ERP 101Shop Floor ControlDavid BushSenior Manufacturing Consultant,Rootstock

The ERP 101 Webinar SeriesDate Topic

Aug 2, 2016 An Introduction to ERP for Manufacturing

Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material

Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is accurate and up-to-date

Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and Procedures

Nov 1, 2016 Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines

Nov 29, 2016 Procurement – Link your Vendors and Purchased Parts via ERP

TBA MRP – Step though an overview of this vital ERP subset

TBA Sales – See how you can link your Customers and Products via ERP

TBA Manufacturing Accounting – An overview using standard cost

TBA Manufacturing Accounting – An overview using weighted cost

Meet Our Speakers

David BushSenior Manufacturing Consultant, Rootstock• 30+ years of manufacturing and MRP/ERP

systems experience• Previously at General Microcircuits,

Consona Corporation, Relevant Business Systems, Inc

The ERP 101 Series Until Now• ERP controls the material supplies required to meet customer demands

– Engineering, Inventory, Purchasing and Product Masters– Bill of Material calls out specific demands by product– Revision and/or ECO’s make sure demands are based on current configurations

• ERP also controls demands on capacity– Shop Floor setup defines work centers, processes, machines and people, all

required to move product through manufacturing

Let’s take a closer look at what we covered in our last session….

A Quick Recap of the Last EpisodeOur last webinar focused on building the shop floor database.• Routings like BOMS, but bill of resources instead

of material• Used to plan required time, not parts• Provide quantity of time needed for single

assembly, including setup, run and machine times• ERP uses this information for capacity planning,

similar to how MRP calculates material needs .

But why do we need Capacity Planning?

Why You Need Capacity PlanningOver-scheduled resources• Why does this matter? Creates bottleneck and required

work will not be done.• Knowledge of this issue allows scheduler to balance work

load.

Under-scheduled resources• Why does this matter? Cost, availability.• Allows scheduler to make most use of resources to even

the load.

ERP Shop Floor Capacity tools allow the scheduler to quickly balance the load.

Lets Revisit the Handlebar Assembly

• Pulling Material • 1 person, 1 hr, Stores WC

• Machining stem for reflector assy.• .1 hr, 1 person, Machining WC

• Assembly of parts.• .5 hrs, 1 person, Assembly WC

• Inspection• .15 hrs, 1 person, Inspection WC

How Is This Modeled in ERP?Think about how ERP helps us plan material• Accurate bills of material provide quantities

– Quantity of component to build 1 parent– Additional quantity needed to cover scrap, setup, EOQ, etc.

Apply same logic to building the item• How much time is required at each work center?• Is that time absolute, or modified by other factors?• Consider breaks, lunch, other down-time• Planned or unplanned work center maintenance

Time to see real-life example of Capacity Planning tools as evidence of how this works

Defining a Work Center

1. Length of day determines overall capacity for this work center for 1 operator.2. Capacity is defined in hours for labor and/or machines, times number of operators. So, two

operators would indicate a capacity of 16 hours in this example.3. Hours can be modified by factor so scheduling does not over-schedule. Now let’s see how the work center is used in the routing for the Handlebar assembly.

Routing Master for Handlebar Assembly• Time to build one parent is defined:

– Setup, Run, Machine, for each operation.

• Consider similarities between routing and bom.– BOM handles material needs to build 1

parent– Routings handle time needs to build 1

parent– Both use factors to ‘adjust’ the demands

Foundation for capacity planning in place, but how are work center demands planned?

Work Order for Handlebar Assembly

A Work Order is created to provide:1. Quantity of parent item to be built. This is used by Capacity Planning as a multiplier.2. Due date used to determine when operations need to be completed, so, when is the

actual demand on each work center?

Now let’s look at the scheduling tool itself

Running Capacity Planning

• Choose Work Orders to be Scheduled (procedure varies by ERP system)• Run or ‘Process’ Work Order Scheduling to create demand on each work center specified in the

Routing for quantity defined on the work order.

Once the work orders are scheduled, how does the planner see the results and make any changes that may be required?

Capacity Planning Workbench

• Rootstock provides a very detailed workbench that not only displays the current schedule by work center/work order, but also allows the planner to reschedule as needed

• Quickly find ‘problem’ areas • Color-coded format • Drag and drop provides quick re-scheduling to smooth out the load so that customer due dates can be met.

We have taken a very high look at the planning tools, but, hopefully, this has demonstrated how ERP both collects data and then uses it to help plan the shop floor.

Where Do We Go From Here?We’ve covered Bills of Material and Routings, but what else does the ERP system touch?

• Work Orders. – Typically created by MRP, work orders are SUPPLIES of manufactured items

(subassemblies and final assemblies) needed to satisfy customer requirements.– Work Orders provide MRP and Capacity planning ‘demands’ on the system for

materials and shop floor capacity.

• Order Entry – Feeds the ‘demand’ side of ERP– Maintains customers, products, orders, etc.

• Purchasing– Provides the ‘supply’ side of ERP for purchased parts– Maintains vendors, purchased items and orders

• And much more…..

Q&A

www.rootstock.com888.524.0123marketing@rootstock.com

The ERP 101 Webinar SeriesDate Topic

Aug 2, 2016 An Introduction to ERP for Manufacturing

Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material

Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is accurate and up-to-date

Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and Procedures

Nov 1, 2016 Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines

Nov 29, 2016 Procurement – Link your Vendors and Purchased Parts via ERP

TBA MRP – Step though an overview of this vital ERP subset

TBA Sales – See how you can link your Customers and Products via ERP

TBA Manufacturing Accounting – An overview using standard cost

TBA Manufacturing Accounting – An overview using weighted cost

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