On the other hand, ERP models work based
on the following levels of control for the enterprise administration:
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Executive
Planning |
| Business
Planning, Sales Planning, Production Planning (Rough
capacity). |
| Medium
Management Planning |
| Master Scheduling
and Inventory Control, Materials Planning (based on products
structures) and Capacity Planning (Routing). |
| Operative
Execution |
| Procurement, Shop
Floor Control (Costs) and Performance Evaluation |
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Three above points are always
interrelated, with information flow in continuous improvement cycle.
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As in any integrated System or Unit, the
performance of each one of the parts of an Enterprise has an impact in
his cumulative performance results. Specifically, we can say that a
95% performance in independent vital enterprise elements (Item master,
Bills of Materials, Production Master Schedule Adherence, Inventories
Accuracy, Production Orders Accuracy and Purchase Orders Accuracy),
will reflect a cumulative 75% in a ERP environment. This means a
percentage of failure possible in productivity terms.
Here is where we should support and
combine this useful tool with a business strategy based on the desired
administration tendency or theory.
On this sense, it is vital to note the
point on administration before deciding which ERP software is the one
we will be using, we need to have solid administration principles (no
matter which administration tendencies you decide to choose) and
strong knowledge of ERP methodology.
This will translate into synergy
between areas that will allow organizations to have highly effective
processes with a continuous success. Only by creating a deep
understanding of this philosophy we will have the certainty of
obtaining the best results, a well as being in position to face and
take proactive actions for any obstacle we could find in the road. If
we have not this reference point (no matter how quickly or expensive
our system is, or even if we duplicate the speed), our efforts will
deliver the wrong results.
By taking these factors into
consideration when planning an ERP solution, the system will prove to
be a valuable part of your continuous improvement process.
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Maria
Elena Salazar has bachelor in Business Administration and has
conducted Seminars in International Commerce, Manufacturing Resource
Planning, and MRP and ERP methodologies. She is a Consultant
specializing in Procurement, Inventories and Master Scheduling, as
well as process reengineering. She has collaborated with international
companies in ERP implementations in Chemical, Electronic,
Pharmaceutical and Metal Mechanic fields. At present, collaborates
with an Australian leader in providing EAM Solutions.
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