ERP software system processes, ERP processes in PRODUCTION PLANNING and MASTER PRODUCTION SCHEDULING (MPS) module.

ERP Business Processes Contained in the PRODUCTION PLANNING and MASTER PRODUCTION SCHEDULING (MPS) ERP Software Module
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To view the business processes supported under a different ERP software system module view the ERP Software Modules page and click the link to the appropriate module. The ERP business processes listed on this page pertain to PRODUCTION PLANNING and MASTER PRODUCTION SCHEDULING (MPS).

ERP software systems comprise a variety of software modules, each of these ERP modules houses a set of business processes that the particular ERP software package supports. A useful starting point for compiling an ERP software system spec / RFQ / RFI / ITT is listing the required system functionality, or business processes, that an ERP software system would need to support in order to be considered as viable for ERP system selection and implementation. The list of ERP business process listed below relates to the PRODUCTION PLANNING and MASTER PRODUCTION SCHEDULING (MPS) module of ERP software packages. View the high level ERP Software Modules page to see a list of other ERP system modules that encompass the various business processes required of a modern integrated ERP software package.

The standard ERP system business processes for PRODUCTION PLANNING and MASTER PRODUCTION SCHEDULING (MPS) are tabulated later on this page - the ERP business processes are descibed in more detail than on the ERP System Processes page. Next to each description of the ERP processes for PRODUCTION PLANNING and MASTER PRODUCTION SCHEDULING (MPS) here are the explanations as to why each particular business prcess may be important / relevant.

Central to any ERP software package is the PRODUCTION PLANNING and MASTER PRODUCTION SCHEDULING (MPS) software module - it is the cornerstone of an effective and integrated ERP software package. The below list of business processes can be used as first pass list of ERP software system functional requirements for your business in the area of PRODUCTION PLANNING and MASTER PRODUCTION SCHEDULING (MPS) that can be utilised to arrive at a broad brush ERP system spec of required functionality to assist your ERP selection process and subsequent implementation.

PRODUCTION PLANNING and MASTER PRODUCTION SCHEDULING (MPS) ERP Business Processes
ERP Business Process
ERP Process Explanation
Assess time phased cash flows and budget compliance.  Carried out to check planning is in line with the business plan by assessing budget compliance (considering cash as another resource). 
Blend orders and forecasted demand for products during the same period (according to predetermined criteria).  Carried out to deal with orders and forecasts for the same period (i.e. consuming the forecast), using specified criteria or guidelines (e.g. ignore firm demand and use forecasts until consumed, or add orders to forecasts, or ignore forecasts). 
Carry out master production scheduling with due regard to the resource (capacity) constraints.  Carried out by checking approximate figures of available capacity, and limitations / requirements of the resources when carrying out the master scheduling. 
Create a formal production plan.   
Disaggregate the production plan (using planning BOMs).  Carried out by using planning BOMs to convert product family forecasts into end item forecasts. Second level forecasts using probabilities that each end item / option will be required are used (i.e. converting forecasting assumptions into estimated manufacturing needs for end items). 
Calculate expected order completion dates (for order enquiries).  Carried out for each individual order, using MPS information (and information on performance); to provide estimated completion dates. 
Explode product family forecasts into end item forecasts (using planning BOMs).  Carried out to create forecasts at the end item level using two level forecasting and appropriate planning BOMs. This is needed when there is an inability to forecast at end item level, but where there are sufficiently accurate product family forecasts. 
Run a full trial Material Requirements Plan as part of the master production scheduling process.  Carried out to check that the proposed MPS is achievable within the confines of MRP (batch sizes, lead times etc.). This may be performed if the constraints are complicated, i.e. there are many critical materials etc. 
Generate the master production schedule, from customer orders, forecasts, inventory parameters and balances.  Carried inputs, other than that of customer orders, are needed, where there is a high volume of orders (i.e. it gets very complex) and where the demand is reliable enough for this activity to be carried out automatically. 
Co-ordinate marketing and operational strategies.   
Monitor master production schedule adherence to the production plan.  Carried out to check that the MPS has not deviated much from the production plan. To enable the comparison the production plan is converted into a similar format to the MPS, this is be done by disaggregating the production plan (using planning BOMs), 
Measure performance of the master production scheduling function.  Carried out to measure the performance of the MPS planning activities. 
Monitor performance of the production planning function.  Carried out to see how efficient and useful the production planning process is and to feedback any problems to it. 
Provide available to promise information relating to sub-assemblies and finished goods inventory.  In order to communicate to sales and planning those items which are not assigned to customer orders (i.e. unconsumed forecast). 
Rationalise master production schedule against production plan (aggregate MPS).  Carried out by aggregating (adding up the totals for families) to measure whether the final MPS agrees with the original production plan. 
Assess the level of risk associated with the proposed production plan.   
Set time fences / frozen zone for the master production schedule.  Carried out to provide guidelines / restrictions on when changes can be made to planning, when different rules apply etc. This may include the replanning which various people can / cannot do at various times due to resource limitations, material lead times etc. The frozen zone is the time period during which no replanning is allowed whatsoever. 
Simulate different MPS scenarios (the results of which can be analysed using variance analysis or manually interpreted).  Undertaken in order to assess the effects of various changes to the plans (i.e. rescheduling), effects of new plans, ("what-if" planning) on current and future production (the effects on lead times, quantities etc.). Variance analysis looks at the differences between current and simulated values of the MPS. 

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The 4engineer to order manufacturer manufacturing production planning project management ERP system EDM PDMETO web site is being used to fulfil three purposes, firstly, it is a vehicle to recruit engineer to order manufacturers to take part in the research project concerned with improving how ETO manufacturing companies plan production and manage their jobs / projects. Secondly, the 4engineer to order manufacturer manufacturing production planning project management ERP system EDM PDMETO web site is being used a means of disseminating the results of the research project as well as good practices employed by successful engineer-to-order manufacturers. Thirdly, the 4engineer to order manufacturer manufacturing production planning project management ERP system EDM PDMETO site will be developed into a portal site for ETO manufacturers.

 

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Please contact Austen Jones with any questions, comments or suggestions.

Last Updated: 27-Mar-2008