Philosophy
Index Why an attribute-driven ERP system? The basics: product definition & characteristics Tracking & Tracing Sales Production typologies. Example: Flat Steel Making Transformation Multi-level Transformation Production Typologies. Manufacturing
Index (2) Planning Valuation Control End-to-End Solution
Why an attribute-driven ERP system?
Basic Problem SKU Environment Inventory Item : BULB On Hand : 3 pieces Dimensional Environment Inventory Item : Metal On Hand : 100 ton???
Solutions SKU Environment: Identify each sheet size with an item code 600 X 500 Item: Item: Item: HR1010-600x500 HR1010-800x600 HR1010-1000x800 800 X 600 1000 X 800 Dimensional Environment: One item code; Size control by IDno Item : HR 1010 IDno 1012 : L= 600; W= 500 IDno 1013 : L= 800; W= 600 IDno 1014 : L= 1000; W= 800
Solutions SKU Environment: Identify each bar size with an item code 600 X 50 Item: Item: Item: MP1010-600x50 MP1010-800x60 MP1010-1000x80 800 X 60 1000 X 80 Dimensional Environment: One item code; Size control by IDno Item : MP 1010 (Cr40Mo12) IDno 1012 : L= 600; W= 50 IDno 1013 : L= 800; W= 60 IDno 1014 : L= 1000; W= 80
Consequences of SKU Driven ERP Explosion of item codes Most items codes are created on a one time customer request Only a few items do really bear stock Poor inventory overview High risk for duplicate item codes High risk that production or purchase orders are created while alternatives are available MRP will give improper advises (focused on item code) Conflict between inventory and financial unit Issuing a new item code for each new appearance is cumbersome and time consuming
The basics: product definition & characteristics
Product Identification Item 1:x Characteristics Grade Width Length Thickness Etc. 1:z Standard Product 1:y Characteristic Sets Grade : 1010 1020 Width : 1000 1000 Length : 1000 2000 Thickness : 1 1
Product Identification Item Grade Width Thickness Weight IDno #12 1010 1000 1.0 14.000 IDno #27 1010 2000 1.0 22.000 IDno #31 1020 400 1.2 8.000 IDno #53 1020 1800 1.2 19.000
Product Identification: Data Structure Item HR 1010 Length 60 Specs Width Thickn. Surface Quality 20 1/32 Polished A...... IDno 3030......
Product Identification: Data Structure Item HR 1010 Specs Length Width Thickn. Surface Quality... : Specs that enable on-line Sorting and Querying of the Inventory Screen
Product Identification: Data Structure Item HR 1010 Specs Length Width Thickn. Surface Quality... 60 20 1/32 Polished A......... SS 1/32 [Smalll Sheet, gauge= 1/32] Dimset: Pre-defines Values of Specs Template for Order Entry Label for Inventory Displays
Product Identification: Product Hierarchy
Product Identification Inventory View Options: Indexes by item Multi level aggregation Conversion to any unit Direct query management Possibility to link images Direct link to planned transactions Direct link to historical transactions
Product Identification Example: Inventory Presentation
Product Identification Example: Inventory Presentation
Product Identification Example: Inventory Presentation
Characteristics By characteristic the user can specify: Category (information, design, measure) Type (alphanumeric, integer, double, number of decimals, date, etc.) Business functions active (purchase, sales, production, etc.) Tolerances (absolute, relative, exact, etc.) Transformable yes/no Multiple lingual descriptions and predefined choices
Data by IDno Object IDno Item Warehouse / Location Characteristics (SPECs) Purchase / Production Order Supplier Purchase / Production Price Receipt Date Supplier IDno and Main IDno Cost Components Image Text Planned Transactions Historical Transactions IDno IDno : 555 Item Warehouse Location Char: Grade Char: Thickness Char: Width Char: Inn Diam. : A402 : MMP : L1-H23-2 : A : 1.0 mm : 1.000 mm : 300 mm Weight : 19.500 kg Purchase Order : 260023 Supplier : Mill LTD Receipt Date : 12-09-2006
Identification Methods IDno Non Discrete 1 IDno = 1 unique piece IDno IDno Discrete 1 IDno = x (approx.) identical pieces IDno
Tracking & Tracing
Tracking and Tracing Historical Transactions Planned Transactions
Tracking Transaction Information Item code Warehouse Planned Characteristics On Order / Alloc. Info Order number Supplier / Customer Purch. / Prod. / Sales Price Receipt / Delivery Date Descriptions Remarks Text Planned Transactions
Tracing Historical Transactions Transaction Information Item code Warehouse / Location Actual Characteristics Quantity Received/Delivered Order number Supplier / Customer Purch. / Prod. / Sales Price Receipt / Delivery Date Descriptions Remarks Text
Tracing Graphic traceability with link to session: sales order; production order; transformation order; purchase order; Idno data.
Sales
Order Entry What is important: Order entry based on characteristics Inventory, planned receipts and demands visible and sorted by characteristics Possibility to: Sell from inventory (on hand and planned receipts) Slot demand automatically in production Block Purchase / Produce on demand Possibility to merge demands to Inventory available Planned receipts Sales and purchase prices based on characteristics
Order Entry
Price Control Item Base Price From/To date To Quantity Quantity Unit Surcharges by: Base Price Characteristics Discounts by: Base Price Characteristics From/To Date To Quantity Quantity Unit Derived Spec Amount, Percentage, Formula From/To Date Base Price and/or Spec Quantity Unit Derived Spec Amount, Percentage, Formula
Production typologies Example: Flat Steel Making
Production Typologies Manufacturing (SFC) Final product is made up of other products BOM / Formula driven Transformation (TRO) Transformation of characteristics Relationship between input / output material is often order-specific
Production Typologies Iron Making, Steel Making, Slab Casting, Hot Rolling Process Raw Iron Manufacturing Process Process Process Steel Slabs Hot Rolled Coils Transformation
Production Typologies Iron Making Raw Process Raw Iron
Production Typologies Iron Making Iron Ore IDno Cast #1 Limestone PROCESS IDno Cast #2 Coal IDno Cast #3
Production Typologies Steel Making, Iron Casting, Hot Rolling Process Process Process Raw Iron Steel Slabs Hot Rolled Coils
Production Typologies Steel Making, Iron Casting, Hot Rolling IDno PROCESS IDno
Production Typologies Cold Rolling Process Hot Rolled Coil Cold Rolled Coil
Production Typologies Cold Rolling IDno PROCESS IDno
Production Typologies Slitting & Cutting Slit Coil Process Master Coil Slit Coil Process Slit Coil Sheet
Production Typologies Slitting & Cutting IDno Sales Demand IDno PROCESS IDno Sales Demand IDno Inventory
Production typologies Transformation
Transformation Slitting Jumbo Roll Slit- Scissors Scissors Bar Scrap Slit Roll 1.050 mm 600 mm 300 mm 100 mm Process
Transformation Slitting Inventory Coil #1 Inventory Coil #2 Inventory Coil #3 1.050 mm 1.050 m 920 m 1.020 m Demand #10 - Width 400 mm Thickness 1 mm Total Length 2.800 m Demand #11 - Width 200 mm Thickness 1 mm Total Length 2.700 m Demand #12 - Width 300 mm Thickness 1 mm Total Length 2.900 m Process
Transformation Slitting Inventory Coil #1 Inventory Coil #2 Inventory Coil #3 Inventory Coil #1
Converting / Packaging Sheet Cutting Knife 1200 mm 1200 mm 1200 mm 1000 mm Process
Transformation Cut to Length Inventory Coil #1 Inventory Coil #2 Inventory Coil #3 250 sheets 300 m 210 sheets 252 m 140 sheets 210 m 1.000 mm Demand: 600 Sheets of 1000 x 1200 x 1 mm Process
Production typologies Multi-level Transformation
Logistical Process Example MPS or Block- Scheduling Master Coils Slit Plan Demand driven multi level TRO Slit Coil Sheets SLS Optimized TRO Sales Order 1 Sales Order 2 Sales Order 3
Production Typologies Multi Level Transformation! "#$ Master Coil Slit Coil Sheet
Production Typologies Multi Level Transformation Sales Order Entry Inventory No Inventory Demand
Production Typologies Multi Level Transformation Production Orders Generation Main TRO Inventory Demand Process Process
Production Typologies Multi Level Transformation Production Order Execution Main TRO Inventory Demand Process Process
Transformation (TRO) Traceability Process Process
Production typologies Manufacturing
Manufacturing Example Inheritance (1) Sales Production order BOX SHEET Grade, Finish, Thickness Length, Width, Height Quantity Grade, Finish Length, Width, Thickness Cutting, Bending, Welding The Length and Width are inherited via a formula The Grade, Finish and Thickness are directly inherited
Manufacturing Example Inheritance (2)
Manufacturing Example Inheritance (2) Demand Product : A401 Width : 1000 mm Length : 5000 m Color : Red Product Width Length : A401 : 1000 mm : 5000 m 20 KG
Manufacturing Example Inheritance (2) Demand Product Width Length Color : A401 : 1000 mm : 5000 m : Red 5300 m Product Width Length : A401 : 1000 mm : 5000 m 5300 m 21.2 20 KG kg
Manufacturing Support to Engineering
Manufacturing Support to Material Planning
Planning
Production planning board
Valuation Control
Valuation Control Purchase Purchase price Purchase price difference After receipt goods IDno Purchase price difference After receipt invoice
Valuation Control Production Base Material Value (Actual) PROCESS Actual Product Value Value (Estimated or Actual) Added Value (Fixed or Actual) Added Value
Valuation Control Value Distribution - Example Sales Demand Sales Demand PROCESS Inventory Sales Demand Inventory Value inheritance from in going IDnos to outgoing IDnos Value distribution for added and costs on primary unit
Valuation Control Production Scrap Processing Direct Process (as stock transaction) Total Value to output IDno s Total Value direct into Finance Scrap To Scrap IDno (fixed value) Value difference to output IDno s Value difference direct into Finance