The standardized functionality in an ERP system shapes its usage. Efforts to use the system should be guided by (rather than run counter to) its fundamental underlying design. This section reviews the major design factors affecting system usage in manufacturing environments.
Manufacturing environments transform purchased materials into saleable items. In addition to the above-mentioned factors for distribution environments, the major factors shaping system usage include the definition of product structure for standard and custom products, variations in production strategy, and lean manufacturing practices.
Definition of Product Structure for Standard Products. Master bills and master routings define product and process design, and are assigned to relevant manufactured items. A manufactured item can have multiple bill and/or routing versions. Each master bill and routing, and each assigned version, requires an approval to support subsequent use in planning, costing, and orders.
Bill of Material Information. Each component defines an item, a required quantity, a component type, and other information such as the source warehouse, scrap factors, effectivity dates and the corresponding operation number. The component type indicates whether a manufactured component is make-to-stock, make-to-order, or a phantom, and whether a purchased component is buy-to-stock or buy-to-order. The BOM Designer provides a graphical tool for bill maintenance. The component item's auto-deduction policy determines whether consumption is auto-deducted or manually issued. A negative component quantity indicates a by-product component. The component's required quantity can also be based on a calculation formula that employs measurement information about the component and its parent item. A manufactured component can optionally specify a bill version and/or routing version that should be used to produce the component.
Routing Information. Each routing operation defines the operation number, the work center (or work center group), the time requirements and other information such as a scrap percentage and operation description. Each operation also specifies a master operation identifier that can optionally provide default values. The routing operation inherits some information from the designated work center—such as the cost categories, auto-deduction policies, and alternate work center information—that can be overridden. Separate cost categories and auto-deduction policies apply to setup time, run time, and output units.
Each work center belongs to a work center group, and has a calendar of working times. It can be designated as having finite or infinite capacity for scheduling purposes. For block scheduling purposes, a work center's calendar can indicate blocks of working time with a related property.
Order-Dependent Bill and Routing. A production order has a separate order-dependent bill and routing that initially reflect the assigned master bill and routing, and the user can manually maintain this information.
Manufacturing environments transform purchased materials into saleable items. In addition to the above-mentioned factors for distribution environments, the major factors shaping system usage include the definition of product structure for standard and custom products, variations in production strategy, and lean manufacturing practices.
Definition of Product Structure for Standard Products. Master bills and master routings define product and process design, and are assigned to relevant manufactured items. A manufactured item can have multiple bill and/or routing versions. Each master bill and routing, and each assigned version, requires an approval to support subsequent use in planning, costing, and orders.
Bill of Material Information. Each component defines an item, a required quantity, a component type, and other information such as the source warehouse, scrap factors, effectivity dates and the corresponding operation number. The component type indicates whether a manufactured component is make-to-stock, make-to-order, or a phantom, and whether a purchased component is buy-to-stock or buy-to-order. The BOM Designer provides a graphical tool for bill maintenance. The component item's auto-deduction policy determines whether consumption is auto-deducted or manually issued. A negative component quantity indicates a by-product component. The component's required quantity can also be based on a calculation formula that employs measurement information about the component and its parent item. A manufactured component can optionally specify a bill version and/or routing version that should be used to produce the component.
Routing Information. Each routing operation defines the operation number, the work center (or work center group), the time requirements and other information such as a scrap percentage and operation description. Each operation also specifies a master operation identifier that can optionally provide default values. The routing operation inherits some information from the designated work center—such as the cost categories, auto-deduction policies, and alternate work center information—that can be overridden. Separate cost categories and auto-deduction policies apply to setup time, run time, and output units.
Each work center belongs to a work center group, and has a calendar of working times. It can be designated as having finite or infinite capacity for scheduling purposes. For block scheduling purposes, a work center's calendar can indicate blocks of working time with a related property.
Order-Dependent Bill and Routing. A production order has a separate order-dependent bill and routing that initially reflect the assigned master bill and routing, and the user can manually maintain this information.
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