ERP- Manufacturing Perspective

Introduction -Manufacturing
30% Growth Automobile, Steel (TISCO), Pharmaceuticals (WTO) Spends on IT to look after the scale of their operations - > Controlling Inventory - > Production Cost -> Marketing Cost -> Better Decision Making

Major Investment Heads for Manufacturing

Infrastructure Software Design & Application Development Software 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
E.g. Tata Motors use two ERP solutions (SAP,BAAN) for its two division.

CAD/CAM
Major Focused area for Manufacturing Industries
E.g. Automotive & Aerospace Industries

M&M Doubled the capacity (Tractor Division)

Achieved through enhancement in Design Capacity

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 only deliver components to the production line as and when they are needed so that there is 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 Comprehensive Records Component and Assembly Drawings 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  Querying the data

PROCESS MANAGEMENT
WORK MANAGEMENT
What happens to data when someone works on it ? Update & UserPackets

WORK FLOW MANAGEMENT (PM)

Manage data flow between people. Dept Dept Packets Submitted/Checked/Approved

WORK HISTORY 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-Order
Procure Raw Material after Customer order Unique /Specialized Item Cycle Time & Cost is high

Make-to-Stock
Put it in the inventory Lots Cost is less Cycle time is less Depends 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
It is the ultimate in -Product Variety -Product Customization -Flexibility Anything will be manufactured as per order-but at a price. Concentrates on minute details(the texture, feel of the cloth, the color of the threads, the size of the collar). Depends upon customer preferences The cost of production will be highest in this mode of production

Configure-To-Order
Rule Based Product Configuration System Allow to select a base product and configure all the variable parameters associated with that product. Simplify the order entry process & retain the same ETO Just like the last time Change the color