ERP 101Engineering BasicsDavid BushSenior Manufacturing Consultant,Rootstock

The ERP 101 Webinar SeriesDate Topic

Aug 2, 2016 An Introduction to ERP for Manufacturing & Distribution

Aug 16, 2016 Engineering Basics – The Importance of Part Master Records and Bills of Material

Aug 30, 2016 Engineering Basics - Maintaining Accuracy through Revisions and Change Order Control

TBA Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and Procedures

TBA Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines

TBA Procurement – Link your Vendors and Purchased Parts via ERP

TBA MRP – Step though an overview of this vital ERP subset

TBA Sales – See how you can link your Customers and Products via ERP

TBA Manufacturing Accounting – An overview using standard cost

TBA Manufacturing Accounting – An overview using weighted cost

Meet Our Speakers

David BushSenior Manufacturing Consultant, Rootstock• 30+ years of manufacturing and MRP/ERP

systems experience• Previously at General Microcircuits,

Consona Corporation, Relevant Business Systems, Inc

A Recap• In the last webinar, we discussed:

– The unique characteristics of manufacturing & distribution organizations

– Key ERP concepts – Bill of Material Processor (BOMP), Material Requirements Planning (MRP), MRPII and ERP

– The evolution of MRP/ERP since the 1960s– The differences between MRP and ERP and how MRP fits into

modern ERP systems.

In This Episode• We will cover the engineering basics:

– Part numbers, and why they are important– Components and Sub-Assemblies– BOM Structure

Just how important are these items?

Part Numbers – Foundation of Your ERP• How important is a solid

foundation?• In the ERP system, part numbers

make up the ingredients for a strong and reliable system.

How Do You Define Part Numbers?

• Should I:– Use the description as a part number?– Use ‘smart’ part numbers?– When do you need to create a new part

number?

Part Numbers – Important Considerations• What do I need to consider about part numbers?

– Description– Unit of measure– Source– Type– Lot/Serial Control

Part Numbers – Cont’d• Is this item a component, subassembly or finished good?• Will it be inventoried?• Will it be sold to customers (finished good or spare part)• Is it active or inactive?• Who is responsible for maintaining the record?• Is there company-specific information I need to record?• If your company has multiple divisions, where will this item be

inventoried and where will it be used?

OK, we defined part numbers. Now what?

Lets look at the Foundation again

Part Numbers – Foundation of Your ERP

• Now that we have our components, how do we put them together to form our foundation?

• How does this work in a manufacturing environment?

• Remember our bicycle drawing?• How do the components come

together to form the finished item?

• How does the BOM help us understand the structure of the finished item?

Components and Sub-assemblies• The finished item comprises:

– Components• Manufactured• Purchased

– Sub-assemblies• Manufactured/assembled• Purchased

Sub-Assemblies

This is an example of a sub-assembly BOM showing the parts and quantities.

What else needs to be considered when developing the BOM?

Building a BOM• Parent and component part numbers and quantities have been

entered.• Will any of the component be lost as calculated scrap during

production?• Will any of the components be lost during setup?• Will tooling or fixtures be added to the BOM?• When do we add another level to the BOM?

You Have a BOM. What Questions Remain?• The BOM accurately reflects how your product is built. But:

– What happens when the parent or subassemblies are re-designed?– How does manufacturing know which design to build… latest

configuration or a past design?– How is MRP (Material Requirements Planning) affected by these

changes, and how does it react?

To be continued…….

In Summary• Today, we covered

– Part Numbers (Components)– Sub Assemblies– Final Assemblies (Finished Goods)

• In the next session, we will look at:– Revisions– ECOs (Engineering Change Orders)– Effects of change on MRP

Q&A

www.rootstock.com888.524.0123

marketing@rootstock.com

The ERP 101 Webinar SeriesDate Topic

Aug 2, 2016 An Introduction to ERP for Manufacturing & Distribution

Aug 16, 2016 Engineering Basics – The Importance of Part Master Records and Bills of Material

Aug 30, 2016 Engineering Basics - Maintaining Accuracy through Revisions and Change Order Control

TBA Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and Procedures

TBA Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines

TBA Procurement – Link your Vendors and Purchased Parts via ERP

TBA MRP – Step though an overview of this vital ERP subset

TBA Sales – See how you can link your Customers and Products via ERP

TBA Manufacturing Accounting – An overview using standard cost

TBA Manufacturing Accounting – An overview using weighted cost

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