Capacity Planning is technically a component of MRP II. It is a system that analyzes your capacity to produce a product (more likely a long list of products) and compares that to what it knows about your ability to produce the product.
A few low- to mid-range manufacturing control systems advertise capacity planning capabilities. Based on the comparison of production demand and supply, they can alert you to impending “bottlenecks.” We believe system such as this should more properly be called a Capacity Analysis system. While its output can be illuminating, it performs no actual planning, and the benefits achieved are far less than what is typically advertised.
A true planning system, know as Capacity Resource Planning (CRP for short) not only tells you where the production bottlenecks are bound to show up, but they tell you what to do about them to minimize the impact on other tasks.
For example, a CRP system knows that Bill and Fred and Sally are scheduled to work on Project A starting June 1st. It knows that Mike and Sally and Jim are scheduled to work on Project B starting June 15th. It knows that Fred is due for a week’s vacation starting June 12th. It knows that Mary isn’t scheduled to work on any project until July 1st. If Fred leaves on vacation as planned, but Project A isn’t yet complete, a CRP system would suggest someone who could jump in to help (that’s the planning part). It would know that Mary is available in the required timeframe, but that she works 75% as fast as Fred and takes every other Wednesday afternoon off as a community volunteer. If Mary does join Project A, but slows it down and the project isn’t complete until June 20th, a CRP system can plan the impact on Project B which Sally was supposed to start, along with Mike and Jim on June 15th.
Now, if just reading the paragraph makes your head hurt, you’re not alone. Some very complex and very expensive manufacturing control systems claim to do effective CRP.
We have had personal experience with one $20+ million MRP II system that created more bottlenecks than it resolved with each click of the “fix it” button. And the salesman said it was a bargain at $20million. We are not recommending it.
If we have convinced you to steer away from Capacity Planning, the question remains whether the “capacity lite” capability of the software you may be looking at is going to be of any value.
Bear in mind, that to do any capacity analysis/planning, the software must know about every operation associated with the production your client performs. This means that a simple bill of material, even a multi-level bill of material, is insufficient if you intend to perform capacity analysis/planning. The bill of material must include what are termed “routings” or “routing operations” – a step by step list of the processes that must be performed, in sequence, in order to produce a given product. For anyone with rudimentary (or non-existent) bills of material, collecting and entering that level of detail is a big, big task.
Coupled to the bill of material routings, the software must have a detailed description of every work center – area of the plant where some specific task is performed: when the work center is open for business, how fast it can operate, and what additional resources (material, labor, and overhead) it requires.
To perform capacity analysis, the manufacturing software computes the “capacity demand” (derived from the BOM routings) and the “capacity supply” (derived from the work center descriptions). From this, it can highlight any impending “capacity bottlenecks.” It is unlikely that any software can tell you what to do about these bottlenecks.
From our experience, true capacity planning is out of the reach of all but the most sophisticated manufacturers. Capacity analysis is nice to have if you are willing to invest in creating – and maintaining – all the supporting data for routings and work centers.
Since its release in 2009, the Shop Floor Control module of the MISys Manufacturing system (a $1750 add-on to MISys Basic Manufacturing) has proven to be a reasonable and effective alternative to complex and mind-numbing capacity planning systems. For users who need a high degree of production control and costing, MISys Shop Floor Control does the job.
Invest the next ten minutes of your time and take the 6-step tour. Download the MISys Manufacturing brochure, fact sheets, watch the demo videos, get a price estimate and more.
Visit www.misysinc.com
Tuesday, February 14, 2012
Monday, February 13, 2012
"I just bought MISys Manufacturing... now what?"
Fair question. You have 3 options for implementation.
In our experience, this rarely works. Implementing a manufacturing system is complicated and can be intimidating. It is possible to do it on your own, and we have customers who have done it, but you will save a lot of time and aggravation if you work... <read more>
- Do it yourself
- Use the MISys SureStart program to help you
- Hire a professional to do the work
In our experience, this rarely works. Implementing a manufacturing system is complicated and can be intimidating. It is possible to do it on your own, and we have customers who have done it, but you will save a lot of time and aggravation if you work... <read more>
Monday, January 16, 2012
Best-In-Breed works for Ski Racing Equipment and for Software Solutions
As a former alpine ski racer, I used to mix and match my equipment depending upon the best skis, best bindings, and best boots. Rarely were they the same brand. It worked pretty well. Now, the biggest ski manufacturers own boot and binding brands, so a ski racer will get one brand for all equipment – mostly because of price incentives. It certainly makes it easier as a buyer, but the components are rarely the best in their class. Going with one brand might be a compromise.
The same holds true for software. I often hear about customers wanting “all-in-one,” “end-to-end” ERP systems because they are easier to manage than a group of best-in-breed applications. In theory that is true. But in reality is is not. And, those complete ERP systems rarely perform the best in all areas.
Here are some advantages of going with a “best-in-breed” approach for ski racing equipment and software:
1. Better performance: Just like alpine race equipment, you want the best solutions in the areas most important to you. And you don’t care if the equipment is good at something you will never use it for (like ballet skiing). Settling for one system that is bloated or weak in one area will only hurt your results.
2. Lower Start Up Costs. Best-in-breed solutions have small, bite-size pieces to get up and running rather than implementing a behemoth that reaches into every corner of the organization. In skiing, you can add equipment as you need it instead of buying it all at once.
3. More flexibility. Hey, if the boots aren’t working for you, find another pair that will. If you are locked into a specific brand, you are really limited in what you can choose. Same thing with software.
4. The solution fits you: Imagine that you purchased equipment that required you to change everything about the way you skied. You wouldn’t do that. There are some things you want to change in order to get better, but not everything. Many all-in-one systems require you to substantially change your behavior to fit the system. Yuck. Best-in-breed enables you to laser in on the things that you need to change, while leaving the rest alone. Yea.
What does this have to do with MISys Manufacturing? Everything. MISys leverages the “best-in-breed” approach, focusing on the things most important to a manufacturer: Better performance, lower start up costs, more flexibility and a solution that fits your organization.
See for yourself. Download the brochure, factsheets, watch more than 30 interactive videos, and get a price estimate based on your industry. Visit misysinc.com.
The same holds true for software. I often hear about customers wanting “all-in-one,” “end-to-end” ERP systems because they are easier to manage than a group of best-in-breed applications. In theory that is true. But in reality is is not. And, those complete ERP systems rarely perform the best in all areas.
Here are some advantages of going with a “best-in-breed” approach for ski racing equipment and software:
1. Better performance: Just like alpine race equipment, you want the best solutions in the areas most important to you. And you don’t care if the equipment is good at something you will never use it for (like ballet skiing). Settling for one system that is bloated or weak in one area will only hurt your results.
2. Lower Start Up Costs. Best-in-breed solutions have small, bite-size pieces to get up and running rather than implementing a behemoth that reaches into every corner of the organization. In skiing, you can add equipment as you need it instead of buying it all at once.
3. More flexibility. Hey, if the boots aren’t working for you, find another pair that will. If you are locked into a specific brand, you are really limited in what you can choose. Same thing with software.
4. The solution fits you: Imagine that you purchased equipment that required you to change everything about the way you skied. You wouldn’t do that. There are some things you want to change in order to get better, but not everything. Many all-in-one systems require you to substantially change your behavior to fit the system. Yuck. Best-in-breed enables you to laser in on the things that you need to change, while leaving the rest alone. Yea.
What does this have to do with MISys Manufacturing? Everything. MISys leverages the “best-in-breed” approach, focusing on the things most important to a manufacturer: Better performance, lower start up costs, more flexibility and a solution that fits your organization.
See for yourself. Download the brochure, factsheets, watch more than 30 interactive videos, and get a price estimate based on your industry. Visit misysinc.com.
Thursday, December 15, 2011
Year-End 2011 Tips
Here are two year-end tips from the very talented Sonia Gray, ERP Practice Manager, http://www.netatwork.com/
Correcting lot tracking assignments
Prepared by Sonia Gray, http://www.netatwork.com/
December 2011
If you’re using Lot Tracking in MISys Manufacturing, year end often includes cleaning up old unassigned lot tracking records and making sure all lots are reconciled. I often get questions from clients on how they can correct lot assignments or correct quantities on hand of items that are lot tracked.
It is important to note that correcting lot entries in MISys requires that you do them in a particular order. You cannot assign a lot number to a transaction if the system does not have a quantity of that lot to assign. Additionally, items tied to parent items require that you assign the parent item first, then the child items. Therefore, reversing those transactions require that you do them in the reverse order.
A great tool for correcting invalid lot assignments is the “Undo SLT transactions” function. This function puts the transaction back on the “Assign SLT numbers” screen so you can redo the assignment.
Again, the trick is to reverse things in the right order. Think about the end result of your transaction, then step backwards through it to “undo” it. For example, if you need to correct a lot assignment that reduced stock (i.e., dispense stock transaction) you must reverse it first before you can reassign any other transaction related to it. This puts the lot number quantity back, which then makes it available to reassign. Viewing the lot tracking history will be helpful in retracing your steps.
Redirecting Locked Fiscal Periods
Prepared by Sonia Gray, ERP Practice Manager - http://www.netatwork.com/
One of the new features in Accpac is the ability to lock fiscal periods by module. While this is a great control feature; it can cause errors with other applications trying to send transactions to a locked period. Wisely, MISys has given us the ability to redirect our entries if it encounters a locked fiscal period.
When processing period end (under the “Accounting” menu), simply check the box “Redirect Locked Fiscal Periods” which will allow you to put in a new period end date. Very cool!
Correcting lot tracking assignments
Prepared by Sonia Gray, http://www.netatwork.com/
December 2011
If you’re using Lot Tracking in MISys Manufacturing, year end often includes cleaning up old unassigned lot tracking records and making sure all lots are reconciled. I often get questions from clients on how they can correct lot assignments or correct quantities on hand of items that are lot tracked.
It is important to note that correcting lot entries in MISys requires that you do them in a particular order. You cannot assign a lot number to a transaction if the system does not have a quantity of that lot to assign. Additionally, items tied to parent items require that you assign the parent item first, then the child items. Therefore, reversing those transactions require that you do them in the reverse order.
A great tool for correcting invalid lot assignments is the “Undo SLT transactions” function. This function puts the transaction back on the “Assign SLT numbers” screen so you can redo the assignment.
Again, the trick is to reverse things in the right order. Think about the end result of your transaction, then step backwards through it to “undo” it. For example, if you need to correct a lot assignment that reduced stock (i.e., dispense stock transaction) you must reverse it first before you can reassign any other transaction related to it. This puts the lot number quantity back, which then makes it available to reassign. Viewing the lot tracking history will be helpful in retracing your steps.
Redirecting Locked Fiscal Periods
Prepared by Sonia Gray, ERP Practice Manager - http://www.netatwork.com/
One of the new features in Accpac is the ability to lock fiscal periods by module. While this is a great control feature; it can cause errors with other applications trying to send transactions to a locked period. Wisely, MISys has given us the ability to redirect our entries if it encounters a locked fiscal period.
When processing period end (under the “Accounting” menu), simply check the box “Redirect Locked Fiscal Periods” which will allow you to put in a new period end date. Very cool!
Wednesday, October 26, 2011
The Cost and Benefit Of Shop Floor Control
Technically, shop floor control is a component of MRP II because it deals with the allocation of labor and other resources used in various production tasks. The theory is that by accurately controlling and analyzing the amount of planned and un-planned work done on any particular production order, you can derive a very accurate cost for everything you make and thus produce a financial statement that will bring tears to the eyes of any CPA.
We believe there is great benefit from implementing a shop floor control system, mainly because it provides am insight into you production activities that cannot be achieved otherwise: a line by line view of each task (or operation) and, ultimately, the ability to analyze how well your production workers met their efficiency (and profitability) targets.
Without a shop floor control system, you will know something is wrong because you won’t be making as much profit as you expected.
With a shop floor control system, you will know that the guy who does the welding in Operation 17 of some product they make reliably takes twice as long to complete his work as was projected, sending the estimated to actual variances for the job through the roof. Or, that on that big, potentially profitable job that was completed last week, an expensive component was broken and had to be replaced.
All this sounds great – and it is – except for one thing: in order to implement a useful shop floor control system, you must demand that:
The MISys Shop Floor Control module allows you to define all the Work Centers where various activities occur in your plant. It maintains a Production Calendar so it won't schedule any production activities when your plant will be dark. You tell MISys when each Work Center will be open for business, when it takes a lunch break, etc. Finally MISys allows you to specifiy the material, labor, and overhead associated with running the Work Center.
When Shop Floor Control is enabled for MISys Manufacturing, muli-level bills of material, expand with routing details -- a detailed record of the operations that must be performed in ordered to produce each assembly.
MISys Manufacturing has a robust system for recording the time your Production Department spends on each assembly step. By combining this information with what MISys knows about the cost of running each Work Center, the program can produce very detailed and accurate
production costs analysys.
Without a doubt, implementing a shop floor control system like that found in MISys Manufacturing has significant costs in terms of setup and tracking. But there is no finer way to know exactly what your production is costing your organization.
.
We believe there is great benefit from implementing a shop floor control system, mainly because it provides am insight into you production activities that cannot be achieved otherwise: a line by line view of each task (or operation) and, ultimately, the ability to analyze how well your production workers met their efficiency (and profitability) targets.
Without a shop floor control system, you will know something is wrong because you won’t be making as much profit as you expected.
With a shop floor control system, you will know that the guy who does the welding in Operation 17 of some product they make reliably takes twice as long to complete his work as was projected, sending the estimated to actual variances for the job through the roof. Or, that on that big, potentially profitable job that was completed last week, an expensive component was broken and had to be replaced.
All this sounds great – and it is – except for one thing: in order to implement a useful shop floor control system, you must demand that:
- Accurate routings (detailed operations and the estimated time/cost for each) are available and thoroughly documented.
- There is a reliable system in place for recording the actual material, labor, and overhead used in each operation (read people with stop watches and clip-boards running around the shop, writing down numbers and entering them into the computer).
The MISys Shop Floor Control module allows you to define all the Work Centers where various activities occur in your plant. It maintains a Production Calendar so it won't schedule any production activities when your plant will be dark. You tell MISys when each Work Center will be open for business, when it takes a lunch break, etc. Finally MISys allows you to specifiy the material, labor, and overhead associated with running the Work Center.
When Shop Floor Control is enabled for MISys Manufacturing, muli-level bills of material, expand with routing details -- a detailed record of the operations that must be performed in ordered to produce each assembly.
MISys Manufacturing has a robust system for recording the time your Production Department spends on each assembly step. By combining this information with what MISys knows about the cost of running each Work Center, the program can produce very detailed and accurate
production costs analysys.
Without a doubt, implementing a shop floor control system like that found in MISys Manufacturing has significant costs in terms of setup and tracking. But there is no finer way to know exactly what your production is costing your organization.
.
Tuesday, September 27, 2011
What is MRP? MRP I & MRP II Defined
Material Requirements Planning (MRP I)
Without an MRP system, manufacturers typically react by purchasing material they might need. With an MRP system, manufacturers purchase material they definitely do need. Which do you think is a better use of limited financial resources?
Many manufacturing systems combine the distinct functions of MPS (Master Production Schedule) and MRP into one called MRP. It is possible to create an MPS without an MRP, but not possible to create an MRP without an MPS. If you are convinced that the software you are considering performs the functions described here, then strict adherence to the terminology is not that important.
Manufacturing Resource Planning (MRP II)
As the term implies, Manufacturing Resource Planning (aka MRP II, read MRP-two), is an extension to MRP I that goes far beyond planning and acquiring the materials needed for production, but every other resource related to the successful operation of a manufacturing plant, including people and machinery.
Some impressive demonstrations can be made by manufacturing software vendors selling “fix all your problems with one click” systems. In our opinion, MRP II requires a level of sophistication far beyond that of most of our prospective customers. Ford Motors and Caterpillar depend on MRP II to run their manufacturing operations. MRP II is a big job – one best reserved for the big boys.
Few low-end to mid-ranged manufacturing systems offer MRP II, but if they do, beware. Systems that perform real MRP II functions cost hundreds of thousands, often millions of dollars. If the system you are looking at claims MRP II capabilities for far, far less turn your fluff detector to stun.
MISys Manufacturing v5.0
MISys Manufacturing is best described as an MRP I system, although it does have a few MRP II-like features, including the powerful Capacity Manager. This tool analyzes the load every active production order is placing on available resources (work centers) and displays where and when capacity overloads are occurring.
Using the tool, you can manually reschedule the offending production orders to take better advantage of available resources.
For a few hundred thousand dollars more than what MISys costs, an MRP II system might do this automatically, but if you disagreed with the planning decisions it made, you'd think you'd be better off with MISys Manufacturing.
Invest the next ten minutes of your time and take the 6-step tour. Download the MISys Manufacturing brochure, fact sheets, watch the demo videos, get a price estimate and more.
Visit www.misysinc.com
Related Video: "What is MRP? Why do I need MRP? A demo with MISys Manufacturing & Sage 50 Quantum Accounting"
Following the strict APICS definition, MRP (more accurately MRP I, read MRP-one) is a system that helps a manufacturer plan their purchasing and production activities, and when necessary, create the required purchase orders and production orders in time to meet customer commitments.
This leads to the Great Paradox of Manufacturing:
- An inventory control system helps you maintain an inventory of your materials.
- An MRP system helps you maintain no inventory of your materials.
Without an MRP system, manufacturers typically react by purchasing material they might need. With an MRP system, manufacturers purchase material they definitely do need. Which do you think is a better use of limited financial resources?
Many manufacturing systems combine the distinct functions of MPS (Master Production Schedule) and MRP into one called MRP. It is possible to create an MPS without an MRP, but not possible to create an MRP without an MPS. If you are convinced that the software you are considering performs the functions described here, then strict adherence to the terminology is not that important.
Manufacturing Resource Planning (MRP II)
As the term implies, Manufacturing Resource Planning (aka MRP II, read MRP-two), is an extension to MRP I that goes far beyond planning and acquiring the materials needed for production, but every other resource related to the successful operation of a manufacturing plant, including people and machinery.
Some impressive demonstrations can be made by manufacturing software vendors selling “fix all your problems with one click” systems. In our opinion, MRP II requires a level of sophistication far beyond that of most of our prospective customers. Ford Motors and Caterpillar depend on MRP II to run their manufacturing operations. MRP II is a big job – one best reserved for the big boys.
Few low-end to mid-ranged manufacturing systems offer MRP II, but if they do, beware. Systems that perform real MRP II functions cost hundreds of thousands, often millions of dollars. If the system you are looking at claims MRP II capabilities for far, far less turn your fluff detector to stun.
MISys Manufacturing v5.0
MISys Manufacturing is best described as an MRP I system, although it does have a few MRP II-like features, including the powerful Capacity Manager. This tool analyzes the load every active production order is placing on available resources (work centers) and displays where and when capacity overloads are occurring.
Using the tool, you can manually reschedule the offending production orders to take better advantage of available resources.
For a few hundred thousand dollars more than what MISys costs, an MRP II system might do this automatically, but if you disagreed with the planning decisions it made, you'd think you'd be better off with MISys Manufacturing.
Invest the next ten minutes of your time and take the 6-step tour. Download the MISys Manufacturing brochure, fact sheets, watch the demo videos, get a price estimate and more.
Visit www.misysinc.com
Related Video: "What is MRP? Why do I need MRP? A demo with MISys Manufacturing & Sage 50 Quantum Accounting"
Wednesday, September 21, 2011
Top Tips: A guide to successful software implementation from MISys Manufacturing
Of the 7000+ software installations we have performed, the most successful implementations came from businesses that did their homework! It boils down to these critical steps:
Define Goals
What are your pain points? And what would success look like? Invite others into the conversation and listen to multiple perspectives.
Get and Maintain Buy-In
Consider the impact on the organization and make sure you have buy-in from the top to bottom. Revisit and reinforce the commitment to a new software implementation every step of the way. If you don’t have it, don’t do it.
Don’t “Buy the Brochure” - Get the Real Story
Most marketing materials make software seem about the same. They’re not. Get a demo of the software. Ask the hard questions and make sure it meets your needs. Find what fits and what doesn't.
Assemble Your Implementation Team
This team will make sure that the software they selected will be implemented without surprises and on time. Everyone on the team will have an important role to play, but it will be vital to assign one very capable person with the time and authority to manage the implementation. If you’re not confident that you have the proper expertise on staff, don’t wing it. Consider outsourcing.
FREE DOWNLOAD
“Assemble Your Implementation Team” (PDF Format)
This document is a great conversation starter and highlights the roles and responsibilities required for a smooth implementation.
Visit us online at www.misysinc.com
Define Goals
What are your pain points? And what would success look like? Invite others into the conversation and listen to multiple perspectives.
Get and Maintain Buy-In
Consider the impact on the organization and make sure you have buy-in from the top to bottom. Revisit and reinforce the commitment to a new software implementation every step of the way. If you don’t have it, don’t do it.
Don’t “Buy the Brochure” - Get the Real Story
Most marketing materials make software seem about the same. They’re not. Get a demo of the software. Ask the hard questions and make sure it meets your needs. Find what fits and what doesn't.
Assemble Your Implementation Team
This team will make sure that the software they selected will be implemented without surprises and on time. Everyone on the team will have an important role to play, but it will be vital to assign one very capable person with the time and authority to manage the implementation. If you’re not confident that you have the proper expertise on staff, don’t wing it. Consider outsourcing.
FREE DOWNLOAD
“Assemble Your Implementation Team” (PDF Format)
This document is a great conversation starter and highlights the roles and responsibilities required for a smooth implementation.
Visit us online at www.misysinc.com
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