ERP- Manufacturing Perspective

Prof.R.K.NADESHSITE

Introduction -Manufacturing• 30% Growth –

Automobile,Steel(TISCO),Pharmaceuticals(WHO)

• Spends on IT to look after the scale of their operations - > Controlling Inventory- > Production Cost -> Marketing Cost -> Better Decision Making

Major Investment Heads

• Infrastructure• S/w Design & Application Development • S/w Packages• ERP Packages• Consulting Services• External Connectivity (Dealer / Supplier)• Data Warehousing • E-Commerce

ERP

• High impact area (leads to bottom-up change in an organization)

• Integration of finance with logistics • Distribution of Products • Selecting of ERP Solutions (SAP,BAAN

ERP)

CAD/CAM• Major Focused area –Industries• Automotive & Aerospace Industries• M&M – Doubled the capacity (Tractor Division)• Enhancement in Design Capacity

TATA Johnson – Seats – Ford & Others Followed

Major Focused Area 1. Design Analysis 2.Development 3.Manufacturing

MRP

Distribution Requirements Planning

• Extension of MRP into physical distribution system ( Distribution Inventory)

• By improving the linkage between market place requirements and manufacturing activities

• Future requirements – Supply of products to the demand for them.

JIT & Kanban

• JIT is a production philosophy & not an technology

(Goods & Service- When Needed)

• JIT uses PULL method of Scheduling Material Flow(Kanban)

• Aim – to make goods available JUST IN TIME

JIT

• Principles* Elimation of Waste

1. Removal of any activity not value-added

* Total Quality Management 1.Quality is maintained from the purchase of raw materials

* Total Employee Involvement 1. Making all the employees to involve by providing appropriate training

JIT • Benefits

1. Increased Flexibility - Small batch sizes; operators must be multi skilled – Low to High

2. Increased Productivity/Quality

3. Parts Reduced - Raw Materials – Produce - Deliver

(Spoil R Damage will not occur )

4. Simplicity of the System

KANBAN (Visual Record)• Making product as continuous

(Design- Manufacture – Distribution of sales to Service)

• Highly Efficient and Effective Factory Production System

• Fine tuning production & Supplier Scheduling Systems

(Inventories are minimized by supplying components only when needed in production)

• Module / Cellular Production / Group Production Technique

““Kanban Concept is that a supplier (or) the warehouse should onlyKanban Concept is that a supplier (or) the warehouse should only deliver deliver components to the production line as and when they are needed socomponents to the production line as and when they are needed so that there that there is no shortage in the productionis no shortage in the production””

Advantages of KANBAN

• Simple and Understandable process• Provides quick and precise information• Quick response to changes• Avoids overproduction• Minimizes Waste• Maintains Control

Product Data Management (PDM)

• Duplicate Reference copies of master data; on the other hand can be distributed freely to users in the various departments for design analysis and approval

• DATA Management • Process Management

Data Management

• Manage both attribute and documentary data as well as the relationships between them

Companies Component and Assembly Drawings Comprehensive Records Size,Weight,Where Used.

Classification of Components – Database – Grouped under broad headings

Classification of Documents – Drawings (Components & Assemblies) -Spreadsheet File for the parts details

Product Structure

PROCESS MANAGEMENT• WORK MANAGEMENT

What happens to data when someone works on it ? What happens to data when someone works on it ? –– Update & Update & UserPacketsUserPackets

• WORK FLOW MANAGEMENT (PM)Manage data flow between people.Manage data flow between people.

Dept Dept –– Dept Dept

Packets Packets ––Submitted/Checked/ApprovedSubmitted/Checked/Approved

• WORK HISTORY MANAGEMENTBack track to specific point in project Management Back track to specific point in project Management

Benefit of PDM

• Reduced Time-to-Market• Improve Design Productivity• Improve Manufacturing Accuracy• Better use of Creative Team Skills

MTO & MTS

Make-to-OrderProcure Raw Material after Customer orderUnique /Specialized Item Cycle Time & Cost is high

Make – to – StockPut it in the inventoryLots – Cost is lessCycle time is lessDepends on Market Analysis

ATO,ETO,CTO

• Assemble – to-Order-Order the assembling components

before the customers order - Forecasting- Stock in the Inventory- Waiting time is reduced

Engineer-to-Order

• Product Variety, Product Customization & Flexibility

• Texture and Feel of the cloth,color of thread,size of collar

-Customer 2 Customer• No inventory• Cost of Production

Configure-To-Order

• Rule Based Product Configuration System• Simply the order entry process & retain the

same ETO“ Just like the last time”“ Change the color”