ERP 101 Webinar 4 discussed: 1. How ERP improves the process of manufacturing 2. Routings in ERP 3. Shop Floor Control vs Engineering Bills of Material

1. ERP 101
Shop Floor Control
David Bush
Senior Manufacturing Consultant,
Rootstock

3. The ERP 101 Webinar Series
Date Topic
Aug 2, 2016 An Introduction to ERP for Manufacturing
Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material
Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is
accurate and up-to-date
Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and
Procedures
Oct 25, 2016 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

4. Meet Our Speakers
David Bush
Senior Manufacturing Consultant,
Rootstock
• 30+ years of manufacturing and MRP/ERP
systems experience
• Previously at General Microcircuits,
Consona Corporation, Relevant Business
Systems, Inc

5. Our Journey So Far
• Up to now, we’ve been concentrating on material planning
(MRP).
– Part Numbers
– Bills of Material
– Revisions and Engineering Change Orders

6. What Else Can ERP Do For You?
• Remember, ERP is ENTERPRISE RESOURCE
Planning.. To make the best use of our
system, we need to think bigger than just
parts.
• Besides Material, what else is needed to build
the customer’s order?
– People to stage parts, assemble items, package
and ship.
– Machines to manufacture the various parts and
assemblies.
– Processes to direct how to manufacture the
items.
– Vendors who can handle processes that can’t be
done in-house.

7. How Can ERP Help With All That?
• First, think back to how ERP helps us plan
material, then apply same principles to planning
other resources
• Accurate Bills of Material provide quantities
– Specific component quantity needed to build parent
– Additional quantities needed to cover scrap, setup,
EOQ, etc.
• How do we apply that same logic to other
resources? Consider….
– What steps do I go through to build it?
– Where is the work done?
– What else is involved in the manufacturing process?

8. Manufacturing: Building Blocks
• Remember, MRP started with:
– The most basic entity, the part number.
– Part numbers were assembled into bills of material.
– Bills of material provided details like quantity per,
scrap factors, revisions, etc.
• What ‘parts’ are used in manufacturing?
a. Departments (may have 1 or several)
b. Work Centers (grouped into departments)
c. Processes (define actual work to be done)
d. People (labor to do the work)
e. Machines (in addition to or in place of people/labor)

9. Manufacturing: Putting the Blocks Together
• Again, think back to the material side.. We identified the
basic part numbers needed and used them to construct a bill
of material. We need to accomplish the same thing for the
manufacturing part of this puzzle.
• Think of the manufacturing process as a ‘bill of
manufacturing’, as opposed to a ‘bill of material’
a. The steps you go through to build the item are called the
‘Routing’.
b. A Routing defines operations that take place within
Departments and Work Centers, using Processes to explain the
specific procedure.
c. People and Machines do the actual work and require specific
time, just like the bom requires specific quantites of each
component.
Let’s take another look at our bicycle to get a better idea of how
this works

10. Lets Look at the Bicycle Example
 Let’s focus on the handle-bar
assembly to see how the routing will
be defined.
 In doing so, we will be applying similar
logic used to build the bill of material.

11. Building the Handlebar Assembly
Stage material from stores (handle bar,
grips, stem, reflector assembly)
Department: Manufacturing
Work Center: Stores
Process: Pull Material
Requires no machines, .5 hr. labor by 1
person
Drill mounting hole in stem for reflector
assembly
Department: Manufacturing
Work Center: Machining
Process: Drill Mounting Hole
Requires 1 Drill Press, 1 operator. .25
hrs for setup, .10 hrs runtime
Mount stem to handlebar
Department: Manufacturing
Work Center: Assembly
Process: Assemble Handle Bar to Stem
Requires no machine, 1 operator. .1 hrs
runtime (no setup)
Apply glue to grips and push one on
each side of handle bar
Department: Manufacturing
Work Center: Assembly
Process: Mount Hand Grips
Requires no machine, 1 operator. .2 hrs
for runtime, no setup
Mount reflector assembly to stem
Department: Manufacturing
Work Center: Assembly
Process: Mount Reflector to Stem
Requires no machine, 1 operator. .2 hrs
runtime, no setup
Check handlebar assembly
Department: Manufacturing
Work Center: Inspection
Process: Final Inspection
Requires no machine, 1 operator. .1 hrs
for process(no setup)

12. Alternative Routings
1. Stem is purchased pre-drilled,
eliminating operation 2
2. Stem is sent out to sub-contractor for
drilling operation (maybe we don’t have
the time or the machines needed)
3. Assembly operations are combined into
one process, defined to show mounting
of stem, grips and reflector assembly all
done by one person, combining
(possibly adjusting down) total time
required

13. Further Considerations
• We have been comparing the Routing to a bill of
materials.
– Revisions and/or Engineering Change Orders can be
used to control changes to the Routing, just as they
control changes to the BOM.
• Time required to perform operations within the
routing is equivalent to the quantity of parts
needed on the BOM
– So shop floor scheduling can use that time to
balance the load of all work being done on each
work center.
• Time required to perform operations becomes
the ‘standard’
– It can be used for costing purposes as well as
employee evaluations.

14. What Have We Learned Today?
1. When you think of Shop Floor Control as a bill
of resources, using the ERP system to plan your
needs becomes very clear.
2. The resources need to be defined, just as
material components are defined, and the
demand for those resources is identified in the
Routing structure, as opposed to the BOM
structure for material.
3. Once the definitions are in place and Routings
are identified for your manufactured items, the
ERP system can perform resource planning
(hours, people, machines), much like MRP plans
material requirements.

15. Where Do We Go From Here?
• In future webinars, we will discuss in more
detail how ERP helps with
– The scheduling function
– Using resource demands to show the user
where additional resources are needed or
schedules need to be revised.
• In addition, we will discuss
– Alternatives that can be used when the shop
floor is overloaded
– Alternate routings
– Outside operations
– … and more

16. Q&A
www.rootstock.com
888.524.0123
marketing@rootstock.com

17. The ERP 101 Webinar Series
Date Topic
Aug 2, 2016 An Introduction to ERP for Manufacturing
Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material
Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is
accurate and up-to-date
Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and
Procedures
Oct 25, 2016 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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