Lecture Operations management: Creating value along the supply chain (Canadian edition) - Chapter 15

Chapter 15 - Resource planning. This chapter includes contents: Material requirements planning (MRP), capacity requirements planning (CRP), enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM), product lifecycle management (PLM).

OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition Robert S Russell, Bernard W Taylor III, Ignacio Castillo, Navneet Vidyarthi § CHAPTER 15 Resource Planning § Learning Objectives — Material Requirements Planning (MRP) — Capacity Requirements Planning (CRP) — Enterprise Resource Planning (ERP) — Customer Relationship Management (CRM) — Supply Chain Management (SCM) — Product Lifecycle Management (PLM) 15-2 § Resource Planning for Manufacturing 15-3 § Material Requirements Planning (MRP) —Computerized inventory control and production planning system —When to use MRP? —Dependent demand items —Discrete demand items —Complex products —Job shop production —Assemble-to-order environments 15-4 § Demand Characteristics 15-5 § Material Requirements Planning Master production schedule Product structure file Material requirements planning Item master file Planned order releases Work orders Purchase orders Rescheduling notices 15-6 § MRP Inputs and Outputs —Inputs —Master production schedule —Product structure file —Item master file —Outputs —Planned order releases • Work orders • Purchase orders Rescheduling notices 15-7 Đ Master Production Schedule —Drives MRP process with a schedule of finished products —Quantities represent production not demand —Quantities may consist of a combination of customer orders and demand forecasts —Quantities represent what needs to be produced, not what can be produced —Quantities represent end items that may or may not be finished products 15-8 § Master Production Schedule 15-9 § Product Structure File 15-10 § Loading Capacity copiers * shifts * hrs/day * 7/8 utilization * 90 efficiency = 1512 minutes/day Load percent = 1615.70/1512 = 1.068 X 100% = 106.8% Overloaded by 6.8% Extends working day by approximately 36 minutes Load percent = 99% Increase efficiency to 97% 15-51 § Initial Load Profile 15-52 § Adjusted Load Profile 15-53 § Relaxing MRP Assumptions —Material is not always the most constraining resource —Lead times can vary —Not every transaction needs to be recorded —Shop floor may require a more sophisticated scheduling system —Scheduling in advance may not be appropriate for on-demand production 15-54 § Enterprise Resource Planning (ERP) —Software that organizes and manages a company’s business processes by —sharing information across functional areas —integrating business processes —facilitating customer interaction —providing benefit to global companies 15-55 § Organizational Data Flows 15-56 § ERP’s Central Database 15-57 § Selected Enterprise Software Vendors 15-58 § ERP Implementation —Analyze business processes —Choose modules to implement —Which processes have the biggest impact on customer relations? —Which process would benefit the most from integration? —Which processes should be standardized? —Align level of sophistication —Finalize delivery and access —Link with external partners 15-59 § Customer Relationship Management (CRM) —Software that —Plans and executes business processes —Involves customer interaction —Changes focus from managing products to managing customers —Analyzes point-of-sale data for patterns used to predict future behavior 15-60 § Supply Chain Management —Software that plans and executes business processes related to supply chains —Includes —Supply chain planning —Supply chain execution —Supplier relationship management —Distinctions between ERP and SCM are becoming increasingly blurred 15-61 § Product Lifecycle Management (PLM) —Software that —Incorporates new product design and development and product life cycle management —Integrates customers and suppliers in the design process though the entire product life cycle 15-62 § ERP and Software Systems 15-63 § Connectivity —Application programming interfaces (APIs) —give other programs well-defined ways of speaking to them —Enterprise Application Integration (EAI) solutions —EDI is being replaced by XML, business language of Internet —Service-oriented architecture (SOA) —collection of “services” that communicate with each other within software or between software 15-64 Đ COPYRIGHT Copyright â 2014 John Wiley & Sons Canada, Ltd All rights reserved Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd The purchaser may make back-up copies for his or her own use only and not for distribution or resale The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein ... determining the quantities in which items are usually made or purchased —Time-phasing requirements 1 5-2 1 § MRP Matrix 1 5-2 2 § MRP 1 5-2 3 § MRP 1 5-2 4 § MRP - 1 5-2 5 § MRP - 1 5-2 6 § MRP - 1 5-2 7 § MRP - 1 5-2 8... production now 1 5-1 8 § Item Master File 1 5-1 9 § Item Master File 1 5-2 0 § MRP Processes —Exploding the bill of material —Netting out the inventory —Netting the process of subtracting on-hand quantities... configurations + + + + = 26 modular bills 1 5-1 5 § Modular BOMs 1 5-1 6 § Time-phased Bills — An assembly chart shown against a time scale 1 5-1 7 § Time-phased Bills — Forward scheduling • start