Chapter 14 ndash; Resource Planning.ppt

Chapter 14 – Resource  Planning Operations Management by R. Dan Reid Nada R. Sanders 2nd Edition ? Wiley 2005 PowerPoint Presentation by R.B. Clough - UNH Learning Objectives Describe enterprise resource management Describe the evolution of ERP Systems Describe the benefits and costs of ERP systems Provide an overview of MRP Explain the different types of demand Describe the objectives of MRP Describe the inputs needed for MRP Explain MRP operating logic Learning Objectives (continued) Describe action notices Use different lot size rules with MRP Describe the role of capacity requirements planning (CRP) Calculate the work loads at critical work centers using CRP Enterprise Resource Planning What Is ERP? Software designed for organizing and managing business processes Modules share information across all business functions Can share customer sales data with the supply chain to help with global replenishment All modules are fully integrated and use a common database – some PC based Integration of ERP ERP Modules-4 Categories Finance and accounting Investment, cost, asset, capital, and debt management Budgets, profitability analysis, and performance reports Sales and marketing Handles pricing, availability, orders, shipments, billing Production and materials management Process planning, BOM, product costing, ECN’s, MRP, allocates resources, schedules, PO’s, inventory Human resources Workforce planning, payroll benefits, org. charts Evolution of ERP First generation ERP Managed all internal business activities Second Generation ERP Late 1990’s software integrated supply chains Systems focused on decision-making SCM modules include LP and simulation support SCI capability allows collection of intelligence along the entire supply chain ASP suppliers set-up and run systems for others Integrating ERP and E-Commerce Many companies with ERP use e-commerce E-commerce needs to interface with ERP Cybex International is a good examp