Chapter 4

ERP-A manufacturing perspective

The major investments head for manufacturing companies are :

Infrastructure Software design and application design Software package ERP package Consulting service E-commerce Data warehousing

CAD/CAM
Traditionally the automotive and aerospace industries were the largest consumers of CAD/CAM Mahindra and Mahindra included CAD/CAM which increased design capacity and manufacturing capacity doubled

 Tata johnson controls, with increased design capacity using advanced CAD/CAM, went on to supply seating systems to many auto majours

Material Requirement planning

Initially manufacturers viewed MRP as a better method for ordering components MRP provides a method that keeps order due dates valid, even if the orders have been released to the shop floor MRP systems can detect due date of an order, the date the order is scheduled to arrive

 In 1970s and 1980s techniques related with planning capacity were related with MRP. MRP has proved to be an effective production and inventory planning system.

MRP system requires three types of information :

Master production schedule Bill of Material Inventory records

MRP uses MPS,BOM,IR to determine following components :

Planned order quantities Planned order release dates(shop floor/supplier) Planned order due dates

BOM
BOM defines relationship of components to end items It identifies all components used in the production of an end item

Distribution requirement planning

DRP assist companies to improve link between marketplace requirements and manufacturing activities DRP system helps management to find future requirements

JIT
It produces goods and services when needed It is time based

Principles applied to organization to achieve the aims of JIT are:

Elimination of waste : removal of any activity which is not value added Total quality management :TQM eliminates wastes by removing defects. Total employee involvement : Opportunity is provided through education, training and work teams

Benefits of JIT
Increased flexibility : Operators must be multi skilled. This can be done using small batch sizes Parts reduction :reduce inventory levels of raw materials, work in process and finished goods