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Manufacturing Resource Planning (Manufacturing Evolution (ERP system…
Manufacturing Resource Planning
Sales forecast
purchase requisition -
not a transaction
purchase order -
a transaction
receipt / bill of lading
payment
keep in mind how much in stock
independent triggers - sales forecast
dependent - changes in the system
economic order quantity - minimizes total inventory holding cost and ordering cost
minimum lot size - smallest production run where benefits exceed costs. e.g. specialized, highly regulated,
max lot size - largest production run. e.g. adding plants
Plant Maintenance
monitor performance
real time view of impact of equipment
Radio Frequency Identification
active tag - internal battery, reading from long distance, Black Box
passive tag - only respond when pinged
Vendor Managed Inventory
spoilage problem
demand info sent by retailer
Manufacturing Evolution
Old:
dirty
repetition
pollution
low skills
high pay b/c of WW2 and high profits
Modern:
track people, objects, information
tailored
clean environment
higher skills to use ERP
lower pay with manual work
higher pay with complex work
faulty products are amplified
ERP system
high regulations
tight decisions can stop the process when bad things happen
good at tracking
different industry with different ERP
devices are talking to each other, they can automate easily
more coordination within the process
cut down waste
Deming consulting:
cut waste
quality quality
outside management
Kanban:
cards you can see
pull through what you need
cut waste
reduce theft
Min/max inventory:
safety stock
stock out cost
carrying cost
carry cost can be reduced by just-in-time
shipping cost goes up
shipping cost can be reduced
carrying cost goes up
permanent stock
never touch it
the zero level
machine learning
demand forecast
different indicators and patterns
Forecast demand
predictive - what would happen if do nothing
inductive - small to big
deductive - using ERP experience to predict, million instances having one goes wrong; big to small
prescriptive - what would happen if do something different
analyzing the past is not the higher order
good information from the system helps answer the questions