Integrating Production in ERP
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THE INTEGRATED PRODUCTION PROCESS IN ERP
DPR105: MGMT INFO SYSTEMSInstructor: Tom Matys
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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.
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How Product is made• Make-To-Stock (SSB)• Make-To-Order (Dell)
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Routing (define the steps)1.Material Staging
2.Assembly
3.Initial inspection
4.Packing
5.Final Inspection
6.Move to storage
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Work Centers
• Staging Area• Assembly Area• Final Inspection Area
What two types of work centers can there be?
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Direct vs Indirect Costs
Direct costs: Consultants, supplies, travel, labor, etc.
Indirect Costs: Overhead, functions, rent, repairs, etc.
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Document Flow
1)Planned Production Order
2)Production Order
3)Material issued to Production (Goods Movement)
4)Confirm Production Order (mfg process complete)
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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 Number2. Request date3. Material number (finished product)4.Requested and approved by names (compare to manual input pg 108)
MS Dynamics
HOW IS THIS USED FOR INTEGRATION?04/10/2
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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.
HOW IS THIS USED FOR INTEGRATION?
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1) Finished Material No.2) Quantity3) Date to Finish
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Goods Issue Materials (Document)• Request made for materials
• Staging process begins
• Warehouse sends materials to production
• Goods Issue is created
1) Material2) Quantity3) Storage Location to new location
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Make the product
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Production Order Confirmation
Once the finished good is created a confirmation is executed.
1)Material Number
2)Quantity created
3)Posting Date
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Warehouse: Goods receipt1) Production Order Number
2) Quantity received
3) New storage location
Of course, based on any companies functionality, the process could be more complex
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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
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QUESTIONS
?
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