Contents
Forewords
Preface xiv
About the Author and Simulation Team xv
Acknowledgments xvii
MICSS Program xviii
How to Use This Book xx
Introduction xxi
SECTION I ENTERPRISE MANAGEMENT
1 History of Enterprise Resource Planning 3
2 The Theory of Constraints and ERP 15
3 Sales and Operations Planning 37
4 Buffer Resource Strategy 67
5 Enterprise Resource Management 89
6 Integrating the Supply Chain to Reap the Rewards 107
7 Strategic Sourcing and Procurement 125
SECTION II OPERATIONS MANAGEMENT
8 Operations Planning (Material and Capacity Requirements Planning) 136
9 Product Life Cycle Management 170
10 Manufacturing Execution System 186
11 Distribution 209
SECTION III ERP SELECTION AND IMPLEMENTATION
12 ERP System Requirements 240
13 Selecting the Right ERP System 255
14 Data Record Accuracy 271
15 Implementation—Generalized Industry Application 289
16 Repetitive Manufacturing Application 313
17 Process Industry Application 330
18 Remanufacturing 339
19 Project Manufacturing 351
20 Customer Relationship and Service 366
SECTION IV APPLICATION
Appendix 379
Index 384
PREFACE
The myriad of three letter acronyms that have evolved over the years can be overwhelming and confusing for the normal practitioner. Every company is asking its personnel to do more with less and to leverage technology more to increase productivity. This trend has only increased in intensity since the initial edition of this text. Software suppliers and experts in each of the various tools will attempt to convince this overwhelmed and incredibly busy potential customer that theirs is the one and only true path to getting more done with less. Somehow through this endless number of choices the successful practitioner must find the right road to follow for his company to achieve a lasting success with a positive return on investment. ERP: Tools, Techniques, and Applications for Integrating the Supply Chain provides a clear roadmap through this confusing morass. This book is written in a readily understood form with many real-life examples from a variety of industries and applications to illustrate key points.
A computerized case study is attached to this book. The Management Interactive Case Study Simulator (MICSS) provides a learning-from-experience platform. The version of MICSS included here was specifically designed for managers of manufacturing organizations in the Enterprise Resource Planning (ERP) era. The computerized case study lets the reader manage a small company in a fluctuating market with unreliable suppliers and fairly good integrated information system. The challenge is to learn to control the dynamics of this virtual company, by utilizing the relevant information. Through this educational simulation some crucial management issues in handling an ERP package are revealed. An analysis showing how to win the game and maneuver the organization to financial success is provided.
The intended purpose of this book is to introduce the tools and techniques of ERP, discuss the application of these to different types of enterprises, and provide the reader with the opportunity to try these concepts on a computer simulator. New concepts introduced in this edition include Supplier Relationship Management (SRM), strategic sourcing, throughput supply chain measures such as inventory dollar days and throughput dollar days, Product Life Cycle Management (PLM), technology architecture choices, and customer relationship management (CRM). These technologies have changed dramatically or have been developed since the previous edition. The second edition brings these concepts into context as part of a holistic approach to sustainable competitive advantage.
FOREWORD
There is something of real value in this book for everyone in industry and service businesses. The focus is on manufacturing and supply chains, but nonmanufacturing people in logistics services will find lots of help. It is to the point, easy reading, nontechnical, and lightened with appropriate humor.
All of the basic techniques are explained adequately to understand their functions, but are presented in the context of what they do well when used properly and what limitations they have. Theory is subordinated to practice. Successfully implementing modern computer-based systems in the real world is a theme throughout the book. This is not a book to be read leisurely and put aside in a bookcase. It is a reference to keep very handy and use while working to avoid expensive pitfalls.
George W. Plossl, CFPIM