Introduction of General ERP and POS System

ERP is the concept of (EnterpriseResourcePlanning), which was put forward by GartnerGroup in the United States in 1990. Its exact definition is: MRPⅱII II (Enterprise Manufacturing Resource Planning), the next generation manufacturing system and resource planning software. In addition to the existing functions of production resource planning, manufacturing, finance, sales and procurement, MRPⅱⅱ also has quality management, laboratory management, business process management, product data management, inventory, distribution and transportation management, human resource management and regular reporting system.

Information management of MRP enterprises

The system manages the product composition with the help of the computing power and system of the computer.

Ability to manage customer orders, inventory materials and product composition, and the basis of realization

Customer orders, according to the product structure list, expand and calculate the material demand plan.

Achieve the management objectives of reducing inventory and optimizing inventory.

POS (point of sale) is also called point of sale information management system.

In the past, the conventional cash register in the retail industry could only handle simple sales operations such as cashier, invoice and checkout. The management information obtained is extremely limited, limited to the basic statistics of total sales and departmental sales. For ordinary retail stores, the basic business information of tens of thousands of commodities, such as operating gross profit analysis, single product sales data, unsalable commodities, commodity inventory, turnover rate, etc ... can not be obtained.

The introduction of POS system is mainly to solve the blind spot of retail management mentioned above.

The basic working principle of POS system is to first create commodity data in computer files, and through the online structure of computer cash register, you can directly read the barcode on the commodity through the optical reading device on the cash register equipment (or directly input the code through the keyboard), and then the commodity information (unit price, department, discount ...) can be displayed immediately, thus speeding up the cash register speed and correctness. The detailed information (price, department, time period and customer level) of each commodity sale is automatically recorded, and then returned to the computer through online shelf purchase. Through computer calculation and processing, various sales statistics and analysis information can be generated as the basis for management.

POS system can not only provide accurate sales information, but also grasp the inventory of all goods in the store through sales records for reference by purchasing departments or link with EOS system. In short, POS is an essential tool for modern retail management.

Basic knowledge of ERP

The primary stage of ERP (1): approaching ERP.

introduce

In today's fierce global market, whether it is process or discrete manufacturing, whether it is single-piece production, multi-variety and small-batch production, repeated production of few varieties or batch production of standard products; The internal management of manufacturing industry may encounter the following problems: for example, the enterprise may have excellent sales staff to promote products, but the workers on the production line can't deliver the goods on time, and the workshop manager complains that the purchasing department doesn't supply the raw materials they need in time; In fact, the efficiency of the purchasing department is too high, some materials are piled up in the warehouse 10, which can not be used up, the warehouse location is saturated, and the capital turnover is very slow; Many companies need 6 ~ 13 weeks to calculate the required material quantity, so the order cycle can only be 6 ~ 13 weeks; The purchase order and the date on the purchase order are different from the date on the bill of materials, and they are both uncertain; The financial department does not trust the data of the warehouse department and does not use it to calculate the manufacturing cost. ...

Undeniably, the above situation is a serious problem faced by most enterprises in China at present. However, is there any effective way to solve this phenomenon? The fact is that when the business circles in China have not fully realized the seriousness of this problem, foreign ERP/MRP II software manufacturers have quietly entered the China market, and with the passage of time, ERP has gradually been recognized by the business circles and theoretical circles in China.

ERP phenomenon

Today, as long as we look through newspapers and magazines related to management and information technology, a large number of MRP II/ERP advertisements and related reports will appear. Just when people are still confused about what ERP is, a new generation of concepts such as "ERP in e-commerce era" and "iERP" keep coming.

In fact, the huge benefits that ERP can bring are indeed quite attractive to many enterprises. According to the data of American Production and Inventory Control Association (APICS), using MRP II/ERP system can bring the following economic benefits to enterprises on average:

1. Inventory decreased by 30% ~ 50%. This is the most talked about benefit. Because it can reduce the inventory investment of general users by 1.4~ 1.5 times and improve the inventory turnover rate by 50%.

2. Delayed delivery is reduced by 80%. When the inventory is reduced and stabilized, the customer service level is improved, which makes the on-time delivery rate of enterprises using ERP/MRP II increase by 55% on average and the delayed delivery rate decrease by 35% on average, which greatly improves the reputation of the sales department.

3. The procurement lead time has been shortened by 50%. With timely and accurate production planning information, purchasing personnel can concentrate on value analysis, source selection, research negotiation strategies, understand production problems, shorten procurement time and save procurement costs.

4. The downtime is reduced by 60%. Due to the transparency of parts demand, the plan has also been improved, which can be timely and accurate, and parts can arrive on time at a more reasonable speed. Therefore, the phenomenon of production line shutdown will be greatly reduced.

5. The manufacturing cost is reduced by 12%. Due to the reduction of inventory cost, labor saving, procurement cost saving and a series of human, financial and material effects, the production cost will inevitably be reduced.

6. With the improvement of management level, the number of managers decreased by 10%, and the production capacity increased by 10% ~ 15%.

In addition, the rapid growth of ERP market in recent years also shows its great development potential:

From the domestic situation, the average annual growth rate of MRP II/ERP industry in China from 1995 to 1997 is about 27%, while the growth rate of 1998 is as high as 35% (excluding financial software), and the market sales amount reaches 420 million yuan. 1999 Due to the lag effect of the Asian financial turmoil and other factors, the ERP market has obviously declined. However, with the successful convening of the Fortune Forum in Shanghai and the final signing of the WTO agreement between China and the United States, most Chinese and foreign-funded enterprises have strengthened their confidence in further investment. This made the ERP market reappear in the second half of 1999 and 2000. According to Hong Kong Ta Kung Pao, the market size of ERP software products in China will reach about10 billion yuan in the next two years. According to statistics, there are about11million registered enterprises in China, of which 10% are large enterprises. Among southern enterprises, more than half of large and medium-sized enterprises have plans to adopt and purchase ERP products, but there are fewer small and medium-sized enterprises, while the number of ERP products purchased by northern enterprises is gradually increasing.

Judging from the whole international situation, AMR Research, an authoritative market forecasting research institution in the United States, predicts that the global ERP market will develop at an annual compound growth rate of 37% in the next five years. From 65438 to 0998, the total revenue of global ERP market reached148 billion US dollars, and this figure will increase to 52 billion US dollars in 2002.

As can be seen from the above figures, ERP has set off a revolution in management thought and technology, both in China and around the world. What is more noteworthy is that MPR II has developed into ERP in today's e-commerce era in just a few years before it has been fully recognized by business people in China. It can be seen that this new management method and means is being applied and developed in China enterprises at an unimaginable speed, which undoubtedly injects new blood into many enterprises struggling in the tide of market economy. Therefore, in order to better master and use this new management tool, we need to have a clear understanding of ERP first.

The initial stage of ERP (2): the concept and process of ERP

3. The stage development process of the role of information technology in resource management

The development of computer technology, especially the development of database technology, plays an inestimable role in establishing management information systems and even changing management ideas. The development of management thought and information technology is a mutually causal cycle. Practice has proved that information technology plays an increasingly important role in enterprise management.

The initial application of information technology in management is also very simple, mainly to record some data for easy query and summary, but now it has developed into a transnational and cross-enterprise operating system based on the global Internet, which can be divided into the following stages:

A.MIS system stage (management information system)

Enterprise information management system mainly records a large number of original data, and supports query and summary.

B.MRP stage (material requirements planning)

The information management system of an enterprise manages the product composition, and with the help of the computing power of the computer and the management ability of the system to customer orders, inventory materials and product composition, the material demand plan is formulated and calculated according to the customer orders and product structure list. Achieve the management objectives of reducing inventory and optimizing inventory.

C.MRP stage (manufacturing resource planning)

On the basis of MRP management system, the system adds the management of enterprise production center, processing hours and production capacity, thus realizing the function of computer production scheduling, including financial function, forming a closed-loop management system with computer as the core in the enterprise, which has been able to dynamically monitor the whole production process of production, supply and sales.

D.ERP phase (enterprise resource planning)

After entering the ERP stage, the enterprise-level management system with computer as the core is more mature, and the system has added functions including financial forecasting, production capacity, resource scheduling adjustment and so on. Cooperate with enterprises to realize JIT management comprehensive, quality management, production resource scheduling management and decision-making assistance. Become a platform tool for enterprises to carry out production management and decision-making.

E. ERP in the era of e-commerce

The maturity of internet technology has increased the ability of information sharing and direct data exchange with customers or suppliers for enterprise information management systems, thus strengthening the relationship between enterprises, forming a survival chain of * * * and development, and embodying the supply chain management idea of enterprises competing for survival. ERP system realizes this function accordingly, which enables decision-makers and business departments to realize joint operations across enterprises.

It can be seen that the application of ERP can effectively promote the modernization and scientificity of existing enterprise management and adapt to the increasingly competitive market requirements, and its introduction has become the general trend.

The initial stage of ERP (3): the basic principle of MRP

ERP is a huge management information system. To clarify the principle of ERP, we must first follow the four main stages of ERP development and start with the basic principles of MRP in the 1960s.

Principle of basic material demand planning

As we all know, according to the different sources of demand, materials within an enterprise can be divided into two types: independent demand and associated demand. Independent demand means that demand and demand time are determined by the external demand of the enterprise, for example, products ordered by customers, samples needed for scientific research and trial production, spare parts needed for after-sales maintenance, etc. Associated demand refers to the demand of materials with independent demand according to the structural composition relationship between materials, such as the demand for semi-finished products, spare parts, raw materials and so on.

The basic task of MRP is

(1) Export the demand and demand time (related demand) of related materials (raw materials, parts, etc.). ) production plan from the final product (independent demand);

(2) Determine the time to start production (ordering) according to the demand time and production (ordering) cycle of materials.

The basic content of MRP is to prepare the production plan and purchase plan of parts. However, in order to make the parts plan correctly, we must first implement the production plan of products, which is called Master Production Plan (MPS) in MRP II terminology, and it is the basis of MRP development. MRP also needs to know the part structure of the product, that is, the bill of materials (BOM), so as to expand the master production plan into a part plan; At the same time, you must know the inventory quantity in order to accurately calculate the purchase quantity of parts.

Therefore, the basic MRP is based on:

(1) Master Production Plan (MPS);

(2) Bill of Materials (BOM);

(3) Inventory information.

The initial stage of ERP (4): the basic composition of MRP

I. Master Production Plan (MPS)

Master production plan is a plan to determine the production quantity of each specific final product in each specific period. The final product here refers to the finished product that is finally completed and delivered to the enterprise, which should be specific to the variety and model of the product. The specific time period here is usually in weeks, and in some cases, it can also be days, ten days or months. The master production plan specifies in detail what to produce and when to output it. This is an independent demand plan. According to the customer contract and market forecast, the master production plan concretizes the product series in the business plan or production outline, which becomes the main basis for making the material demand plan and plays a connecting role in the transition from comprehensive plan to specific plan.

Second, the product structure and bill of materials (BOM)

In order to correctly calculate the time and quantity of material requirements, especially the quantity and time of related materials, MRP system should first make the system know the product structure manufactured by the enterprise and all the materials to be used. The product structure lists the composition, assembly relationship and quantity requirements of all components, assemblies and parts that make up finished products or components. It is the basis of dismantling MRP products. For example, the following figure is a greatly simplified product structure diagram of bicycles, which generally reflects the composition of bicycles:

Figure 1 bicycle product structure diagram

Of course, this is not the final BOM we want. In order to facilitate computer identification, it is necessary to convert the product structure diagram into a standardized data format, and this file describing the product structure in a standardized data format is the bill of materials. It must explain the quantity of various material requirements in components (parts) and their structural relationships. The following table is a simple bill of materials corresponding to the bicycle product structure.

Third, the inventory information

Inventory information is a database, which keeps the current status of all products, parts, products in process, raw materials, etc. In MRP system, products, spare parts, work in progress, raw materials and even tooling tools are collectively referred to as "materials" or "projects". In order to facilitate computer identification, materials must be coded. Material code is the unique identifier for MRP system to identify materials.

① Quantity on hand: refers to the available quantity of materials actually stored in the enterprise warehouse.

② Planned receipt quantity (in-transit quantity): refers to the quantity of materials received or completed in a certain period of time in the future according to the purchase order or production order being executed.

③ Allocated quantity: refers to the saved but allocated material quantity in the warehouse.

④ Lead time: refers to the time consumed from the start to the completion of a task.

⑤ Ordering (production) batch: ordering from suppliers or asking the production department to produce certain materials within a certain period of time.

⑥ Safety stock: In order to prevent unpredictable fluctuations in demand or supply, the minimum stock quantity should always be kept as safety stock in the warehouse.

Based on the above values, you can calculate the net demand of an item:

Net demand = total demand+allocated quantity-inventory on hand planned to receive.

The Initial Stage of ERP (5): Closed-loop MRP in 1970s

In the 1960s, MRP can calculate the exact time and quantity of related material requirements according to relevant data, but it is not perfect. Its main defect is that it does not consider the existing production capacity of production enterprises and the constraints of related procurement conditions. Therefore, the calculation date of material requirements may be unable to produce due to insufficient equipment and working hours, or unable to produce due to insufficient raw materials. At the same time, it also lacks the function of adjusting the plan according to the feedback information of the plan implementation.

In order to solve the above problems, MRP system developed into a closed-loop MRP system in 1970s. Closed-loop MRP system not only integrates material demand planning, capacity demand planning, workshop operation planning and purchasing operation planning into MRP to form a closed system.

First, the principle and structure of closed-loop MRP

The normal operation of MRP system needs a realistic and feasible master production plan. In addition to reflecting market demand and contract orders, it must also meet the capacity constraints of enterprises. Therefore, in addition to making the resource demand plan, we should also make the capacity demand plan (CRP) to balance the capacity of each work center. Only by taking measures to ensure that the capacity and resources meet the load demand can the plan be implemented.

To ensure the realization of the plan, it is necessary to control the plan. When MRP is executed, the priority of processing is controlled by the dispatch list, and the priority of purchasing is controlled by the purchase order. In this way, the basic MRP system is further developed, and the functions of capacity requirement planning, execution and control planning are also included, forming a loop called closed-loop MRP.

Therefore, closed-loop MRP becomes a complete production planning and control system.

Second, the capacity requirements plan (CRP)

1, resource demand plan and capacity demand plan

In the closed-loop MRP system, the load balance of key work centers is called resource demand planning, or rough capacity planning, and its planning object is independent demand parts, mainly oriented to master production planning; The load balance of all work centers is called capacity demand planning, or detailed capacity planning, and its planning object is related demand parts, mainly for the workshop. Because of the internal relationship between MRP and MPS, resource requirement plan and capacity requirement plan are also in the same strain, and the latter is calculated on the basis of the former.

2. The basis of capacity demand planning

① Work center: refers to all kinds of production or processing capacity units and cost calculation units. For the work center, the labor hours are unified to quantify its capacity.

(2) Work calendar: a special calendar for planning, which is formed by excluding weekends, holidays, work stoppages and other unproductive days from the ordinary calendar, and expressing the dates in a sequential form.

(3) Process route: it is a document reflecting the processing method and sequence of manufacturing a "material". It explains the sequence of processing and assembly process, the work center used in each process, the time quota, the time and cost of outsourcing process, etc.

MRP output parts operation plan.

3. Calculation logic of capacity requirement plan

The basic goal of closed-loop MRP is to meet the needs of customers and markets. Therefore, when planning, we always give priority to ensuring the planned demand and then plan the production capacity without considering the capacity constraints. After repeated operation, adjustment and verification, it will be transferred to the next stage. The calculation process of capacity demand plan is to convert material demand plan orders into capacity demand quantities and generate capacity demand reports. This process can be represented by Figure 2.

Of course, during the planning period, capacity requirements may also be overloaded or under-loaded. Closed-loop MRP capacity planning is usually reported to the planner in the form of report (histogram is a common tool), but it will not automatically balance the capacity load, and this work is done by the planner manually.

Third, the field operation control

After the capacity and load demand of each work center are basically balanced, the next step is how to organize production activities in detail, so that all kinds of resources can be reasonably utilized, all kinds of orders can be completed on schedule, and the target production activities can be fed back to the system in time, and adjusted and controlled according to the actual situation. This is field operation control. Its work generally includes the following four aspects:

Shop floor order release: order release is to verify the planned orders generated by MRP and convert them into released orders.

Job sequencing: Control the job sequence or job priority of the processed workpiece from the perspective of the work center.

Input-output control: this is a technical method to monitor the workflow (running shop orders) through the work center. Using input/output reports, we can analyze the problems existing in production and take corresponding measures.

Job information feedback: mainly track the movement of job orders in the manufacturing process, collect the actual data of various resource consumption, update the inventory balance and complete the closed loop of MRP.

The Initial Stage of ERP (7): MRPII in 1980s

The appearance of closed-loop MRP system unifies all subsystems in production activities. But this is not enough, because in the management of enterprises, production management is only one aspect, only involving logistics, and logistics is closely related to capital flow. In many enterprises, accounting is managed separately, which leads to repeated data entry and storage, and even inconsistent data.

Therefore, in the 1980s, people integrated the subsystems of production, finance, sales, engineering technology and procurement into an integrated system, which was called manufacturing resource planning system, abbreviated as MRP in English, and named MRP II to distinguish logistics demand planning (also referred to as MRP).

First, the principle and logic of MRP

The basic idea of MRPⅱⅱ is to take the enterprise as an organic whole, and from the perspective of overall optimization, use scientific methods to effectively plan, organize and control all kinds of manufacturing resources, production, supply, marketing and finance of the enterprise, so that they can develop harmoniously and give full play to their functions.

On the right side of the flow chart is the process of planning and control, including decision-making layer, planning layer and control execution layer, which can be understood as the process of business plan management; In the middle is the basic data, which should be stored in the database of the computer system and called repeatedly. The integration of these data information can communicate the business of various departments of the enterprise and can be understood as a computer database system; On the left is the main financial system, where only accounts receivable, general ledger and accounts payable are listed. Each link shows the flow of information and the integration relationship between them.

Second, the characteristics of MRP management mode

The characteristics of MRPⅱⅱ can be explained from the following aspects, each of which includes the change of management mode and the change of personnel quality or behavior, which complement each other.

1. Consistency and feasibility of the plan

MRPⅱⅱ is a plan-oriented management model, which optimizes the planning level from macro to micro, from strategy to technology, from coarse to fine, but always ensures the consistency with the strategic objectives of enterprises. It unifies the usual three-level planning management, and the planning work is concentrated in the functional departments at the factory level, and the workshop team can only implement planning, scheduling and feedback information. Verify the balanced production capacity repeatedly before the plan is issued, and adjust it in time according to the feedback information, handle the contradiction between supply and demand, and ensure the consistency, effectiveness and enforceability of the plan.

2. System management

MRPⅱⅱ is a systematic project, which connects the work of all departments directly related to production and operation into a whole. All departments should do their work well from the perspective of the whole system, and every employee knows the relationship between his work quality and other functions. Only under the "one plan" can this become a system, and the fragmented and fragmented situation should be replaced by team spirit.

3. Data * * *

MRPⅱⅱ is a manufacturing enterprise management information system, all departments of the enterprise manage according to the same data information, and any data changes can be reflected to all departments in time, thus realizing data sharing. With the support of unified database, management and decision-making are carried out according to standardized processing flow. It has changed the phenomena of unreasonable information, unclear situation, blind decision-making and many contradictions in the past.

4. Dynamic strain

MRPⅱⅱ is a closed-loop system, which needs to track, control and feedback the rapidly changing actual situation. Managers can respond quickly at any time according to the changes of internal and external environmental conditions of enterprises, make timely decisions and adjustments, and ensure the normal production. It can grasp all kinds of dynamic information in time, with short production cycle and strong adaptability.

Step 5 simulate foresight

MRP has simulation function. It can solve the problem of "what if ……", which will free managers from the busy transaction pile and devote themselves to substantive analysis and research, and provide a variety of feasible solutions for leaders to make decisions.

6. Unification of logistics and capital flow

MRPⅱⅱ includes cost accounting and financial functions, which can directly generate financial data from production activities, directly transform physical logistics into value-based capital flow, and ensure the consistency of production and financial data. The financial department timely obtains the capital information to control the cost, reflects the material and operation situation through the capital flow, analyzes the economic benefits of the enterprise at any time, participates in the decision-making, and guides and controls the operation and production activities.

The above characteristics show that MRPⅱⅱ is a relatively complete production and operation management planning system and an effective management mode to realize the overall benefit of manufacturing enterprises.

The Initial Stage of ERP (8): ERP System in 1990s

In the 1990s, with the further intensification of market competition and the further expansion of competition space and scope of enterprises, the idea of MRPⅱⅱ II II, which was mainly oriented to the comprehensive planning management of internal resources of enterprises in the 1980s, gradually developed into the management idea of how to effectively utilize and manage the overall resources in the 1990s, and ERP (Enterprise Resource Planning)-Enterprise Resource Planning came into being. Based on MRP-Ⅱ, ERP extends the management scope and gives a new structure.

1.The main differences between ERP and MRP

Differences in the scope of resource management

MRPII mainly focuses on the management of human, financial and material resources within the enterprise. ERP system extends the management scope on the basis of MRPII. It integrates customer demand, manufacturing activities within the enterprise and manufacturing resources of suppliers, and forms a complete supply chain of the enterprise, which controls all links of the supply chain such as order, procurement, inventory, planning, manufacturing, quality control, transportation, distribution, service and maintenance, financial management and personnel management.

Differences in production mode management

MRPII system divides enterprises into several typical production modes for management, such as repeated manufacturing, mass production, make-to-order production, make-to-order assembly and make to stock, and each mode has a set of management standards. In the late 1980s and early 1990s, in order to keep up with the changes in the market, multi-variety, small-batch production and kanban production were the main production methods adopted by enterprises. With the development from single production mode to mixed production mode, ERP can well support and manage the mixed manufacturing environment and meet the diversified business needs of enterprises.

Differences in management functions

In addition to the manufacturing, distribution and financial management functions of MRPII system, ERP also adds transportation management and warehousing management to support the material circulation system in the whole supply chain. Support quality management, laboratory management, equipment maintenance and spare parts management of production assurance system; Support the management of workflow (business process).

Differences in transaction control

MRPII controls the whole production process by rolling the plan in time, which has poor real-time performance and can only realize the control in the process. ERP system supports on-line analytical processing OLAP (Online Analytic Processing), and after-sales service is quality feedback, which emphasizes the pre-control ability of enterprises. It can integrate design, manufacturing, sales and transportation, and carry out various related operations in parallel, providing enterprises with real-time analysis ability on key issues such as quality, adaptation to change, customer satisfaction and performance.

In addition, in MRPII, the financial system is only a summary of information, and its function is to transform the quantitative information in supply, production and sales into value information, which is the embodiment of logistics value. ERP system integrates financial planning and value control functions into the whole supply chain.

Dealing with differences in transnational (or regional) business transactions

Nowadays, with the development of enterprises, the coordination between internal organizational units and between enterprises and external business units has become more and more important. ERP system has applied a complete organizational structure, which can support the application requirements of multinational operations in many countries, regions, factories, languages and currencies.

Differences in computer information processing technology

With the rapid development of IT technology and the application of network communication technology, ERP system can realize the integrated management of the whole supply chain information. ERP system adopts client/server (C/S) structure and distributed data processing technology, and supports Internet/Intranet/Extranet, e-commerce and electronic data interchange (EDI). In addition, it can be implemented in different ways.

MRP is the material requirement plan of ERP manufacturing module.