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ENTERPRISE RESOURCE PLANNING: 3-Day Class

Developing a Company-Wide Operating System for Scheduling & Planning

Overview: An overview of the principles and practices of Enterprise Resource Planning, also known as ERP or MRPII. ERP/MRPII was born out of a need to unify all of the various “factions” that commonly exist in traditional manufacturing environments. It is also a system that takes advantage of computer technology and is designed to establish one database that is common to all departments and functional areas within manufacturing to include marketing and finance and engineering. A company-wide operating system allows the organization to be “managed by the numbers” in ways that lead to reduced inventory cost, increased productivity, and increased customer service. ERP/MRPII as a planning strategy is fully compatible with many action strategies.

I: Long-Range Planning DAY-1
Business & Marketing Plans; Resource Capacity Planning; Production Planning; Customer Order Promising
In this session we look at several standard ERP/MRPII methods of planning and managing finished goods inventory to drive home the need for effective long-range scheduling and planning, i.e., six (6) to eighteen (18) months or more into the future. This requires a look at each of the major topics that exist under the ERP/MRPII umbrella for long-range planning, i.e., the methods and uses of Business Planning; Production Planning; Resource Capacity Planning; Demand Management; and Master Production Scheduling. Shipments Forecast, Production Planning Bills and Customer Promise strategies are Demand Management tools used to offset a projected crisis presaged by Master Production Scheduling (MPS) and Resource Capacity Planning.

II: Mid-Range Planning DAY-2
Master Production Scheduling; Available-to-Promise Inventory; Material Requirements Planning; Capacity Requirements Planning
Mid-Range planning, from one (1) to (3) months into the future, is the focus of this session. The Master Production Schedule (MPS) is a time-phased statement of commitment by a company to a given production schedule. Resource Capacity Planning helps to determine future loads of the factory, inventory investment, production, delivery time, and service. “Available-to-Promise “ planning logic is probably the most valuable aspect of MPS in relation to enhanced customer service and on-time delivery. Many people do not clearly understand its necessity as a tool for assuring that inventory is not “sold twice”! Material Requirements Planning (MRP) features and functions provide precise time-phased projections of component requirements so that time-in-inventory may be minimized. It also provides the input for detailed production capacity planning and to test for near-term component and raw material availability problems.

III: Short-Range Planning DAY-3
Work Order Management; Production Activity Control; Detailed Capacity Planning; & Moving Toward JUST-IN-TIME
Here we look at several traditional methods for scheduling and releasing manufacturing orders. Finished goods, sub-assembly, and component requirements are discussed with emphasis on dispatching, capacity projections, status reporting, and inventory functions required to support and execute MRP and MPS production quantities. The tools of work order management, and detailed capacity planning will be utilized to properly schedule and load production areas without the constraint of material shortages or machine/assembly loading problems. This tape also looks at dispatching priorities, on-line reporting, status tracking, and scheduling techniques used to meet scheduled requirements. Material and equipment failures, strategic interventions and requirements via work orders, and shop floor dispatch lists, and detailed capacity planning are also provided. This session ends with a discussion of implementation requirements that re often overlooked by many companies and includes an in-depth look at what it takes to motivate the work force.

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