What Happens When You Select the Wrong ERP System
One of the myriad of appalling consequences that result from fitting an
(ETO) environment with a repetitive-oriented ERP system, which does not have, in the very least, a product configurator facility with generic items (encapsulating options, variants, and constraints),
generic bill of materials
(BOM), generic routings, or pricing functionality, is that the sales order capturing clerk has to contact the engineering department for a product code or for the price or cost of a product, sometimes waiting days for a response.Odoo Needless to say the standard master data becomes bloated because each product variant has to have a separate stock item code, BOM, and routing as if it was a standard stock item and not a once-off made
As for the production planning aspect, the differences do not come only from days- or weeks-long lead times for repetitive items versus months- or years-long lead times for an individual project. Further, as mentioned earlier, a simple count and addition of the purchasing and manufacturing lead times will not determine the overall lead-time or time-to-deliver a project, since projects often have numerous product definition activities and commissioning and installation to arrange before and after manufacturing respectively. Also, it is not a mere scope of the planning that differs in repetitive and project manufacturing, since there are other major differences in the way that these environments approach planning.
First, project manufacturers tend not think in elapsed time, given they calculate effort. For example, if a project is estimated to have one hundred hours worth of installation, it could mean one person deployed for one hundred hours, or that it could be deployed much quicker with a larger crew. Establishing and managing a critical path is the “motherhood and apple pie” of project management.
Secondly, project manufacturers know that they cannot always be in control of the lead-time even if this project is nearly a repetition of the previous one. All sorts of issues can impact the plan to deliver even a simple project. Customer late with the design approval? Subcontractor late with the delivery due to a strike in its plant? Cannot get access to the site on the day we need it?
Thirdly, traditional MRP based systems work without priorities, but rather with time-phased, back-loaded scheduling and with the “oldest order first” principle. Advanced
planning and scheduling
(APS) and some other job dispatching techniques may use more advanced algorithms (e.g., critical ratio), but they do not really recognize a “rush job” logic In other words, it is often difficult to see
This is not to imply that in repetitive manufacturing planning and re-planning are simple activities, given one has to take the maximum or optimal utilization of plant, equipment
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