MODERN ERP

SELECT, IMPLEMENT & USE TODAYS ADVANCED

BUSINESS SYSTEMS
Second Edition

Chng 10: H thng qun l sn xut

Lch s hnh thnh H thng qun l sn xut

Lng t hng kinh t (Economic Order Quantity -

EOQ) K thut qun l hng tn kho, trong mi nguyn

liu c phn tch v chi ph t hng v chi ph tn kho sao
cho ti u.

Materials Requirements Planning (MRP) lp k hoch

sn xut v kim sot hng tn kho. Cn cc thng tin

sau.

Danh sch nguyn liu (Bill of material BOM) Danh sch

y cc nguyn liu cn thit sn xut mt mt hng

Lch trnh sn xut chnh (MPS) production schedule for

finished goods based on current orders plus forecasted

requirements
Inventory status file contains on-hand inventory balances
of every part held in inventory
Open orders orders not yet filled

2010 by Marianne Bradford. All rights reserved

Lead time time that elapses between placing an order for raw

Material Requirements Planning

Materials Requirements Planning (MRP)
With the MPS, the BOM, and the Inventory Status Report,

MRP systems:
Identify raw materials needed
Calculate lead times and safety stock levels
Determine the most cost-effective order quantities
Produce a detailed schedule of accurate purchase orders

Benefits
Reduce inventory levels, production, and delivery lead times by
improving coordination and avoiding delays
Make finished goods commitments to customers more realistic
Increase efficiencies in the raw material procurement process
and ensuring production process

2010 by Marianne Bradford. All rights reserved

Production Process

2010 by Marianne Bradford. All rights reserved

Manufacturing Systems Evolution

Capacity Planning uses the planned manufacturing

schedule to analyze the requirements that will be placed

upon manufacturing work centers such as personnel,
machines, and warehouse capacity
Manufacturing Resource Planning (MRPII) effectively

plans all resources of a manufacturing operation

including the operational planning in unites, financial
planning in dollars, and a simulation capability to ask
what it questions

2010 by Marianne Bradford. All rights reserved

ERP Manufacturing Modules

Production Planning enables the creation of

realistic production plans across multiple

manufacturing locations and subcontractors to
fulfill demand in a timely manner and according
to standards expected by the customer
Production with production orders, repetitive

manufacturing, Kanban. Discrete or process

manufacturing

2010 by Marianne Bradford. All rights reserved

ERP Manufacturing Modules

Materials Management supports inventory-related

activities such as the tracking and control or raw

materials, stocked items, WIP, and finished goods in a
single, integrated inventory control environment
Specifies the activities needed to maintain adequate

inventory levels
Purchasing and inventory valuation
Quality Management assists in configuring specific

parameters that define what goods to inspect, when to

inspect, and tolerance limits (the extreme values that
are considered acceptable
Alerts those responsible when quality deviations occur and

specifies what course of action to take

Benefits of quality management include:
Capture data regarding material quality of products
Record quality tests in a consistent and controlled way

Minimize time spent inspecting material, collecting data, and

2010 by Marianne Bradford. All rights reserved

ERP Manufacturing Modules

Plant Maintenance used by large organizations in

capital-intensive industries.
Directs the activities required to maximize the availability

and operability of equipment; reduces costs for inspections,

repairs, and maintenance
Provide a real-time, detailed view of the costs, reliability, and
impact of each piece of equipment on the manufacturing
floor
Extend the useful life of fixed assets in the plant
Minimize downtime and maximize uptime of fixed assets in
the plant
Support Six Sigma and other quality methods
Increase collaboration between production and maintenance
staffs
Monitor equipment performance

2010 by Marianne Bradford. All rights reserved

ERP Manufacturing Modules

Service Management manages the lifecycle changes to

existing services or installed products after the initial

customer order is filled
Goal optimize service-intensive supply chains
Benefits of employing service management include:
Lower service costs by integrating the services and products supply

chains
Lower service parts inventory levels
Optimize customer service and parts/service quality
Increase service revenue
Improve customer satisfaction
Minimize technician visits

Warehouse Management automates the flow of materials

into, through, and out of the warehouse

Automate processes including receiving, put away, order

picking, shipping, and inventory control

2010 by Marianne Bradford. All rights reserved
Cycle counting counting a sample of warehouse bins at

ERP Manufacturing Modules

Lean Manufacturing philosophy of production that

emphasizes the maximizing an enterprises resources

and attempts to reduce inventory and eliminate waste,
the costs that add no value to a product
Just-in-time materials are supplied just when needed
Reduces or eliminates overproduction, transport, motion,

waiting, inventory, over-processing, and defects

Lean planning and operations (LPO) helps lean
manufacturers plan production in smaller batches across
volume and mix, handle product transitions efficiently and
tightly integrate production activities on the plant floor
Supplier Relationship Management enables businesses

to manage the relationship between procurement

personnel and suppliers
Helps companies with each phase of the procurement cycle
Allows for supplier selection (i.e. comparing vendors based

on factors such as price, past performance etc)

2010 by Marianne Bradford. All rights reserved

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