shop floor – explore how erp is used to create and mainain work centers, routings and procedures
TRANSCRIPT
ERP 101Shop Floor ControlDavid BushSenior Manufacturing Consultant,Rootstock
The ERP 101 Webinar SeriesDate Topic
Aug 2, 2016 An Introduction to ERP for Manufacturing
Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material
Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is accurate and up-to-date
Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and Procedures
Oct 25, 2016 Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines
TBA Procurement – Link your Vendors and Purchased Parts via ERP
TBA MRP – Step though an overview of this vital ERP subset
TBA Sales – See how you can link your Customers and Products via ERP
TBA Manufacturing Accounting – An overview using standard cost
TBA Manufacturing Accounting – An overview using weighted cost
Meet Our Speakers
David BushSenior Manufacturing Consultant, Rootstock• 30+ years of manufacturing and MRP/ERP
systems experience• Previously at General Microcircuits,
Consona Corporation, Relevant Business Systems, Inc
Our Journey So Far• Up to now, we’ve been concentrating on material planning
(MRP).– Part Numbers– Bills of Material– Revisions and Engineering Change Orders
What Else Can ERP Do For You?• Remember, ERP is ENTERPRISE RESOURCE
Planning.. To make the best use of our system, we need to think bigger than just parts.
• Besides Material, what else is needed to build the customer’s order?– People to stage parts, assemble items, package and
ship.– Machines to manufacture the various parts and
assemblies.– Processes to direct how to manufacture the items.– Vendors who can handle processes that can’t be
done in-house.
How Can ERP Help With All That?• First, think back to how ERP helps us plan material, then
apply same principles to planning other resources
• Accurate Bills of Material provide quantities– Specific component quantity needed to build parent– Additional quantities needed to cover scrap, setup, EOQ, etc.
• How do we apply that same logic to other resources? Consider….– What steps do I go through to build it?– Where is the work done?– What else is involved in the manufacturing process?
Manufacturing: Building Blocks• Remember, MRP started with:
– The most basic entity, the part number.– Part numbers were assembled into bills of material.– Bills of material provided details like quantity per,
scrap factors, revisions, etc.
• What ‘parts’ are used in manufacturing?a. Departments (may have 1 or several)b. Work Centers (grouped into departments)c. Processes (define actual work to be done)d. People (labor to do the work)e. Machines (in addition to or in place of people/labor)
Manufacturing: Putting the Blocks Together
• Again, think back to the material side.. We identified the basic part numbers needed and used them to construct a bill of material. We need to accomplish the same thing for the manufacturing part of this puzzle.
• Think of the manufacturing process as a ‘bill of manufacturing’, as opposed to a ‘bill of material’
a. The steps you go through to build the item are called the ‘Routing’.b. A Routing defines operations that take place within Departments and
Work Centers, using Processes to explain the specific procedure.c. People and Machines do the actual work and require specific time,
just like the bom requires specific quantites of each component.
Let’s take another look at our bicycle to get a better idea of how this works
Lets Look at the Bicycle Example
Let’s focus on the handle-bar assembly to see how the routing will be defined.
In doing so, we will be applying similar logic used to build the bill of material.
Building the Handlebar AssemblyStage material from stores (handle bar, grips, stem, reflector assembly)
Department: Manufacturing
Work Center: Stores
Process: Pull Material
Requires no machines, .5 hr. labor by 1 person
1 Drill mounting hole in stem for reflector assembly
Department: Manufacturing
Work Center: Machining
Process: Drill Mounting Hole
Requires 1 Drill Press, 1 operator. .25 hrs for setup, .10 hrs runtime
2 Mount stem to handlebar
Department: Manufacturing
Work Center: Assembly
Process: Assemble Handle Bar to Stem
Requires no machine, 1 operator. .1 hrs runtime (no setup)
3
Apply glue to grips and push one on each side of handle bar
Department: Manufacturing
Work Center: Assembly
Process: Mount Hand Grips
Requires no machine, 1 operator. .2 hrs for runtime, no setup
4 Mount reflector assembly to stem
Department: Manufacturing
Work Center: Assembly
Process: Mount Reflector to Stem
Requires no machine, 1 operator. .2 hrs runtime, no setup
5 Check handlebar assembly
Department: Manufacturing
Work Center: Inspection
Process: Final Inspection
Requires no machine, 1 operator. .1 hrs for process(no setup)
6
Alternative Routings1. Stem is purchased pre-drilled,
eliminating operation 22. Stem is sent out to sub-contractor for
drilling operation (maybe we don’t have the time or the machines needed)
3. Assembly operations are combined into one process, defined to show mounting of stem, grips and reflector assembly all done by one person, combining (possibly adjusting down) total time required
Further Considerations• We have been comparing the Routing to a bill of
materials.– Revisions and/or Engineering Change Orders can be used to
control changes to the Routing, just as they control changes to the BOM.
• Time required to perform operations within the routing is equivalent to the quantity of parts needed on the BOM– So shop floor scheduling can use that time to balance the
load of all work being done on each work center.• Time required to perform operations becomes the
‘standard’ – It can be used for costing purposes as well as employee
evaluations.
What Have We Learned Today?1. When you think of Shop Floor Control as a bill of
resources, using the ERP system to plan your needs becomes very clear.
2. The resources need to be defined, just as material components are defined, and the demand for those resources is identified in the Routing structure, as opposed to the BOM structure for material.
3. Once the definitions are in place and Routings are identified for your manufactured items, the ERP system can perform resource planning (hours, people, machines), much like MRP plans material requirements.
Where Do We Go From Here?• In future webinars, we will discuss in more detail
how ERP helps with – The scheduling function– Using resource demands to show the user where
additional resources are needed or schedules need to be revised.
• In addition, we will discuss – Alternatives that can be used when the shop floor is
overloaded– Alternate routings– Outside operations– … and more
The ERP 101 Webinar SeriesDate Topic
Aug 2, 2016 An Introduction to ERP for Manufacturing
Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material
Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is accurate and up-to-date
Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and Procedures
Oct 25, 2016 Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines
TBA Procurement – Link your Vendors and Purchased Parts via ERP
TBA MRP – Step though an overview of this vital ERP subset
TBA Sales – See how you can link your Customers and Products via ERP
TBA Manufacturing Accounting – An overview using standard cost
TBA Manufacturing Accounting – An overview using weighted cost
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