Key points
- Product master data is the foundation of planning.
- The plan must be compared with real execution.
- Traceability should connect material to delivered product.
From customer order to production plan
The customer order or forecast creates demand. ERP checks inventory, open orders and capacity, then proposes what should be manufactured and purchased.
Planning cannot be better than lead-time, bill-of-material and capacity data. Implementation begins with real products and rules, not an empty calendar.
Bills of materials and operations
The bill of materials describes components and quantities. The routing describes operations, sequence, time and resources. Variants and revisions preserve which version was manufactured.
Engineering changes need approval and an effective date so planning, consumption and cost use the same revision.
Materials and purchasing
Material requirements compare demand with available stock, reservations, purchase orders and lead times. The aim is to surface a decision in time, not to purchase blindly.
Minimum lots, lead times and safety stock should be reviewed with real data. Old parameters create excess stock or stoppages.
Execution on the shop floor
Operators confirm starts, good quantity, scrap, time and consumption. The interface needs to fit the workplace, sometimes on a terminal, tablet or scanner.
Do not collect data that nobody uses. Every confirmation should support planning, traceability, quality or cost.
Quality and traceability
Raw-material batches need links to finished-goods batches. Checks, nonconformities and rework complete the history.
For a complaint, the system should identify affected materials, operations and deliveries without searching separate folders.
Planned and actual cost
Planned cost uses estimated material, time and rates. Actual cost uses recorded consumption, time, scrap and expenses.
The variance shows which products, operations or data need attention and supports better pricing and priorities.
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Frequently asked questions
What is MRP in ERP?
MRP calculates material requirements from demand, inventory, bills of materials, open orders and lead times.
Does ERP replace systems connected to machines?
Not necessarily. ERP can integrate with MES, SCADA or equipment, with each system keeping its appropriate role.
Can implementation start on one line?
Yes. A pilot on one product family or line reduces risk and improves data before expansion.
