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Understanding the Concepts of MRPII/ERP (page 2)
On this point, it is important to mention that successful administration systems and productivity do not depend only on operative levels (high production rates, 100% machine utilization) but on the team job and balance and negotiation between all parts objectives and policies (that should match 100%), starting with:
  • A professional Business Plan: Mission, Vision, Objectives; What we want to sell, how is the market we will be moving on?, where we will establish the facility?.
  • A realistic and deep Sales Plan: What our forecasting techniques and horizons will be? Rough numbers are needed under a deep analysis.
  • Rough Production Plan: Based on Sales Plan, what is the capacity we require and the quantities I can produce?.
  • Master Scheduling: How we will optimize cost covering sales requirement and levering production and capacity levels? Inventory policies.
  • TPM: When we need to implement my TPM and what will be the strategy?
  • Purchasing: Which long term agreements we need in order to optimize cost and collaborate with inventory levels?
  • Shop Control: How I need to track and my production performance?
  • Vital Fees: How I will know that my company is “healthy” and productive? How I will implement corrective and preventive actions?

Hoshin Kanri:

Many companies that have recently received either the Deming or the Japan Quality Awards are those that have implemented this strategy. The base of this new administrative tool is to use the business philosophy and vision and formulate and develop a business strategy as a part of their medium and long range planning, as well as develop and implement targets and measures based on annual timeframes.

A basic overview of the elements of this methodology is:

  • Establishment of a Business Philosophy.
  • Establishment of a Vision.
  • Operating Goals and Targets.
  • Strategic Gap Analysis / Strategic Assessment.
  • Comprehensive Evaluation of Strategic Analysis Results.
  • Establishment of medium and long term strategic concept basic goals/Basic Strategy.
  • Establishment and Implementations of Annual Goals and Measures.
  •  “Check and act” of implementation results.
  •  

As a complement, this methodology uses a successful theory: Dairy Job Administration: process standardization, clarification, analysis, re-standardization, results assurance and evaluation.

All Quality awards and certification programs are linked to his methodology and feet with all their points.

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