ASSIGNMENT 1

ENTERPRISE RESOURCE PLANNING

MODULE: PRODUCTION PLANNING AND MANUFACTURING PROCESS

SANJITPANDEY (16) 9/23/2011

ENTERPRISE RESOURCE PLANNING

Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. ERP systems can run on a variety of hardware and network configurations, typically employing a database as a repository for information.

ERP systems typically include the following characteristics:

An integrated system that operates in real time (or next to real time), without relying on periodic A common database, which supports all applications. A consistent look and feel throughout each module. Installation of the system without elaborate application/data integration by the Information

updates.

Technology (IT) department.

MODULE: PRODUCTION PLANNING AND MANUFACTURING PROCESS

Manufacturing planning and control address decisions on the acquisition, utilization and allocation of production resources to satisfy customer requirements in the most efficient and effective way. Typical decisions include work force level, production lot sizes, assignment of overtime and sequencing of production runs. Optimization models are widely applicable for providing decision support in this context. A planning problem exists because there are limited production resources that cannot be stored from period to period. Choices must be made as to which resources to include and how to model their capacity and behavior, and their costs. Also, there may be uncertainty associated with the production function, such as uncertain yields or lead times. One might only include the most critical or limiting resource in the planning problem, e. g., a bottleneck. Alternatively, when there is not a dominant resource, then one must model the resources that could limit production. Production planning: Production planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time and in the right place and each operation to be performed in maximum efficiency. It helps entrepreneur to work out the quantity of material manpower, machine and money requires for producing predetermined level of output in given period of time. Routing: Under this, the operations, their path and sequence are established. To perform these operations the proper class of machines and personnel required are also worked out. The main aim of routing is to determine the best and cheapest sequence of operations and to ensure that this sequence is strictly followed. In small enterprises, this job is usually done by entrepreneur himself in a rather ad-hoc manner.

Routing procedure involves following different activities. (1) An analysis of the article to determine what to make and what to buy. (2) To determine the quality and type of material (3) Determining the manufacturing operations and their sequence. (4) A determination of lot sizes (5) Determination of scrap factors (6) An analysis of cost of the article (7) Organization of production control forms.

Scheduling: It means working out of time that should be required to perform each operation and also the time necessary to perform the entire series as routed, making allowances for all factors concerned. It mainly concerns with time element and priorities of a job. The pattern of scheduling differs from one job to another which is explained as below: Production schedule: The main aim is to schedule that amount of work which can easily be handled by plant and equipment without interference. Its not independent decision as it takes into account following factors. (1) Physical plant facilities of the type required to process the material being scheduled. (2) Personnel who possess the desired skills and experience to operate the equipment and perform the type of work involved. (3) Necessary materials and purchased parts.

Master Schedule: Scheduling usually starts with preparation of master schedule which is weekly or monthly break-down of the production requirement for each product for a definite time period, by having this as a running record of total production requirements the entrepreneur is in better position to shift the production from one product to another as per the changed production requirements. This forms a base for all subsequent scheduling acclivities. A master schedule is followed by operator schedule which fixes total time required to do a piece of work with a given

machine or which shows the time required to do each detailed operation of a given job with a given machine or process. Manufacturing schedule: It is prepared on the basis of type of manufacturing process involved. It is very useful where single or few products are manufactured repeatedly at regular intervals. Thus it would show the required quality of each product and sequence in which the same to be operated Scheduling of Job order manufacturing: Scheduling acquires greater importance in job order manufacturing. This will enable the speedy execution of job at each center point. Scheduling of Job order manufacturing: Scheduling acquires greater importance in job order manufacturing. This will enable the speedy execution of job at each center point. As far as small scale industry is concerned scheduling is of utmost importance as it brings out efficiency in the operations and s reduces cost price. The small entrepreneur should maintain four types of schedules to have a close scrutiny of all stages namely an enquiry schedule, a production schedule, a shop schedule and an arrears schedule out of above four, a shop schedule is the most important most suited to the needs of small scale industry as it enables a foreman to see at a glance. 1. The total load on any section 2. The operational sequence 3. The stage, which any job has reached Loading: The next step is the execution of the schedule plan as per the route chalked out it includes the assignment of the work to the operators at their machines or work places. So loading determines who will do the work as routing determines where and scheduling determines when it shall be done. Gantt Charts are most commonly used in small industries in order to determine the existing load and also to foresee how fast a job can be done. The usefulness of their technique lies in the fact that they compare what has been done and what ought to have been done. Most of a small scale enterprise fail due to non-adherence to delivery schedules therefore they can be successful if they have ability to meet delivery order in time which no doubt depends upon production of quality goods in right time. It makes all the more important for entrepreneur to judge ahead of time what should be done, where and when thus to leave nothing to chance once the work has begun. Production control: Production control is the process of planning production in advance of operations, establishing the extract route of each individual item part or assembly, setting, starting and finishing for each important item, assembly or the finishing production and releasing the necessary orders as well as initiating the necessary follow-up to have the smooth function of the

enterprise. The production control is of complicated nature in small industries. The production planning and control department can function at its best in small scale unit only when the work manager, the purchase manager, the personnel manager and the financial controller assist in planning production activities. The production controller directly reports to the works manager but in small scale unit, all the three functions namely material control, planning and control are often performed by the entrepreneur himself production control starts with dispatching and ends up with corrective actions. Dispatching: Dispatching involves issue of production orders for starting the operations. Necessary authority and conformation is given for: 1. Movement of materials to different workstations. 2. Movement of tools and fixtures necessary for each operation. 3. Beginning of work on each operation. 4. Recording of time and cost involved in each operation.

KEY FEATURES OF THIS MODULE ERP extends information distribution. Supports materials requirement planning, inventory management, capacity planning Allows for merging of multiple databases. Eliminates paperwork and bottlenecks Decreases design costs, lead time, personnel costs Increases productivity Sales forecasts employed to develop production plans. MPS created through demand management. Determines quantities and dates for finished products MRP creates efficient, detailed material plan. Determines what needs to be ordered and when Creates work orders sent to production

ERP systems provides integration.

 MES Factory floor information and communication systems Provide feedback on real-time basis Can be front-end combined with back-end applications APS systems Business analysis and support Leverage data for decision support Data collection Real-time data gathered with mobile phone or Internet enabled devices Automated data collection

INTEGRATION WITH GARMENT MANUFACTURING INDUSTRY

Garment manufacturing is the mass production of clothing. Manufacturing garments entails a lot of planning and consciousness of schedule. The coordination of contractors and their timeliness plays a large role in meeting deadlines for your production. In most cases the production of garments is very time sensitive in order to ship goods to stores and boutiques for the upcoming season. Having a late order can reflect poorly on your business--keep this in mind and add plenty of time in your schedule. To create a production schedule, start from your end date and work backwards in order to determine a schedule that suits your needs. Give yourself a week or two of extra time to allow for any delays in the process.

Patterns and Markers

Pattern making, grading and markers are a crucial part in planning for production. Once markers of each style are based, you can easily calculate the yield of fabric needed for your production and in turn order your fabric.

Ordering Fabric
Order fabric based on the yields needed in order to meet your production needs. When planning your production schedule speak with your fabric supplier about the turn around for your fabric and any additional time needed for dying or washing your fabric.

Other Materials

Order other materials such as buttons, grommets and zippers prior to your production. These elements are often overlooked but crucial in the production of a garment.

Scheduling Contractors
Meet with your sewing contractor prior to the beginning of the time period you need your production completed. Create a contract with your sewing contractor stating sewing prices, turnaround time, and list what your contractor is responsible for providing and what you are responsible for. Make sure to have deadlines for all these elements.

Overseeing Production
Once production has begun, you should check on your items regularly to make sure everything is being produced up to your standards. The first item off the line should be given to you for approval, make sure this is stated in your contract. Be sure to immediately check your production thoroughly for any mistakes.

Finishing
Many sewing contractors also offer finishing services such as pressing, folding, tagging, and bagging items. If this is not the case, allot plenty of time is needed for finishing needs.

Considerations
It is commonly known that the garment industry is late with orders, while stores and boutiques expect their orders to be on time. This system can be used to give a cushion of a few days whenever possible in order to make sure your production is on schedule. To make sure to have a contract with your sewing contractors defining the finish dates and any penalties that apply for a late production.