ERP : tools, techniques and applications for integrating the supply chain

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Intensifying competition forces companies to closely integrate with their customers and suppliers. Cooperation creates a more flexible supply chain. Yet, lead-times become shorter and demand for increased variety continues to grow. This dilemma requires a means to implement the desired integration. Enterprise Resource Planning (ERP) is that tool.

ERP, a system for effectively planning and managing all the resources of an enterprise, fully utilizes the increased power available in computers today. ERP is distinguished from MRP in its use of relational databases, fourth-generation languages, integrated computer aided engineering tools, and open system portability to adjunct planning systems, finite scheduling systems, and manufacturing execution systems.

INTRODUCING THE MANAGEMENT INTERACTIVE CASE STUDY SIMULATOR
This book includes the Management Interactive Case Study Simulator (MICSS) on CD-ROM, a computerized case study that lets you manage a small company, illustrating crucial management issues. The challenge: learn to control the dynamics of this virtual company and maneuver it to financial success.

The Advanced Planning and Scheduling tools of the ERP system help determine the most beneficial mix of customers and orders. ERP provides timing recommendation for material purchases and can share this information with all links of the supply chain. A successful ERP is highly effective in reducing material costs, which boosts profitability.

The most common reason that ERP implementations fail is when operators are not properly educated in the integrated business application of the system. This ignorance turns ERP into an overpriced inventory control system. ERP: Tools, Techniques and Applications for Integrating the Supply Chain helps provide the education that is critical for ERP success.

Features

George W. Plossl

Foreword	p. xiii
Preface	p. xv
About the Author and Simulation Team	p. xvii
Acknowledgments	p. xix
MICSS program	p. xxi
How to Use This Book	p. xxiii
Introduction	p. xxv
Section I Enterprise Management
1 History of ERP	p. 3
Requirements Generation to MRP	p. 3
Closing the MRP Loop	p. 6
Manufacturing Resource Planning (MRPII)	p. 7
Just in Time (JIT)	p. 9
Enterprise Resource Planning (ERP)	p. 10
Supply Chain Management	p. 11
Summary	p. 13
General ERP Resources	p. 13
2 The Theory of Constraints and ERP	p. 15
Eli Schragenheim
Management Philosophies and Information Technology	p. 15
The Basics of Theory of Constraints (TOC)	p. 17
Specific TOC Techniques	p. 19
Defining the Requirements for ERP According to the TOC Generic Thinking	p. 30
Managing the Implementation Project	p. 34
Summary	p. 35
3 Sales and Operations Planning	p. 37
Why Sales and Operations Planning?	p. 37
Impact of Change	p. 41
Elements of Sales and Operations Planning	p. 43
Sales and Operation Planning Implementation	p. 43
Global Sales and Operations Planning	p. 60
Summary	p. 60
Resources for Sales and Operations Planning	p. 62
4 Buffer Resource Strategy	p. 63
Inventory Buffers	p. 63
Volume/Variety Matrix	p. 65
Summary	p. 81
Resources for Buffer Resource Strategy	p. 81
5 Enterprise Resource Management	p. 83
ERM Checklist	p. 84
Summary	p. 104
6 Integrating the Supply Chain to Reap the Rewards	p. 105
SCOR Model	p. 106
Supply Chain Competitiveness	p. 109
Plossl's Seven Supply Chain Points	p. 110
Strategic Sourcing and Procurement	p. 117
Distribution Networks	p. 123
Performance Measurements	p. 126
Summary	p. 128
References and Resources for Supply Chain Management	p. 129
Section II Operations Management
7 Operations Planning (Material and Capacity Requirements)	p. 133
Demand Management	p. 134
Material Requirements Planning	p. 138
Capacity Requirements Planning	p. 151
Summary	p. 166
8 Product Design and Development	p. 169
Production Data Management (PDM)	p. 170
Effective Product Design	p. 173
PDM II = PDM + VPDM + ERP	p. 178
Summary	p. 185
9 Manufacturing Execution System (MES)	p. 187
Finite Schedulers	p. 187
Event-Driven Shop Floor Integration	p. 193
Summary	p. 204
MES Resources and References	p. 204
10 Distribution	p. 205
Warehousing	p. 205
Site and Location Analysis	p. 211
Inventory Control	p. 212
Distribution Requirements Planning (DRP)	p. 225
Material Handling	p. 227
Order Administration	p. 228
Summary	p. 229
Distribution References and Resources	p. 229
Section III ERP Selection and Implementation
11 ERP System Requirements	p. 233
Unique Item Identification	p. 233
Demand	p. 245
Dependent Materials	p. 245
Supply	p. 246
Summary	p. 247
References	p. 247
12 Selecting the Right ERP System	p. 249
Type of Business	p. 249
Selection Strategy	p. 251
Selecting Software	p. 261
Summary	p. 264
System Selection Resources	p. 264
13 Data Record Accuracy	p. 265
Inventory Record Accuracy	p. 266
Bill of Material Record Accuracy	p. 276
Routing Accuracy	p. 277
Sales Order Accuracy	p. 279
Work Order Accuracy	p. 280
Master Production Schedule Accuracy	p. 280
Purchase Order Accuracy	p. 281
Manufacturing Execution System (MES) Accuracy	p. 282
Summary	p. 283
References	p. 283
14 Implementation: Generalized Industry Application	p. 285
Determine Industry Type	p. 285
Get Ready	p. 287
Get Set	p. 291
Go	p. 294
Project Plan: Major Milestones	p. 296
Failure Strategies	p. 307
Summary	p. 310
15 Repetitive Manufacturing Application	p. 311
General Repetitive Application	p. 311
Kanban	p. 314
Rate-Based Scheduling	p. 318
Production Sales Inventory Analysis	p. 319
Backflush	p. 322
Period Costing	p. 325
High-Volume, Mixed-Model Manufacturing	p. 326
Configurators	p. 327
Summary	p. 328
16 Process Industry Application	p. 331
Process Industry Overview	p. 331
Process Flow Scheduling	p. 335
ERP System Requirements	p. 337
Summary	p. 340
Resources for the Process Manufacturer	p. 341
17 Remanufacturing	p. 343
Remanufacturing Similarities and Differences	p. 344
Managing Remanufacturing Material	p. 345
Remanufacturing Bills of Material	p. 346
Remanufacturing Routings	p. 350
Remanufacturing Inventory Management	p. 352
Glossary	p. 354
References and Resources	p. 355
18 Project Manufacturing	p. 357
Project Life Cycles	p. 358
Projects in ERP	p. 364
Summary	p. 369
Project Management Resources	p. 370
19 Field Service	p. 371
Field Service Inventory Management	p. 371
Field Service Tool Management	p. 373
Field Service and CRM (Customer Relationship Management)	p. 374
Field Service and ERP	p. 376
Summary	p. 379
Field Service Resources and References	p. 379
Section IV Application
Eli Schragenheim
Introduction to the ERP -- MICSS Simulator	p. 383
The ERP-MICSS Case: The Smart Industries Inc. Case Study	p. 389
The ERP-MICSS Computerized Case Study Analysis	p. 401
Index	p. 419

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