etc. Automobile: 14 out of top 20 automotive companies use CATIA as their designing system. For ex. Porsche, Peugeot, Ferrari, Toyota, Hyundai, Mercedes-Benz, Honda etc. Skoda increases productivity by 30 percent with CATIA V5, CATIA V5 allows us to capitalise on existing designs and in-house expertise to reduce design time for new parts. The result is a 30 percent increase in productivity. Jan Ruzicka, Director Engineering, Skoda Power CATIA is also being used in various industries and wide range of products like pottery, dental equipment, playground equipments, cardiac pumps, coke bottles, cruisers, yachts etc. Some other industries include architecture, appliances & construction.[22]

10.3.2 Features
CATIA is much more sophisticated and specialized compared to other system of the same field. It incorporates specialized designs and products or tools for different work. For example in the field of car design, CATIA has specialized application called class A surfaces for different processes. It is also capable of sophisticated shape modelling that includes complex features like lofts, variable radius-fillets, shells and draft angels. CATIA shape modelling capabilities are beyond those of solid works. It is designed for large team i.e. it enables customers to set up work benches as called by dassault. These workbenches contain all the tools, mechanical design, shape design, mock up design, and ergonomics design and analysis. It comes with advances features for higher productivity and precision jobs with

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complex part features. It is also easy to use, with all its application being standardized and therefore flawlessly allow to combine the designs and use.[23] [24]

10.3.3 Cost
CATIA sells for $16,500 (2001 average) while solid works for $4,995. Yet both are owned by the same company! With almost same look to see at least superficially. Solid works contains fewer lines of code and implementation is also easier comparatively. Sophistication comes with price, hence making CATIA much more expensive compared to other designing softwares in its field. This software features some of the most complex and user specific tools in its system, thus making it highly beneficial for precision and detailed process. [23]

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11 Caliach MRP Software Experience

Abstract ERP/MRP II software ex. Caliach, fourth shift ERP , SAP, BAAN etc. definitely improves the efficiency of the enterprise, cuts down cost in many ways, helps to run just in time concept in inventory control, and helps in making profit in long term. The system by nature tends to integrate other tools or sources connected to the organisation, from marketing, human resource department, finance, design, to production, till dispatch and maintenance. Earlier times ERP/MRP II system was only meant for bigger organisations but has changed with time and is now being widely used throughout every sector and in all scale of industries.

11.1 Introduction
Caliach Caliach MRP software is an established MRPII system for managing the core manufacturing activities. Basically this software is implemented to manage manufacturing process from inventory control, generating bill of materials, material requirement planning, capacity planning till release of orders and managing sales. In short, any ERP/MRPII software systems act as heart of whole organisations. It has proven to be highly advantageous in terms of sale and profit for almost every organisation where it has been implemented. The software also integrates each and every department of the organisation resulting in easy access of data throughout the organisation. System is quite expensive to implement as a result being affordable only for bigger firms but with the present scenario its been also available for medium to small scale organisations. While once implemented helps a lot in cost reduction as well as profit. Fourth shift ERP software Fourth shift enterprise resource planning software is specially designed for mid-sized manufacturers and manages manufacturing, operations, financials workflow and customer supply management.

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11.2

Benefits

From personal experience in using the software, the software proved to be very user friendly with plenty of guidance from icons and menus. Browsing for parts information, creating new parts in BOM, checking inventory levels and the tracking ability was impressive as the operations were easy to perform for users. This will result in less training required for end users to learn to use the software saving time on a day to day basis. Features: Ability to run on different Operating Systems Platform e.x. Windows, apple Macintosh & Linux.

The reporting capability, different levels of listings i.e. single listing and multi listings and safety stock are useful knowledge to have in order to understand the daily operations of the business as it makes the schedule easier to interpret and provides clarity. This also helps to manage the schedule and individual processes of products better as the information could be retrieved in an instant.

The system is also well secured; all functions can be accessed through the menu system while users access can also be controlled to each menu line. The whole system works on group user structure, where groups can be set up depending on requirement, with required access privilege. It can also have finer control for individual user with particular access privilege.

Features like global change and master data also enhances its benefits by allowing the organisation to have a control of all its master data like parts, part lead times, product costing, purchase parts ,customers & suppliers globally. With one of the useful value of this feature is during initial implementation of the whole system in an organisation by allowing master records to be imported from an old system.

All day-to-day activity can be controlled with the processing capability of the system, like raw materials, components, sales order from purchase orders till dispatch/shipment.

Production can also be managed through work orders and detailed recorded activity on the shop floor.

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This also comes with the integrated accounting system inbuilt. The terminology varies from country to country, with the basic terminology of sales, purchase and normal ledger. In simple term it deals with everything related from customer account, customer payments, organisations internal account which includes external debtors & creditors account till ledger postings, journals, assets, tax, month end audits and manager functions etc

With many more advantages of ERP/MRPII systems on cost cutting of an organisation this is a brief detail like lower inventory carrying costs, lower ordering costs, lower production costs, lower accounting and record keeping costs, lower transportation costs, lower Investment in equipment, lower investment in plant, lower investment in plant/land etc.

Also allows better efficient lot sizes, scheduling, reduced error due to better co ordination, reduced number of stock outs & fulfilment times.

In short it helps the cost and improves efficiency, which in turn also increases the profitability or market share of a company [25]

11.3 Drawbacks
Cost is one of the biggest drawbacks of this system. At present scenario only big and large organisations can take the advantage of ERP system, which leaves small scale and medium scale companies in dark. Implementation of such a huge and complex software system involves huge number of analysts, programmers and people which comprises of multi-million projects. These systems are very expensive to install and maintain.

Investment in training the employees continuously on how to use it, which is time consuming and includes lot of investment. This system has lot of limitation like success of it is totally dependent on workers efficiency to use it, which means employees should be properly trained on it. In turn investment in implementing ERP system increases by cost of training its workers as well.

ERP is hard to customize. Its tough to modify system to suit organisational needs, and the process can be both expensive and tiresome. There is various limitations in what changes one can do in the system after its been established, thus making switching cost can be relatively very high.

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Due to integration of various activities and inter dependability of data with various departments in an organisation, problem in one department can affect the whole system.

One of the major problems, I see with the system is storage of data with ongoing demand of market of highly customized and standardised product with greater product differentiation, the storage of such huge data or data warehousing could be a problem with the limitations.

The system is susceptible to strike or labour problem.

Also the system is incapable of controlling errors i.e. its more about control of data flow and access of it throughout the organisation for planning, managing & utilizing it in the best way. The system is not decisive or not able to eliminate error on its own, where the risk of error increases if it is fed with a wrong input.

The Global changes feature in Caliach system is a powerful feature but same time potentially dangerous as it allows oneself to change the master records and data values fast.

Integration with existing software and systems could be one of the drawbacks of Caliach. Software such as Caliach are not compatible with other systems rather it has its own system and set of modules that it is compatible with. Therefore an existing system would have to be discontinued and the Caliach system implemented. This would mean existing users would have to adapt to a new system. In order to counter this problem training and education must be delivered to the users of the software and like for like modules or appropriate modules must be selected to meet the functions of the previous system. A good example of how expensive it can is British Airways (BA). The airliner introduced the SAP version of ERP. This was implemented over seven years ago. However the system costs in the excess of 25 Million pounds to implement and there were approximately over 150 separate legacy systems in use at the time.

Belgian airline is another airline which had over 30 different software systems in use at one time. This was a result of changes in ownership and different aircraft types. These problems grew from lack of a common database. Software was written for specific tasks and due to the different systems the different databases had to be updated independently which time was consuming. Maintenance will also be a longterm issue with any kind IT system having to keep on updating the system to maintain it and it is only correct for that particular time period [26]

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11.4 Solutions
One of the real time example of cost reduction in terms of small to medium organization is development of ASAP (Accelerated SAP) by leading ERP software providers SAP. It suggests adoption of big bang implementation. This provides a quick implementation which provides low cost and generally uses few software interfaces. However, the risk greatly increases as less time is used in development and assessing business needs. However, this topic itself is contradictory as one end there is one shot huge investment for implementing the system in an organisation and in the other end the system provides with huge cost reduction in many ways as discussed earlier in benefits section by providing organisations profit in long term. In terms with investment in training the employees, there is a possibility where people can learn about this software during their academics or before getting in to the company, seeing the growing demand of it and companies can directly recruit people for the same purpose rather than training them which includes money as well as time. With the growing demand of the system and continuous launch of more advanced and sophisticated versions, we can foresee ERP systems easier to customize, with more flexibility to small changes. The system in future can be developed more interactive to understand labour problems or to react according with the changing atmosphere. The problem of storing such huge data could be resolved by converting the whole system to web based. Which can provide numerous space for data storage.

Conclusion
It seems based on this report, relational database systems and the ability to forecast sales and incorporate the world wide web into the business are the critical success factors for all growing businesses. ERP is becoming the integral business function to manage the internal processes of operating the enterprise. Whilst EERP has added internet features to enable the external environment to be incorporated into the business. To remain competitive manufactures are looking for cost effective solutions. ERP is offering cost effectiveness over the long term by reducing number of employees, making the business processes more efficient and helping the management in decision making. In todays financial crisis with the recession looming on our heads and for how long, nobody knows. Increasing number of businesses are looking for alternative countries to settle their manufacturing hubs. This is primarily due to cheaper labour available in foreign countries

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such as India and China. Therefore it will become necessary for EERP to globalise the operations of International Businesses. Vendors such as Caliach and Sanderson are looking into providing alternative comprehensive integrated ERP systems to be available for Small to Medium Businesses (SMBs). This removes barriers of entry and allows the opportunity for smaller enterprises to become as efficient as the larger enterprises and in hindsight improve communication between them. There is a huge emphasis on CRM and SCM which will allow better management of healthier relationships between consumers and suppliers. The main concern is the dependency of future businesses upon technology. The risk of security and safety of information in the relational databases in the wrong hands could be catastrophic. Technological limitations such as storage capacity will inevitably lead data mining and clouding. This could result in potential threats from online hackers trying to jeopardise the company and become a threat. Finally ERP will not favour the environment, as greater power generating resources (referring to non environmentally friendly power plants) will be required to run these growing systems. All businesses will be required to have back up power in case of power cuts which could be very costly and lead to delaying business processes. Finally, all the technology whether it is RFid, ERP/MRP II software ex. caliach, sap, baan etc. Or group technology, coding and classification or 3-D designing software these all technology has been developed for one reason to provide a better, easier and smoother way of running businesses with a step towards perfection. Each of the technology which we discussed in the report plays a very significant role in the field of manufacturing and other business. They have been developed for greater and more accurate productivity. These technologies have also reduced human interventions or our role in the organisations thus making it more comfortable. The urge of perfection and competition in the market is leading to such wonderful and master-piece technologies. At the end all we have to say is this is a continuous chain of development and we can expect more sophisticated system with some very unusual fetures helping our lives im much more simpler way can evolve in future..

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References
1. http://www.sysoptima.com/erp/history_of_erp.php 2. http://www.igi-pub.com/downloads/excerpts/193070836XExcerp.pdf 3. O'Brien, Marakas (2008) Management Information Systems, Newyork, McGraw-Hill/Irwin, page 269 4. Kingston University Lecture Notes, Introduction to the MRP, Slide 23. http://books.google.co.uk/books? id=KkJp8jb8UzkC&pg=PA152&lpg=PA152&dq=advantages+of+mrp&source=bl&ots=PFG4MYyq Vu&sig=C9ttmB4qHDEjajjcPzdhvnFwtUY&hl=en&ei=q7ceS7jwM8T64AapoenYCg&sa=X&oi=bo ok_result&ct=result&resnum=8&ved=0CCIQ6AEwBzgK#v=onepage&q=advantages%20of %20mrp&f=false 5. http://people.brunel.ac.uk/~mastjjb/jeb/or/mrp.html 6. http://www.ifm.eng.cam.ac.uk/dstools/process/mrp2.html 7. O'Brien, Marakas (2008) Management Information Systems, Newyork, McGraw-Hill/Irwin, page 296

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8. Grant Norris, James R. Hurley, Kenneth M. Hartley, John R. Dunleavy, John D. Balls, John Dunleavy,(2000) E-Business and ERP: Transforming the Enterprise, Newyork, John Wiley & sons, page 13. 9. http://erp-guide.blogspot.com/2008/01/case-study-of-erp-in-rolls-royce.html 10. http://www.sanderson.com/sanim/CaseStudiesManufacturingSoftwareERP,10,1,372,1.html 11. Amit rawal, monash university, clayton, Australia vlo.52/no3/march 2009 http://www.mwjournal.com/Journal/article.asp?HH_ID=AR_7232 12. RFID journal article http://www.rfidjournal.com/article/articleview/1339/1/129/ 13. Figure 9.2.1: RFID Architecture Source: www.sdn.sap.com 14. Pawan p khilari, sap developer, RFID case study: http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/c444f8e8-0d01-0010-4d9bc6ff68e64519?QuickLink=index&overridelayout=true 15. Figure 9.3.1 : Supply Chain using RFID System Source :www.mwjournal.com 16. Figure 9.3.2: Benefits of RFID in Inventory Control Source: www.decisioncraft.com 17. http://www.decisioncraft.com/dmdirect/pdf/rfidapplications.pdf 18. http://www.cad-cam-books.us/pro-engineer_0005.php 19. Figure 10.1.1 shows introductive screen of Pro/ENGINEER http://www.me.cmu.edu/academics/courses/NSF_Edu_Proj/Wildfire_short_course/basicstutorial.htm 20. http://www.ptc.com/WCMS/files/64915/en/2762_ProE_br_EN_ViewONLY.pdf 21. http://en.wikipedia.org/wiki/CATIA 22. http://powercatia.com/aboutcatia.aspx 23. http://www.caddigest.com/subjects/solidworks/select/cadcamnet_catia.htm 24. http://www-01.ibm.com/software/applications/plm/catiav5/prods/co3/ 25 http://www.caliach.com/caliach/calvision/tutorial/simple/mrp.html (accessed on 18.12.09) 26 http://www.globusz.com/ebooks/Supply/00000011.htm (accessed on 18.12.09) 27. P. Harrop, Tracking New Markets with Radio Frequency ID (RFID) Tags, http://www.synopsys.com 28. coding and classification in manufacturing http://www.strategosinc.com/gtcoding_classification.htm

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