03-09-2014, 10:16 AM
PRODUCTION PLANNING MODULE OF ERP FOR SMALL SCALE
INDUSTRY
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ABSTRACT
The purpose of this paper is to thoroughly present the findings of a project undertaken
regarding the development of a detailed production Planning system and its implementation
in a Salunkhe paper Products. The proposed system, entitled “Design and Development of
production planning module of ERP for Small Scale Industry”, is developed through the
scope of a decision support tool and was aimed at aiding the production planner in
scheduling weekly production orders to work centers along various manufacturing cells. The
core design principles were: ease of use, simplicity, flexible GUI (Graphical User Interface),
generation of manageable reports and low development budget. The practical application
occurred in a dynamic, Make-To-order (MTO) manufacturing environment.
CASE STUDY DESCRIPTION
The case study of Production Planning Module of ERP project is small scale industry
manufacturer of paper products. The company is MTO Company in such a case decision
making plays very important role. The production process followed has a high degree of
complexity. As a result of its complex production process and lacking IT infrastructure the
presented case study during the last few years faces numerous problems concerning violated
due dates, accumulated late orders, supernumerary production orders, excessive component
inventory, poor releasing policies, non systematic dispatching methods, inadequate work
load control and low shop floor visibility. To counter these mishaps the SME considered
implementing a detailed production scheduling system that would render the production
groups visible within a planning period, shift dispatching control from the foremen to the
PRODUCTION PLANNING AND CONTROL SYSTEM
The production planning and control system uses a hierarchical level of planning at the
highest level it lies forecasting module. The module that handles past data of sales of
company and accordingly it forecasts demands for next period by linear regression method
or exponential smoothing method. The forecasting data given to aggregate planning module
which generates two plans according to strategies like workforce leveling with overtime and
workforce leveling without overtime and best plan is selected. The master production
schedule translates aggregate plan into specific end items. The Master production schedule
data is given to material requirement planning module which also required data like
inventory status and BOM file. All data is processed and orders are released or planned for
the materials required for the products in the company. The capacity planning requires the
data of MPS and the loading capacity of particular work centre. According to the data it
generates report on whether the capacity is improved or not. The production control module
can generate the report like daily production report, breakdown maintenance report.
CONCLUSION
The work is aimed at designing and developing production module for a small-scale
industry Salunkhe Paper Products, Plot No. E39, MIDC, Islampur. which cannot afford to
buy any of higher end commercial ERP systems that are available in the market today.
However with the usage of this module, the company can effectively manage its production
function. The company has been able to forecast its product demand and allocate its
resources (production) through aggregate plan. Based upon production schedules, materials
and capacity can be planned effectively and in advance. Usage of the module will result in
active control on the production activity. Management information system with regard to
production function will improve significantly and result into quick communication within
company and outside, with suppliers and customer thereby facilitating decision-making
process.