MRP (Material Resource Planning) enterprise information management
System for product composition management, with the help of the computer's computing power and the system
On the customer order, the material in storage, the product composition of the management ability to realize the
Customer orders, in accordance with the list of product structure to expand and calculate the material requirements plan. Calculate the material requirement plan.
To achieve the goal of inventory reduction and optimization.
POS (POINT OF SALE) is also known as point of sale intelligence management system.
In the past, conventional cash registers in the retail industry can only handle simple cash registers, invoices, checkout and other simple sales operations, the management of the information is extremely limited, stopping only at the total amount of sales, departmental sales of basic statistical information. For general retail stores, there are thousands of basic business information of tens of thousands of commodities, such as gross profit analysis, single product sales information, best and slow-selling products, merchandise inventory, turnover rate.... The company's main goal is to provide a more efficient and effective way to improve the quality of its products and services.
The introduction of the POS system is the main solution to the above blind spots in retail management.
The basic operating principle of the POS system is to create a computerized file of merchandise information, and through the on-line structure of the computer cash register, the barcode on the merchandise can be read directly through the optical reading device on the cash register equipment (or directly enter the code from the keyboard), which immediately displays the merchandise information (unit price, department, discounts, ...). Accelerates the speed and correctness of cashiering. Each sales detail (price, department, time, customer level) is automatically recorded and then transmitted back to the computer from the on-line rack. The computer calculates and processes all kinds of sales statistics and analyzes the information as the basis for business management.
The POS system not only provides accurate sales information, but also keeps track of the inventory of all the products in the store for the purchasing department's reference or for linking with the EOS system. In short, POS is an essential tool for modern retail management.
ERP Basics
ERP Beginner (I): Approaching ERP
Introduction
Today's era, in the global competitive market, whether process or discrete manufacturing, whether it is a single-piece production, multi-species small-lot production, few varieties of repetitive production or mass production of standardized products manufacturing; manufacturing industry, internal management are likely to encounter some of the following problems: for example, companies may have excellent salespeople to market their products, but the workers on the production line are not able to deliver on schedule, and shop floor managers complain that the purchasing department does not supply them with the raw materials they need in a timely manner; in fact, the purchasing department is so over-efficient that certain materials stockpiled in warehouses can not be used up for 10 years, and the warehouses are saturated with storage space, and the money turnover is very slow; many companies It takes 6 to 13 weeks to calculate the amount of material needed, so the ordering cycle can only be 6 to 13 weeks; the date on the order form and the purchase order and the date on the shortage order are different, and none of them is certain; the finance department does not rely on the data from the warehouse department, and does not calculate the cost of goods manufactured with it. ......
It can not be denied that the above situations are exactly what most of our companies are currently facing a serious problem, however, for this phenomenon, we can have any effective way to solve it?
ERP phenomenon
To the present, as long as we casually turn over the management, information technology newspapers and magazines, there will be a large number and variety of MRP II / ERP advertisements and related reports jumped to the paper. In the people are still in the end what is ERP and feel confused, a new generation like "e-commerce era of ERP", "iERP" and other concepts continue to come to the face.
In fact, ERP can bring great benefits to many companies do have a considerable temptation. According to the American Production and Inventory Control Society (APICS) statistics, the use of a MRP II / ERP system, on average, can bring the following economic benefits for the enterprise:
1. Inventory down 30% to 50%. This is the most talked about benefits. This is because it can reduce the average user's inventory investment by 1.4 to 1.5 times and increase inventory turnover by 50%.
2. 80% reduction in backorders. When the inventory is reduced and stabilized when the user service level improved, so that the use of ERP/MRP II enterprise on-time delivery rate increased by an average of 55%, the rate of delay in the average reduction of 35%, which makes the sales department of the credibility of the greatly improved.
3. Purchasing lead time reduced by 50%. Purchasing staff with timely and accurate production planning information, they can focus on value analysis, source selection, research negotiation strategy, understanding of the production problem, shorten the procurement time and save procurement costs.
4. 60% reduction in downtime. As the transparency of parts demand increases, planning has been improved to be timely and accurate, and parts can arrive on time at a more reasonable speed, the phenomenon of downtime on the production line will be greatly reduced.
5. 12% reduction in manufacturing costs. Due to the decline in inventory costs, labor savings, purchasing cost savings and a series of human, financial and material effects, will inevitably lead to a reduction in production costs.
6. Improvement of the management level, management personnel to reduce 10%, production capacity increased by 10% to 15%.
In addition, in recent years, the rapid growth of the ERP market also shows its great potential for development:
From the domestic situation, China's MRP II / ERP industry since 1995 to 1997, the average annual growth rate of about 27%, while the 1998 growth rate of up to 35% or so (excluding financial software), the market sales reached 420 million yuan. In 1999, due to the Asian financial turmoil lag effect and other factors, the ERP market has a large drop. But with the success of the Fortune Forum held in Shanghai, China and the U.S. WTO agreement was finally signed, making the majority of both Chinese and foreign-funded enterprises, have strengthened the confidence of further investment. This makes the second half of '99 and the year 2000 ERP market and the resurgence of business opportunities. And from the Hong Kong Ta Kung Pao news is expected in the next two years, China's ERP software products market will reach about 10 billion yuan. According to statistics, there are about 11 million registered enterprises in China, of which 10% for large enterprises, in the South, about half of the large and medium-sized enterprises have adopted and buy ERP products plan, but fewer small and medium-sized enterprises, while the northern enterprises to buy ERP products have gradually increased the trend.
From the whole international situation, according to the United States authoritative market forecast research organization AMR Research announced that the global ERP market in the last five years will be in the rate of 37% of the annual growth rate of the comprehensive development of the global ERP market in 1998, the total revenue of 14.8 billion U.S. dollars, to 2002, this figure will increase to 52 billion.
By the above figures can be seen, ERP both in China, or in the world have set off a revolution on management thinking and management techniques. More noteworthy is that in the MPR II has not been fully recognized by the Chinese business people before, but it has been in just a few years time to leap into the present era of e-commerce under the ERP. can be seen, this new management methods and management tools are in a kind of unimaginable speed in the Chinese enterprises in full swing to be applied and developed, it is undoubtedly to us in the market economy in the tide of the fight for ERP. It undoubtedly gives us in the tide of the market economy struggling many enterprises injected new blood. Therefore, in order for us to better grasp and use this new management tool, it is necessary to have a clear understanding of ERP.
ERP Beginner (II): ERP concepts and history
3. Information technology on the role of resource management stages of development
Computer technology, especially the development of database technology for the establishment of management information systems, and even on the change of management thinking plays an inestimable role in the development of management thinking and information technology is the development of causal loops. And practice has proved that information technology has played an increasingly important role in the management level of enterprises.
The initial use of information technology in management is also very simple, mainly to record some data, easy to query and summarize, and now the development of the establishment of the global Internet-based cross-country, cross-business operation system, can be divided into the following stages:
A. MIS system stage ( Management Information System)
A. Information System)
The information management system of the enterprise is mainly to record a large amount of raw data, to support the query, summarize and other aspects of the work.
B. MRP Stage (Material Require Planning)
The enterprise's information management system manages the composition of the product, with the help of the computer's arithmetic ability and the system's ability to manage the customer's order, the materials in stock, and the composition of the product, to realize the customer's order, and to unfold and compute the material requirement plan in accordance with the list of the product's structure. Achieve the management goal of inventory reduction and optimization.
C. MRP Ⅱ stage (Manufacture Resource Planning)
In the MRP management system on the basis of the system added to the enterprise production center, processing hours, production capacity and other aspects of the management, in order to achieve the function of the computer for production scheduling, and at the same time will also be the financial functions encompassed in the formation of a closed-loop management system to computer as the core of the enterprise. Computer as the core of the closed-loop management system, this management system has been able to dynamically monitor to production, supply and marketing of all production processes.
D. ERP stage (Enterprise Resource Planning)
Entering the ERP stage, the computer as the core of the enterprise management system is more mature, the system has increased, including financial forecasting, production capacity, adjust the resource scheduling and other aspects of the function. With the enterprise to achieve JIT management comprehensive, quality management and production resource scheduling management and assist in decision-making functions. Become the enterprise production management and decision-making platform tools.
E. ERP in the era of e-commerce
The maturity of Internet technology for the enterprise information management system to increase and customers or suppliers to achieve information *** enjoy and direct data exchange capabilities, thereby strengthening the link between enterprises, the formation of *** with the development of the survival of the chain of embodied in the enterprise in order to achieve the survival of the competitive supply chain management want to achieve. epp system accordingly achieve ERP system accordingly realize this function, so that decision makers and business departments to realize the cross-enterprise joint operation.
It can be seen that the application of ERP can indeed effectively promote the modernization of existing enterprise management, scientific, to adapt to the increasingly competitive market requirements, its introduction, has become the general trend.
ERP Beginner (3): MRP basic principles
ERP is a huge management information system, to make clear the principle of ERP, we must first along the four main stages of ERP development, from the most basic sixties time period type MRP principles.
Basic MRP principles
We all know that, according to the different sources of demand, materials within the enterprise can be divided into two types of independent demand and related demand. Independent demand refers to the demand and demand time determined by the demand outside the enterprise, for example, customer orders for products, scientific research and trial production needs of samples, after-sales maintenance needs of spare parts, etc.; related demand refers to the structural composition of materials according to the relationship between the material by the independent demand for the demand for materials, for example, semi-finished products, parts, raw materials, etc. demand.
MRP's basic task is
(1) from the final product production plan (independent demand) derived from the related materials (raw materials, components, etc.) demand and demand time (related demand);
(2) according to the material demand time and production (order) cycle to determine the time to start production (order).
The basic element of MRP is the preparation of production plans and procurement plans for parts. However, to correctly prepare the parts plan, you must first implement the product production schedule plan, with MRP Ⅱ terminology is the main production plan (Master Production Schedule, MPS), which is the basis for the development of MRP. MRP also need to know the structure of the parts of the product, that is, the bill of materials (Bill Of Material, BOM) in order to The master production plan into a parts program; at the same time, must know the inventory quantity in order to accurately calculate the number of parts purchased.
So the basic MRP is based on:
(1) Master Production Schedule (MPS);
(2) Bill Of Material (BOM);
(3) Inventory information.
ERP Beginner (D): MRP basic components
One, the main production plan (Master Production Schedule, referred to as MPS)
Master Production Plan is to determine the number of each specific final product in each specific time period of the production plan. Here the final product refers to the final completion of the enterprise, to factory finished products, it should be specific to the product varieties, models. The specific time period here is usually measured in weeks, and in some cases, it can also be days, decades, and months. The master production plan specifies in detail what is to be produced and what time period should be output, it is the independent demand plan. The main production plan according to customer contracts and market forecasts, the business plan or production outline of the product series specific, so that it becomes the main basis for the development of material requirements plan, played from the integrated plan to the specific plan of transition to the role of the beginning and end.
Two, product structure and bill of materials (Bill of Material, BOM)
MRP system to correctly calculate the time and quantity of material requirements, especially the number of related demand for materials and time, first of all, the system should be able to make the system to know the structure of the products manufactured by the enterprise and all the materials to be used. Product structure lists the composition, assembly relationship and quantity requirements of all components, assemblies, parts, etc. that make up a finished product or assembly. It is the basis for MRP product breakout. For example, the following figure is a greatly simplified product structure diagram of a bicycle, which generally reflects the composition of the bicycle:
Figure 1 Bicycle Product Structure Diagram
Of course, this is not what we ultimately want to BOM. in order to facilitate the recognition of the computer, it is necessary to product structure diagram must be converted to a standardized data format, this standardized data format to describe the product structure of the document is the bill of materials. It must explain the components (parts) in a variety of material requirements of the number and composition of the structural relationship between each other. The following table is a simple list of materials corresponding to the structure of the bicycle product.
Three, inventory information
Inventory information is to save the enterprise all the products, components, work in progress, raw materials, etc., the existence of the state of the database. In the MRP system, the product, parts, work in progress, raw materials and even tools, etc. collectively referred to as "materials" or "project". In order to facilitate computer recognition, the material must be coded. Material code is the MRP system to identify the unique identification of materials.
①Existing inventory: refers to the actual storage of materials in the warehouse of the company's available inventory.
② plan to receive the amount (in transit): refers to the implementation of the purchase order or production order, according to the future of a certain period of time in the material will be warehoused or will be completed.
3 has been allocated: is still kept in the warehouse but has been allocated out of the amount of material.
4 lead time: refers to the implementation of a task from the beginning to the completion of the time consumed.
5 ordering (production) lot: in a certain period of time to the supplier to order or request the production department to produce a certain amount of material.
6 safety stock level: In order to prevent unpredictable fluctuations in demand or supply, a minimum quantity of stock should often be maintained in the warehouse as a safety stock level.
Based on the above values, you can calculate the net demand for a material:
Net demand = gross demand + allocated amount - planned to receive the amount - existing inventory
ERP Beginner (V): Seventies closed-loop MRP
The 60s time period MRP can be calculated based on the data related to the demand for the relevant materials at the exact time and quantity, but it is not perfect. Quantity, but it is not perfect, and its main defect is that it does not take into account the constraints of the existing production capacity of the production enterprise and the relevant conditions of procurement. As a result, it is possible that the date of the calculated material requirement may not be capable of production due to insufficient equipment and man-hours, or it may not be possible to produce due to insufficient raw materials. At the same time, it lacks the ability to make adjustments to the plan based on feedback from the implementation of the plan.
It was to solve these problems that the MRP system evolved into the closed-loop MRP system in the 1970s. Closed-loop MRP system in addition to material requirements planning, but also the production capacity demand plan, shop floor operation plan and procurement operation plan are all included in MRP, forming a closed system.
A closed-loop MRP principle and structure
The normal operation of the MRP system requires a realistic and feasible master production plan. In addition to reflecting market demand and contract orders, it must also meet the enterprise's production capacity constraints. Therefore, in addition to the preparation of resource requirements plan, we also need to develop capacity requirements plan (CRP), with the capacity of each work center to balance. Execution of the plan can only begin when measures have been taken to ensure that both capacity and resources meet load requirements.
To ensure the realization of the plan to control the plan, the implementation of MRP to control the priority of processing with the work order, the purchase order to control the priority of procurement. In this way, the basic MRP system further development, the ability to demand planning and implementation and control of the plan's functions are also included, forming a circular loop, known as closed-loop MRP,
Therefore, the closed-loop MRP has become a complete production planning and control system.
Two, Capacity Requirement Planning (Capacity Requirement Planning, CRP)
1, Resource Requirement Planning and Capacity Requirement Planning
In the closed-loop MRP system, the balance of the load of the key work centers known as the Resource Requirement Planning, or known as the rough capacity plan, which is planned for the object of the independent demand for the pieces, mainly for the main production plan. It is mainly oriented to the main production plan; the load balance of all work centers is called capacity demand plan, or detailed capacity plan, while its planning object is related demand pieces, mainly oriented to the workshop. Because of the intrinsic link between MRP and MPS, so the resource demand plan and capacity demand plan is also the same, and the latter is calculated on the basis of the former
2, the basis of the capacity demand plan
①Working center: it is a variety of production or processing capacity units and costing units collectively. For work centers, are unified to quantify the size of its capacity in terms of man-hours.
② work calendar: a special form of calendar used to prepare the plan, it is from the ordinary calendar to remove the weekly double days, holidays, shutdowns and other days of non-production, and the date is expressed as a sequential form of the formation.
3 process route: is a reflection of the manufacture of a "material" processing methods and processing order of the document. It describes the sequence of processing and assembly processes, each process using the work center, the time quota, the time and cost of outsourcing processes.
4 Parts operation plan output by MRP.
3, capacity demand plan calculation logic
Closed-loop MRP's basic goal is to meet the needs of customers and the market, so in the preparation of the plan, always the first priority to ensure that the demand for the plan without taking into account the capacity constraints, and then the capacity plan. After many iterations of arithmetic, adjustment and verification before moving to the next stage. The arithmetic process of capacity demand planning is to convert the material requirement plan order into capacity demand quantity and generate capacity demand statement. This process can be represented in Figure 2.
Of course, it is possible to have overloaded or underloaded capacity requirements during the planning period. Closed-loop MRP capacity planning is usually reported to planners in the form of reports (histograms are a common tool), but there is no automatic balancing of capacity loads, which is done manually by planners.
Three, on-site job control
The work center capacity and load demand is basically balanced, the next step is to focus on how to specifically address the organization of production activities, so that a variety of resources can be reasonably utilized but also on schedule to complete the various orders, and objective production activities carried out by the state of the system in a timely manner in order to adjust according to the actual situation with the control, which is the Field operation control. Its work generally includes the following four aspects:
Workshop order placement: order placement is to verify the MRP-generated plan orders, and converted to order placement.
Job Sequencing: It is the control of the job sequence or job priority of machined workpieces from the point of view of the work center.
Input/Output Control: It is a technical method of monitoring the flow of jobs (shop orders being worked on) through the work center. Using input/output reports, problems in production can be analyzed and appropriate measures taken.
Job Information Feedback: It mainly tracks the movement of job orders through the manufacturing process, collects actual data on the consumption of various resources, updates inventory balances and completes the closed loop of MRP.
ERP Beginner (VII): MRPII in the eighties
The emergence of the closed-loop MRP system, so that the various subsystems in terms of production activities have been unified. But this is not enough, because in the management of enterprises, production management is only one aspect, it involves only logistics, and logistics is closely related to the flow of funds. This is in many enterprises is managed separately by the accounting staff, which results in the duplication of data entry and storage, and even cause data inconsistency.
So, in the eighties, people in production, finance, sales, engineering, procurement and other sub-systems into an integrated system, and called Manufacturing Resource Planning (Manufacturing Resource Planning) system, the acronym is still MRP, in order to distinguish between the logistics demand planning (also abbreviated as MRP) and recorded as MRP II.
I. Principle and logic of MRP II
The basic idea of MRP II is to take the enterprise as an organic whole, from the point of view of the overall optimization, through the use of scientific methods of various manufacturing resources and production, supply, marketing, finance, each link to effectively plan, organize and control, so that they can be coordinated and fully functional.
On the right side of the flow chart is the process of planning and control, which includes the decision-making layer, planning and control of the executive layer, can be understood as the process of business plan management; the middle is the basic data to be stored in the database of the computer system, and repeatedly call. The integration of these data and information to communicate the business of the various departments of the enterprise, can be understood as a computer database system; the left side is the main financial system, here only lists the accounts receivable, general ledger and accounts payable. Each link indicates the flow of information and the integration of the relationship between each other.
Two, MRP Ⅱ management model features
MRP Ⅱ features can be illustrated from the following aspects, each of which contains a management model of change and the quality of personnel or behavioral changes in two aspects, these features are mutually reinforcing.
1. Consistency and feasibility of the plan
MRP Ⅱ is a plan-led management model, the plan level from macro to micro, from strategic to technical, from coarse to fine layer by layer optimization, but always ensure that the strategic objectives of business operations with the same. It unifies the usual three-tier plan management, with the plan preparation work concentrated in the plant-level functional departments, and the workshop team can only execute the plan, scheduling and feedback information. Before the plan is issued to repeatedly verify and balance the production capacity, and according to the feedback information timely adjustment, to deal with the contradiction between supply and demand, to ensure the consistency of the plan, the effectiveness and enforceability.
2. Management of the system
MRP Ⅱ is a systematic project, it is all the enterprise and production and operation of directly related to the work of the department into a whole, each department from the system as a whole to do their jobs, each employee knows the quality of their own work with the other functions of the relationship. This can only be a system under the "one plan", the situation of compartmentalization and fragmentation should be replaced by teamwork.
3. Data **** enjoyment
MRP Ⅱ is a manufacturing enterprise management information system, enterprise departments are based on the same data information management, any kind of data changes can be reflected to all departments in a timely manner to achieve data **** enjoyment. In the unified database support, in accordance with the standardized processing procedures for management and decision-making. Changed in the past the kind of information is not clear, the situation is not clear, blind decision-making, the phenomenon of mutual contradiction.
4. Dynamic strain
MRP Ⅱ is a closed-loop system, it requires tracking, control and feedback on the ever-changing actual situation, managers can at any time according to the changes in the internal and external environmental conditions of the enterprise to respond quickly to timely decision-making adjustments to ensure that the production of normal. It can grasp a variety of dynamic information in a timely manner, to maintain a shorter production cycle, and therefore has a strong strain capacity.
5. Simulation predictability
MRPⅡ has a simulation function. It can solve the problem of "if how ...... what will happen", can foresee the problems that may occur in a fairly long planning period, and take measures to eliminate the hidden dangers in advance, rather than waiting for the problem has occurred and then spend several times the effort to deal with. This will enable managers to free themselves from the busy pile of affairs, to commit to substantive analysis and research, to provide a number of feasible options for leadership decision-making.
6. Logistics, capital flow unity
MRP Ⅱ contains cost accounting and financial functions, can be directly generated by the production activities of financial data, the physical form of material flow directly into the value of the form of capital flow, to ensure that the production and financial data consistent. The financial department gets the timely information of capital for cost control, reflects the material and operation situation through the capital flow status, analyzes the economic efficiency of the enterprise at any time, participates in the decision-making, and guides and controls the operation and production activities.
The characteristics of the above aspects show that MRP Ⅱ is a more complete production and management planning system, is to achieve the overall efficiency of manufacturing enterprises effective management model.
ERP first stage (VIII): the nineties of the ERP system
Entering the 90's, with the further intensification of market competition, the enterprise competition space and the scope of the further expansion of the 80's MRP Ⅱ is mainly oriented towards the enterprise internal resources comprehensive planning and management of the idea of the 90's how to effectively utilize and manage the overall resource management ideas, ERP ( ERP (EnterpriseResourcePlanning)--Enterprise Resource Planning (ERP) also came into being.ERP is based on MRP-Ⅱ to expand the scope of management and give a new structure.
1. The main difference between ERP and MRPII
-Difference in the scope of resource management
MRPII mainly focuses on the management of human, financial and material resources within the enterprise, the ERP system expands the scope of management on the basis of MRPII, which integrates the customer demand and the manufacturing activities within the enterprise, as well as the manufacturing resources of suppliers, forming a complete supply chain and a new structure of the enterprise. It integrates customer demand and internal manufacturing activities, as well as suppliers' manufacturing resources, to form a complete supply chain and effectively manage all the links in the supply chain, such as orders, purchasing, inventory, planning, manufacturing, quality control, transportation, distribution, service and maintenance, financial management, personnel management, laboratory management, project management, and recipe management.
-Differences in the management of production methods
The MRPII system categorizes companies into several typical production methods for management, such as repetitive manufacturing, mass production, make-to-order, make-to-order assembly, make-to-stock, etc., and has a set of management standards for each type. And in the late 80's and early 90's, in order to keep up with market changes, multi-species, small batch production as well as kanban production is the main mode of production used by the enterprise, from a single mode of production to the development of hybrid production, ERP is well able to support and manage the hybrid manufacturing environment, to meet the needs of enterprises in this multi-faceted operation.
-Differences in management functions
ERP in addition to the MRPII system of manufacturing, distribution, financial management functions, but also increased support for the entire supply chain in the material flow system for supply, production, demand between the various links of transportation management and warehouse management; support for the production of quality management, laboratory management, equipment maintenance and spare parts management; support for workflow (business process flow) management. The management of workflow (business process flow) is supported.
-Differences in transaction control
MRPII is to control the entire production process through the timely rolling plan, it is less real-time, and generally can only realize the control of the matter. The ERP system supports online analytical processing OLAP (OnlineAnalyticalProcessing), after-sales service that is quality feedback, emphasizing the enterprise's ability to control ex ante, it can design, manufacturing, sales, transportation, etc. through the integration of a variety of related operations in parallel, to provide the enterprise with the quality of the quality of the changes to adapt to the customer satisfaction, performance and other key issues It provides the ability to analyze key issues such as quality, adaptation to change, customer satisfaction, performance, etc. in real time.
In addition, in MRPII, the financial system is only an attributor of information, its function is to supply, production, sales in the quantity of information into the value of information, is the value of the logistics reflection. ERP system, on the other hand, integrates financial planning and value control functions into the entire supply chain.
-Differences in transnational (or regional) business affairs
Now the development of enterprises, so that the coordination between the various organizational units within the enterprise, the enterprise and the external business units have become more and more and more important, the ERP system applies a complete organizational structure, so that it can support cross-border operation of multi-country region, multi-plant, multi-language, multi-currency applications. Demand.
-Differences in computer information processing technology
With the rapid development of IT technology, the application of network communication technology, so that the ERP system can be realized on the entire supply chain information for integrated management. ERP system adopts client/server (C/S) architecture and distributed data processing technology, and supports Internet/Intranet/Extranet, e-commerce (E-business, E-commerce), and electronic data interchange (EDI). In addition, it can also be realized in different
MRP is the ERP manufacturing module of the material requirements planning