《Integrating The Lean Enterprise》Role of Information Technology in the Lean Enterprise

Role of Information Technology in the Lean Enterprise Professor debbie nightingale October 2. 2002

Role of Information Technology in the Role of Information Technology in the Lean Enterprise Lean Enterprise Professor Debbie Nightingale October 2, 2002

Integrated Enterprise Customer a Organization Product Support Manufacturing Operations Processes Finance, H/R, Product Legal etc Development Technology Supplier Network K INFORMATION Information is a Key enabler! Deborah Nightingale, MIT@ 2002

Deborah Nightingale, MIT © 2002 Integrated Enterprise Integrated Enterprise Customer Product Development Supplier Network Product Support Finance, H/R, Legal, etc... Manufacturing Operations ƒ Organization ƒ Processes ƒ Technology ƒ INFORMATION Information is a Key Enabler! 2

eanc」 Opieciiyes Enterprise Resource Planning Product Data Management T as Enabler for Collaborative Business models a Enterprise IT issues Deborah Nightingale, MIT@ 2002

Deborah Nightingale, MIT © 2002 3 Learning Objectives Learning Objectives ƒ Enterprise Resource Planning ƒ Product Data Management ƒ IT as Enabler for Collaborative Business Models ƒ Enterprise IT issues

/ainuiacturing Resources Plainning (RP ll)Definition Manufacturing Resources Planning A method for the effective planning of all resources of a manutacturing company Includes: Business Planning Sales & Operations Planning Production Planning MPS/MRP/CRP Execution Support for resources and material All integrated with Finance Source: APICS Dictionary Deborah Nightingale, MIT@ 2002

Manufacturing Resources Planning Manufacturing Resources Planning Deborah Nightingale, MIT © 2002 (MRP II) Definition (MRP II) Definition (MRP II) Definition Includes: Business Planning MPS/MRP/CRP Manufacturing Resources Planning Manufacturing Resources Planning A method for the effective planning of all resources of a manufacturing company. Sales & Operations Planning Production Planning Execution Support for Resources and Material All integrated with Finance Source: APICS Dictionary 4

Typicall MRP lI Diagram Production Plan Master Customer Orders Production Forecasts Schedule Work Materials Item Centers/ Requirements Master/ Bill Routings Planning of Material Capacit Requirements Planning Shop Floor Inventory Purchasing Control Finance Functions Deborah Nightingale, MIT@ 2002 5

Deborah Nightingale, MIT © 2002 Master Production Schedule Production Plan Customer Orders Forecasts Materials Requirements Planning Capacity Requirements Planning Work Centers/ Routings Item Master/ Bill of Material Inventory Purchasing Shop Floor Control Finance Functions Typical MRP II Diagram Typical MRP II Diagram Source: T. Shaw 5

Typicall Orgainization Chart ys. MRPII CEO Sales Human Engineering Quality Marketing Resources Manufacturing Finance Distribution Field service Production Orders Materials Centers/ k Requirement Routings Materal Finance Functions Deborah Nightingale, MIT@2002 Source: T. Shaw

Deborah Nightingale, MIT © 2002 Sales & Marketing Human Resources Engineering Manufacturing Finance Distribution CEO Master Production Schedule Production Plan Customer Orders Forecasts Materials Requirements Planning Capacity Requirements Planning Work Centers/ Routings Item Master/ Bill of Material Shop Inventory Purchasing Floor Control Finance Functions Typical Organization Chart vs. MRP II Typical Organization Chart vs. MRP II Source: T. Shaw Quality Field Service 6

nterprise Resources Planning(ErP Definition" Enterprise Resources Planning A method for the effective planning and controlling of all these sources needed to take, make ship and account for customer orders in a manufacturing, distribution or service company. Includes Typical MRP‖ Functions Quality Functions Sales force automation Field service functions Engineering Functions/PDM Complete Financial Functions Advanced manufacturing function Human Resources functions Distribution/Logistics Functions Management Reporting ERP is a System for the Entire Company -A Global Tightly Integrated Closed-Loop System (1) Source: AP/CS Complex Industries Special Interest Group Deborah Nightingale, MIT@2002 Source: T. Shaw

Enterprise Resources Planning (ERP) Enterprise Resources Planning (ERP) Deborah Nightingale, MIT © 2002 Definition Definition1 Includes: Typical M RP II Functions Sales Force Automation Engineering Functions/PDM Advanced Manufacturing Function Distribution/Logistics Functions S ource: T. Shaw Enterprise Resources Planning (ERP) Enterprise Resources Planning A method for t he effective planning and controlling of ALL these sources needed to take, make, ship and account for customer orders in a manufacturing, distrib ution or service company. Quality F unctions Field Service Functions Complete Financial Functions Human Resources Functions Management Reporting ERP is a System for the Entire Company - A Global Tightly Integrated Closed-Loop System (1) Source:API C S Complex Industries Special Interest Group 7

Typical ERP Functionality Sales Engineering Manufact- Distribution/ Marketing uring Logistics PROGRAM MANAGEMENT Human Quality Field Resources nance Service Deborah Nightingale, MIT@2002 Source: T. Shaw

Deborah Nightingale, MIT © 2002 8 Sales & Marketing Engineering Distribution/ Logistics Manufact￾uring Human Resources Quality Finance Field Service PROGRAM MANAGEMENT Typical ERP Functionality Typical ERP Functionality Source: T. Shaw

Engineering/Produci Daia Mgi Document Creation Management Control CAD Interface/ Image Management Configuration Management Change order Creation Control Revision Control Engineering Data Management a Product Information Management a Technical Data Management Technical Information Management Engineering item Data BOMs Deborah Nightingale, MIT@2002 Source: T. Shaw

Engineering/Product Data Mgt. Deborah Nightingale, MIT © 2002 − Revision Control S ource: T. Shaw Engineering/Product Data Mgt. ƒ Document Creation, Management & Control ƒ CAD Interface/ Image Management ƒ Configuration Management − Change Order Creation & Control ƒ Engineering Data Management ƒ Product Information Management ƒ Technical Data Management ƒ Technical Information Management ƒ Engineering Item Data & BOMs 9

Manufacturing MRPII Functionality MPS, BOM, Routings, MRP, CRP, PAC Sales Operations Planning Integrated Production Configuration a Statistical Inventory control Flexible Product Job Costing Options Kanban/JIT/Flow Manufacturing Support Theory of Constraints/Advanced Planning Systems Deborah Nightingale, MIT@2002 Source: T. Shaw 10

Deborah Nightingale, MIT © 2002 Manufacturing Manufacturing ƒ MRPII Functionality Systems Source: T. Shaw − MPS, BOM, Routings, MRP, CRP,PAC ƒ Sales & Operations Planning ƒ Integrated Production Configuration ƒ Statistical Inventory Control ƒ Flexible Product & Job Costing Options ƒ Kanban/JIT/Flow Manufacturing Support ƒ Theory of Constraints/Advanced Planning 10