ERP - Production department PP

19 important questions on ERP - Production department PP

What are the 3 big phases of the production planning?

1. The demand planning:
- Forecasting
- Sales & operations plan
- Demand Management

2. The supply planning:
- Master production schedule MPS
-Material requirement planning MRP

3. Production:
-5 steps

What is the sales and operations plan?

It consolidates forecasts and the capacity of the plant. It is still a rough plan and needs to be feasible.

Made by the marketer. (the dreamer)

What is demand management?

The SOP and real sales are taken into zccount and form a high detailed planning now. This iw the work of the marketer and the demand planner.
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Why is the demand planning process between these 2 persons so important?

If you would only place the real orders in MPS, you will often start producing too late and miss sales. Customers do not order when you need them to.

This is why forecasting is important, it serves to fill this gap.

What does the Master production schedule serve for?

It pulls data from the SOP and demand management. It will copy the exact number of finished products that are necessary to produce. (Independent management)

How does the Materials requirement planning work?

How many raw materials need to be pruchased to produce. We can do this by using the Bill of Material (BOM): Exactly how much you need of each raw material to finish one product. If 100 "cakes" multiply this amount X100.

We now have a planned order and not production yet.

What are the 2 basic prodcution strategies?

- Level: Make-to-stock
Only efficient production when full shifts are turned. Also has a low cost price. Buffer stock

- Chase: Make-to-order
Effective production that follows sales: flexible shifts
Higher costs than level strategy
And the inventory only serves as safety stock.

What are the 5 steps of the production process?

1. Release of production order
2. Prepare
3. Stage & set up
4. Produce
5. Complete

In which 3 ways can a production order be released?

- By means of a production order that is created with the help of MPS& & MRP

- By kanban system: Card system that is used in JIT, it needs to be seperated from the ERP system

- Reorder point (ROP): Inventory level of an item which triggers the need of replenishment order.

What involves the prepare step in the production process?

- Detailscheduling on how to optimally use the production department. How to minimize the  number of changeovers, how to optmise the movement of goods?

it is mostly done with charts or planning boards.

What does the stage and set up phase involve?

Selecting the materials , packing, transportation.

Goods issue step: Bringing the materials from the warehouse to the production place.

After finishing a product, the machines need to be empty, cleaned and when starting on a new product this machines also needs to be prepared.

What does the producing phase involve?

Transform the materials into finished products.

A lot of companies want to attain the desired OEE ( Overall equipment efficiency): Efficiency X availability x Quality .

Also important to apply lot tracing: Unique identification number given to a certain amount of lot of products from a specific supplier. If anything goes wrong with a product of that lot, they can all be recalled.

What happens in the completion phase?

Once the products are finished they need to be processed logistically and be moved and stored.

1. Registration of what has been yielded: report of the output ( how much produced items, units.

2. Consumption registration: Manually or automatically

3. Inventory adjustments: send to the accounting department

In which 2 ways is the consumption booking done?

Automatic: Backflush= ERP knows the number of produced items and knows how much materials were needed to prodcue one item (BOM) and it will reduce the total consumption.

Manual: Counting= Operator counts what actually has been consumed and registers it in the system. This is often done with expensive parts E.g. Airplane industry.

What is cycle counts?

A group of people that needs to count how many raw materials we have in stock and check if there is a difference with the stock in ERP. If yes, change this amount in the system.

Explain " do it right the first time" principle

Idea= to do all processes coorectly and efficiently to avoid production delays.

What master data is entered during the production process?

- Material
- BOM: Can be single-level, multi-level or variant
- Routing
- Work center
- Product group

What is a work center?

A location within a plant where value-added work is performed. It makes it easu to follow up on labor, machine, output and emissions.

E.g. If a lot of people are getting sick at a certain time in a plant the work center makes it easier to follow this up.

What is a product group?

Aggregate planning that groups together materials or other product groups ( product families)

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