MRP II Manufacturing

Requirement Planning
 Application of Computers
MRP Inputs MRP Processing MRP Outputs
Changes
Order releases
Master
Planned-order
schedule
schedules
Primary
reports Exception reports
Bill of Planning reports
materials MRP computer Secondary Performance-
programs reports control
reports

Inventory
records Inventory
transaction
 MRP Evolution
MRP Schedule Materials

Closed Loop Schedule Materials

MRP Incorporate Feedback

Schedule & Purchase Materials

MRP II Coordinate w/ Mfg Resources

ERP
 MRP II

Expanded MRP with and emphasis placed on

integration
Typical modules in MRP II:
Management planning aggregate production
planning, master production scheduling
Customer service sales forecasting, order entry,
finished goods inventory
Operations planning MRP enhanced with
capacity requirements planning
Operations execution purchasing, production
scheduling and control, shop floor control

4
MRP II
 ERP Systems

Enterprise Resource Planning Systems is a

computer system that integrates application
programs in accounting, sales,
manufacturing, and other functions in the
firm
This integration is accomplished through a
database shared by all the application
programs
 Solutions of ERP
Financial Management
Inventory Management
Purchasing
Sales Management
Production Planning
Advanced Visual Planning
Manufacturing Management
Typical ERP System
 How Do ERP Systems Work?
Managers and
Stakeholders
Financial
Reporting Applications
Human
Sales and
Resource Applications
Delivery
Management
Applications
Applications
Sales Force Central
Manufacturing Back-office
Customers And Customer Database Applications Administrators
Service Reps Suppliers
And Workers

Service Human
Applications Resource Inventory
Management And Supply
Applications Applications

Employees

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 Major ERP Providers
Market
Firm HQ Acquisitions
Share
SAP Germany 40%
Oracle US People Soft
22%
JD Edwards
Sage Group UK 7%
Microsoft US 3%
Infor US SSA
Baan
 Reasons to Implement ERP
Desire to standardize and improve
processes
To improve the level of systems
integration
To improve information quality
 ERP Drawbacks
Cost
$250M+ for a large scale company
Transition pain
Implementation resources
Training
Resistance to change
 An ERP Example: Before ERP

Orders
Parts
Sends report Customer
Demographic
Sales Dept. Files Customers

Checks for Parts

Calls back Not in stock
Accounting We ordered the parts
Files

Accounting
Sends report
Invoices
Sends report
accounting
Ships parts
Vendor
Warehouse
Order is placed
We Need parts #XX
with Vendor
Inventory
Purchasing Files
Files We ordered the parts
Purchasing
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 An ERP Example: After ERP

Orders
Parts Inventory Data
If no parts,
order is placed
Customers Sales Dept. through DB Accounting

Financial Data exchange;

Books invoice against PO

Order is submitted
to Purchasing. Database
Purchasing record Books inventory
order in DB against PO

Order is placed
with Vendor

Warehouse
Vendor Purchasing

Ships parts
And invoices accounting 17