In addition to the factors mentioned in Part One for distribution environments, the major factors shaping system usage in manufacturing environments include the definition of product structure, variations in production strategy, and lean manufacturing practices.
Definition of Product Structure Information. Master bills and master routings define product and process design, with optional bill and routing versions. Their identifiers are assigned to relevant manufactured items and specified on production orders. Planned engineering changes are identified using date effectivity for each bill and routing version; date effectivity can also be identified for material components. The master bill and routing information provide the basis for costing and planning calculations. Routing information is optional, and some firms coordinate production activities without it.
The order-dependent bill and routing for a production order initially reflect the assigned master bill and routing, and can be manually maintained to identify a custom configuration. The system models a multilevel custom product configuration using order-dependent bills and multiple linked production orders tied to the sales order.
Variations in Production Strategy. Selling stocked product involves a make-to-stock production strategy, where sales forecasts typically drive end-item replenishment. A make-to-order production strategy often requires stocked components, where replenishment may be driven by component forecasts. The production order for a make-to-order product is typically linked to a sales order. A make-to-order product may have make-to-order components, so that multiple linked production orders are tied to the sales order. The linked production order(s) can be generated during sales order entry, by planning calculations, or by manual assignment.
Lean Manufacturing Practices. Lean manufacturers often require auto-deduction of material and resources, bin replenishment of floor stock material, order-less reporting of production, or constraint-based scheduling of manufacturing cells.
Manufacturing Environments and Integration with Other Functions
Featured Author - Dr. Scott Hamilton - July 6, 2005
1. Design Factors Shaping System Usage in Manufacturing Environments
2. Integration with Warehouse Management
3. Integration with Relationship Management
Part I | Part II
Page 2 of 5
Integration with Warehouse Management
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Integrated warehouse management functionality is already included, thereby avoiding the need for a supplemental application. It supports both order- and document-based approaches to warehouse management, and a natural growth path to more advanced functionality. For example, suggested put-aways can account for item characteristics (such as weight or cold storage requirements) as well as bin characteristics (such as weight limitations or cold storage capabilities).
Integration with E-commerce
E-commerce builds on the natural design of an ERP system since it provides electronic communication of basic transactions. Integrated e-commerce functionality is supported in several ways, including Biztalk transactions, reverse auctions, commerce portals, and user portals.
Biztalk Transactions for Sales and Purchasing. The symmetry of sales and purchasing functionality is reflected in Biztalk transactions, as shown in the following figure. For example, an outbound Biztalk sales quote and sales order confirmation can be sent to a customer. Conversely, an inbound Biztalk purchase quote and purchase order confirmation can be received from a vendor. Each inbound transaction can have an optional e-mail notification sent to the internally responsible person.
E-Commerce Sourcing via Reverse Auctions. A reverse auction provides an electronic approach to sourcing a purchase. It includes sending a request for quote to multiple vendors, obtaining vendor responses on a web site, reviewing the quotes, communicating to vendors whether their quote was accepted or rejected, and creating a purchase order from the quote.
Commerce Portal and User Portal. Supply chain activities often require interaction with remote users and external personnel. The commerce portal supports creation of web pages for electronic access to information, such as handling requests for quotes and sending quotes. The user portal supports information retrieval and task performance by remote users, such as sales tasks to create new quotes, sales orders, and customers.
Definition of Product Structure Information. Master bills and master routings define product and process design, with optional bill and routing versions. Their identifiers are assigned to relevant manufactured items and specified on production orders. Planned engineering changes are identified using date effectivity for each bill and routing version; date effectivity can also be identified for material components. The master bill and routing information provide the basis for costing and planning calculations. Routing information is optional, and some firms coordinate production activities without it.
The order-dependent bill and routing for a production order initially reflect the assigned master bill and routing, and can be manually maintained to identify a custom configuration. The system models a multilevel custom product configuration using order-dependent bills and multiple linked production orders tied to the sales order.
Variations in Production Strategy. Selling stocked product involves a make-to-stock production strategy, where sales forecasts typically drive end-item replenishment. A make-to-order production strategy often requires stocked components, where replenishment may be driven by component forecasts. The production order for a make-to-order product is typically linked to a sales order. A make-to-order product may have make-to-order components, so that multiple linked production orders are tied to the sales order. The linked production order(s) can be generated during sales order entry, by planning calculations, or by manual assignment.
Lean Manufacturing Practices. Lean manufacturers often require auto-deduction of material and resources, bin replenishment of floor stock material, order-less reporting of production, or constraint-based scheduling of manufacturing cells.
Manufacturing Environments and Integration with Other Functions
Featured Author - Dr. Scott Hamilton - July 6, 2005
1. Design Factors Shaping System Usage in Manufacturing Environments
2. Integration with Warehouse Management
3. Integration with Relationship Management
Part I | Part II
Page 2 of 5
Integration with Warehouse Management
Free Software Comparison
For a fast, free comparison of business software solutions best suited to your organization's needs, click below to visit TEC's Software Evaluation Center.
Click Now for Your Free Software Comparison
- Printer friendly
- E-mail Article
- Contact Us
- Get newsletter!
Related Book
Rate this article
- +
0
Article has not been rated
Get the RFP Templates that List up to 4,100 Software Feature Functions!
Integrated warehouse management functionality is already included, thereby avoiding the need for a supplemental application. It supports both order- and document-based approaches to warehouse management, and a natural growth path to more advanced functionality. For example, suggested put-aways can account for item characteristics (such as weight or cold storage requirements) as well as bin characteristics (such as weight limitations or cold storage capabilities).
Integration with E-commerce
E-commerce builds on the natural design of an ERP system since it provides electronic communication of basic transactions. Integrated e-commerce functionality is supported in several ways, including Biztalk transactions, reverse auctions, commerce portals, and user portals.
Biztalk Transactions for Sales and Purchasing. The symmetry of sales and purchasing functionality is reflected in Biztalk transactions, as shown in the following figure. For example, an outbound Biztalk sales quote and sales order confirmation can be sent to a customer. Conversely, an inbound Biztalk purchase quote and purchase order confirmation can be received from a vendor. Each inbound transaction can have an optional e-mail notification sent to the internally responsible person.
E-Commerce Sourcing via Reverse Auctions. A reverse auction provides an electronic approach to sourcing a purchase. It includes sending a request for quote to multiple vendors, obtaining vendor responses on a web site, reviewing the quotes, communicating to vendors whether their quote was accepted or rejected, and creating a purchase order from the quote.
Commerce Portal and User Portal. Supply chain activities often require interaction with remote users and external personnel. The commerce portal supports creation of web pages for electronic access to information, such as handling requests for quotes and sending quotes. The user portal supports information retrieval and task performance by remote users, such as sales tasks to create new quotes, sales orders, and customers.
E-Commerce Sourcing via Reverse Auctions. A reverse auction provides an electronic approach to sourcing a purchase. It includes sending a request for quote to multiple vendors, obtaining vendor responses on a web site, reviewing the quotes, communicating to vendors whether their quote was accepted or rejected, and creating a purchase order from the quote.
Commerce Portal and User Portal. Supply chain activities often require interaction with remote users and external personnel. The commerce portal supports creation of web pages for electronic access to information, such as handling requests for quotes and sending quotes. The user portal supports information retrieval and task performance by remote users, such as sales tasks to create new quotes, sales orders, and customers.
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