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Shop Floor – Explore how ERP is used to create and mainain Work Centers, Routings and Procedures

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ERP 101 Webinar 4 discussed:
1. How ERP improves the process of manufacturing
2. Routings in ERP
3. Shop Floor Control vs Engineering Bills of Material

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Shop Floor – Explore how ERP is used to create and mainain Work Centers, Routings and Procedures

  1. 1. ERP 101 Shop Floor Control David Bush Senior Manufacturing Consultant, Rootstock
  2. 2. The ERP 101 Webinar Series Date Topic Aug 2, 2016 An Introduction to ERP for Manufacturing Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is accurate and up-to-date Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and Procedures Oct 25, 2016 Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines TBA Procurement – Link your Vendors and Purchased Parts via ERP TBA MRP – Step though an overview of this vital ERP subset TBA Sales – See how you can link your Customers and Products via ERP TBA Manufacturing Accounting – An overview using standard cost TBA Manufacturing Accounting – An overview using weighted cost
  3. 3. Meet Our Speakers David Bush Senior Manufacturing Consultant, Rootstock • 30+ years of manufacturing and MRP/ERP systems experience • Previously at General Microcircuits, Consona Corporation, Relevant Business Systems, Inc
  4. 4. Our Journey So Far • Up to now, we’ve been concentrating on material planning (MRP). – Part Numbers – Bills of Material – Revisions and Engineering Change Orders
  5. 5. What Else Can ERP Do For You? • Remember, ERP is ENTERPRISE RESOURCE Planning.. To make the best use of our system, we need to think bigger than just parts. • Besides Material, what else is needed to build the customer’s order? – People to stage parts, assemble items, package and ship. – Machines to manufacture the various parts and assemblies. – Processes to direct how to manufacture the items. – Vendors who can handle processes that can’t be done in-house.
  6. 6. How Can ERP Help With All That? • First, think back to how ERP helps us plan material, then apply same principles to planning other resources • Accurate Bills of Material provide quantities – Specific component quantity needed to build parent – Additional quantities needed to cover scrap, setup, EOQ, etc. • How do we apply that same logic to other resources? Consider…. – What steps do I go through to build it? – Where is the work done? – What else is involved in the manufacturing process?
  7. 7. Manufacturing: Building Blocks • Remember, MRP started with: – The most basic entity, the part number. – Part numbers were assembled into bills of material. – Bills of material provided details like quantity per, scrap factors, revisions, etc. • What ‘parts’ are used in manufacturing? a. Departments (may have 1 or several) b. Work Centers (grouped into departments) c. Processes (define actual work to be done) d. People (labor to do the work) e. Machines (in addition to or in place of people/labor)
  8. 8. Manufacturing: Putting the Blocks Together • Again, think back to the material side.. We identified the basic part numbers needed and used them to construct a bill of material. We need to accomplish the same thing for the manufacturing part of this puzzle. • Think of the manufacturing process as a ‘bill of manufacturing’, as opposed to a ‘bill of material’ a. The steps you go through to build the item are called the ‘Routing’. b. A Routing defines operations that take place within Departments and Work Centers, using Processes to explain the specific procedure. c. People and Machines do the actual work and require specific time, just like the bom requires specific quantites of each component. Let’s take another look at our bicycle to get a better idea of how this works
  9. 9. Lets Look at the Bicycle Example  Let’s focus on the handle-bar assembly to see how the routing will be defined.  In doing so, we will be applying similar logic used to build the bill of material.
  10. 10. Building the Handlebar Assembly Stage material from stores (handle bar, grips, stem, reflector assembly) Department: Manufacturing Work Center: Stores Process: Pull Material Requires no machines, .5 hr. labor by 1 person Drill mounting hole in stem for reflector assembly Department: Manufacturing Work Center: Machining Process: Drill Mounting Hole Requires 1 Drill Press, 1 operator. .25 hrs for setup, .10 hrs runtime Mount stem to handlebar Department: Manufacturing Work Center: Assembly Process: Assemble Handle Bar to Stem Requires no machine, 1 operator. .1 hrs runtime (no setup) Apply glue to grips and push one on each side of handle bar Department: Manufacturing Work Center: Assembly Process: Mount Hand Grips Requires no machine, 1 operator. .2 hrs for runtime, no setup Mount reflector assembly to stem Department: Manufacturing Work Center: Assembly Process: Mount Reflector to Stem Requires no machine, 1 operator. .2 hrs runtime, no setup Check handlebar assembly Department: Manufacturing Work Center: Inspection Process: Final Inspection Requires no machine, 1 operator. .1 hrs for process(no setup)
  11. 11. Alternative Routings 1. Stem is purchased pre-drilled, eliminating operation 2 2. Stem is sent out to sub-contractor for drilling operation (maybe we don’t have the time or the machines needed) 3. Assembly operations are combined into one process, defined to show mounting of stem, grips and reflector assembly all done by one person, combining (possibly adjusting down) total time required
  12. 12. Further Considerations • We have been comparing the Routing to a bill of materials. – Revisions and/or Engineering Change Orders can be used to control changes to the Routing, just as they control changes to the BOM. • Time required to perform operations within the routing is equivalent to the quantity of parts needed on the BOM – So shop floor scheduling can use that time to balance the load of all work being done on each work center. • Time required to perform operations becomes the ‘standard’ – It can be used for costing purposes as well as employee evaluations.
  13. 13. What Have We Learned Today? 1. When you think of Shop Floor Control as a bill of resources, using the ERP system to plan your needs becomes very clear. 2. The resources need to be defined, just as material components are defined, and the demand for those resources is identified in the Routing structure, as opposed to the BOM structure for material. 3. Once the definitions are in place and Routings are identified for your manufactured items, the ERP system can perform resource planning (hours, people, machines), much like MRP plans material requirements.
  14. 14. Where Do We Go From Here? • In future webinars, we will discuss in more detail how ERP helps with – The scheduling function – Using resource demands to show the user where additional resources are needed or schedules need to be revised. • In addition, we will discuss – Alternatives that can be used when the shop floor is overloaded – Alternate routings – Outside operations – … and more
  15. 15. Q&A www.rootstock.com 888.524.0123 marketing@rootstock.com
  16. 16. The ERP 101 Webinar Series Date Topic Aug 2, 2016 An Introduction to ERP for Manufacturing Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is accurate and up-to-date Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and Procedures Oct 25, 2016 Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines TBA Procurement – Link your Vendors and Purchased Parts via ERP TBA MRP – Step though an overview of this vital ERP subset TBA Sales – See how you can link your Customers and Products via ERP TBA Manufacturing Accounting – An overview using standard cost TBA Manufacturing Accounting – An overview using weighted cost Sign Up Now

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