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

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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

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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