facturers

urce time use

per these systems.
unit, or Figure
units/hour on9.38 shows theItexternal
the resource. containscontext of the origi
no consideration of
hop floor activity – “shop floor control” – requires extensive online transaction processing. Shop
transactions are often not entered in real time by operators, but at the end of the shift or the day
between
rk, machines
from data of the
handwritten same type.
on travelers, causing the inventory status to be off by several hours on
of
ne work
basis. among machines with overlapping capabilities.
Inventory
production run structure.  Inventory
status status
capacity
ad size. model supported in the closed-loop MRP system is limited to only one parameter for e
urce type: resource time per unit, or units/hour on the resource. It contains no consideration of t
wing:
 limits the validity
Differences between ofmachines
this
Master black
Master box
of the ortype.
same pipeline model
Materials to a level of aggregation a
Materials
details Production
are blurred. schedule
Production It schedule
works MRP and
for sales requirements
MRPoperations requirements
planning on a monthly level
  Allocation of
control work among machines with overlapping capabilities.
PurchasingPurchasing
control EngineEngine
uling on an hourly basis.
  Setup and production run structure. 
  Machine load size.
hows inventory status as being maintained by tracking shop floor activity. In pra
lack of details limits the validity of this black box or pipeline model to a level of aggregation at  
hplemented
operational by cycle
details are counting, that is,
blurred. It works for manually checking
sales and operations inventory
planning status in
on a monthly set b
level,
in shop
corrections toon Bill of
the Routing database Purchasing
or scheduling an inventory
materialshourly
Bill of basis.
status that Purchasing
Routing lead times
lead times
are not shown here.
materials lead times lead times
diagram also shows inventory status as being maintained by tracking shop floor activity. In pract
needs toFigure 9.38 Materials
Estimated Requirements
completion
be supplemented dates
by cycle Planning
counting, that (MRP)checking
is, manually in the 1960s
inventory status in set
Figure 9.38 Materials Purchasing
Requirements Planning
vals, resulting in corrections to the inventory status database
lead times
that(MRP)
are notinshown
the 1960s
here.
Ord Purchasing
pt of MRP e
Sales
d uise ofs, interest because it is still embedded
r
s
in today’s ERP systems. W
pri -date eq
’ t
cept of MRP ori iss,of
uced the concept tie
s
of interest
computing
Estimated because
the
completion it is still rembedded
dates“dependent demand” for components fro
t’ l s in today’s ERP sy
a
Purchasing
M
oducedfor the concept Master
and” finished goods Oof
rde computing
as an improvement the “dependent demand” for compon
lead over
times methods like the two-bin or
Purchasing
Capacity
Plan
d rs schedule MRP
no use of e-d ,
Sales of umaterials.
mand” forthe bills
finished pri goods
production
ori ates, as anA manufacturer
improvement
engine Disp should
a tc
over
req
not have to
’ts methods reorder
like the two ba
tie h ’
t lils
one whenuseitofis the possible
bills to calculate exactly Ma sts
the quantities required notinhave
ordertotores
s
ke no of materials. A manufacturer
Master should
Plan schedule MRP Production
ished
alonegoods.
when Capacity
it is possibleproduction to calculate exactly engine Dthe ispa quantities required in o
le
sc tart
adju

du

floor
Man ents

tch
S

lists
he

finished goods.
stm
ual

Production
ncern with the picture is the quality Bill
of of
the input data. How can we make sure
le

Routing
sc tart

Inventory
adju

du

floor
Man ents

materials lead times

he

status
curate inventory data, bills of materials that incorporate the latest engineering
stm

Production
ual

concern with the Inventory

picture is the quality of
Bill ofthe input
Routing data. How can we m
and control
imes – both internalstatus external – that are realistic?
materials lead times
accurate inventory data, bills Production
of materials that incorporate the latest eng
st per end n
O rt/ tio

control
d times – both internal and external – that are realistic?
a a
st per

en on
O

i
d
ar at
t/

Track shop
floor activity
Track shop
floor activity

Figure 9.39Figure
Closed-loop MRP inMRP
9.39 Closed-loop the in1970s
the 1970s
cal to theIIvalue
n MRP is theof this feature
ability is the
to extract dataextent to which
from the MRP the data canfor
II database beuse
trusted. Comm
in other appl
orders
al to theand shipments
value are often
of this feature accurate;
is the extent equipment
to which thecapacity,
data canrarely.
be trusted. Commerci
rders and shipments are often accurate; equipment capacity, rarely.
ccuracy 
 cannot be taken for granted. Its achievement depends on a combination of
es that drive
ccuracy cannotthebequantities of materials
taken for granted. stored, visual
Its achievement systemsontoa make
depends items and
combination qu
of man
s that
sy drive
to see, andthecomputer-based
quantities of materials
warehousestored, visual systems
management to make
systems itemsthat,
(WMS) and quanti
while
yhave
to see, andsuccessful
been computer-based
in manywarehouse
companies. management systems (WMS) that, while not
have been successful in many companies.

Sales
Sales

co E ple
Es letiomat dat
Customer’s

mp st tio
Purchasing

tim n ed es
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co rs
inventory
Customer’s

at dat
m
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Orde

ed es
i
inventory Customer
definitions

n
Customer
rs

definitions Order
Customers
EDI order Order entry

’ts
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req
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t’ls ’ts
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pri

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or

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ing tic floor
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Accounting Pr od uction history i
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costingProduction
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costing Closed-loop
MRP list on
ati d
t s e
o r
n
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erO
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e
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Production history

n
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Production history

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rt ed
Production
control Srttasch
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control
Bill of Routing Purchasing
Capacity Bill of Routing
Capacity materials lead times Purchasing lead times
materials lead times lead times

Extracts for Extractor

Extracts for Extractor
add-on modules
add-on modules

Figure9.40
Figure 9.40Manufacturing
Manufacturing Resource
Resource Planning
Planning (MRP-II)
(MRP-II) in the
in the 1980s
1980s
 leware are available for bolt-on modules involving transaction processing, such as war
PLM (Product Lifecycle Management) is the integration of CAD with PDM (Product Data Manage-
ement. Using the same conventions, Figure 9.41 shows common functions added to M
ment), which ensures the consistency and currency of the BOM data used in purchasing, engineering,
and manufacturing.  

The approach to external interfaces is richer than in previous generations. Extracts are of course still
possible, but data warehousing makes them easier to generate for analytics, rdand real-time interfaces
Customer’s 3 party
through middleware are available inventory
for bolt-on modules involving transaction processing, such as ware-
logistics
house management. Using the same conventions, Figure 9.41 shows common functions added to MRP-
providers
II in ERP. Purchasing Customers

r
E

de
com stimat

or

s
plet e
ion d

e ing

tu
Suppliers

n
Mat’ls

ta
tio
date Customer’s

tic ipp
3rd party

ts
s

ta
inventory

No e Sh
logistics

en
or
Cu

er
providers

m
sp
de s t o Or Customers rs
req’ts

ord

ip
nc
de rde
Purchasing

an
s
tice

Sh
fin me r O
va

Tr

r
iti E n o

de
r s
DI
Sales t
Ad

i
ping
on com m
plet ated

or
Materials

s
E

e ing
p

tu
s ion h i Suppliers

n
S
Mat’ls

ta
tio
date management /
tic ipp

ts
s

ta
No e Sh Logistics Logistics

en
or
Cu Service metrics

r
Cost model

m
rde

sp
de sto Or s
req’ts

ip
r
nc

d e

an
ers MRP II Or d ice s

Sh
fin me Io
va

not

Tr
iti
on r Equi
Ad

ED
ng Mai
s pme Ship
p i Materials
ntmanagement
nt av e nan /
Product costs ts ailab
Logistics r c e
Logistics
n
e Cost model i l ity Service metrics e pair sc
Accounting justm MRP II Maintenance requ hedule
d Equip ests ,
al a men Mai
u nten
,

t ava management
s

n le costs ents
Ma Product a
ilabi repa nce sc
tu

du lity
io , Routings

e h
to Sta

h m ir re
c jus t
D Maintenance que edule,
Em

rt s l a d isp Work s ts
Sta nua
his ns,

s,

management
ry

e a o
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u t Mainten
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o

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iti

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e
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r t O s l
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ry

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itM

Production ra O
De

h
cap

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ye

lis
BO

control
fin

ts
nerast
ec

Equ
De

ab

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apa

rts/ta
ilit

External Eequ ents

i
interface
bili

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pm
ernt/ veipnm
ies

ev
interface dend
tie

modules
PLM
ent
tesnt
s

PLM
s
roces uct & proces
s
t & p
uc
ProdEngineering Pro d
itions EmployeeEmployeeHR HROperator Operator certifications,
eering e fi nitions defin Human definitions
certifications,
evaluations Production
d Human resources
definitions manage- manage-
evaluations Production
ment floor
resources ment floor
Figure 9.41 Enterprise Resource Planning (ERP) since the late 1990s
Figure 9.41 Enterprise Resource Planning (ERP) since the late 1990s

371