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Integrating Production in ERP

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Production in the ERP system

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Integrating Production in ERP

  1. 1. THE INTEGRATED PRODUCTION PROCESS IN ERP DPR105: MGMT INFO SYSTEMS Instructor: Tom Matys 4/09/14 1
  2. 2. The Goal Create a finished product using the most efficient amount of materials and resources, while maintaining accurate levels of inventory, managing time, people, and costs. 4/09/14 2
  3. 3. How Product is made • Make-To-Stock (SSB) • Make-To-Order (Dell) 4/09/14 3
  4. 4. Routing (define the steps) 1.Material Staging 2.Assembly 3.Initial inspection 4.Packing 5.Final Inspection 6.Move to storage 4/09/14 4
  5. 5. Work Centers • Staging Area • Assembly Area • Final Inspection Area What two types of work centers can there be? 4/09/14 5
  6. 6. Direct vs Indirect Costs Direct costs: Consultants, supplies, travel, labor, etc. Indirect Costs: Overhead, functions, rent, repairs, etc. 4/09/14 6
  7. 7. Document Flow 1) Planned Production Order 2) Production Order 3) Material issued to Production (Goods Movement) 4) Confirm Production Order (mfg process complete) 4/09/14 7
  8. 8. Planned Production order • A request to make a specified quantity of goods • Like a Purchase Requisition except: Instead of requesting goods from a vendor, the goods are requested from the company’s warehouse. • Planned orders are received by a production controller. *************************************** ***** 1. Planned Order Number 2. Request date 3. Material number (finished product) 4. Requested and approved by names (compare to manual input pg 108) MS4/09/14 8
  9. 9. Production Order • Created from a planned order by the production controller • Written authorization to make the goods • Can contain multiple planned production orders • Production Controller considers resources, capacity, labor, materials • A new number created o the production order, also has planned order no. • Is signed off, or checked off for approval. 4/09/14 9 1) Finished Material No. 2) Quantity 3) Date to Finish
  10. 10. Goods Issue Materials (Document) • Request made for materials • Staging process begins • Warehouse sends materials to production • Goods Issue is created 1) Material 2) Quantity 3) Storage Location to new location 4/09/14 10
  11. 11. Make the product 4/09/14 11
  12. 12. Production Order Confirmation Once the finished good is created a confirmation is executed. 1) Material Number 2) Quantity created 3) Posting Date 4/09/14 12
  13. 13. Warehouse: Goods receipt 1) Production Order Number 2) Quantity received 3) New storage location Of course, based on any companies functionality, the process could be more complex 4/09/14 13
  14. 14. Next up….MRP)Materials Requirements Planning • BOM: Recipe of finished product • Sales History => Sales Forecast • Inventory Levels • Resource Capacity • Demand Planning • Stock Requirements List ….and more 4/09/14 14
  15. 15. QUESTIONS ? 4/09/14 15

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