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Talking about the application and implementation of ERP in machinery manufacturing enterprises

Introduction to enterprise resource planning (ERP)

concept: ERP is the abbreviation of enterprise resource planning. This concept was first proposed by Gartner Group in the United States in the early 1990s, and its functional standards were defined. As an enterprise management idea, ERP is also a new management mode and a management tool. At the same time, it is also an advanced computer management system. For this reason, in less than a decade, it was quickly recognized and accepted by people, and brought huge profits to many enterprises. Initially, Gartner Group defined ERP through a series of functional standards, including the following four aspects:

beyond the scope and integrated functions of mrp- Ⅱ. Figure 1 shows the logical flow of mrp- Ⅱ, and Figure 2 shows the schematic diagram of ERP

Figure 1 the logical process of MRP-II

note: item project, BOM bill of materials, process, process data, MPs master production plan, RCCP rough capacity demand plan, MRP material demand plan, CRP capacity demand plan

Figure 2 ERP schematic diagram

note: PDM Product data management, EDI Electronic Data Exchange, BPR enterprise process reengineering, CRM customer relationship system management, EB e-commerce, HRM human resource management, SCM supply chain management, DSS Decision Support System EM equipment management, QM quality management

support mixed mode manufacturing environment

support dynamic analysis and decision-making ability to improve business performance

support open client/server computing environment

2) characteristics of ERP:

erp was originally a management idea based on "supply chain". It expanded the management scope on the basis of mrp- Ⅱ (Manufacturing Resource Planning), gave a new structure, integrated customer demand with manufacturing activities within the enterprise, as well as manufacturer's manufacturing resources, and embodied the idea of manufacturing completely according to user demand. The basic idea of ERP is to regard the business process of an enterprise as a closely connected supply chain, including suppliers, and the latent characteristics that make the color of materials change after being illuminated by ultraviolet light into specific product manufacturing plants, distribution networks and customers; The enterprise is divided into several supporting subsystems that work cooperatively with each other, such as finance, marketing, manufacturing, quality control, service maintenance, engineering technology, etc., as well as the monitoring and management of competitors. ERP is a management idea for enterprise supply chain, which can effectively manage all links in the supply chain, such as order, procurement, inventory, planning, manufacturing, quality control, transportation, distribution, service and maintenance, financial management, investment management, business risk management, decision management, profit analysis, personnel management, laboratory management, project management, formula management, etc, In this way, it provides enterprises with richer functions and tools in terms of the breadth of management scope, and can realize multinational operations in multiple factories and locations around the world. At the same time, because the goal pursued by enterprises is to maximize profits, and the core of modern enterprise management is to dynamically control enterprises, which is embodied in the dynamic profit analysis of enterprises. In appearance, enterprises pursue profits, while its connotation is to pursue the rational and efficient use of enterprise resources. Therefore, in terms of management technology, ERP emphasizes and strengthens the capital in the management process of the whole supply chain, but this kind of utilization is limited by the current technology and output, and it is impossible to quickly popularize the control of flow and information flow, which will raise the management of supply chain to the control of value chain. For example, the world's first ERP system software supplier, The product r/3 of German SAP company has realized the transformation from supply chain to value chain control in its version 4.0

the experience of applying ERP in China's machinery manufacturing enterprises

the application and development process of mrp- Ⅱ/erp in China

can be roughly divided into three stages: start-up period, growth period and maturity period

start-up period. This stage has been almost throughout the 1980s. Its main feature is based on the introduction, implementation and partial application stage of MRP-II. Due to the constraints of various conditions, the application effect is limited, and it is called the "three thirds theory" stage: that is, "one third of foreign MRP-II software can be used, one third can be used after modification, and one third cannot be used". In order to improve the backward management, some machine tool factories and automobile factories in the machinery industry have successively introduced mrp- Ⅱ software from abroad and become the pioneers of the application of mrp- Ⅱ in China. However, due to the constraints of conditions, they have gone through a bumpy and tortuous road

growth period. This stage is roughly from 90 to 96, and its important feature is that the application and promotion of mrp- Ⅱ in China has achieved good results

maturity. This stage has been since 1997, and its main feature is the introduction of ERP and becoming the protagonist. The application scope has also expanded from manufacturing to the secondary and tertiary industries, and the application effect has been significantly improved, so it has entered a mature stage. ERP is a kind of management oriented to enterprise supply chain. In computer technology, ERP also provides users with graphical user interface, relational database structure, client/server system, object-oriented technology, openness and portability, as well as the fourth generation language and user development tools, which opens up a new world for enterprise scientific management

examples of successful application in machine tool industry

ERP project of Shenyang first machine tool plant. This is an enterprise management informatization project, which has been implemented since the 1980s, with 3million marks sponsored by the German engineering association and 2million marks raised by China. With the strong support of the Ministry of machinery, the machine tool Bureau, Liaoning Province and Shenyang City at that time, through the efforts of Shenyang No. 1 machine tool plant, a machine tool manufacturing enterprise that was constantly increasing and completely managed according to the mode of the former Soviet Union was transformed into an enterprise that used computers to carry out comprehensive production planning and management. Among them, there are also many difficulties:

- the software is not Chinese, and the full screen foreign language

- the production plan was originally released in units, but it was released in parts in MRP

- production system planning, inventory and job scheduling are all carried out on the computer, and the personnel are not used to it

- because there is no Chinese display, all material information is encoded

- adopt advanced plan review technology, matrix operation plan, etc

due to the great attention of the factory director at that time, Comrade Shen Tongchang, during the implementation process, the top leaders personally understood and mastered the problems in the implementation every day, and grasped the computer application project as well as the product production (holding the project scheduling meeting half an hour after working every day), plus the implementation personnel went to Germany for training many times, they not only mastered the source program, but also mastered the planning principle and method of MRP. Nearly 800000 sentences have been modified in the application program, making the software suitable for the situation in China. On the other hand, a large number of technical management personnel have been organized to straighten out the basic data required for production, carry out standardized and standardized coding processing, and create conditions for the implementation of the project. After five years of efforts, the MRP system was identified and accepted in 1985, and then after two years of efforts, the MRP system has been raised to the level of MRP-II. It has been running smoothly for seventeen or eight years, and the software has been transplanted to the microcomputer through the efforts of calculation personnel, It is popularized in Liaoning and Shenyang

the enterprise informatization project based on group technology of Jinan No.2 Machine Tool Plant has carried out the application research of group technology since 1979. With the support of the Ministry, bureau, province and city, it combines the application of computer technology with the application of group technology, the basis of advanced manufacturing technology. From 1979 to 1985, a closed multi variety large machine tool enterprise with single piece and small batch production mode was transformed into an open and flexible modern production system, which met the needs of multi variety development and market, and laid the foundation for enterprise development in the next few decades. In the transformation of this system, information technology is fully applied, and the classification and coding of product catalogue compilation (BOM) and computer-aided group technology are developed. From the CAPP of process route compilation, process specification design and material quota calculation to the balance of production capacity, the production plan of group units and operation statistics, an integrated production system from design catalogue to workshop operation statistics is formed. The successful construction of the project has increased the labor productivity by 25%, reduced the product scrap rate from 1.09% to 0.79%, and reduced the processing cost from 4.3 yuan/hour to 1.5 yuan/hour. The standardization of process design has been realized. With 447 standard processes, the processing of tens of thousands of processed parts has been met, and the process preparation has been reduced from 2 hours and 30 minutes/piece to 1~2 minutes/piece. The success of this project has driven the development of enterprise informatization. In the aspect of CAD, the ERP system with mrp- Ⅱ as the core is developed in management, from the application of CAD technology of part design to finite element analysis and interference inspection. Since 1993, the production system of the factory has not used paper design and process documents, and all the information has entered the computer. The whole factory has realized the management without standing book. Ensure the continuous development of the plant for more than 20 years and become the leader of the industry

Beijing No.1 Machine Tool Plant has also carried out enterprise informatization since the early 1980s. Through the national "863" CIMS project, it has become the best demonstration enterprise of CIMS application in China, and has won the CIMS Enterprise Application Award of the American Association of engineers, setting an example for the informatization of Chinese enterprises

through the above three successful examples of enterprise informatization, it shows that the risk of enterprise informatization is with success. As long as the enterprise leaders pay attention to it, follow the principle of system development, seriously implement the policy of central informatization driving industrialization, and mobilize the enthusiasm of implementation personnel and the efforts of the whole factory, the system construction can be completely successful. 2

the main problems in the application of ERP in Chinese enterprises

the investment and return do not match

the application success rate of primary projects is high, such as financial computerization

the success rate of higher-level application projects is low, such as ERP

reasons for the problems

enterprises have insufficient understanding of informatization, especially for the central government's proposal of "transforming traditional enterprises with microelectronics technology" in the 1980s, which is not deep and comprehensive, and does not regard enterprise informatization as one of the most fundamental and thorough transformations of enterprises, taking enterprise informatization as a general technical measure

the implementation of the "top leader project" is not effective

no system planning, single application, resulting in information island and system non integration

it is not combined with other advanced manufacturing technologies and management technologies, and its application is not deepened

pay attention to the application of management and light the application of technology, especially in process design

training talents is not systematic

heavy hardware, light software

the consultation service system is incomplete

the ways for China's machinery manufacturing enterprises to implement ERP in the 21st century

from the benefit analysis of enterprise informatization, determine the ways for enterprises to implement ERP

the benefit analysis of enterprise informatization is shown in Table 1. Through the benefit analysis of enterprise informatization, reasonably arranging the implementation steps and Strategies of enterprise informatization is the key to ensure the smooth implementation of ERP system and achieve effective ERP solutions

ways to implement ERP

comprehensively formulate enterprise informatization planning and implementation plan, clarify the overall goal of the system, the relationship between each subsystem and subsystem, and see the "informatization planning and design of machinery manufacturing enterprises" in the march2005 issue of this journal for enterprise informatization planning and implementation plan

clarify enterprise informatization planning

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