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MRP II (Manufacturing Resource Planning)

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MRP II (Manufacturing Resource Planning) It covers only the processes required for that function inside a manufacturing environment, such as Finite Capacity Planning ... – PowerPoint PPT presentation

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Title: MRP II (Manufacturing Resource Planning)


1
MRP II (Manufacturing Resource Planning)
  • It covers only the processes required for that
    function inside a manufacturing environment, such
    as Finite Capacity Planning / Loading, Production
    Scheduling, JIT, OPT, etc. An MRPII system can
    be utilized in a multi plan environment and can
    also have EDI and even be running in automatic
    mode every time that an MRP Flag changes in any
    MRP item (while this require lots of processing
    power).

2
Enterprise Resource Planning (ERP)
  • ERP includes MRP as part of its
    functionality. ERP is a newer generation product
    which integrates more business functional areas
    into a single interactive application,
    functionality such as Sales Forecasting,
    purchasing, Distribution Requirement Planning,
    Inventory Management, Sales Automation, Financial
    Control, HRMS, etc.,

3
What is included in an ERP system?
  • Manufacturing planning and scheduling
  • Demand planning
  • Knowledge management
  • E-Commerce
  • Transportation planning
  • Warehouse management
  • Data warehousing
  • Manufacturing execution

4
Current Major ERP Software players in the market
  • SAP
  • Oracle
  • Baan
  • PeopleSoft
  • J D Edwards

5
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6
Largest ERP implementation service providers
  • q       Anderson Consulting 5,500 ERP
    consultants
  • q       Deloitte and Touche 3,300 ERP
    consultants
  • q       IBM 3,800
    ERP consultants
  • q       PriceWaterhouseCoopers 6,300ERP
    consultants
  • q       CSC 1,900
    ERP consultants

7
Responsibilities of an ERP provider
  • q       Documenting business policies
  • q       Software gap analysis
  • q       Module configuration
  • q       Data conversion
  • q       Interface development
  • q       Setting up the technical environment
  • q    Development of extensions,modifications
    and
  • custom reports
  • q       Training
  • q       Documentation

8
What responsibility should NOT be given to a
provider?
  • Project Management ability
  • deciding business policies and being the
    projects spokesperson to the Project Sponsor or
    Steering Committee. (whos project is this?)

9
Specific areas that must be addressed by the
contract
  • Cost and payment terms
  • Resources (who will do the work)
  • Workplan (what tasks will they perform)
  • Resources you will supply (project staffing,
    facilities, etc.)
  • Change orders (are they allowed and what are the
    associated procedures)  

10
Specific areas that must be addressed by the
contract
  • Contract disputes (how and where are they
    handled)
  • Contract termination
  • Incentives and penalties (for cost and time
    savings and overruns)
  • Property rights (who owns enhancements, contract
    assignability, etc.)

11
Barriers to implement changes
  • People have no clear understanding of the
    business case driving the change
  • People are not integrated and engaged in the
    change process
  • Leaders do not walk the talk
  • People fear the new processes and technology and
    changes on their current jobs
  • Technology changes outpace the preparedness of
    people

12
Workplace Automation
  • Automatic data collection
  • Automatic accounting information
  • Automatic order processing
  • Automatic problem identification and solution

13
The Implementation
  • The process is long and draining
  • The learning process is BIG!!!
  • The system needs to fit your business
  • The fit is never perfect!!

14
ERP and SCM
  • Who should implement ERP?
  • Is ERP the way to SCM?
  • How are they related?

15
ASP vs ERP providers
  • Should I spend the money?
  • Should I run my ERP on other peoples Web?

16
Common problems in Implementing ERP
  • Corporate identity lost (function vs strategy)
  • No one is in charge
  • Too complicated to manage
  • SC members not synchronized
  • Information sharing not real-time enough
  • Cost of ownership is high
  • Why do I have to do the integration?

17
The Next Wave-CRM
  • Combining traditional CRM activities such as
    sales, marketing, service and call center, with
    electronic commerce activities such as buying and
    selling over the web. These customer-facing
    applications manage customer interactions through
    channels including the web, direct sales forces
    and call centers.

18
CRM
  • By far the biggest change will involve a shift
    from client/server technologies and legacy
    systems to Web-based customer service and sales
    applications, particularly as CRM and sell-side
    electronic-commerce solutions converge .
  • As it shifts its focus, the CRM market will
    continue to grow. The worldwide market is
    expected to reach 7.5 billion by 2003, compared
    with 3.6 billion next year and 2.55 billion in
    1999,
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