Page 120 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Enterprise Resource Planning

notes are provided from work center and machine records. Work centers can be facility-specific or
enterprise-wide. Any work center can be designated as a critical work center fro evaluation by
rough-cut capacity planning. This capability provides an easy and efficient way to designate
bottleneck operations that act as system constrains. As the constraints changeover time, the user
can re-designate the work centers as critical or non-critical. High volume repetitive environments
are further supported with both from and to material movement location designations. These
locations are used for pull system back-flushing/replenishment and can be designated by
individual machines within the work center. These systems provide further refinement of
available capacity by providing definitions for specific machines or pieces of equipment. Each
work center also has user-defined input/output control tolerance factors to control the level of
action message sensitivity a factor for average efficiency, separate speed factors for labor and
machine, designation of shift/hours schedule and maximum desire load percentage. Capacity
minimums can also be designated for processes involving vessel size constraints and fixed cycle
constraints.
Also the ERP system have simulation capabilities that will help the capacity and resource
planners to simulate the various capacity and resource utilization scenarios and choose the best
option. The efficient functioning of the different modules in the ERP system like manufacturing,
materials management, plant maintenance, sales and distribution ensures that the inventory is
kept to a minimum and the finished goods are delivered to the customer in the most efficient
way. Thus the ERP systems help the organization in drastically improving the capacity and
resource utilization.

6.6 improved supplier performance

The quality of the raw materials or components and the capability of the vendor to deliver them
on-time are of critical importance for the success of any organization. So, an organization needs to
choose its supplies or vendors very carefully and monitor their activities closely so that problems
can be corrected before it can disrupt the functioning of the company. To realize these benefits
corporations rely heavily on supplier management and control systems to help plan, manage and
control the complex processes associated with global supplier partnerships.
ERP systems provide vendor management and procurement support tools designed to coordinate
all aspects of the procurement process. They support the organization in its efforts to effectively
negotiate, monitor and control procurement costs and schedules while assuring superior product
quality. The supplier management and control processes are comprised of features that will help
the organization in managing supplier relations, monitoring vendor activities and managing
supplier quality.
These is a growing trend for organizations to establish partnership agreements with their suppliers.
Through such business relationships, mutually beneficial results have been achieved in the areas
of quality, delivery and cost. To realize these benefits companies rely heavily on procurement
support systems to help manage and control processes associated with supplier partnership
agreements. Request for quotations, contract negotiation and control, purchase order release and
delivery are process steps considered when formalizing such partnerships. Complexities arise in
the areas of types of products or services being procured, quantity and price breaks, terms of the
agreement and methods employed for tracking and controlling the process. The procurement
support system that provides immediate feedback, flexibility and comprehensiveness in
managing supplier partnerships will provide a clear competitive advantage to the enterprise.
ERP systems have features that will enable the companies in realizing the benefits associated
with established partnership agreements. Supplier quotations and contracts can be created to
support the procurement of all products and service required by the enterprise. Examples of this
include inventory and non-inventory products, office supplies and services, as well as products
requiring direct shipment to customers. Since each agreement must stand on its own merit,

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