1.0 MATERIAL REQUIREMENTS PLANNING (MRP)

DEFINITION
Material requirements planning (MRP) is a production planning and inventory control system used to manage manufacturing processes. It is the process that helps companies makes volume and timing calculation. Most of MRP is based on the software, sometime company use the existing software and make the new software based on the company wants.
The objectives of MRP system are to: • Ensure materials are available for production and products are available for delivery to customers. • Maintain the lowest possible material and product levels in store. • Plan manufacturing activities, delivery schedules and purchasing activities. • Required goods are available when required at a right place and time. • Reduce storage and inventory holding cost and improve customer service.
MRP system typically requires certain data records which the MRP programs checks and update. The chart below shows the information required to perform MRP and some of the output.

Customer order record exactly what each customer has ordered, how many they ordered and when they required delivery. Forecast demand using historical data to predict future trends, cycle and seasonality is always difficult. This process is more to predict of the orders. Inventory record in MRP is to know how some of the required items already in stock. This stock may be in the progress or in raw of material. Bills of the material contains detailed specification of the raw material needs to make the product. It is important to know how many of the material needs to complete a product exactly. After that, MRP system will combine all the information to determine when production should take place in the future planning period. MRP system also will generate the purchase order to the supplier and make a work order to the employee or machine. This help the companies to control the types and quantities of materials they purchase, plan which products are to be produced and in what quantities. Also, ensure that they are able to meet current and future customer demand, at the lowest possible cost.

WHO USE THIS SYSTEM?
Coca Cola Company implements MRP in their manufacturing production. Customer delivery performance improved. To know about the forecast demand the company do the research to the markets and make the survey about their product especially. From that the company can make their pre order like the raw of the material from supplier earlier, then might to reduce the lapped time. The smooth in the process make the company effective and efficient in the production of the products.

ADVANTAGES • MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities. • Efficient planning tool. MRP assist production manages to plan effectively for capacity requirements as well as allocating production time. • Enhances customer service through reducing late orders. This lead to increased production level and assists the company to respond quicker to any variation in demand. • Reduce waste in the production process. Thus, achieve improvements in inventory levels.

DISADVANTAGES • The integrity of the data. If there are any errors in the inventory data, for example the bill of material data or the master production schedule, then the output data will also be incorrect. • MRP system is expensive to implement and it is time consuming. The organization need to spend considerable effort on installing necessary equipment (computers), training personnel, modifying the software to serve their specific needs, validating, testing, eliminating possible errors, and maintaining the software.
2.0 ENTERPRISE RESOURCE PLANNING (ERP)

DEFINITION
Enterprise resource planning (ERP) is a system that integrates all the departments and function across an organization into a single computer system that can serve the different department particular needs. The common functional areas covered in an ERP system are finance, accounting, manufacturing, sales, service and customer relationship management.

The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections with outside stakeholders. With ERP systems, organized data are processed in a centralized database and it make easy for authorized users to obtain needed information from a single sources. Examples of popular ERP systems that are used by overseas companies include SAP, Peoplesoft and Oracle.

APPLICATION
Organizations that want to adopt ERP must first determine whether to match their existing business process to ERP process or by altering the ERP system to match the organization process. Before implementation starts, the organization need to trained the users of the software on the new process, procedures, and use of the ERP system features and function. After that, the company needs to conduct a simulation test on the new system in order to identify problems. Then, if no problem the company must convert its data, procedures, and personnel to the new ERP system. Usually, while the new ERP system is being installed the normal business activity still continues. ERP systems can be implemented in stages. This is because, implementation of ERP takes times which its depends on business size, number of modules, customization, the scope of process changes, and the readiness of the user to used the system.

WHO USED THIS SYSTEM?
One of the company that use ERP system is Coca Cola Company. This company use Genesys program which this program is an integrated SAP Enterprise Resource Planning (ERP) solution. With Genesys program its allow Coca Cola Company to shorten cycle time processes, be more productive, help bring more visibility into the business and also improve decision making. Coca Cola Company selected ERP software that has combined a strong ‘front office’ and ‘back office’ function. The program applications are including order processing, manufacturing, financial transactions, human resources, procurement and other related processes. Coca Cola started used ERP system not as an IT project, but as a business transformation project to enable Coca Cola Company day-to-day business to work in a harmonized way. As we know, Coca Cola Company are a shelf-replenishment company, a supply chain company, a sales and customer services company. It is very important for the company to integrate their manufacturing plants all the way up to the retail outlets.

ADVANTAGES • Effectively retrieval of information for managers’ decision. Help manager make better and faster business decisions with fewer errors. • Integrate all business activities and processes throughout the organization. This will save time and expenses. • These systems improve product quality and enhance customer service level. For example, organization can provide better information about orders, products, and customer status to their customers. • Consistency and standardisation of data definition and business process across organization. • Help management to undertake better decision making based on accurate and on-time information which they can get the information anywhere and anytime.

DISADVANTAGES • ERP system can be very expensive to implement. For example, the need of new hardware, new software and cost of training employees. Therefore, more suited to larger organizations. • Inefficiency in one department may affect other department. This because the system integrated all department and function. • No ERP system fits any business perfectly. The company either adapts to the ERP (huge change management) or modifies the ERP to fit the business (technical change management). • Overcoming resistance to sharing sensitive information between departments can divert management attention. • Harmonization of ERP systems can be a difficult task and requires a lot of time and planning.
RECOMMENDTION
The organizations that want to use MRP and ERP system need to spend considerable effort on installing necessary equipment (computers), training personnel, modifying the software to serve their specific needs, validating, testing, and eliminating possible errors, and maintaining the software. Therefore, usually ERP is not the best option for small business.

3.0 CAD/CAM ROBOTICS

DEFINITION
Computer-aided designed (CAD) is a form of computer technology that assists in the drawing and technical drafting of product and even building. Architect use CAD to develop 3D drawing of their design, but it main functions is to create 2D vector-based model and 3D solid and surface model. Manufacturer use CAD’s capabilities to view specific part and component design before production, so they can check for flaws and re-design if necessary.

Computer-aided manufacturing (CAM) creates physical model by transferring the design into machine code. This is helpful when manufacturers need to check a part of component against other part for proper fit. In order to generate the actual model, CAM works alongside CAD (using CAD design). CAM uses numerical coding to run the machine that creates the product. A CAD/CAM system allows companies to develop and to save their own product design and program machine to create the actual component.

APPLICATION
The mechanical sector is a largest user of CAD system. This application is usually coupled with manufacturing forming a CAD/CAM system. It also cover all type of manufacturing operation such as milling, turning, wire EDM, punching and others.

WHO USE THIS SOFTWARE?
Nissan, the car producer, found that the time taken to completely retool car body panel jigs in their intelligent body assembly system fell from twelve month to less than three months by reprogramming the process machinery by computer and using computerized jig robots. Similar advances have been made in the resetting of machines and in the exchange of dies. These changes have reduced the changeover time in moving from one process to another.

ADVANTAGES • Reduce labour cost • Produce high quality product • More flexible • Reduce error

DISADVANTAGES • To implement the system will required high cost. • More time consuming because need to train the operator to use the software.

RECOMMENDATION
Many manufacturing companies have been impressed with the huge benefit of CAD/CAM software provides. Utilizing the CAD/CAM computer system will make a certain business outpace it competitors. The software allows engineers and machinists to develop and produce top quality machines in short span of time and at a lower cost. So they must to ensure that the software operators are knowledgeable, skillful and have high experience level in handling and operating the software.
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Master production schedule

Customer order

Forecast demand

Materials Requirement Planning

Inventory records

Bills of the material

Works order

Materials plan

Purchase orders