Topic covered in this chapter

Operation strategy

The market requires... specified time, quantity and quality of products and services The operation supplies... the informational ability to deliver products and services

Improvement design Operation management

Planning and control

ENTERPRISE RESOURCE PLANNING (ERP)

What is ERP?  What is MRP?  How did ERP develop?  What is MRP II?  How is ERP developing?

RESOURCE PLANNING: A process that take sales and operation plans; processes information in the way of time standards, routings, and other information on how the firm produces its services or products; and then plans the input requirements. ENTERPRISE PROCESS: A Companywide process that cuts across functional areas, business units, geographical regions, and product lines.

SYSTEM:

ENTERPRISE

RESOURCE PLANNING (ERP)

Large, integrated information systems that support many enterprise processes and data storage needs.

OPERATIONS MANAGEMNT BY LEE J. KRAJEWSKI, LARRY P.RITZMAN , MANHOJ K.MALHOTRA

DESIGNING OF ERP

Customer services Manufacturing Material

requirements planning scheduling Field services quality

Enterprise resource planning (ERP)

The integration of all significant resource planning systems in an organization that, in an operations context, integrates planning and control with the other functions of the business.

Materials requirement planning (MRP)

A set of calculations embedded in a system that helps operations make volume and timing calculations for planning and control purposes.

Operation Management by Nigel slack, Stuart chamber, Robert Johnson

Terms involved in development of ERP

Bill of material (BOM)
A list of the component parts required to make up the total package for a product or service together with information regarding their level in the product or component structure and the quantities of each component required.

Master production schedule (MPS)

The important schedule that forms the main input to material requirements planning, it contains a statement of the volume and timing of the end products to be made.

Manufacturing resource planning (MRPII)

An expansion of material requirements planning to include greater integration with information in other parts of the organization and often greater sophistication in scheduling calculations.

Web-integrated ERP
Enterprise resource planning that is extended to include the ERP type systems of other organizations such as customers and suppliers.

The development of ERP

Materials requirements planning (MRP) schematic

Simplified example of MPS

BILLS OF MATERIAL(BOM)