TABLE OF CONTENTS. Preface About the Author Acknowledgments About APICS Web Added Value
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1 TABLE OF CONTENTS Preface About the Author Acknowledgments About APICS Web Added Value xi xiii xv xvii xix Chapter 1. What Is ERP? 1 Top-Management Planning 2 Master Production Scheduling and Materials Management 4 Data Accuracy 7 Bill of Material Accuracy 7 Inventory Balance Accuracy 8 Integration with Lean and Six Sigma 10 ERP as the Starting Point 12 Chapter 2. Class A ERP Performance 17 Material Requirements Planning 17 Manufacturing Resource Planning 18 The Class A ERP Standard of Today 24 Class A ERP Certification 27 Summary 31 Chapter 3. Business Planning 33 Business Imperatives 36 Top-Level Management Systems 37 Tricks in Building the Right Business Plan 38 Financial Objectives Planning 38 v
2 vi Class A ERR Implementation: Integrating Lean and Six Sigma Internal Business Process 40 Learning and Growth 42 Customer Influences on Business Imperative Choices 44 Supply Chain Influences on Business Imperative Choices 45 Technology Affecting Business Imperative Decisions 46 How Many Business Imperatives Should You End Up With? 47 Linking the Financial Plans with the S&OP Process 48 Product Planning in Class A ERP 49 The Class A Measurement for Business Planning 49 Talent Review 51 Process Ownership of the Business Plan 52 Summary 52 Chapter 4. Sales and Marketing Planning: Creating the Demand Plan 55 Business Planning as an Input to Demand Planning 56 Marketing Plans as an Input to Demand Planning 57 Sales Planning as an Input to Demand Planning 59 Historical Inputs to the Demand Planning Process 61 Understanding the Outputs of Demand Planning 62 The Weekly Demand Review 62 Process Ownership in the Demand Plan 65 The Measurement Process for the Class A Demand Plan 66 Chapter 5. Operations Planning 71 Product Families 74 Elements of Operations Planning 76 Chapter 6. Sales and Operations Planning 87 Participants to the S&OP and Their Roles in Larger Multiplant Environment 89 Some Thoughts on Alternative Labels for S&OP 91 Roles in the S&OP Meeting 91 Timing for the S&OP Process and the "Monthly Closing of the Books" 94 Agenda for the Pre-S&OP 96 The Spreadsheets for Both the Pre-S&OP and the S&OP Processes 98 Summary: Keys to the Success of the S&OP Process 99 Chapter 7. Master Scheduling 103 The Master Production Schedule 103
3 Table of Contents vii Capacity Planning in the Master Production Schedule 108 Rules for Level Loading 114 Linking to the Operations Plan 115 Master Scheduler's Role 119 Master Scheduling Metrics 121 Management Systems Requirements 123 Process Ownership Chapter 8. Class A ERP Material Planning 127 Order Policy Decisions 129 ABC Stratification 131 Process Ownership in Material Planning 131 Material Planning Metrics 132 Integration with Lean and Six Sigma 132 Running the Net-Change Calculation 134 Inventory Management 136 jy A Chapter 9. Class A ERP Data Accuracy Requirements 139 Inventory Location Balance Accuracy 139 Inventory as an Asset 140 Allowing the Elimination of Buffer Inventory 140 Control Groups 141 Physical Inventory 148 Eliminating the Physical Inventory Forever 148 Process Owner of Inventory Accuracy 149 Inventory Accuracy Metrics 150 Bill of Material and Routing Record Accuracy 151 Summary 158 (V. Chapter 10. Class A ERP Procurement Process 159 Why Develop Partnerships with Suppliers? 161 Selecting Suppliers for Partnerships 162 Implementing Supplier Partnerships 165 Aligning the Sales and Operations Planning Processes 167 Information Sharing 168 A Word About Reverse Auctions 168 Logistics as a Competitive Advantage 169 Supplier Performance Ratings and Certification 170 Integration of Lean and Six Sigma in Procurement 172 Process Ownership in Procurement 172 Class A Metrics in Procurement 173
4 viii Class A ERP Implementation: Integrating Lean and Six Sigma I Chapter 11. Shop Floor Control 175 Communicating the Schedule to the Factory 177 The Role of Material Requirements Planning 179 Functional Manufacturing Versus Process Flow 180 Dealing with the Word "Can't" 183 Setup/Changeover Reduction 184 Customer-Focused Six Sigma Quality 186 Employee Involvement 188 Team Planning and Management 189 Kaizen Events on the Factory Floor 192 Areas of Waste S Housekeeping and Workplace Organization 195 Simple Problem-Solving Tools 196 Process Owners for Shop Floor Control 197 The Metrics in Shop Floor Control 198 First-Time Quality 199 Safety 200 il, Chapter 12. Customer Service 201 Rules of Engagement 203 Customer Service Exceptions 204 Deliver on Time or Ship on Time 204 Process Ownership for Customer Service 205 The Metric for Customer Service 206 Shipping Ahead of the Promise Date Chapter 13. Class A ERP Project Management/Six Sigma Process Integration 207 Class A Project Management 208 Lean-Focused Project Management 209 Six Sigma-Focused Project Management 212 Defects 215 Project Management Structure 215 v Chapter 14. Class A ERP Management System 219 Weekly Performance Review 220 Clear-to-Build 224 Weekly Project Review 224 Daily Management System Events 224 Other Management Systems in the Business 229
5 Table of Contents Chapter 15. Education and Training Class A ERP Education Training Requirements DVD Education for ERP Chapter 16. Class A ERP Performance Metrics Barometric and Diagnostic Measures Starting the Metric Process in Class A Weekly Performance Review Posting the Metrics Chapter 17. A Word About ERP Software Chapter 18. Class A ERP Implementation Steps for Successful Class A ERP Implementation Summary Chapter 19. Class A ERP Integration with Lean and Six Sigma Best-in-Class Lean Lean Tools Customer-Focused Quality (Six Sigma) Other Six Sigma Tools Chapter 20. The Role of Consultants in Class A ERP Payback Appendix A. Summary of Class A ERP Certification Criteria.. Appendix B. Steps for Successful Class A ERP Implementation Index
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