Cover image for Maximizing your ERP system : a practical guide for managers
Title:
Maximizing your ERP system : a practical guide for managers
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Publication Information:
New York : McGraw-Hill , 2003
ISBN:
9780071406116

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30000005178599 HD30.28 H354 2003 Open Access Book Book
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Summary

Summary

Serves as a step-by-step guide for using an ERP system to run your manufacturing business. This book outlines an ERP systems approach that is flexible and designed to work in a variety of industries and environments. It addresses the several issues facing manufacturers and explores the different areas of ERP information and technical knowledge.


Author Notes

Scott Hamilton, Ph.D., has specialized in ERP systems for manufacturing for more than 30 years.


Table of Contents

Prefacep. xi
Part 1 Introductionp. 1
Chapter 1 Overviewp. 3
Variations in Manufacturing Environments Affecting ERP System Usagep. 4
Design Issues That Affect ERP System Usagep. 10
Focus on ERP Usage in Small Manufacturersp. 12
Overview of an ERP Systemp. 12
Organizing Focus of the Bookp. 18
Chapter 2 Trends Affecting Manufacturers and ERPp. 20
Supply Chain Managementp. 20
Customer-Oriented Strategies and CRMp. 21
JIT and Lean Manufacturingp. 23
ERP and Virtual Manufacturingp. 25
Demassified Multisite Operationsp. 25
ERP and Computer Integrated Manufacturingp. 29
ERP and Advanced Planning and Schedulingp. 30
Evolution of ERP Software Packagesp. 34
ERP and Generally Accepted Manufacturing Practicesp. 35
Chapter 3 Justification of ERP Investmentsp. 36
Quantifiable Benefits from an ERP Systemp. 36
The Intangible Effects of ERPp. 41
Costs of Implementing an ERP Systemp. 44
Replacing or Reimplementing an ERP Systemp. 47
Part 2 Structuring the Manufacturing Databasep. 51
Chapter 4 Itemsp. 53
Item Identification for Material Itemsp. 53
ERP Design Issues Related to Material Itemsp. 60
Other Types of Itemsp. 65
Family Itemsp. 68
Common Problems Related to Material Itemsp. 70
Chapter 5 Bills of Materialp. 74
Critical Information in a Bill of Materialp. 76
Managing Changes to a Bill of Materialp. 80
Other Considerations in the Bill of Materialp. 84
Planning Bills and Standard Productsp. 88
Chapter 6 Resources and Routingsp. 90
Resource Master: Internal Resourcesp. 92
Routing Operations: Internalp. 99
External Resources and Outside Operationsp. 102
Managing Changes to a Routingp. 104
Other Considerations in the Routingp. 106
Common Problems Related to Routingsp. 108
Chapter 7 Item Supply and Planning Datap. 109
ERP Design Issues Related to Item Suppliesp. 109
Supply Ordersp. 112
Supply Orders with Direct Linkage to Sales Ordersp. 115
Responsibility for Coordinating Supply Chain Activitiesp. 116
Replenishment Methodsp. 117
Planning Policies and Their Impact on Replenishmentp. 121
Other Policies Impacting Replenishment Based on MRP Logicp. 123
Chapter 8 Product Costingp. 125
Overview of Product Costingp. 125
Building on the Common Manufacturing Databasep. 130
Suggestions for Maintaining Standard Costsp. 132
Common Problems Related to Product Costingp. 134
Chapter 9 Custom Productsp. 137
Defining a Custom Product Configurationp. 138
Estimated Cost for a Configurationp. 144
Estimated Price for a Configurationp. 146
Supply Orders and a Configurationp. 147
Differences between a Configuration and Standard Product Itemp. 150
Defining a Custom Product Planning Billp. 151
Supply Orders and the Production Planp. 156
Common Problems Related to Custom Productsp. 156
Part 3 Sales and Operation Planningp. 159
Chapter 10 Demand Managementp. 161
Identifying the Sources of Independent Demandsp. 161
Anticipating Actual Demands with Forecastsp. 163
Anticipating Variability in Actual Demands via Inventory Plansp. 167
Interaction between Actual and Forecasted Demandsp. 168
Chapter 11 Sales and Operations Planningp. 175
Some Basic S&OP Principlesp. 175
An Overall S&OP Framework: Basic Elementsp. 176
S&OP Case Study: A Single Make-to-Stock Standard Productp. 181
S&OP Case Study: An Assemble-to-Order Custom Productp. 183
Making the S&OP Game Plan Realisticp. 187
Significance of an Agreed-Upon S&OP Game Planp. 190
Making Delivery Promises Using Available-to-Promise Logicp. 195
Making Delivery Promises Based on Capable-to-Promise Logicp. 196
Other Common Problems Related to Sales and Operations Planningp. 198
Chapter 12 Sales and Operations Planning Case Studiesp. 200
Make-to-Stock Standard Productsp. 202
Make-to-Order Standard Products (with Indirect Linkage)p. 204
Make-to-Order Standard Products (with Direct Linkage)p. 209
Custom Productsp. 210
Special Case: Common Material Used to Produce Many MTO Itemsp. 211
Special Case: Aggregate ATPp. 212
Part 4 Sales Managementp. 215
Chapter 13 Sales Order Processingp. 217
Sources of Demandp. 218
Life Cycle of a Sales Orderp. 220
Accept Sales Orderp. 224
Other Steps in Sales Order Processingp. 227
Sales Order Considerations That Impact Demandsp. 229
Sales Order Considerations That Impact Coordination of Supply Chain Activitiesp. 231
Sales History and Sales Analysisp. 233
Sales Order Considerations with Multiple Sales Channelsp. 233
Other Common Problems Related to Sales Order Processingp. 235
Chapter 14 Customer Servicep. 237
Scope of Customer Servicep. 237
Customer Relationship Management (CRM) and ERPp. 238
Returned Material and Returned Material Authorizationsp. 243
Common Problems Related to Customer Servicep. 245
Part 5 Executing Supply Chain Activitiesp. 247
Chapter 15 Procurement and Receivingp. 249
A Contingency Approach to Procurement Activityp. 249
A Framework for Procurement Activitiesp. 253
Review of Manufacturing Database Information Relevant to Procurementp. 254
Sourcing and Agreement Informationp. 257
Coordinating and Executing Procurement Activitiesp. 259
Receiving Activitiesp. 262
Analysis Tools for Procurementp. 265
Symmetry between Procurement and Salesp. 266
Common Problems Related to Procurementp. 267
Chapter 16 Inventory Managementp. 270
Inventory Locationsp. 270
Inventory Status and Ownershipp. 271
Basics of Stockroom Inventory Managementp. 273
Common Problems Related to Inventory Managementp. 278
Chapter 17 Production and Production Activity Controlp. 279
A Contingency Approach to Modeling Production Activitiesp. 279
A Framework for Production Activitiesp. 282
Review of Manufacturing Database Information Relevant to Productionp. 285
Coordinating and Executing Production Activitiesp. 287
Tracking Production Statusp. 294
Receiving Activities Related to Productionp. 296
Common Problems Related to Production Activity Controlp. 297
Chapter 18 Distribution Managementp. 301
A Contingency Approach to Shipping Activitiesp. 301
A Framework for Shipping Activitiesp. 304
Manufacturing Database Information Relevant to Shippingp. 305
Coordinate and Execute Shipping Activitiesp. 307
Tracking Shipmentsp. 310
Variations in Shipping Environmentsp. 310
Chapter 19 Field Servicesp. 313
Differences between Field Service and Production Activity Controlp. 314
Variations in Field Service Environmentsp. 315
Chapter 20 Quality Managementp. 317
Macrolevel Quality Metrics and an Effective ERP Systemp. 318
Quality Implications for an ERP Systemp. 318
Case Study: Impact of Quality Concerns on ERP in a Regulated Environmentp. 323
Coordination Tools in an ERP System for Quality Management Personnelp. 324
Work-Flow Processes and an ERP Systemp. 325
Impact of ISO 9000 and Other Certification Programs on an ERP Systemp. 326
Integration of Specialized Quality Management Applicationsp. 326
Part 6 Accounting and Reportingp. 329
Chapter 21 Cost Accountingp. 331
Standard Costs and Variancesp. 331
Actual Costing for Standard Productsp. 336
Actual Costs for a Custom Product Configurationp. 338
ERP and General Accounting Applicationsp. 340
Chapter 22 Management Reportingp. 342
Basic Reports and Screens in an ERP Systemp. 342
Executive Information Systemsp. 349
Data Warehouse and Data Martsp. 350
Decision Support Systems and User Access to Datap. 351
Part 7 Variations in Manufacturing Environmentsp. 353
Chapter 23 Multisite Operationsp. 355
Physical Sites in a Multisite Operationp. 355
Selective Coordination of a Multisite Operationp. 357
Multisite Operations and Distribution Requirements Planningp. 360
Chapter 24 Project Manufacturing Operationsp. 366
Project Masterp. 366
Project MRP and an S&OP Case Studyp. 367
Project Costingp. 368
Part 8 Summaryp. 373
Chapter 25 Summaryp. 375
Significance for the Project Implementation Team in Smaller Manufacturersp. 376
Significance for Executives of Smaller Manufacturersp. 376
Significance for Larger Manufacturersp. 376
Significance for Production and Procurement Managers in Coordinating Supply Chain Activitiesp. 377
Significance for Engineering Managersp. 377
Significance for Quality Managersp. 378
Significance for ERP Software Vendorsp. 378
Significance for Business School Curriculap. 378
Final Notep. 379
Bibliographyp. 380
Indexp. 382