Reference model for implementing an MRP system in a highly diverse component and seasonal lean production environment

Companies are currently choosing to integrate logics and systems to achieve better solutions. These combinations also include companies striving to join the logic of material requirement planning (MRP) system with the systems of lean production. The purpose of this article was to design an MRP as part of the implementation of an enterprise resource planning (ERP) in a company that produces agricultural implements, which has used the lean production system since 1998. This proposal is based on the innovation theory, theory networks, lean production systems, ERP systems and the hybrid production systems, which use both components and MRP systems, as concepts of lean production systems. The analytical approach of innovation networks enables verification of the links and relationships among the companies and departments of the same corporation. The analysis begins with the MRP implementation project carried out in a Brazilian metallurgical company and follows through the operationalisation of the MRP project, until its production stabilisation. The main point is that the MRP system should help the company's operations with regard to its effective agility to respond in time to demand fluctuations, facilitating the creation process and controlling the branch offices in other countries that use components produced in the matrix, hence ensuring more accurate estimates of stockpiles. Consequently, it presents the enterprise knowledge development organisational modelling methodology in order to represent further models (goals, actors and resources, business rules, business process and concepts) that should be included in this MRP implementation process for the new configuration of the production system.

Fuzzy Multi-Objective Linear Programming and Simulation Approach to the Development of Valid and Realistic Master Production Schedule

Master production schedule (MPS) plays an important role in an integrated production planning system. It converts the strategic planning defined in a production plan into the tactical operation execution. The MPS is also known as a tool for top management to control over manufacture resources and becomes input of the downstream planning levels such as material requirement planning (MRP) and capacity requirement planning (CRP). Hence, inappropriate decision on the MPS development may lead to infeasible execution, which ultimately causes poor delivery performance. One must ensure that the proposed MPS is valid and realistic for implementation before it is released to real manufacturing system. In practice, where production environment is stochastic in nature, the development of MPS is no longer simple task. The varying processing time, random event such as machine failure is just some of the underlying causes of uncertainty that may be hardly addressed at planning stage so that in the end the valid and realistic MPS is tough to be realized. The MPS creation problem becomes even more sophisticated as decision makers try to consider multi-objectives; minimizing inventory, maximizing customer satisfaction, and maximizing resource utilization. This study attempts to propose a methodology for MPS creation which is able to deal with those obstacles. This approach takes into account uncertainty and makes trade off among conflicting multi-objectives at the same time. It incorporates fuzzy multi-objective linear programming (FMOLP) and discrete event simulation (DES) for MPS development.

Automated Program Planning and Documentation Module (APPDM) : test version 1.10 /

"August 1991."

Inscribing the organization:representations in dispute between accounting and production

This paper assumes that a primary function of management accounting is the representation of "accounting facts" for purposes such as organizational control. Accountants are able to offer conventional techniques of control, such as standard costing, as a consequence of their ability to deploy accounting representations within managerial and economic models of organizational processes. Accounting competes, at times, with other 'professional' groups, such as production planning or quality management people, in this role of representing the organization to management. The paper develops its arguments around a case illustration of cost accounting set in a low technology manufacturing environment. The research relates to a case organization in which accountants are attempting to establish the reliability of accounting inscriptions of a simple manufacturing process. The case research focuses on the documents, the inscriptions that vie for managements' attention. It is these sometimes messy and inaccurate representations which enable control of complex and heterogeneous activities at a distance. At the end of our site visits we observe quality management systems in the ascendancy over the accountants' standard costing systems. © 2006 Elsevier Ltd. All rights reserved.

Aspects of the design and operation of production control systems in manufacturing industry

Computerised production control developments have concentrated on Manufacturing Resources Planning (MRP II) systems. The literature suggests however, that despite the massive investment in hardware, software and management education, successful implementation of such systems in manufacturing industries has proved difficult. This thesis reviews the development of production planning and control systems, in particular, investigates the causes of failures in implementing MRP/MRP II systems in industrial environments and argues that the centralised and top-down planning structure, as well as the routine operational methodology of such systems, is inherently prone to failure. The thesis reviews the control benefits of cellular manufacturing systems but concludes that in more dynamic manufacturing environments, techniques such as Kanban are inappropriate. The basic shortcomings of MRP II systems are highlighted and a new enhanced operational methodology based on distributed planning and control principles is introduced. Distributed Manufacturing Resources Planning (DMRP), was developed as a capacity sensitive production planning and control solution for cellular manufacturing environments. The system utilises cell based, independently operated MRP II systems, integrated into a plant-wide control system through a Local Area Network. The potential benefits of adopting the system in industrial environments is discussed and the results of computer simulation experiments to compare the performance of the DMRP system against the conventional MRP II systems presented. DMRP methodology is shown to offer significant potential advantages which include ease of implementation, cost effectiveness, capacity sensitivity, shorter manufacturing lead times, lower working in progress levels and improved customer service.

How capabilities in operations can influence green production:exploring the issues

This research presents case material of companies within the UK that are attempting to be “Green” in their operations processes. We assess their aspirations by plotting capabilities through their supply networks under five key headings: Strategy; Production planning and procurement; In-house production; Logistics; and Human resource management within operations. We build upon the work of Azzone and Noci, 1998 and Azzone et al., 1997 and we present insights into companies whose commitment to Green Production ranges from “the company tries to delay the adoption of green programs” through to the company adopts a “radical approach to environmental issues.” In doing so we see how operations capabilities in a range of parameters can play a central and pivotal role in achieving some of the aspirations of Green Production within companies.

Risk management in enterprise resource planning implementation:a new risk assessment framework

Enterprise resource planning (ERP) projects are risky. But if they are implemented appropriately, they can provide competitive advantage to organisations. Therefore, ERP implementation has become one of the most critical aspects of today's information management research. The main purpose of this article is to describe a new ERP risk assessment framework (RAF) that can be used to increase the success of ERP implementation. In this article, through a case study based in a leading UK-based energy service provider, we demonstrate the new RAF, which has been shown to help identify and mitigate risks in ERP implementation. In contrast to other research, this RAF identifies risks hierarchically in external engagement, programme management, work stream and work package levels across technical, schedule, operational, business and organisational categories. This not only helped to develop responses to mitigate risks but also facilitates on-going risk control.

Influence of Forecasting, Planning and Controlling on the performance of Small and Medium Enterprises

Production Planning and Control (PPC) systems have grown and changed because of the developments in planning tools and models as well as the use of computers and information systems in this area. Though so much is available in research journals, practice of PPC is lagging behind and does not use much from published research. The practices of PPC in SMEs lag behind because of many reasons, which need to be explored. This research work deals with the effect of identified variables such as forecasting, planning and control methods adopted, demographics of the key person, standardization practices followed, effect of training, learning and IT usage on firm performance. A model and framework has been developed based on literature. Empirical testing of the model has been done after collecting data using a questionnaire schedule administered among the selected respondents from Small and Medium Enterprises (SMEs) in India. Final data included 382 responses. Hypotheses linking SME performance with the use of forecasting, planning and controlling were formed and tested. Exploratory factor analysis was used for data reduction and for identifying the factor structure. High and low performing firms were classified using a Logistic Regression model. A confirmatory factor analysis was used to study the structural relationship between firm performance and dependent variables.

Expansion of sunflower crop production in Brazil: a survey of future trends.

Sunflower cropped area in Brazil has been showing potential possibilities to be increased in a short period of time for biofuel production. Planning the activities is one of the requirements for the success of future cropped area expansion. This requires a previous survey that identifies future trends in the transformation and rearrangement of the sunflower agro-industry sector and also identifies technological needs that may affect this process. With the objectives of identify future trends and technological needs, a value production chain was built and a questionary was applied to agents of all the sectors participating at the V National Brazilian Symposium of Sunflower and at the XVII Sunflower National Research Meeting Network. The results pointed out a strong tendency for area expansion in the next two to five years (75%); being as a secondary follow-up crop (83%) specially after soybean and top be used for biofuel (77%). The main research needs were linked with disease control, crop zoning and varietal improvement for disease resistance and high oleic oil content. Also considering the vision of and concerns regarding the future expansion and transformation of the sunflower productive complex, it is believed that the expansion is a consolidated trend, requiring a strategic sector planning associated with an economic and technological police for its success within the Brazilian agribusiness.

The strategic mindset of Australian manufacturing managers : some missing links

Manufacturing managers have a measurable mindset (or frame) that structures their response to the manufacturing environment. Most importantly, this frame represents a set of assumptions about the relative prominence of concepts in the manufacturing domains, about the nature of people, and about the sensemaking processes required to understand the nature of the manufacturing environment as seen through the eyes of manufacturing managers. This paper uses work in the area of text analysis and extends the scope of a methodology that has been approached from two different directions by Carley ( Journal of Organizational Behavior , 18 (51), 533-558, 1997) and Gephart ( Journal of Organizational Behavior , 18 (51), 583-622, 1997). This methodology is termed collocate analysis. Based on the analysis of transcripts of interviews of Australian manufacturing managers mind maps of the concepts used by these managers have been constructed. From an analysis of these mind maps it is argued that strategy plays a minor role in their thinking second only to the improvement domain, whereas design and related concepts play a dominant role in their day-to-day thinking.

What is ERP?

Though enterprise resource planning (ERP) has gained some prominence in the information systems (IS) literature over the past few years and is a significant phenomenon in practice, through (a) a historical analysis, (b) meta-analysis of representative IS literature, and (c) a survey of academic experts, we reveal dissenting views on the phenomenon. Given this diversity of perspectives, it is unlikely that at this stage a broadly agreed definition of ERP can be achieved. We thus seek to increase awareness of the issues and stimulate further discussion, with the ultimate aim being to: (a) aid communication amongst researchers and between researchers and practitioners; (2) inform development of teaching materials on ERP and related concepts in university curricula and in commercial education and training; and (3) aid communication amongst clients, consultants and vendors. Increase transparence of the ERP concept within IS may also benefit other aligned fields of knowledge.

Technological innovation and operational effectiveness : their role in achieving performance improvements

The purpose of this article is to examine the role of the alignment between technological innovation effectiveness and operational effectiveness after the implementation of enterprise information systems, and the impact of this alignment on the improvement in operational performance. Confirmatory factor analysis was used to examine structural relationships between the set of observed variables and the set of continuous latent variables. The findings from this research suggest that the dimensions stemming from technological innovation effectiveness such as system quality, information quality, service quality, user satisfaction and the performance objectives stemming from operational effectiveness such as cost, quality, reliability, flexibility and speed are important and significantly well-correlated factors. These factors promote the alignment between technological innovation effectiveness and operational effectiveness and should be the focus for managers in achieving effective implementation of technological innovations. In addition, there is a significant and direct influence of this alignment on the improvement of operational performance. The principal limitation of this study is that the findings are based on investigation of small sample size.

Ergonomic DHM systems - limitations and trends – a systematic literature review focused on the ‘future of ergonomics’

Digital Human Models (DHM) have been used for over 25 years. They have evolved from simple drawing templates, which are nowadays still used in architecture, to complex and Computer Aided Engineering (CAE) integrated design and analysis tools for various ergonomic tasks. DHM are most frequently used for applications in product design and production planning, with many successful implementations documented. DHM from other domains, as for example computer user interfaces, artificial intelligence, training and education, or the entertainment industry show that there is also an ongoing development towards a comprehensive understanding and holistic modeling of human behavior. While the development of DHM for the game sector has seen significant progress in recent years, advances of DHM in the area of ergonomics have been comparatively modest. As a consequence, we need to question if current DHM systems are fit for the design of future mobile work systems. So far it appears that DHM in Ergonomics are rather limited to some traditional applications. According to Dul et al. (2012), future characteristics of Human Factors and Ergonomics (HFE) can be assigned to six main trends: (1) global change of work systems, (2) cultural diversity, (3) ageing, (4) information and communication technology (ICT), (5) enhanced competiveness and the need for innovation, and; (6) sustainability and corporate social responsibility. Based on a literature review, we systematically investigate the capabilities of current ergonomic DHM systems versus the ‘Future of Ergonomics’ requirements. It is found that DHMs already provide broad functionality in support of trends (1) and (2), and more limited options in regards to trend (3). Today’s DHM provide access to a broad range of national and international databases for correct differentiation and characterization of anthropometry for global populations. Some DHM explicitly address social and cultural modeling of groups of people. In comparison, the trends of growing importance of ICT (4), the need for innovation (5) and sustainability (6) are addressed primarily from a hardware-oriented and engineering perspective and not reflected in DHM. This reflects a persistent separation between hardware design (engineering) and software design (information technology) in the view of DHM – a disconnection which needs to be urgently overcome in the era of software defined user interfaces and mobile devices. The design of a mobile ICT-device is discussed to exemplify the need for a comprehensive future DHM solution. Designing such mobile devices requires an approach that includes organizational aspects as well as technical and cognitive ergonomics. Multiple interrelationships between the different aspects result in a challenging setting for future DHM. In conclusion, the ‘Future of Ergonomics’ pose particular challenges for DHM in regards to the design of mobile work systems, and moreover mobile information access.

Cointegration and causal relationships between energy consumption and output: Assessing the evidence from Australia

In this paper, we describe our investigation of the cointegration and causal relationships between energy consumption and economic output in Australia over a period of five decades. The framework used in this paper is the single-sector aggregate production function, which is the first comprehensive approach used in an Australian study of this type to include energy, capital and labour as separate inputs of production. The empirical evidence points to a cointegration relationship between energy and output and implies that energy is an important variable in the cointegration space, as are conventional inputs capital and labour. We also find some evidence of bidirectional causality between GDP and energy use. Although the evidence of causality from energy use to GDP was relatively weak when using the thermal aggregate of energy use, once energy consumption was adjusted for energy quality, we found strong evidence of Granger causality from energy use to GDP in Australia over the investigated period. The results are robust, irrespective of the assumptions of linear trends in the cointegration models, and are applicable for different econometric approaches.

Information technology and its changing roles to economic growth and productivity in Australia

In this paper we describe our investigation of the role of investment in information technology (IT) on economic output and productivity in Australia over a period of about four decades. The framework used in this paper is the aggregate production function, where IT capital is considered as a separate input of production along with non-IT capital and labour. The empirical results from the study indicate the evidence of robust technical progress in the Australian economy in the 1990s. IT capital had a significant impact on output, labour productivity and technical progress in the 1990s. In recent years, however, the contribution of IT capital on output and labour productivity has slowed down. Regaining the IT capital productivity therefore remains as a key challenge for Australia, especially in the context of greater IT investment in the future.