ERP function and defect
In the 1960s, manufacturing companies gradually use manufacturing resource plan software for inventory, procurement and finance management, preparation and control production schedule, etc. ERP software combines the rich experience of managers to create the brilliant period of ERP practice until the mid-1990s.
Prior to 1998, the enterprise resource plan ERP was seen as a business system using database technology and specialized user interface to control business information, and is a unified matter for the entire enterprise. ERP software supports and speeds up the entire implementation process of orders, enabling business and production process management to implement data sharing and integration, and track things to process automation and tracking financial, manufacturing, and distribution resources. Enterprise Implementation ERP also means business processes, improved the flexibility of enterprises, and improve response of strains.
ERP is unable to assume integration and collaboration between enterprises
However, since the 1980s, some important chemical industries found that the operation of the company's own production process, the effectiveness of the internal management of the company has become more and more limited, and the analysis is to analyze them. Supply of the activities of the upper and downstream enterprises of materials. In the 1990s, with the internationalization and competition of the commodity market, it has formed a variety of environments with product userization and delivery period, and some large manufacturing enterprises improve management focus transfer to coordination between independent companies and external logistics Integration and optimization of information flow.
However, ERP is just the manufacturing resource plan of most enterprise applications. Mrpii is launched to reflect the system that the system has improved, such as strengthening the solution and expanding demand management, product configuration, electronics Data exchange, on-site service and other functions; and it uses new computer technology such as Client / Server structure, relational database, and open platform. In the mid-1990s, although ERP enhanced interaction with customers and supplier business and Internet capabilities, the ERP is still internal to enterprises, whether there is no ability to coordinate the resources between multiple enterprises in the planning technology basis or function. Life processing system.
The ERP plan model is behind
On the other hand, it is well known that the model of ERP's plan management is still MRPII, and its programming method is still used by MRP and MPS to calculate material requirements, release supplemental orders. This is the most common logic in the 1960s, with the help of the product BOM and the process process in the company, and has been developed under the general stable production conditions. It is about 40 years. But the MRP method has the following important weaknesses:
-MRP algorithm assumes that the advance period is a known fixed value;
- System requirements fixed process route;
- Prioritize production only according to delivery cycles or dates;
- All jobs are carried out under the premise of assumption;
- Repeated planning process takes a considerable amount of time. The changes in the relevant plan are very difficult.
In addition, MRP is extremely poor decision support ability to make the upper management personnel of the manufacturer. Although these defects in MRP over 30 years have continued to improve improvements, although the ERP system considers the capacity resource constraints when making a production plan, it is still a verification process of a serial process, which has no substantial change.
In front of the internationalization market, the above disadvantages of MRP appear more and more, and the traditional ERP's plan model is increasingly unable to adapt to the needs of enterprises. For industry-leading large companies and important international manufacturers, replacing MRP and expand ERP is in place. Until the mid-1990s, efforts to overcome the shortcomings of ERP are beginning to have achievements, which is the practical and supply chain management of Advanced Planning and Scheduling (APS).
Supply chain and supply chain management
Earlier in 1982, the famous management master Oliver and Webber applied the terms of supply chain management Supply Chain Management. Later, through the research and control of the sales channel research, coordination and cooperation, the research and control of the distribution and control of inventory in the production and distribution network, the theory and practice of supply chain management is formed. . Definition of supply chain and supply chain management
Supply Chain Supply Chain is a description of the process of the process of the process, that is, the company has been converted into the final product from the original product until the entire production of the final user is delivered to the end user, and the sales process is made by several "supply" - "need" links Working orderly. The supply chain includes all functions in the value-added chain of enterprises, external manufacturing products and providing user services. Therefore, the supply chain is for two or more legally independent organizations associated with streaming, information flow, and capital flow. Since current companies are often multi-product, the supply chain is actually a network of all value-added processes (or activities) with their own enterprises.
Supply Chain Management Supply Chain Management is an integration of the organization involved in the supply chain and synergies to logistics, information flow, and capital flow to meet the needs of users and improve the overall competitiveness of supply chains. In short, supply chain management is to optimize and improve supply chain activities, and the object of supply chain management is the organization of supply chain (enterprise) and "flow" between them; the application method is integrated and collaborative; the goal is to meet user needs It is ultimately an overall competitiveness of the supply chain.
Supply chain management concept
The supply chain is the foundation of new management philosophy. It is believed that from suppliers to enterprises themselves, to distributors, the relationship between end users is cooperative, collaborative, information sharing, full optimization, mutual interest, and common profit. The view of the supply chain is an epistemological of production and sales activities, and each enterprise or organization's supply chain or supply network is objective. Applying a supply chain point to analyze production - sales, you will explore the problem that the company has never recognized, the method and software to apply supply chain management is to transform the existing supply chain of enterprises, so that the company's value-added stream is more smooth and more effective.
Supply Chain Management Adoption of information technology gives automated intelligent decision-making capabilities, guiding supply and demand, more perfect balanced balance, including delivery, distribution center, factory and raw material supply, etc. According to this mode, each link in the supply chain can use the latest and best information to manage the business, and realize the product from the starting point to speed, the least cost, and the relatively perfect supply and demand balance flow direction. The goal of the customer.
Supply chain management software
Currently, the supply chain management software SCM is based on the process of supply chain organizations, arranges progressive and supply chain implementation and control, focusing on the optimization of the entire supply chain and supply network and runs throughout the supply chain plan. Realization. The suite provided by the supplier of SCM software includes all business processes from orders to product delivery, etc., including prediction, supply chain and production plan, demand and distribution management, transport plan, and various forms. Business intelligence.
General SCM software consists of 5 major modules: demand plan, production planning and sorting, distribution plan, transport plan, and enterprise or supply chain analysis.
1 Requirements Plan Module: More precise predictions by means of statistical tools, causal elements and hierarchy. Communication technology, including Internet and collaboration engines, help to generate the latest and real-time collaborative predictions between enterprises.
2 Production Plan and Sort Module: Analyze the constraints of materials and capabilities of internal and supplier production facilities, prepare production schedules that meet materials and capacity constraints, and can also be optimized in accordance with given conditions. Each software supplier uses different algorithms and technologies according to different production environment, providing different software.
3 Distribution Plan Module: Help Management Distribution Center and guarantee the product to order, profitable, and capacity. Distribution Plan helps companies analyze the original information. The company can then determine how to optimize distribution costs or improve customer service levels based on production capacity and cost.
4 Transportation Plan Module: Help to determine the best way to serve our products. The time standard for the transport plan model is short-term and tactics. The transport plan module is set to the delivery and make full use of transportation capabilities. 5 Enterprises or Supply Chain Analysis: General is a graphic model of the entire enterprise or supply chain to help companies adjust the factory and sales center from the strategic function. It is possible to analyze, pay attention to, and discover and discover the symptoms throughout the entire supply chain.
Supply chain management technology foundation
Implement SCM Two Technical Pillars: Integration and Coordination. The collaborative function of the supply chain is based on three technologies: 1) Modern information and communication technology; 2) Process calibration (reference) - the best practice of the industry (Best Practices or "Best- In-Class) The running effect is a benchmark template (Benchmark), which is implemented to the supply chain transformation to this template; and 3) Advanced Planning and Scheduling, APS) .aps can unify and coordinate the length, medium , The recent plan is the core of SCM.