Increased Ability For Effective Supply Chain Management example essay topic

Jennifer Pickle Computerized Manufacturing Systems Professor: Packet LavertyOctober 8, 1999 CI/366-Pittsburgh Historical manufacturing and accounting management systems did not provide data for effective development of a production schedule or supply chain management. (6) Companies did not have the ability to measure inventory, workflow process, labor and production efficiently or accurately. With the progression of automation and the revolution of the desktop computer accompanied by developing software companies are now able to use computerized manufacturing systems to record and maintain accurate data and management all aspects of the accounting and manufacturing process. (2) This paper will discuss the development of automation and computerized manufacturing systems and specifically the ERP solution. Manufacturing systems were initially managed by abstract calculations or simulators designed to produce theoretical results and measure manufacturing schedules. These methods were very time consuming and cost effective.

The job of a manufacturing organization was broken down into various development phases. (1) These phases include the following: Table (1): Operation: The task to be performed in the manufacturing job shop Processing Time: The amount of time required to process the operation (in most cases sets up times are independent of operation relations and are included in processing time) Job: The set of operations that are interrelated by procedure constraints derived from technological restrictions. Machine: The piece of equipment (a device or a facility) capable of performing an operation. Release Time: The time in which the job is released to the shop floor, it is the earliest time at which the first operation of the job can begin processing. Due Date: The time by which the last operation of the job should be completed. Completion Time: The time at which processing of the last operation of the job is complete.

Schedule: Specification of execution of each operation on a particular machine at a specific time. A feasible schedule is a schedule that observes all problem constraints. These phases would usually be done manually and line managers would measure the process. (1) These measurements would be dependent on variable for example, sick time, employee production and employee motivation. (1) Although these steps are similar today these variables have been greatly removed from the manufacturing process through automation and more efficient production data and scheduling tools available. (1) Another method for developing manufacturing schedules was through the use of simulators.

One of the original programming languages, 'Fortran' was used as a tool for planning departments. (5) The planning team would use Fortran to construct simulation models for various industries, however one of the primary uses for these models was in manufacturing and process control. (5) The simulator used elementary building blocks or model components to develop a sample production environment. (5) These simulators were used to determine which system functions and elements frequently occur in the manufacturing system and what was the time and cost model associate with the system. (5) Simulators and job shop / manufacturing models are examples of inefficiencies in time and cost that encouraged the growth of automation and technology.

(3) Although these manual systems may seem archaic they were used in widespread use less then ten years ago. (3) In addition to the use of manufacturing models other business functions were controlled in this same manner. For example, accounting systems were largely managed and documented on handwritten chart (s) of accounts or ledgers. (8) Payroll organizations would process deductions manually on adding machines and hand write payroll checks.

(8) All business systems have been streamlined through automation and technological means. The development of increased productivity in the manufacturing arena was largely due to the automation of job shops. (9) With the introduction of Robotic and Artificial Intelligence (AI) many repetitive activities could be performed by machine rather then man. (4) Technology is knowledge and information, technology is knowledge of how to produce and use knowledge more effectively.

(2) The principle of technology allowed companies to use machines in their job shops for tasks like, cutting a 45-degree angle, screwing components together or filling and sealing jars. Artificial Intelligence provided companies with the abilities to carry out pre-designated functions or a series of actions after being initiated by an external stimulus, without the necessity of human intervention. (4) In contrast, autonomy is the ability to function as an independent unit or element over an extended period of time, performing a variety of actions necessary to achieve pre-designated objectives, while responding to stimuli produced by integrally contained sensors. (4) This autonomy has been the goal of increasing the abilities of Artificial Intelligence. (4) Robotics initially provided a cheaper and more effective method for performing rudimentary repetitive tasks. (6) Robotics in a manufacturing environment has the ability to control start and end times and quality controls.

(4) Through using artificial intelligence and robotics automation has taken over the roles of product designer, materials handler, materials processor, assembler, service personnel and corporate management. (3) Granted there is always a need for people to monitor these machines, although the machine to person ratio is much less then the typical staff of an old-fashioned job shop. (1) Also, you must also understand that there are people required tell these machines what to do and how. For the most part these people are engineers and programmers.

(6) For sake of this paper we will assume the understanding that automation replaces the human worker only as the use of technology has become viable. Computer programs allow us to take away the need for the human worker and the instructions are provided to the machine using programming languages. Computers and technology have effected virtually ever aspect of the modern business culture. Product realization consists of taking a product idea through the entire development process, including manufacturing.

(13) For a complex electronic product, this requires many capabilities. (13) Now that corporations have the ability to fully automate the manufacturing process and the next logical step is the influence machines have on the corporate environment. (9) With the competitive pressures of lead-time for product development, readiness to market, quality improvement and an increased variety of goods and services at lower costs companies began looking for greater efficiencies in the planning and development of corporate functions. (12) Some examples of the business that were ripe for this functionality include accounting, production control, human resources and operations. (8) Corporate environments, looking to decrease time to market, develop a consistent standardization of product configuration and quality and needing to efficiently manage these procedures have done so through the use of desktop computers. (8) The introduction of the desktop computer allowed businesses to integrate computers into every aspect of their business and brought technology to the front end of the corporate culture.

Computers and more importantly computer software has offered standard business procedures for processing information (i.e. accounting data, orders, payroll) and general business functions (i.e. scheduling, benefits administration). (8) The main limit to this use of technology was the inability to use front-end office technology to efficiently manage manufacturing and supply requirements. As programs and technology advanced the development of Materials Requirement Planning (MRP) systems were introduced in the early 1970's. (14) MRP systems were developed largely for manufacturing concerns.

(14) MRP systems were initially designed to reduce inventory levels by providing an integrated view of supply and demand, measured against on-hand inventory and replenishment lead times. (14) As these systems evolved, they began to incorporate financial controls and measures, master production scheduling and capacity planning. (14) Companies used Enterprise Resource Planning (ERP) systems as a blanket solution to encompass all aspect of business controls. (14) ERP, in other words, extended the reach of the planning system to include the entire enterprise. (14) ERP systems manage everything from management reporting to marketing, sales, distribution, human resources, plant maintenance, sales, distribution and product development. (14) This translates to an event driven, real time, dynamically balanced enterprise that can continually optimize process and assets.

(14) Over the last few years, most corporations have focused an integrating back and front office operations with manufacturing, sales and distribution. (14) The justification for the originally investment in ERP technology was the impending Y 2 K problem, making procedures more efficient and saving money. (14) With the Y 2 K preparedness moving by the wayside ERP systems are being utilized for much more. (14) ERP systems are able to integrate internal operations and increase corporate growth. (14) Companies have the ability to use a consistent support structure for various satellite and manufac turing locations. (14) ERP systems can help companies reach out beyond the enterprise to their business trading partners and customers, and new technologies keep extending these abilities.

(14) It is necessary to mention the development of E-Commerce as a major outgrowth of ERP systems. (14) E-Commerce or E-Business allows a company to market and accept orders for manufactured products via the internet. (9) Some advanced capabilities of E-Commerce are the abilities to invoice, pay and manage account status on line. (14) In manufacturing E-Commerce will allow the company to automatically debit and credit their inventory based on orders via the web.

(14) This will increase their ability to keep up with production levels and lower administrative costs dramatically. (14) E-Commerce is expected to grow from $8 billion in 1997 to upwards of $330 billion by 2002. (14) E-commerce allows companies to reach new markets, operate around the clock, shorten product development cycles and enhance customer service all at lower costs. (14) The benefits to the manufacturing environment are the ability to extend their enterprises by bringing suppliers and vendors into a seamless communication loop for business to business interactions that go beyond data interchange. (14) E-Commerce makes visible all of the supply chain and demand points across the value chain. (14) When a customer initiates an order it triggers a series of complex, real time transactions that fulfill the request from materials procurement, through manufacturing, to shipping.

(14) An additional value from using ERP systems is the increased ability for effective supply chain management. (14) The increased efficiency of a companies supply chain not only increases their ability to compete in a technology dependent market, but also allows the company to provide products faster and cheaper. (14) Supply chain management is a strategic imperative to better management of materials information, cash and work process. (14) This competitive advantage often comes from cutting time to market and / or production costs. (14) Supply chain management solutions incorporate all of the steps and processes involved with serving customers and fulfilling their needs. (14) This comprehensive strategy allows companies to effectively address key issues of cost, speed, complexity, flexibility or response and customer needs.

(14) Leading providers of ERP solutions include SAP, Oracle, People Soft, Baan and J.D. Edwards. (14) SAP is the industry leader with over $4.7 billion dollars in revenue for 1998. (14) Although these companies and services have some notable differences for our purposes we will discuss SAP as the standard. SAP is the third-largest software company in the world. (7) Founded in 1972 by five former IBM systems engineers, SAP now employs more than 22,000 people in more than 50 countries. (7) SAP software is deployed at more than 22,000 business installations in more than 100 countries and is currently used by companies of all sizes, including more than half of the world's 500 top companies.

(7) SAP has been a public company since 1988 and is listed on several stock exchanges including the Frankfurt stock exchange - where it is listed on the DAX, the German index of blue-chip companies - and the New York Stock Exchange under the symbol 'SAP. ' (7) SAP may be customized to a particular environment and can service most production industries. (7) SAP supply chain management provides solutions that integrate information and decisions from the entire supply chain into a seamless, automated and optimized information infrastructure. (7) It provides the framework for integrating strategic decisions support, data warehousing, planning and simulation. (7) SAP allows for optimized forecasting, sales force automation and customer relations to integrate in a closed loop with core enterprises for example, financial, logistics and human resources systems. (7) As SAP is directly related to managing supply it also provides manufacturing and warehouse management.

(7) SAP provides planning, monitoring and decision support. (7) It gives the warehouse an overview of anticipated workload and capacities at a much greater efficiency then ever before. (7) SAP's inbound processing includes powerful functionality to support reliable, accurate and efficient management and monitoring or orders placed with suppliers. (7) It also provides methods for receiving goods.

SAP provides companies with the increased ability to management storage and facilities management. (7) With SAP (and most ERP systems) function can be tailored to the precise warehouse environment. (7) This allows the company to optimize the use of that space. SAP has full control over different stock categories such as batches (lots), vender consignment or goods in quality inspection. (7) This information is used to select the right stock for the right purpose. (7) For example, a customer is provided with a particular product lot at the predetermined level of quality automatically.

(7) SAP also has support for the latest warehouse technology. (7) This enables the workforce to capture data on the spot for greater accuracy and productivity. (7) SAP provides interfaces to other technical warehouse equipment such as automated storage and retrieval systems. (7) Finally, SAP manages corporate output processes.

(7) These include order selection, picking, packing and shipping. (7) SAP allows the warehouse to work hand in hand with transportation management. (7) Products are ready to go and SAP can provide scheduling for pick up and delivery. (7) All of these functions are integrated to the manufacturing process.

ERP systems, like SAP, have provided companies with the ability to maintain real time accurate records of incoming supplies, outgoing products and correct manufacturing production cycles to keep up with supply and demand. (14) Ultimately the provisions of these programs have provided a greater efficiency to the customer and a streamlined production process. (14) The company is rewarded with greatly reduced production costs and increased revenue. (14) Companies may grow faster and more effectively and provide products more quickly and a lower costs.

(14) Manufacturing systems are becoming increasingly dependent on ERP processes and advanced features. (14) These systems have brought computerized manufacturing systems to a hybrid level and allow businesses to function effectively into the twenty first century. Computers continue to develop more human like qualities and assume more humanistic roles in the corporate and private arenas. With the development of ERP systems for business it is only logical to assume that similar systems will eventually be in place to assist in eliminating daily tasks like grocery shopping, cooking, paying bills, etc. Computers have and will streamlined business and increase the quality of professional and personal lives.

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PC Magazine, June 22, 1999, Rick Freedman Questions 1.
How many phases are there in the job shop development cycle? A-8 C-0 B-9 D-3 Answer: A-82. What is the name of one of the original programming languages used to develop manufacturing simulators? A-Cobol C-Visual Basic E-Java-DB 2 D-French F-Fortran Answer: F-Fortran 3. The abbreviation AI is short for: A-Automated Integration C-Antiquated Intelligence-Assisted Intelligence D-Artificial Intelligence Answer: D-Artificial Intelligence 4. Robotics are a more effective method for: A-Performing daily functions-Performing repetitive tasks-Changing manufacturing switches and controls-Creating longer production times Answer: B-Performing repetitive tasks 5. MRP systems were introduced in the early: A-1800'sB-1900'sC-1970'sD-1990'sE-2000'answer: C-1970's 6.
MRP is an acronym for: A-Manufacturing Repetitive Process-Modeling Report Access-More Robotic Productions-Materials Requirement Planning Answer: D-Material Requirement Planning 7. Companies initially invested in Enterprise Resource Planning (ERP) as a method forA-Increasing time to market-Y 2 K compliance-Integration of internal operations-Corporate Growth Answer: B-Y 2 K Compliance 8. The top provider of ERP solutions is: A-PeopleSoft B-SAP-Ba anD-JD Edwards-Oracle Answer: B-SAP 9. SAP was founded in: A-1980 B-1990 C-1965 D-1972 E-1991 Answer: 197210.