The ERP.Production solution allows production processes of manufacturing
enterprises to be planned, monitored, analysed and managed.
Even within one sector, production
processes can vary greatly depending on the manufactured product.
Products generally vary by kinds and types; moreover, they will often go
through several stages within their lifecycles, so the company will need
various management models.
The support of the total product
lifecycle starting with product development and down to withdrawal from
operation starts with each product unit being registered in the system.
Besides, if the product unit will require maintenance, it is not only its
specification that is entered into the system, but also a list of spare
parts and maintenance history.
Using Microsoft Project to prepare the
master production schedule allows production to be planned and plans to
be devised on the basis of existing sales orders and the availability of
critical components (materials) and manufacturing facilities.
Material requirements planning allows
the needs for all materials and components to be calculated for putting
an order into production, taking into account warehouse stocks as well as
scheduled receipts and shipments. The above needs are based on sales
orders, shop orders and job orders (repairs). The information is checked
against nonredundant stocks, supply orders and shop orders to determine
needs for materials and components. In addition, data concerning
independent demand, for instance, forecast demand for spare parts, can be
taken into account.
The purpose of capacity requirements
planning is to determine realistic timeframes for production target
delivery using the available capacity. The planning of work centre load
simplifies the process of identifying potential bottlenecks and allows
the underutilization and overloading of production capacities and
personnel to be evened out.
One of the outputs of the module is
that the system creates requisitions for shop orders and supply orders.
The orders are created after the requisitions are accepted or adjusted.
Operating instructions (technical
specifications for the performance of operations) concerning the
completion of the order can be added to a shop order, and components can
be added or discarded.
There is a function of warnings about a
potential delay beyond a time limit for the delivery of a sales order due
to delays in supply and the completion of shop orders.
Product cost control.
Standard costing. This is performed in
accordance with the assumptions that target figures are based on a
forecast, direct variable costs are planned for each type of products,
and other costs are planned for each cost centre. Standard costing is
performed for a standard batch size or production cycle.
Activity-based costing, unlike standard
costing, uses the parameters of the value-added chain resulting from the
consumption of various resources. For non-standard products that might
require manufacturing preparation, product design and production
engineering and several cycles of equipment adjustments, the above
processes can be established as the sources of activity costs.
There is an option of combining the
standard costing and activity-based costing in a single hybrid cost
model. Calculations for the above costing models are performed on the
basis of the cumulation of cost elements with regard to the data of the
specification and the manufacturing sequence as well as the production
process. The calculation includes the estimation of costs of the
particular level of production and all sublevels down to bought out
components and raw materials.
The current process costing for a
particular order represents the registered amount of work in progress for
the order. The above costing can be used as the basis for the analysis
and adjustment of the current manufacturing situation on the basis of the
analysis of reasons for deviations from the initial costing. Operational
functional cost analysis of the production allows the user to obtain an
operational overview of the point at which the deviations start.
Analysing the performance of a
production facility with a broad range of products and high turnover is
rather complicated and requires plenty of time. Priorities can be set
correctly by means of the activity-based costing analysis (ABC), which
will help to define the 20% of products that generate 40% of income and
to determine the 10% of products that generate 5% of income but take up
25% of production capacity.
Brief overview of the ERP.Production
• Production planning
- with the use of graphic tools for the
optimization of production capacity utilization;
- with the creation of the necessary
-with the creation of the list of
operations to be performed and the necessary human resources.
• Production process monitoring broken
down by the following parameters:
- the movement of components for the
orders to be completed, including multilevel analysis broken down by
types and names;
- the components to be utilized in
production, including the analysis of planned and actually spent funds
(for the given period and the cumulative amount);
- salary, including piecework
remuneration and time-based wages with the analysis of planned and
actually spent funds and work hours (for the given period and the
- analysis of the production output
(defects, recycling, rejection);
- fixed operational costs (rent,
leasing etc.), including the analysis of planned and actually spent funds
(for the given period and the cumulative amount);
- taxes, including the analysis of
planned and actually spent funds (for the given period and the cumulative
- issued invoices and the settlement
• The received data allow the
- production cycle analysis for any
period, stage and order, with obtaining summarized data for a certain
date, including the analysis of the price and prime cost;
- analysis of several activity
- analysis of subcontracts and general
contracts, including the analysis of planned and actually spent funds
(for the given period and the cumulative amount).
• Real-time evaluation of the general
economic situation of the enterprise and the economic benefit from a
particular order being completed or the company’s activity category.
• Archiving all documentation for an
unlimited period of storage.
• Fast information search in the
archive across various parameters (the number of the order or job order,
lot, customer, invoice number, etc.).