ISMR July/August 2021 | Page 36

FOCUS ON CONTROL TECHNOLOGIES

Over the past few years , the implementation of Enterprise Resource Planning ( ERP ) systems has skyrocketed . This has gone hand in hand with a surge in the number of ERP vendors offering solutions of all shapes , sizes and superiorities . Of course , not all ERP software solutions are created equal which means businesses should be careful to secure a solution that fits their unique needs .
“ Predictive ERP , for example , is sparking more and more interest . It enables manufacturers to predict possible events and initiate the necessary measures and countermeasures . Integrated with the appropriate process models , predictive ERP systems can facilitate better decision-making by running simulations of even the most complex scenarios ,” commented Deutsche Messe .
Any system - MRP ( Manufacturing Resource Planning ) or ERP – also needs to provide security at user level to ensure that the right employees have access to the right information . The perceived benefit of ERP is to have a single solution to manage an entire company ’ s information structure and processes . There is generally a reduction of data duplication as information is entered only once , and users often benefit from a common interface , thereby reducing training . A single solution only requires a single vendor , potentially ironing out data conflicts between different applications .
However , although enterprise resource planning promises high efficiency and enhanced productivity , it has a high initial price for set-up , making it difficult for small and medium scale enterprises to implement it . Managing it requires expertise and , currently , there is a shortage of such professionals in the IT sector .
MRP in focus
MRP is a planning tool geared specifically to assembly operations . The aim is to allow each manufacturing unit to tell its supplier what parts it requires and when it requires them . The supplier may be the upstream process within the plant or an outside supplier . Together with MRP II , it is probably the most widely used planning and scheduling tool in the world . MRP was created to tackle the problem of ‘ dependent demand ’; determining how many of a particular component is required knowing the number of finished products . Advances in computer hardware made the calculation possible .
The process starts at the top level with a Master Production Schedule ( MPS ). This is an amalgam of known demand , forecasts and product to be made for finished stock . The phasing of the demand may reflect the availability of the plant to respond . The
remainder of the schedule is derived from the MPS . Two key considerations in setting up the MPS are the size of `time buckets ’ and the `planning horizons ’. A `time bucket ’ is the unit of time on which the schedule is constructed and is typically daily or weekly . The `planning horizon ’ is how far to plan forward and is determined by how far ahead demand is known and by the lead times through the operation . There are three distinct steps in preparing an MRP schedule : exploding , netting and offsetting .
‘ Explosion ’ uses the Bill of Materials ( BOM ). This lists how many , of which components , are needed for each item ( part , sub- assembly , final assembly , finished product ) of manufacture . BOMs are characterised by the number of levels involved , following the structure of assemblies and sub-assemblies . The first level is represented by the MPS and is ‘ exploded ’ down to final assembly . Thus , a given number of finished products is exploded to see how many items are required at the final assembly stage .
The next step is ‘ netting ’, in which any stock on hand is subtracted from the gross requirement determined through explosion , giving the quantity of each item needed to manufacture the required finished products .
The final step is ‘ offsetting ’. This determines when manufacturing should start so that the finished items are available when required . To do so a ‘ lead time ’ has to be assumed for the operation . This is the anticipated time for manufacturing .
The whole process is repeated for the next level in the BOM and so on until the bottom is reached . These will give the requirements and timings to outside suppliers .
There are three major assumptions made when constructing an MRP schedule . The first , and possibly the most important , is that there is sufficient capacity available . For this reason , MRP is sometimes called infinite capacity scheduling . The second is that the lead times are known , or can be estimated , in advance . The third is that the date the order is required can be used as the starting date from which to develop the schedule .
MRP systems focus on the processes from quote through to invoicing but traditionally tend to exclude processes such as CRM and accounting . These lines have been increasingly blurred in recent years as systems rely on similar database structures . Previously an MRP , CRM and accounting system may have each relied on their own bespoke databases , requiring significant customisation and consultancy from the relevant vendors to get the systems communicating together .
With some systems today running on platforms such as SQL Server , it is now much easier to set up permanent , stable data links between systems . In fact , many companies offer seamless interfaces between key applications such as MRP and accounts .
36 | sheetmetalplus . com | ISMR July / August 2021