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IEEM 5352 Enterprise Integration

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Title: IEEM 5352 Enterprise Integration


1
IEEM 5352Enterprise Integration
  • Enterprise Resource Planning Systems for
    Manufacturing

2
Outline
  • What is an ERP system?
  • Where do I get one?
  • What are the technical issues?
  • What ERP interface standards exist?

3
What is ERP?
  • ERP, as an activity, enables the planning of
    resources at and among the strategic, tactical,
    and operational levels of an enterprise
  • ERP systems are those software applications that
    provide transaction management to enable accurate
    and timely execution of decision support systems
    to plan the four Ms across an enterprise
  • manufacturing (machines material)
  • money
  • manpower
  • marketing sales

4
Key Concepts in ERP systems
  • Transaction Systems record relevant individual
    events
  • issue of physical material from a stocking
    location
  • receipt of physical material into a stocking
    location
  • orders-sales and purchase
  • adjustments-inventory, asset value

5
Key Concepts in ERP systems(Cont.)
  • Decision Support Systems use transaction data for
    analysis and planning
  • material requirements planning (MRP)
  • manufacturing resource planning (MRP II)
  • demand management and forecasting
  • distribution resource planning (DRP)
  • advanced planning and scheduling (APS)
  • transportation planning
  • warehouse management

6
ERP Tiers
Remote User interface
Customer updates
Remote application
User interface
Inventory mgmt
Employee Training
Supplier mgmt
Application
ERP Resource Databases
Core/Internal
7
ERP -- A Confluence of Systems
Financials
Manufacturing


ERP


Human Resources
Marketing Sales
8
History of ERP -- Manufacturing Perspective
ERP
MRP II
  • Manufacturing
  • MRP II
  • Finance
  • Engineering
  • Sales and Marketing
  • Human Resources
  • Manufacturing
  • MRP
  • Production Planning, Scheduling, Activity
    Control
  • Finance

MRP
  • Manufacturing
  • Materials Components
  • Quantities
  • Time

1950
1960
1970
1980
1990
2000
Manufacturing Resource Planning
Enterprise Resource Planning
Planning Inventory Control
Materials Management
9
ERP extends MRP II
  • Goes beyond manufacturing and financial functions
  • Includes multi-plant and supply chain views
  • Supports different production environments (job
    shop, intermittent, repetitive, continuous,
    mixed-mode)
  • Includes simulation capabilities at various
    levels of an enterprise

10
Where do I get one?
  • More than 70 ERP software vendors and 300
    ERP-related DSS vendors
  • Largest 10 ERP vendors have 75 of installed
    base
  • Cost It varies based on
  • level of integration between modules
  • multi-national, multi-site support,
    multi-lingual, multi-currency
  • ERP product functionality fit
  • legacy systems
  • vendor life-cycle support
  • business reengineering requirements
  • ERP is a strategic decision

11
What are the technical issues?
  • Complex implementations
  • highly customized configurations
  • lengthy implementation periods
  • ERP boundaries with other systems
  • Trend from monolithic system to components
  • Role of ERP in supply chains

12
Complex Implementations
  • Three scenarios illustrate how ERP may interface
    with other manufacturing applications.
  • Scenarios from Object Management Group
  • Manufacturing Domain Task Force
  • ERP Working Group
  • Release for Production RFP, July 98
  • Activities addressed by Scenarios
  • Product Definition
  • Process Definition
  • Process Prototyping
  • Requirements Planning
  • Production Planning
  • Resource Scheduling
  • Preparation and Set-Up
  • Process Operations
  • Work-in-Process Reporting
  • Cost and Usage Reporting

13
ERP Implementation Scenario Red
14
ERP Implementation Scenario White
15
ERP Implementation Scenario Blue
16
What is the role of ERP in Supply Chains?
Customers forecast orders availability shipment
Suppliers forecast orders availability shipment
Demand Planning demand forecasting resource
planning distribution planning
Supply Planning resource planning, strategy opera
tional, tactical response ATP/CTP
ERP transactions
Scheduling manufacturing shop floor
Logistics product and/or material movement
Intra-Company Inter-Company
17
ERP Interface Standards
  • Vendor-specific interface standards
  • Electronic Data Interchange (EDI)
  • Open Applications Group (OAG)
  • Industrial Manufacturing Management Data
    (MANDATE)
  • Object Management Group (OMG) ERP

18
MESA View of Manufacturing Software Domains
ERP
Supply Mgmt
Asset Mgmt
Human Resource Mgmt
Equipment Mgmt
Labor Mgmt
Materials Mgmt
Specification Mgmt
Shop-floor systems
Scheduling/ Dispatching
MES
Process Machine Control
Tooling Mgmt
Shop-Floor Data Collection
WIP Tracking
19
ERP Vendor View of Manufacturing Software Domains
Supply Mgmt
Asset Mgmt
Human Resource Mgmt
ERP
PDM
Equipment Mgmt
Labor Mgmt
Materials Mgmt
Specification Mgmt
Scheduling/ Dispatching
Process Machine Control
Tooling Mgmt
Shop-Floor Data Collection
WIP Tracking
20
EDI Standards on a Page
ANSI X12
UNESCO EDIFACT
ISO OpenEDI
W3C XML-EDI
North America (US, Canada, Mexico)
Europe, Asia Latin America
Functional Groups Transaction Sets Data
Segments Data Elements syntax
Web-enable ANSI X12 with extended scope
Object models of transaction sets and segments
  • ASCII 7-bit
  • User-defined
  • separators
  • ISO 8859-1
  • Fixed
  • separators

21
OAG
  • Consortium of enterprise application software
    developers
  • Scope
  • integration from enterprise planning and managing
    to extra-enterprise systems
  • between enterprise planning and managing systems
  • from enterprise planning and managing to
    enterprise execution systems
  • Two types of specifications
  • Application specification
  • Middleware specification

22
OAG (continued)
  • Open Applications Group Integration Specification
    (OAGIS)
  • works at business object level
  • captures information requirements for business
    objects
  • technology independent
  • Open Applications Group Middleware API
    Specification (OAMAS)
  • format of OAGIS data
  • issue technology dependence

23
MANDATE
  • ISO TC184/SC4/WG8 Industrial Manufacturing
    Management Data
  • Scope
  • Method and development to standardize data
    which express information exchanged inside
    industrial manufacturing plants, except for
    product definition data.
  • Three projects
  • data exchanged between a manufacturing company
    and its environment of manufacturing management
    activities
  • data that resides in a manufacturing companys
    resources database
  • data for controlling and monitoring the flow of
    materials within a manufacturing company

24
MANDATE Documents
  • ISO 15531-1 Manufacturing Management Data
    Exchange Overview and Fundamental Principles
    (CD)
  • ISO 15531-22 Manufacturing Management Data
    Exchange Production Data for External Exchange
    Overview and Fundamental Principles
  • ISO 15531-31 Manufacturing Management Data
    Exchange Resource Usage Management Overview and
    Fundamental Principles (CD)
  • ISO 15531-41 Manufacturing Management Data
    Exchange Material Flow Control
  • Part 25 Time Model (WD)
  • Part 26 Conceptual Model of Modelling Elements
    (WD)
  • Part 27 Conceptual Model for Flow Modelling (WD)

25
OMG ERP Working Group
  • RFP addressing ERP-Release for Production
    interfaces
  • focus on manufacturing order
  • schedule, execute, and report on
  • White paper
  • to clarify objectives of OMG ERP effort
  • to provide a roadmap for RFPs in ERP domain

26
Interface Standards for ERP Systems
  • Static information for batch transactions
    supported by EDI today
  • Dynamic information for negotiated transactions
    is emerging from several organizations
  • OAGIS and OAMAS -- today
  • OMG Manufacturing Domain Task Force ERP Standards
  • Release for Production interfaces 3-6 months
  • Interfaces for Resources 9-18 months
  • Interfaces for Supply Chain Management 1-2 years
  • MANDATE 1-2 years
  • XML-EDI 6-18 months
  • OpenEDI 1-2years
  • Look for more coordination among ERP-related
    standards activities

27
Summary
  • ERP systems are software applications that
    provide transaction management to enable accurate
    and timely execution of decision support systems
    to plan at various levels across an enterprise
  • ERP systems evolved from systems from several
    domains manufacturing, finance, human resources,
    and marketing/sales
  • ERP systems and related DSSs continue to rapidly
    evolve
  • ERP systems are necessary but not sufficient for
    supply chain integration
  • ERP integration standards are under development

28
For more information on ERP interface standards
  • EDI
  • ANSI X.12 (www.disa.org)
  • EDIFACT (www.unece.org/trade/untdid)
  • OpenEDI (www.iso/ch/meme/JTC1SC32.html)
  • XML-EDI (www.geocities.com/WallStreet/Floor/5815
  • OAG (www.openapplications.org)
  • MANDATE (www.nist.gov/sc4/www/mandate.htm)
  • OMG ERP (www.omg.org/mfg/mfgerp.htm)

29
For more information on ERP
  • Advisory services specializing in ERP
  • Advanced Manufacturing Research (www.advmfg.com)
  • Forrester Research (www.forrester.com)
  • The Gartner Group (www.gartner.com)
  • the Big Six and other consulting firms
  • ERP vendor Web sites
  • Conferences addressing ERP integration
  • Engineering-ERP 1998, September 28 - October 1,
    1998 (www.kalthoff.com)
  • Computer Technology Solutions (formerly
    AUTOFACT), September 28 - October 1, 1998
    (www.sme.org)
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