INDEPENDENT STUDY DEVELOPMENT OF COMPUTERIZED PRODUCTION PLANNING LABORATORY USING OPEN SOURCE ERP SOFTWARE PATTHARIT SONGSAK

Transcription

1 INDEPENDENT STUDY DEVELOPMENT OF COMPUTERIZED PRODUCTION PLANNING LABORATORY USING OPEN SOURCE ERP SOFTWARE PATTHARIT SONGSAK An Independent Study submitted in Partial Fulfillment of the requirements For the Degree of Master of Engineering (Engineering Management) International Graduate Program, Kasetsart University 2010

2 Pattharit Songsak 2010: Development of Computerized Production Planning Laboratory Using Open Source ERP Software. Master of Engineering (Engineering Management), Major Field: Engineering Management, International Graduate Program in Industrial Engineering. Independent Study Advisor: Pornthep Anussornnitisarn, Ph.D. 157 pages. Most of ERP implementations occur among large companies who have enough financial resource to develop and implement such as expensive software like ERP software. Therefore, one of objectives in this research is to identify open source ERP softwares which their functions are similar to commercial ERP package. In addition to ERP implementation failure, the computerized MRP planning process is different than the theoretical one. So this research develops MRP manual of Open ERP (The open source ERP software) to demonstrate the relationship of theoretical MRP to the computerized one. So the manual is developed for student from undergraduate student in course such as Production Planning and Control: PPC. / / Student s signature Independent Study Advisor s signature

3 ACKNOWLEDGEMENTS I would like to grateful thank and deeply indebted to Dr.Pornthep Anussornnitisarn my independent study advisor for advice, encouragement and valuable suggestion for completely writing of independent study. I would sincerely like to thank Dr.Wisut Supitaki my co-advisor for his valuable comments and suggestion. Finally, I am especially appreciated my father and mother for their continuing encouragements during the study in this program. Pattharit Songsak November 2010

4 i TABLE OF CONTENTS Page TABLE OF CONTENTS i LIST OF TABLES ii LIST OF FIGURES vi INTRODUCTION 1 OBJECTIVES 3 LITERATURE REVIEW 4 MATERIALS AND METHODS 17 Materials 17 Methods 17 RESULTS 19 CONCLUSION AND RECOMMENDATION 110 Conclusion 110 Recommendation 111 LITERATURE CITED 112 APPENDIX 116

5 ii LIST OF TABLES Table Page 1 Evaluation of five open source ERPs 27 2 Evaluation of three open source ERPs 34 3 Comparing features between SAP and Open ERP 36 4 Summary data of APICS Material Requirement Planning and Open ERP features 39 5 Usage Quantity of products 41 6 Price sell and cost of products 41 7 List of ABC Corporation s partners 41 8 Product s lead time 42 9 Product s safety stock Six weeks sales orders of ABC Corporation s 20 customers The MRP time-phased record of product F Amount and due date s sales order of product F1 at week 45 to week 50 before adjusting production plan Capacity of F1 Assembly in hours Capacity of F1 Assembly in pieces Amount and due date s sales order of product A1 at week 45 to week 50 after adjusting production plan Capacity of F1 Assembly in hours Capacity of F1 Assembly in pieces The new MRP time-phased record of product F The MRP time-phased record of product F1 with over time Amount and due date s sales order of product F1 at week 46 to week 51 before adjusting production plan The MRP time-phased record of product F1 at week 46 to week 51 54

6 iii LIST OF TABLES (Continued) Table Page 22 Amount and due date s sales order of product F1 at week 46 to week 51 after adjusting production plan The MRP time-phased record of product F1 after adjusting production plan Capacity of F1 Assembly in hours before adjust production plan Capacity of F1 Assembly in hours after adjust production plan The MRP time-phased record of product F1 with over time Product A s capacity Product B s capacity Part A s capacity Part Comm 1 s capacity Part Comm 2 s capacity List of product s lead time Initial Inventory of products and materials Minimum Stock Rules of products and materials List of XYZ Company s partners List of Products and materials price Sales orders Of Product A in week 45 until week Sales orders Of Product B in week 45 until week The MRP time-phased record of product A and B at week 45 to week Amount and due date s sales order of product A at week 45 to week 48 before adjusting production plan Amount and due date s sales order of product B at week 45 to week 48 before adjusting production plan Product A s WC_ASM capacity in hours before adjusting production plan 71

7 iv LIST OF TABLES (Continued) Table Page 43 Product A s WC_ASM capacity in pieces before adjusting production plan Product B s WC_ASM capacity in hours before adjusting production plan Product B s WC_ASM capacity in pieces before adjusting production plan Part A s WC_A capacity in hours before adjusting production plan Part A s WC_A capacity in pieces before adjusting production plan Part Comm 1 s WC_COMM capacity in hours before adjusting production plan Part Comm 1 s WC_COMM capacity in pieces before adjusting production plan Part Comm 2 s WC_COMM capacity in hours before adjusting production plan Part Comm 2 s WC_COMM capacity in pieces before adjusting production plan Amount and due date s sales order of product A at week 45 to week 48 after adjusting production plan Amount and due date s sales order of product B at week 45 to week 48 after adjusting production plan Product A s WC_ASM capacity in hours Product A s WC_ASM capacity in pieces Product B s WC_ASM capacity in hours Product B s WC_ASM capacity in pieces Part A s WC_A capacity in hours Part A s WC_A capacity in pieces Part Comm 1 s WC_COMM capacity in hours Part Comm 1 s WC_COMM capacity in pieces 77

8 v LIST OF TABLES (Continued) Table Page 62 Part Comm 2 s WC_COMM capacity in hours Part Comm 2 s WC_COMM capacity in pieces The new MRP time-phased record of product A and B The MRP time-phased record of product A and B with over time Amount and due date s sales order of product A at week 46 to week 49 before adjusting production plan Amount and due date s sales order of product B at week 46 to week 49 before adjusting production plan The MRP time-phased record of product A and B at week 45 to week 49 before adjusting production plan Amount and due date s sales order of product A at week 46 to week 49 after adjusting production plan Amount and due date s sales order of product B at week 46 to week 49 after adjusting production plan The MRP time-phased record of product A and B after adjusting Production plan Product A s WC_ASM capacity in hours Product B s WC_ASM capacity in hours Part A s WC_A capacity in hours Part Comm 1 s WC_COMM capacity in hours Part Comm 2 s WC_COMM capacity in hours The MRP time-phased record of product A and B with over time 104

9 vi LIST OF FIGURES Figure Page 1 Evolution of ERP systems 11 2 The Scope Of ERP Applications 13 3 Master Production Scheduling in the Manufacturing planning and control (MPC) System 15 4 MRP Inputs and Outputs 16 5 OpenERP logo 19 6 OFBiz logo 20 7 xtuple logo 21 8 Compiere Logo 22 9 Openbravo Logo Open ERP login window Open ERP window OFBiz login window OFBiz window xtuple login window xtuple window The comparison flow chart of APICS MRP and Open ERP s features Bill of Material of F Product A Structure Product B Structure 59

10 1 DEVELOPMENT OF COMPUTERIZED PRODUCTION PLANNING LABORATORY USING OPEN SOURCE ERP SOFTWARE INTRODUCTION Nowadays, each of the enterprises has high competition so enterprise needs to develop its potentiality and supply chain for competing. In addition, Enterprise struggles reducing production cost and making valuable production. Therefore, Enterprise applies various tools to increase efficiency enterprise administration. Computer system and information technologic are importance tools to administer on enterprise. One of popular tools used to efficiency mange resource of enterprise is Enterprise Resource Planning: ERP system. Enterprise Resource Planning: ERP system is an integrated software solution that spans the range of business processes that enables companies to gain a holistic view of the business enterprise. It promises one database, one application, and a unified interface across the entire enterprise (Bingi et al., 1999). ERP system touches many aspects of an enterprise s internal and external operations. Potential benefits of ERP system is include drastic declines in inventory, breakthrough reductions in working capital, abundant information about customer wants and needs, along with the ability to view and manage the extended enterprise of suppliers, alliances and customers as an integrated whole (Chen, 2001). Although, ERP system has many advantages to enterprise but commercial ERP software is extremely expensive to implement on enterprise (Rittammanart et al., 2008). Furthermore, Enterprise cannot integrate and criticize ERP concept framework because of ERP software license. Enterprise also cannot implement and maintain ERP package by itself due to enterprise relies on ERP package vendor.

11 2 Moreover, many enterprises fail implement ERP system. The reasons why enterprise fails implement ERP system are firstly, the traditional management concept with hierarchical management, could lead the top management support to an autocratic control (Salimi, 2009; Motwani et al., 2005). Secondly, change management is focus on how to deal with users resistance. So many problems in the ERP implementation arise from users resistance (Sumner, 1999). Finally, project management is one of the most important reasons in an ERP implementation failure. Since enterprises implementing or considering implementing an ERP system that attempts to integrate internal functions with planning and execution activities of both customers and vendors are at risk if they do not understand basic project management fundamentals (Ehie and Madsen, 2005). These causes can occur because enterprise can not apply computerized Material Requirements Planning: MRP knowledge due to teaching problem in MRP and ERP in university. The first reason for this is that commercial ERP software has high cost such as SAP, Microsoft Dynamics and Oracle. Academies or universities cannot effort to buy commercial ERP software as education tool. Because commercial ERP software has high cost to buy as a tool for teaching university student. In fact, some of universities can effort to buy commercial ERP software. However, university teaches only one module of commercial ERP software which is accounting module instead of teaching significant module of ERP system. At last, students cannot use ERP software for understanding ERP system. When students graduate degree work at enterprise where implement ERP system. Students do not have ability to apply ERP system at his/her enterprise. Finally, Inventively ERP system, ERP theory or ERP knowledge is ERP system core but it fail as module or it is not the most implement. Because enterprise not adequacy knowledge to use computerized MRP. Consequently, the objective this study is developing tool for students and people to understand in ERP system. This tool is open source ERP software. The reason this study selects open source ERP software are first, there is no cost of purchase open source ERP software. There are costs of open source ERP software s train and support. So the total coat of open source ERP software is much less than

12 3 commercial ERP software total cost. Finally, open source ERP software can study, edit and distribute source code. OBJECTIVES The main objectives of this paper are: 1. Identify open source ERP software in order to be able to closely compare with commercial ERP software on features and functions. 2. Develop computerized MRP laboratory by using open source ERP software. 3. Develop a laboratory instruction manual. SCOPES This research focuses on 1. Studying the material requirement planning (MRP) in APICS framework. 2. Assumption ERP s features compare to computerized MRP.

13 4 LITERATURE REVIEW 1. Importance of enterprise resource planning system ERP is now considered to be the price of entry for running a business, and at least at present, for being connected to other enterprises in a network economy to create business to business electronic commerce (Boykin, 2001). With ERP system benefits, ERP system is attracting increasing attention from both academic and industrial communities. Recently, ERP system has been expanded beyond manufacturing and introduced to the finance, health care, hotel chains, insurance, retail and telecommunications sectors. The research literature on ERP system has exponentially grown in recent years. Shehab et al., (2004) reviews of the research literature ( ) concerning ERP systems is presented. The literature is further classified and the major outcomes of each study are addressed and analyzed. Following a comprehensive review of the literature, proposals for future research are formulated to identify topics where fruitful opportunities exist. In this paper summary, ERP system has been observed that from the year 2000 till date an increasing number of papers about ERP packages has been published. ERP software still requires many resources and efforts to integrate all of the major business functions in the initiating firm. Small to medium sized enterprises (SMEs) are now exposed to the forces of global competition. From this point of view, it is crucial that SMEs continuously improve their competitiveness to assert themselves in the market. Therefore, SMEs are moving towards ERP packages. There is a need to provide micro ERPs, i.e. near ERP capabilities built into a product and sold at an affordable price, including implementation. Future trends in ERP, including developments such as Web-based procurement applications and outsourcing of ERP applications. ERP software still requires many resources and efforts to integrate all of the major business functions in the initiating firm. Some of the topics will be on the impact of ERP on organizational alignment, organizational learning, infrastructure, mass customization, competitive advantage and organizational structure. A customer relation management (CRM) module should be included in the ERP packages. Since most ERP vendors are moving towards Internet Web-based applications to fulfill the e-commerce era, the

14 5 development of security issues needs to be addressed. Furthermore, small enterprises are facing significant challenges to become suppliers of bigger customers due to the excessive costs associated with accessing a vast market of potential customers. It is essential for small businesses to adopt an ERP system to maintain control of their operations and to compete globally. Malhotra and Temponi (2009) identified archived literature, ERP importance to small enterprise and key decisions necessary in selecting and implementing an ERP system for small enterprise. This paper interviewed six small businesses to recommend best practices for the critical decisions: 1. project team structure, 2. implementation strategy, 3.database conversion strategy, 4. transition technique, 5.risk management strategy and 6.change management strategy. The paper result is these best practices greatly enhanced the success of an ERP implementation for small businesses. Further, this paper also recommends studying the impact of ERP systems on the small business participation in supply chain management. Recently, service organizations have invested considerable resources in the implementation of Enterprise Resource Planning (ERP) systems, even using solutions initially targeted for manufacturing companies. 2. Implementation failure of enterprise resource planning system Although ERP system has certain advantages such as low operating cost and improving customer service, enterprise fails to implement ERP system. According to Salimi, (2009), studies on ERP implementation processes in a Chinese enterprise. This enterprise implemented the second generation of ERP system supplied by SAP R3 to supersede its earlier own custom-designed first generation ERP system. This paper selected five Key Critical Success Factors (KCSFs) of; top management support, business process re-engineering (BPR), change management, project management, and company context for analysis of second generation ERP SAP R3 implementation at Chinese enterprise. This paper found that Chinese enterprise failed to customize SAP R3 to its business processes. There were variety of reasons for this failure with amongst others, users resistance, company culture, complex business

15 6 processes, error in input to database, lack of understanding of business processes by SAP consultants and understanding of SAP functions by key users. Ehie and Madsen, (2005) reports the results of an empirical research on the critical issues affecting successful ERP implementation. This paper method based on a review of the literature and with extensive personal interviews with ERP consultants that culminated to the development of the five stages of ERP implementation, a questionnaire was developed that identified items that are critical to successful implementation of ERP. This paper concludes that successful enterprise resource planning system implementation depends on effective project management principles. Enterprises implementing or considering implementing an ERP system or any system that attempts to integrate internal functions with planning and execution activities of both customers and vendors are at risk if they do not understand basic project management fundamentals. However, ERP system has often been found to be complex and risky to implement in business enterprises. Aloini et al., (2007) collected and analyzed a number of key articles discussing and analyzing ERP implementation. The different approaches taken in the literature were compared from a risk management point of view to highlight the key risk factors and their impact on project success. Literature was further classified in order to address and analyze each risk factor and its relevance during the stages of the ERP project life cycle. This paper found that the most researched risk factors were: inadequate ERP selection, ineffective strategic thinking and planning, ineffective project management techniques, bad managerial conduction, and inadequate change management. In this, the selection process and strategic organization fitting is marginally linked to the technological dimension, while the other factors are more related to managerial aspects. Finally the top 10 risk factors were analyzed in order to provide a scheme showing their positioning in the ERP life cycle. 3. Open Source ERP Software Due to commercial ERP software is expensive project for enterprise and implementing can be a difficult, enterprise implements ERP system by using open

16 7 source ERP software. Johansson and Sudzina (2008) build up the knowledge about reasons for small and mid-sized enterprises (SMEs) to adopt open source enterprise resource planning (ERP) systems. The paper presents and analyses findings in articles about proprietary ERPs and open source ERPs. In addition, a limited investigation of the distribution channel SourceForge for open source is made. The paper finds the cost perspective seems to receive a high attention regarding adoption of open source ERPs. This can be questioned and the main conclusion is that costs seem to have a secondary role in adoption or non adoption of open source ERPs. This paper concludes that there seems to be several other factors than cost involved in the decision-making process when organizations decide on adoption of open source ERPs. By focusing less on cost an interesting framework for suitable questions for investigation of why SMEs decide to adopt or not to adopt open source ERPs could be achieved. Open Source ERP Systems represent an area which is increasingly gaining acceptance due to many reasons. Herzog (2006) describes open source ERP systems are often targeted to enterprises whose requirements are not covered by standard software. Similar circumstances apply to organizations that need continuous adaption of the software to changing processes and needs. In this paper, the suitability of current open source ERP systems for enterprises will be examined which are SQL Ledger, LX office, OpenERP (TinyERP), GNUe, ERP5, Opentaps(OFBiz) and Compiere. It provides sufficient information for a small or medium enterprise to choose a flexible and adaptable open source ERP system. Starting from the question which opportunities a company has to support its processes with IT, the advantages of flexible systems are elaborated. Besides the focus on flexibility, open source specific criteria for support, continuity and maturity are worked out. Then selected open source ERP projects are reviewed and classified according to these criteria. The results of this paper are a criteria catalog and a classification of selected open source ERP systems. This paper shows system properties are pointed out: SQL Ledger has accounting focus and is proved internationally. It is best used out-of-the-box or as accounting module in an integrated solution. The SQL Ledger fork LX Office should only be evaluated for the German speaking market. GNU Enterprise is not production ready and missing any

17 8 reference customers. Tiny ERP is evolving fast, provides more ERP functionality than SQL Ledger and can be customized with add-on modules. ERP5 and Opentaps (OFBiz) have very flexible architectures. ERP5 is following a purely object oriented approach, whereas Opentaps/OFBiz is more relational database centric. Compiere, the current market leader, is a mature system, providing many customization possibilities. Stoilov and Stoilova (2008) presents brief introduction to ERP (Enterprise Resource Planning) software systems. An analysis of the general functions of the Enterprise Resource Planning (ERP) systems is performed. Historical development of ERP is given. Analysis and comparisons of three open source ERP systems (Compiere, Open ERP and OFBiz) are provided. This paper show the most functional open source ERP is Compiere and it supports functionalities for Relationship Management, Enterprise Management and Services, Business management activities. Open ERP has many advantages as extensibility and flexibility. Due to its modularity it can be easily adapted to different needs. OFBiz is a mature product, but it is appropriate for e-commerce applications as online stores. Its functionallity covers a bit more processes than OpenERP. 4. ERP laboratory Enterprise necessary trains using ERP system on simulation situation. Because enterprise can clearly understands ERP system. Consequentially, enterprise can implement and operate ERP system effectively. Therefore, the growth in ERP implementations had a resultant impact on the demand for ERP skills. Many universities recognized this demand and the potential of using ERP Systems software as a teaching tool, and endeavored to incorporate ERP systems into their curriculum. Hawking et al., (2004) discusses the evolution of ERP systems and university curriculum. This paper identifies how one university is addressing this problem and how this approach can be adopted and expanded by other universities. This paper concludes universities who have worked very hard to develop ERP curriculum are now faced with the dilemma of evolving their curriculum to reflect the evolution of ERP systems and industry requirements. The evolution of ERP systems from an

18 9 operational to a more strategic focus requires a different skill set to support this transition. The visiting lecturer delivery method could be further extended whereby a directory of specialist academics could be established by SAP and distributed to alliance members. These academics could be provided with additional support from SAP to assist them to further develop their curriculum with the goal of making it portable to other universities. Universities and ERP vendors need to develop strategies on how to best address the new skills deficit. For this to occur there needs to be more collaboration than exists at present. According to Koh et al., (2009), a training model including an extensive training period and often utilizing external consultants is a necessary train in order to implement and operate ERP systems effectively. This paper has been conducted in this research on a UK-based SME-specific ERP systems vendor, which maintain that their SME-specific ERP systems can be implemented and operated effectively with only five days of formal training and no additional consultancy. This paper evaluates the validity of this claim, and investigates the basis for the training model employed by the case company is, or is not, sufficient for users to successfully implement and operate SME-specific ERP systems. This paper concludes that it is possible to avoid high level of investment in training and consultancy for SME-specific ERP systems implementation in SMEs, and yet achieving a successful SME-specific ERP systems implementation and operation. The results have suggested that SME-specific ERP systems can be implemented and operated effectively with a limited investment in formal training and no additional consultancy. The findings indicate that the success of the case company s training model is based on three key underlying reasons, namely the system design, the previous experience of users with ERP systems and the support tools offered by vendor. In 2010, Noudoostbeni et al. focuses on various aspects of the ERP utilized in Small and Medium Enterprises (SMEs) in Malaysia in three phases. The success and the failure factors of ERP in SMEs were identified in the first phase. A comparison between different ERP training methods was carried out in the second phase. Based on the findings in the first two phases, a new training method was developed in the

19 10 third phase, so that ERP users may have a more effective ERP training system in the SMEs in Malaysia. The research method applied to the current research is case study in which the required data was collected from different SMEs in Malaysia. The data collection was mainly based on the surveys and interviews, and the results of the data analysis were used to improve a client-based training system. The results indicate that the application of this kind of system which is based on a combination of On-the-job training and Computer-based training system would considerably reduce the time and money spent on learning and training plans, while, at the same time, it would increase the user s proficiency and knowledge concerning in the ERP system. In 2006, Sager et al. tracks the marketability of the graduates from the College of Business at California State University Chico (CSUC), a leader in ERP education in the U.S., and compares the salaries obtained by students who graduated with and without extensive ERP skills. Our findings indicate that students graduating with an extensive ERP background have consistently obtained higher salaries than students without this background. This effect was somewhat more pronounced before the bursting of the E-commerce bubble, but remained in effect after the bubble burst. A curious finding from this study is that, for students having extensive ERP skills and both before and after the bursting of the bubble, those with lower GPA s actually received marginally higher salary offers than those with considerably better GPA s. This was not the case for students without extensive ERP skills. Our conclusion is that at CSU Chico there is significant market power which accrues to students graduating with extensive ERP skills. Hence, from a student employment or market power perspective, the ERP curriculum has been a success. 5. Enterprise Resource Planning Enterprise Resource planning: ERP is one of tool to apply various resources administration inside enterprise. ERP is going acceptation in all kind of enterprises such as consumer product field, retail field and car production field for implementing. More generally, ERP is a method for the effective planning and control of all resources needed to take, make, ship, and account for customer orders in

20 11 manufacturing, distribution, or service Company. An integrated ERP system manages the business processes required for each customer order and assesses the impact of executing that order or inventory and production (Sheikh, 2002). Beheshti (2006) descript that ERP has its roots in the manufacturing industry and is the successor to material requirements planning (MRP) and MRP II. ERP is the most recent in a number of manufacturing and financial information systems that have been developed, over the last several decades, to synchronize the information flow with the physical flow of goods. The first step was taken in the early 1960s when manufacturers began to use MRP software to organize information flow around the manufacturing processes. In the late 1970s the scope of MRP was expanded to include resources and MRP II software became available. The focus of MRP II is on internal operations and provides insight into the implications of the master production schedule and materials plan. Finally, since the 1990s, software developers created ERP/ERP II software, a fuller suite of applications capable of linking all internal processes as well as inter organizational processes such as supplier and customer relations management. Figure 1 illustrates the gradual evolution of the ERP with respect to time. Figure 1 Evolution of ERP systems Source: Kakouris and Polychronopoulos (2005)

21 12 ERP modules are integrated through a set of common definitions and a common database. When data such as an order from the customer becomes available at one point in the business, the impact of this information is immediately reflected in all other areas, such as accounting, production scheduling, purchasing, and logistics. Employees are able to view the order, locate the required items, decide on shipping details and review the customer s credit information on the same computer screen. ERP systems are based on a value chain view of the business where functional departments coordinate their work, focus on value-adding activities and eliminate redundancy. In order to implement an ERP system, a company may need to make changes to organizational structure, corporate culture, and business processes. ERP can be a valuable tool for managers to improve operational as well as financial performance of the firm. Long-term financial gains can be realized only when a company delivers increased customer value while simultaneously lowering the cost of delivering that value. According to Vollmann et al. (2005), Figure 2 depicts the scope of ERP applications. The diagram is meant to show how a comprehensive information system uses ERP as the core or backbone of the information system. ERP can provide many advantages in enterprise administration. ERP help in reducing planning/replanning time and thus makes the system more flexible enabling the company to produce the right product quickly and cost-effectively (Sheikh, 2002).

22 13 Figure 2 The Scope Of ERP Applications Source: Vollmann et al. (2005) According to Kakouris and Polychronopoulos (2005), ERP integrates key business and management functions and provides a view of the happenings in the company, in the areas of finance, human resources, manufacturing, supply chain, etc. An ERP software solution is valuable when it embodies the characteristics illustrated in figure 4. ERP software can be built up either by purchasing the whole pack age from a single vendor or by using pieces of software from different supplier(s). In the first category, the leader is the German company SAP AG with its R/3 soft ware, together with PeopleSoft Inc., Oracle Corp., Baan Co. NV and J.D. Ed wards & Co. In open source ERP software, the leader is Compiere also with Openbravo, Open ERP and OFBiz.

23 14 6. Master Production Scheduling According to Vollmann et al. (2005), the master production schedule (MPS) translates the sales and operations plan of the company into a plan for producing specific products in the future. Where the sales and operations plan provides an aggregate statement of the manufacturing output required to reach company objectives, the MPS is a statement of the specific products that make up that output. The MPS is the translation of the sales and operations plan into producible products with their quantities and timing determined. On a day-to-day basis, the MPS provides the information by which sales and manufacturing are coordinated. The MPS shows when products will be available in the future, thereby providing the basis for sales to promise delivery to customer. These promises will be valid as long as manufacturing executes the MPS according to plan. When conditions arise that create customer promise dates that are unacceptable from a marketing or manufacturing perspective, the MPS provides the basis for making the required trade-offs. At the operational level, the most basic concern is with the construction of the MPS record and updating it over time. The MPS record is developed to be compatible with the material requirements planning (MRP) system and to provide the information for coordinating with sales. Over time, as production is completed and products are used to meet customer requirements, the MPS record must be kept up to date. Doing this means implementing a periodic review and update cycle that we term rolling through time. Updating the record involves processing MPS transactions, maintain the MPS record, responding to exception conditions, and measuring MPS effectiveness on a routine basis. Performing these tasks effectively will keep manufacturing resources and output aligned with the sales and operations plan. Figure 3 presents a partial schematic for the overall manufacturing planning and control system showing the linkages to master production scheduling. The

24 15 detailed schedule produced by the MPS drives all the engine and, subsequently, the back-end system, as well as the rough-cut capacity planning activities. Resource planning Rough-cut capacity planning Sales and operations planning Master production scheduling (MPS) Detailed material planning (MRP) Demand management Front end Engine Enterprise resource planning system (ERP) Figure 3 Master Production Scheduling in the Manufacturing planning and control (MPC) System Source: Vollmann et al. (2005) 7. Material Requirements Planning According to Sheldon (2005), material planning is the process of taking the requirements handed off from the MPS and determining what if any components need to be ordered versus those already available. Availability is derived from data associated with on-hand stock, on-order quantities from procurement, and/or onorder/in-process manufactured item quantities (see figure 4).

25 16 MPS requirements driven initially from the S&OP process Inventory Record File- On hand BOM Record file Material Planning Process Shop Floor Procuremen t Inventory Record File- On order Figure 4 MRP Inputs and Outputs Source: Sheldon (2005) The MPS requirements are the real drivers of material planning. The master schedule is massaged continuously to synchronize the supply side with customer demand. The material planning engine in the ERP software business system is the calculator that sorts out what to do with these MPS signals. In addition, MRP s managerial objective is to provide the right part at the right time to meet the schedules for completed products. To do this, MRP provides formal plans for each part number, whether raw material, component, or finished good. Accomplishing these plans without excess inventory, overtime, labor, or other resources is also important (Vollmann et al., 2005). An MRP system serves a central role in material planning and control. It translates the overall plans for production into the detailed individual steps necessary to accomplish those plans. It provides information for developing capacity plans, and it links to the systems that actually get the production accomplished (Vollmann et al., 2005).

26 17 METERIALS AND METHODS Materials Most of the literatures are downloaded from Kasetsart University campus internet service and referenced books are come from Kasetsart University Library. Personal computers are 1. Acer Aspire 4730Z, 2.0 GHz Intel Pentium, RAM 1GB, Harddrive 160 GB 2. Personal Computer, 2.2 GHz Intel Core 2 Duo, RAM 2 GB, Harddrive 500 GB with software as follows 1. Microsoft Windows XP as operating system 2. Open ERP for Windows All-In-One package as research tool 3. OFBiz automated installer as testing installation software 4. xtuple automated installer as testing installation software 5. Microsoft Visio 2007 for report writing 6. Microsoft Office Word 2007 for report writing Methods Research Plan This research plan provides the overviews of methods to be taken by this research. In order to develop computerized production planning laboratory using open source ERP software and a laboratory instruction manual, the appropriate methodologies are selected and applied to handle the research. There are three phases to accomplish this research as follows: 1. Select suitable open source ERP software for teaching laboratory development 1.1 Literature survey on popular open source ERP

27 Installation and testing 1.3 Compare selected open source ERP s features with MRP system in APICS framework 2. Develop laboratory instruction on selected open source ERP in order to do laboratory 3. Develop a laboratory instruction manual

28 19 RESULTS Results These results provide research plan results as follows: 1. Select suitable open source ERP software for teaching laboratory development 1.1 Literature survey on popular open source ERP In open source ERP software market, there are many available open source ERP softwares. Each of open source ERP softwares has different property, system requirement to install and cost of implement. However, how enterprise or university can chooses suitable open source ERP software for teaching and/or using. This research will find the answer by literature survey on popular open source ERP OpenERP Figure 5 OpenERP logo Source: (2010) Open ERP (formerly named Tiny ERP) is an impressive software system, being simple to use and yet providing great benefits in helping company manage company. Open ERP logo presents in pigure 5. Owner of the OpenERP solution is Belgium based Tiny sprl. It s easy to install under both Windows and Linux compared with other enterprise-scale systems, and offers unmatched functionality (Pinckaers and Gardiner, 2009). According to Open ERP wiki, the software is claimed to be a complete ERP and CRM system. XML-RPC interfaces are

29 20 available. It has separate client and server components. Open ERP has 4 editions which are Community, SMB Edition, Basic Edition and Corporate Edition. Community fee is free but the other edition not free to implement. The software is open source and is released under the GNU General Public License. Open ERP is known to be very complete and extremely modular, with 350 available modules. It is based on a strong MVC architecture, with a distributed server, flexible workflows, an object database, a dynamic GUI, an XML-RPC interface, and customizable reports OFBiz Figure 6 OFBiz logo Source: (2010) According to Rittammanart (2008), Apache Open For Business (OFBiz) is an open source enterprise automation system providing, among many other features, ERP functionality. The OFBiz logo is show on figure 6. The system attempts to provide reusable modules for common business functions and a variety of paths to develop custom business logic and connect with external systems. OFBiz has three layer architectures. The presentation layer is based on the Model-View-Controller pattern and makes extensive use of the Decorator pattern for reuse of design elements. OFBiz integrates with many presentation-tier technologies, including Tomcat or Jetty as the Web server, the Freemaker template engine, the JasperReports report engine, the JavaPOS point-of-sale device API, the XML User Interface (XUI) rich client platform, and the BeanShell Java scripting language. The business logic layer utilizes the Service Oriented Architecture pattern in which application developers organize the business logic as a set of reusable services. Services are implemented as scripts using an OFBiz-specific XML scripting language, Java via BeanShell, or other

30 21 languages such as Python via the Bean Scripting Framework (BSF). Services can be easily exported as SOAP Web service or Java RMI endpoints. The persistence layer provides a database-independent entity persistence engine to the other layers using an XML specification of the database mapping and an API following the Table Data Gateway pattern xtuple Figure 7 xtuple logo Source: (2010) According Harris Wu (2008), xtuple is an Enterprise Software company. The company gains revenue by selling training and support for Postbooks implementations.the xtuple logo show in figure 7. The Postbooks project was managed on Sourceforge.net, an open source community with over 1.8 million registered users. xtuple also sells OpenMFG, a manufacturing-centric ERP solution built on the same open source code base, but has more functionality for larger companies needing more manufacturing capabilities. OpenMFG is commercially licensed under a community code model. In 2007, xtuple received a 5 star rating from the Channel Web Network and also became a finalist in the eweek Excellence award. The commercial OpenMFG community, openmfg.com, has over a dozen implementation partners and over a hundred licensed customers. The product support and development teams at xtuple communicate with users in both communities mainly through s and discussion forum threads, hundreds of them a day. Developers and the support team often find themselves spending hours search through archives, to find a past solution to a problem. xtuple re-launched xtuple.org in 2007 aiming to build a knowledge repository of communications among the xtuple software community, and to utilize social,

31 22 collaborative power through Web 2.0 concepts Compiere Figure 8 Compiere Logo Source: (2010) According to Compiere wiki, Compiere is an open source ERP and CRM business solution for the Small and Medium-sized Enterprise (SME) in distribution, retail, service and manufacturing. Compiere logo is show in figure 8. Compiere is distributed by Compiere, Inc. and through the Compiere Partner Network, a collection of trained and authorized business partners. The application and source code is provided on the basis of the GNU General Public License version 2; this comprises the Community Edition. Also available for a fee is a Professional Edition with more features, a commercial license, documentation and support contracts Openbravo Figure 9 Openbravo Logo Source: (2010) According to Openbravo wiki, Openbravo is a web-based, open source ERP business solution for small and medium a sized company that is released under the Openbravo Public License, based on the Mozilla Public License. Openbravo

32 23 was found on 2001 as Tecnicia. Later became to be Openbravo on Openbravo Logo present in figure 9. The model for the program was originally based on the Compiere ERP program that is also open source, released under the GNU General Public License version 2. The company is a member of the Open Solutions Alliance, a non-profit organization working for open-source standardization. The program is among the top ten most active projects of Sourceforge as of January Development decisions are made by Openbravo, S.L., located in Pamplona, Spain. To select three open source ERP softwares for installing and testing, this research develops criteria to evaluate and choose open source ERP software. The criterion that this research developed to choose open source ERP software consists of 13 criteria as below. 1. Bill of material, Inventory management and Master production schedule In order to study Material Requirements planning (MRP) system, this research must understand Bill of material, Inventory management and Master production schedule due to MRP system requires three basic inputs. So function of selected open source ERP software that this research desires is three basic inputs. 2. Finance The financial module is the core of many ERP software systems. It can gather financial data from various functional departments, and generates valuable financial reports such general ledger, accounts receivable and payable, bank reconciliation, financial reporting. 3. Sales Revenues from sales are live blood for commercial organizations. Sales module implements functions of order placement, order scheduling, shipping and invoicing. Sales module is closely integrated with organizations' ecommerce websites.

33 24 4. Purchasing Purchase module streamlines procurement of required raw materials. It automates the processes of identifying potential suppliers, negotiating price, awarding purchase order to the supplier, and billing processes. Purchase module is tightly integrated with the inventory control and production planning modules. 5. Production Production module optimizes the utilization of manufacturing capacity, parts, components and material resources using historical production data and sales forecasting. 6. Thai language support In order to Thai users more understand for using open source ERP software, open source ERP softwares should have Thai language support available. 7. Friendly interface The user interface should be designed according to the information needed for a task. A simple task shall not require navigating through many screens. It is part of customization to adapt the ERP system to processes. 8. OS independence Operation system independence can run the ERP system on various platforms such as Windows, Linux and so on. Open source ERP softwares must have this feature, if the users have different operating systems.

34 25 9. Database independence According to Herzog (2006), the database has high influence on the scalability of the system. Some prefer open source databases for open source ERP systems. There is a trade-off between database independence and database features, especially the object relational features used. High database independence also implies using a minimal common feature set provided by all supported databases. Some features lost through independence can be provided through the application or used application server. 10. Programming language According to Herzog (2006), the language can be a criterion to leverage available skills for low level customization. The programming languages of the selected ERP Systems are open source scripting languages (Python, Perl and Java). Python is known for its easily readable, concise syntax and its built-in refactoring capabilities. Perl is widely used, but requires more developer discipline to get a serviceable code. Java has strong industry support and many software engineering tools are available. Counting lines of code is a bad indicator for functionality for the following reasons: High-level scripting languages need fewer lines of code. Flexible meta data based design approaches also need fewer lines of code and meta data can be defined in the program code and/or externally. 11. Structure According to Herzog (2006), Important for most flexibility factors is the chosen architecture. The open source solutions have 2-tier or 3-tier architectures. The 2-tier or client- server architecture consists of a fat client containing GUI, and business logic, communicating directly with the database. In the case of a 3-tier architecture the client is just responsible for GUI and simple data validation. All the logic is capsuled in the application server. The database is responsible for storing persistent data. Usually in the case of 3-tier architecture the thin client is a web

35 26 browser, and the application server is a web application server. Some architectures leverage the functionality of a standard general purpose application server (J2EE application server for Java, Zope for Python), others use a proprietary server or a basic web server. Advanced architectures allow many different or nearly any client types to be run against the application server. These clients can be web based, terminal based as well as rich GUI based, running on a mobile device or a personal computer. This is possible due to a multi-layer design. The middle tier is further split horizontally into data, business logic and presentation layer. So only the presentation layer needs to be changed to support various client types. Additional flexibility is possible by vertically splitting the system into services which are connected with flexible workflows. For integration with external system these services can be published as web services. Workflow is the automation of a business process, during which information is passed along the system according to a set of rules. It can be specified in standardized XML Process Definition Language (XPDL). The research presents the evaluation results of five open source ERPs, considered as community edition (free edition) of five open source ERPs. The evaluation was done according to criteria, presented in table 1. The results of the evaluations were assessed by 1. Yes/No logic. 2. Score on 3, 2 and 1 which are 3 is good score 2 is average score and 1 is bad score. 3. Property of each open source ERPs. The resulting list is given in table 1.

36 27 Table 1 Evaluation of five open source ERPs Criteria OpenERP OFBiz Xtuple Compiere openbravo Bill of material Yes Yes Yes Yes Yes Inventory management Yes Yes Yes Yes Yes Master production Yes Yes No No No scheduling Accounting & Finance Yes Yes Yes Yes Yes Sales Yes Yes Yes Yes Yes Purchasing Yes Yes Yes Yes Yes Production Yes Yes Yes Easy customization Thai language Yes Yes No Yes Yes Friendly interface OS independence Database independence Programming language Structure Windows, Linux and Mac PostgreSQL Python Stand alone and Web based 1.2 Installation and testing. Windows, Linux and Mac MySQL, MaxDB, PostgreSQL Oracle,DB2 and Microsoft SQL Java, JavaScript Prolog Windows, Linux and Mac PostgreSQL open source Qt framework for C++ Windows, Linux and Mac Oracle, Advance Server, MS SQL, PostgreSQL Java, JavaScript, PL/SQL Windows, Linux PostgreSQL and Oracle Java, Javascript,SQL,PL/SQL,XML and XHTML Web based Client-server Web based Web based The research chooses three open source ERPs to install and test them. These three open source ERPs are Open ERP, OFBiz and xtuple. The reasons this research chooses these three open source ERPs is there is automated installer are available for Open ERP, OFBiz and Xtuple on Windows. The installer also run everything is handled for users which are installs and starts database program and installs open source ERPs. So it is easy for installation and uses not much system requirements. Also three open source ERPs available install on windows platform.

37 28 Users including students can use open source ERPs on windows. Because they are accustomed to using windows. as follows: The details of each open source ERPs in installation and testing are described Open ERP Open ERP has windows installer to automate installation. Windows installer consists of Standalone Server, Standalone Client and Client Internet Standalone. Open ERP s database is the PostgreSQL database server, which contains all of the databases, each of which contains all data and most elements of the Open ERP system configuration. Open ERP s windows installer installation is easy and time for installation use few minutes. After installation, go to web browser and log in When start Open ERP, it will appears Open ERP s login window (show in figure 10) to login for starting Open ERP. After login, it enters to Open ERP window (show in figure 11). The user interface of Open ERP is comfortable and well designed. Lots of charts and graphics types are available. Figure 10 Open ERP login window

38 29 Figure 11 Open ERP window OFBiz The research installed OFBiz on windows platform. Downloading OFBiz requires Subversion (SVN). So the study downloaded TortoiseSVN (for Windows users). TortoiseSVN is a graphical SVN client for Windows. It is neatly integrated with the ubiquitous and well-known Windows Explorer. OFBiz is written largely in Java, and the framework is entirely in Java. Code written in Java needs to be pre-parsed and pre-compiled before it can be executed. To install OFBiz, the research will need the Java Development Kit (JDK) 5.0. The research also need Eclipse which is an open-source project. It is an IDE (Integrated Development Environment) used by Java Developers all over the world. It is available free of charge for Windows, Linux, and Mac OS X and is the most commonly used Java Development Environment available. The research used Eclipse for installation OFBiz. After installed, OFBiz program appear OFBiz login window. This window shows in figure 12.

39 30 Although, installation of OFBiz is complex method but indeed the OFBiz framework not only facilitates the building of own custom software, but also comes packaged with many tools enterprise would expect from an ERP system. Users can continually develop on basic OFBiz framework for users requirement. The research found that OFBiz lacks of users want most on using ERP package because of the level of installing is complex and unfriendly user interface. OFBiz user interface is not easy to use. User interface present on figure 13. Figure 12 OFBiz login window

40 31 Figure 13 OFBiz window xtuple The research installed xtuple ERP by using windows automated installers of xtuple. xtuple provides automated installers for PostBooks on Windows, Mac, and Linux. The installers are perfect for users interested in demo-ing the product. The installer consist of PostrgreSQL installation and start, loading a demo PostBooks database and installation the PostBooks client. The research found that xtuple installation is easy and use few minutes because of xtuple automated installers. xtuple has nice user interface for using. xtuple user interface presents on figure 15. Before users use xtuple, the xtuple login window appears to login. xtuple login window show in figure 14. The xtuple disadvantage are free edition (PostBooks) s features and modules is fewer than fee edition (Standard and Manufacturing) and when users require module that not available on free edition, xtuple provides hard to add on module they require.

41 32 Figure 14 xtuple login window Figure 15 xtuple window To select the most suitable one, this research needs to develop criteria to evaluate and choose one of them to be tool of MRP laboratory. The criterion that this research developed to choose open source ERP software consists of 3 criteria as below.

42 33 1. Easy installation To easy install open source ERP softwares, softwares should have automated installer. The automated installer can start database program and installs open source ERPs together. This installation is convenient to users who have sufficient computer skill. Open source ERP software should install on windows platform because of users get used to use windows. It is convenient use open source ERP software. 2. Can be sever A server is a program that awaits and fulfills requests from client programs in the same or other computers. A given application in a computer may function as a client with requests for services from other programs and also as a server of requests from other programs. Therefore, good open source ERP software should have this feature. Because it is convenient for using various computer in order to teach or work. 3. Easy customization No ERP packages that have enough features and document forms for every enterprise. Therefore, it is necessary to modify the software to be suitable for each enterprise. This cause, enterprise must consider the ability to modify the software. Good open source ERP software should be able to make easy customization. Because general, enterprises have sufficient ability to modify the software. The research summarizes the evaluation results of three open source ERPs (Open ERP, OFBiz and xtuple), considered as community edition (free edition) of three open source ERPs. The evaluation was done according to criteria, presented in table 2. The results of the evaluations were assessed by score on 3, 2 and 1 which mean 3 is good score 2 is average score and 1 is bad score.

43 34 Table 2 Evaluation of three open source ERPs Criteria Open ERP OFBiz xtuple Easy installation Can be sever Yes Yes Yes Updating Cover features and modules on MRP After installation and testing of three open source ERPs (Open ERP, OFBiz and xtuple), the research selects Open ERP is computerized MRP laboratory tool. Since 1. Open ERP Program is small program. Not only use suitable open ERP program for college class but also is an open source program that allows the use without charge. The Open ERP owner of income from consultancy services and customizes programs to users requirement. This program always edits bug and develops program with expert Open ERP developer. 2. Easy installation with automated windows installer. This windows installer combines of Standalone Server, Standalone Client and Client Internet Standalone. Windows installer also include open ERP s database which is the PostgreSQL database server. 3. The program is similar to a program module. Open ERP s feature and module is covered with Material Requirement Planning: MRP. User can uses user s module requirement or user requires the other modules by add on. Easy further development module by downloading module from Open ERP s website or its program. 4. All Open ERP documentations are available online. Users can get access to Open ERP books but also find free support from the Forum or IRC channel. The translation of the software is also managed online so that contributor can

44 35 help improving the quality of the terminologies. So Open ERP has Thai version. 5. Open ERP program is Client-Server. Client-Server is server runs all the time and Client runs on the server. The work of this process allows multiple people work together. Therefore multiple client computers can access the computer server network. The other work process is using one computer in both client and server. 6. Open ERP applications can access permissions of user data in each department. After this research selects open ERP to be tool for doing a computerized production planning laboratory, this research also compares between SAP features and Open ERP features to be able to closely compare with commercial ERP software on features. The criterion is provided by SAP s website in compare features section. There are 10 features used to be criteria which are Finance and Accounting, Human Resources Management, Project Management, Product Development and Manufacturing, Purchasing and Supply Chain Management, Marketing, Sales, Service, Web Channel and Analytics and Standard Reports. Table 3 illustrates comparing features between SAP and Open ERP. The results of the evaluations were assessed by Yes/No logic.

45 36 Table 3 Comparing features between SAP and Open ERP Criteria SAP Open ERP Finance and Accounting YES YES General ledger, accounts receivable, accounts payable, invoice/payables management, financial close and reporting Human Resources Management YES YES Workforce management, Expense management, Talent management and Travel management Project Management YES YES Project and resource management, Project accounting, Sales processing and Project execution Product Development and Manufacturing YES YES Production planning and manufacturing and Quality management Finance and Accounting YES YES General ledger, accounts receivable, accounts payable, invoice/payables management, financial close and reporting Purchasing and Supply Chain Management Procurement, Inventory management and YES YES Warehouse management Marketing YES YES Market information management and Campaign management Sales YES YES Account and contact management and Sales quotation and order management Service YES YES Service contract management Web Channel YES YES Web-enabled sales Analytics and Standard Reports Financial analytics and reports, predefined, Operations analytics and reports, predefined core operations, Operations analytics and reports, predefined extended operations and Workforce analytics and reports, predefined YES YES

46 37 framework 1.3 Compare selected open source ERP s features with MRP system in APICS APICS (The Association for Operations Management) is a not-for-profit international education organization, offering certification programs, training tools and networking opportunities to increase workplace performance. It was founded in 1957 as the American Production and Inventory Control Society, and currently has more than 43,000 individual and corporate members in more than 10,000 companies worldwide. The module Production Planning and Control of APICS is named Traditional Material and Capacity Planning Hierarchy. The research compared Open ERP s features with APICS material requirement planning in order to be closely features of Open ERP to APICS MRP. The comparison flow chart of APICS MRP and Open ERP s features is show in figure 16. The Summary data of APICS Material Requirement Planning and Open ERP features is illuminated in table 4.

47 38 APICS: Material Requirement Planning (MRP) Open ERP: Features Procurements MPS BOM Progressed Purchase Requisitions BOM Gross Requirements Safety stock Progressed Purchase Requisitions Demand Safety stock Inventory Progressed Planned Orders Inventory Net Requirement Calculation Net Requirement Calculation Scrap yield Scheduling Purchase Requisitions Procurement Purchase Requisitions Planned Orders Planned Orders Production Activity and Control Production Activity and Control Figure 16 The comparison flow chart of APICS MRP and Open ERP s features

48 39 Table 4 Summary data of APICS Material Requirement Planning and Open ERP features Summary Data Purpose Input Method Output APICS: Material Requirement Planning (MRP) To produce right item, in the right quantity, at the right time MPS (Gross requirement) Inventory Safety stock Progressed Purchase Requisition Progressed Planned orders Scrap yield BOM Formula : Project Available = Previous + Schedule receipts + Planned order receipts Gross requirement safety stock Net requirements = Negative Project Available Lot size : Fixed, EOQ, lot for lot technique Planned orders Purchase requisition MRP Reports Open ERP: Features To plan sufficient raw material in production and deliver in time to customer requirement Demand Safety stock Progressed Purchase Requisition Formula : Net requirements = Safety stock Inventory onhand + Demand Proposal lot size : Minimum stock rules Planned orders Purchase requisition MRP reports

49 40 2. Develop laboratory instruction on selected open source ERP in order to do laboratory The research makes laboratory instruction on Open ERP program. The purpose is people or students can understand computerized MRP and MRP system in the real world and theory. This research created 2 laboratory instructions which are basic laboratory instruction and advance laboratory instruction. The details of 2 laboratory instructions are as below. 2.1 basic laboratory instruction ABC Corporation produces product F1 for selling. Product F1 consists of Raw material A1 and B1. Product F1 has bill of materials as figure 17. This corporation plans six-week production plan by stating week 45 until week 50. One week later, corporation revises production plan by stating week 46 until week 51 Corporation s planners plan production plan every Friday. This corporation works Monday to Friday in 9:00 to 17:00. This corporation s capacity is 10,000 pieces/week. Initial Inventory F1 is 20,000 Units and B1 is 11,000 Units. F1 1 A1 1 B1 1 Figure 17 Bill of Material of F1 The detail of product and material are described by table as below

50 41 Table 5 Usage Quantity of products Product Quantity Unit of Measure F1 1 Unit A1 1 Unit B1 1 Unit Table 6 Price sell and cost of products Product Price Sell Price Cost F A B Table 7 List of ABC Corporation s partners Name Code Contact Name 1 cus1 A 2 cus2 B 3 cus3 C 4 cus4 D 5 cus5 E 6 cus6 F 7 cus7 G 8 cus8 H 9 cus9 I 10 cus10 J 11 cus11 K 12 cus12 L 13 cus13 M 14 cus14 N 15 cus15 O 16 cus16 P 17 cus17 Q 18 cus18 R 19 cus19 S 20 cus20 T Supplier A1 sa1 John Supplier B1 sb1 Tom

51 42 Table 8 Product s lead time Raw material name Partner Delivery delay (day) A1 Supplier A1 7 B1 Supplier B1 14 Table 9 Product s safety stock Product Name Minimum Quantity Maximum Quantity F A B

52 43 Table 10 Six weeks sales orders of ABC Corporation s 20 customers Week Total This research use Open ERP to generate basic laboratory instruction. The result is MRP time-phased record of product F1 as table 11.

53 44 Table 11 The MRP time-phased record of product F1. F1 Week45 Week46 Week47 Week48 Week49 Week50 Gross requirements 7,500 9,000 11,000 11,500 15,000 3,500 Scheduled receipts Projected 20,000 12,500 3, available balance Net Requirements 0 0 8,000 11,500 15,000 3,500 Plan order receipt 8,000 11,500 15,000 3,500 Plan order releases 8,000 11,500 15,000 3,500 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units and Capacity = pieces/week A1 Week45 Week46 Week47 Week48 Week49 Week50 Gross requirements 8,000 11,500 15,000 3,500 Scheduled receipts Projected available 0 0 1,000 1,000 1,000 1,000 1,000 balance Net Requirements 9,000 11,500 15,000 3,500 Plan order receipt 9,000 11,500 15,000 3,500 Planned order releases 9,000 11,500 15,000 3,500 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 1000 units and Capacity = pieces/week B1 Week45 Week46 Week47 Week48 Week49 Week50 Gross requirements 8,000 11,500 15,000 3,500 Scheduled receipts Projected 11,000 11,000 3,000 1,000 1,000 1,000 1,000 available balance Net Requirements 0 9,500 15,000 3,500 Plan order receipt 9,500 15,000 3,500 Planned order releases 9,500 15,000 3,500 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 1000 units and Capacity = pieces/week

54 Balancing production plan base on customer s due date Students can understand in balancing capacity in order to suitable adjust production planning. This laboratory instruction manual teaches students to adjust production plan and apply over time for work order Adjusting production plan based on due date of customer When production plan has over capacity at some week, planers will adjust production plan based on due date of customer. Planners use data of sales order to adjust production plan based on due date of customer. This data consists of name of customers, amount of orders and due date as show in table 12. This basic laboratory instruction shows example of adjusting production plan based on due date of customer by planners. Planners can see that week 47 and 48 have over capacity. Week 47 has over capacity 6 hours from 40 hours. Week 48 has over capacity 20 hours from 40 hours as show in table 13. In addition, Week 47 has over capacity 1,500 pieces from 10,000 pieces and week 48 has over capacity 5,000 pieces from 10,000 pieces as show in table 14. After planners see production plan, planners choose orders below to adjust production plan based on due date of customer. Order of customer12 at week 48 which orders 1,500 pieces changes to week50. Order of customer6 at week 49 which orders 2,000 pieces changes to week50. Order of customer12 at week 49 which orders 1,000 pieces changes to week50. Order of customer18 at week 49 which orders 1,000 pieces changes to week50. Order of customer20 at week 49 which orders 1,000 pieces changes to week50. After planners adjust production plan based on due date of customer, Planners can get new data of sales order as show in table 15.

55 46 46 Table 12 Amount and due date s sales order of product F1 at week 45 to week 50 before adjusting production plan Week 45 Due date 46 Due date 47 Due date 48 Due date 49 Due date 50 Due date /11/ /11/ /12/ /11/ /11/ /11/ /11/ /11/ /12/ /11/ /11/ /11/ /11/ /11/ /12/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /12/ /11/ /12/ /12/ /11/ /11/ /12/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /12/ /11/ /11/ /11/ /11/ /12/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /12/ /12/ Total

56 47 Table 13 Capacity of F1 Assembly in hours Week Week45 Week46 Week47 Week48 Week49 Week50 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 14 Capacity of F1 Assembly in pieces Week Week45 Week46 Week47 Week48 Week49 Week50 Manufacturing 8,000 11,500 15,000 3,500 demand (pieces) Capacity (pieces) 10,000 10,000 10,000 10,000 10,000 10,000 Capacity remaining (pieces) 10,000 2,000-1,500-5,000 6,500 10,000

57 48 48 Table 15 Amount and due date s sales order of product A1 at week 45 to week 50 after adjusting production plan Week 45 Due date 46 Due date 47 Due date 48 Due date 49 Due date 50 Due date /11/ /11/ /12/ /11/ /11/ /11/ /11/ /11/ /12/ /11/ /11/ /11/ /11/ /11/ /12/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /12/ /11/ , /12/ /11/ /11/ /12/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /12/ /11/ /11/ /11/ /11/ /12/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /12/ /12/10 Total

58 49 So planners can get six-week production capacity that not over capacity as in table 16 and 17. Moreover, planners can get new MRP record as show in table 18. Table 16 Capacity of F1 Assembly in hours Week Week45 Week46 Week47 Week48 Week49 Week50 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 17 Capacity of F1 Assembly in pieces Week Week45 Week46 Week47 Week48 Week49 Week50 Manufacturing 8,000 10,000 10,000 10,000 demand (pieces) Capacity (pieces) 10,000 10,000 10,000 10,000 10,000 10,000 Capacity remaining (pieces) 10,000 2, ,000

59 50 Table 18 The new MRP time-phased record of product F1 F1 Week45 Week46 Week47 Week48 Week49 Week50 Gross requirements 7,500 9,000 11,000 10,000 10,000 10,000 Scheduled receipts Projected 20,000 12,500 3, available balance Net Requirements 0 0 8,000 10,000 10,000 10,000 Plan order receipt 8,000 10,000 10,000 10,000 Planned order releases 8,000 10,000 10,000 10,000 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units and Capacity pieces/week A1 Week45 Week46 Week47 Week48 Week49 Week50 Gross requirements 8,000 10,000 10,000 10,000 Scheduled receipts Projected available 0 0 1,000 1,000 1,000 1,000 1,000 balance Net Requirements 9,000 10,000 10,000 10,000 Plan order receipt 9,000 10,000 10,000 10,000 Planned order releases 9,000 10,000 10,000 10,000 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 1000 units and Capacity pieces/week B1 Week45 Week46 Week47 Week48 Week49 Week50 Gross requirements 8,000 10,000 10,000 10,000 Scheduled receipts Projected 11,000 11,000 3,000 1,000 1,000 1,000 1,000 available balance Net Requirements 0 8,000 10,000 10,000 Plan order receipt 8,000 10,000 10,000 Planned order releases 8,000 10,000 10,000 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 1000 units and Capacity pieces/week

60 Apply over time of work orders When production plan is over capacity of plant, planners can plan production has over time to meet customer s due date. Planners can get MRP record with over time as table 19. Table 19 The MRP time-phased record of product F1 with over time F1 Week45 Week46 Week47 Week48 Week49 Week50 Gross requirements 7,500 9,000 11,000 11,500 15,000 3,500 Scheduled receipts Projected 20,000 12,500 3, available balance Net Requirements 0 0 8,000 11,500 15,000 3,500 Plan order receipt 8,000 11,500 15,000 3,500 Plan order releases 8,000 11,500 15,000 3,500 Amount of over time 6 20 (hours) Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 unit and Capacity pieces/week A1 Week45 Week46 Week47 Week48 Week49 Week50 Gross requirements 8,000 11,500 15,000 3,500 Scheduled receipts Projected available 0 0 1,000 1,000 1,000 1,000 1,000 balance Net Requirements 9,000 11,500 15,000 3,500 Plan order receipt 9,000 11,500 15,000 3,500 Planned order releases 9,000 11,500 15,000 3,500 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 1000 unit and Capacity pieces/week B1 Week45 Week46 Week47 Week48 Week49 Week50 Gross requirements 8,000 11,500 15,000 3,500 Scheduled receipts Projected 11,000 11,000 3,000 1,000 1,000 1,000 1,000 available balance Net Requirements 0 9,500 15,000 3,500 Plan order receipt 9,500 15,000 3,500 Planned order releases 9,500 15,000 3,500 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 1000 unit and Capacity pieces/week

61 Revising production plan When planner can get six-week production plan which start from week 45 to week 50, planner will use this plan to start production. However, production plan is dynamic plan. 1 week later, planner must revise production plan due to more sales orders from customer. Planner plans next six-week production plan which start from week 46 to week 51. After adjusting production plan, planner can get week 46 to week 51 MRP record as show in table 23 with adjusting production plan and table 26 with over time.

62 53 53 Table 20 Amount and due date s sales order of product F1 at week 46 to week 51 before adjusting production plan Week 46 Due date 47 Due date 48 Due date 49 Due date 50 Due date 51 Due date /11/ /12/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /12/ /12/ /11/ /11/ /12/ /11/ /12/ /12/ /11/ /12/ /11/ /12/ /12/ /11/ /12/ /12/ /11/ , /12/ /11/ /11/ /12/ /12/ /11/ /12/ /12/ /11/ /12/ /12/ /11/ /12/ /11/ /12/ /12/ /11/ /11/ /12/ /11/ /12/ /11/ /12/ /12/ /12/10 Total

63 54 Table 21 The MRP time-phased record of product F1 at week 46 to week 51 F1 Week46 Week47 Week48 Week49 Week50 Week51 Gross requirements 9,000 11,000 10,000 10,000 14,000 4,000 Scheduled receipts Projected 12,500 3, available balance Net Requirements 0 8,000 10,000 10,000 14,000 4,000 Plan order receipt 8,000 10,000 10,000 14,000 4,000 Planned order releases 8,000 10,000 10,000 14,000 4,000 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 unit and Capacity pieces/week A1 Week45 Week46 Week47 Week48 Week49 Week50 Week51 Gross 8,000 10,000 10,000 14,000 4,000 requirements Scheduled receipts Projected 0 0 1,000 1,000 1,000 1,000 1,000 1,000 available balance Net 9,000 10,000 10,000 14,000 4,000 Requirements Plan order 9,000 10,000 10,000 14,000 4,000 receipt Planned order 9,000 10,000 10,000 14,000 4,000 releases Lead time = 7 days, Lot size = lot for lot, Safety Stock = 1000 unit and Capacity pieces/week B1 Week45 Week46 Week47 Week48 Week49 Week50 Week51 Gross 8,000 10,000 10,000 14,000 4,000 requirements Scheduled receipts Projected 11,000 11,000 3,000 1,000 1,000 1,000 1,000 available balance Net Requirements 0 8,000 10,000 14,000 4,000 Plan order receipt 8,000 10,000 14,000 4,000 Planned order 8,000 10,000 14,000 4,000 releases Lead time = 14 days, Lot size = lot for lot, Safety Stock = 1000 unit and Capacity pieces/week

64 55 55 Table 22 Amount and due date s sales order of product F1 at week 46 to week 51 after adjusting production plan Week 46 Due date 47 Due date 48 Due date 49 Due date 50 Due date 51 Due date /11/ /12/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /11/ /11/ /12/ /12/ /12/ /11/ /11/ /12/ /11/ /12/ /12/ /11/ /12/ /11/ /12/ /12/ /11/ /12/ /12/ /11/ , /12/ /11/ /11/ /12/ /12/ /11/ /12/ /12/ /11/ /12/ /12/ /11/ /12/ /11/ /12/ /12/ /11/ /11/ /12/ /11/ /12/ /11/ /12/ /12/ /12/10 Total

65 56 Table 23 The MRP time-phased record of product F1 after adjusting production plan F1 Week46 Week47 Week48 Week49 Week50 Week51 Gross requirements 9,000 11,000 10,000 10,000 10,000 8,000 Scheduled receipts Projected 12,500 3, available balance Net Requirements 0 8,000 10,000 10,000 10,000 8,000 Plan order receipt 8,000 10,000 10,000 10,000 8,000 Planned order releases 8,000 10,000 10,000 10,000 8,000 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 unit and Capacity pieces/week A1 Week45 Week46 Week47 Week48 Week49 Week50 Week51 Gross 8,000 10,000 10,000 10,000 8,000 requirements Scheduled receipts Projected 0 0 1,000 1,000 1,000 1,000 1,000 1,000 available balance Net 9,000 10,000 10,000 10,000 8,000 Requirements Plan order receipt 9,000 10,000 10,000 10,000 8,000 Planned order 9,000 10,000 10,000 10,000 8,000 releases Lead time = 7 days, Lot size = lot for lot, Safety Stock = 1000 unit and Capacity pieces/week B1 Week45 Week46 Week47 Week48 Week49 Week50 Week51 Gross 8,000 10,000 10,000 10,000 8,000 requirements Scheduled receipts Projected 11,000 11,000 3,000 1,000 1,000 1,000 1,000 1,000 available balance Net Requirements 0 8,000 10,000 10,000 8,000 Plan order receipt 8,000 10,000 10,000 8,000 Planned order 8,000 10,000 10,000 8,000 releases Lead time = 14 days, Lot size = lot for lot, Safety Stock = 1000 unit and Capacity pieces/week

66 57 Table 24 Capacity of F1 Assembly in hours before adjust production plan Week Week46 Week47 Week48 Week49 Week50 Manufacturing demand 8,000 10,000 10,000 14,000 4,000 (pieces) Capacity (pieces) 10,000 10,000 10,000 10,000 10,000 Capacity remaining (pieces) 2, ,000 6,000 Table 25 Capacity of F1 Assembly in hours after adjust production plan Week Week46 Week47 Week48 Week49 Week50 Manufacturing demand 8,000 10,000 10,000 10,000 8,000 (pieces) Capacity (pieces) 10,000 10,000 10,000 10,000 10,000 Capacity remaining (pieces) 2, ,000

67 58 Table 26 The MRP time-phased record of product F1 with over time F1 Week46 Week47 Week48 Week49 Week50 Week51 Gross requirements 9,000 11,000 10,000 10,000 14,000 4,000 Scheduled receipts Projected available 12,500 3, balance Net Requirements 0 8,000 10,000 10,000 14,000 4,000 Plan order receipt 8,000 10,000 10,000 14,000 4,000 Planned order releases 8,000 10,000 10,000 14,000 4,000 Amount of over time (hours) 16 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 unit and Capacity pieces/week A1 Week45 Week46 Week47 Week48 Week49 Week50 Week51 Gross requirements 8,000 10,000 10,000 14,000 4,000 Scheduled receipts Projected 0 0 1,000 1,000 1,000 1,000 1,000 1,000 available balance Net Requirements 9,000 10,000 10,000 14,000 4,000 Plan order receipt 9,000 10,000 10,000 14,000 4,000 Planned order 9,000 10,000 10,000 14,000 4,000 releases Lead time = 7 days, Lot size = lot for lot, Safety Stock = 1000 unit and Capacity pieces/week B1 Week45 Week46 Week47 Week48 Week49 Week50 Week51 Gross requirements 8,000 10,000 10,000 14,000 4,000 Scheduled receipts Projected 11,000 11,000 3,000 1,000 1,000 1,000 1,000 available balance Net Requirements 0 8,000 10,000 14,000 4,000 Plan order receipt 8,000 10,000 14,000 4,000 Planned order 8,000 10,000 14,000 4,000 releases Lead time = 14 days, Lot size = lot for lot, Safety Stock = 1000 unit and Capacity pieces/week

68 Advance laboratory instruction XYZ Company produces 2 products which are Product A and Product B for selling. Two products structure diagrams as show in figure 18 and 19. This company plans four-week production plan by stating week 45 until week 48. One week later, corporation revises production plan by stating week 46 until week 49. Company s planners plan production plan every Friday. Product A 1 Part A 1 Material 1 2 Material 4 2 Material 3 2 Figure 18 Product A Structure Product B 1 Part Comm 1 2 Part Comm 2 1 Material 1 1 Material 2 1 Material 4 2 Material 5 2 Figure 19 Product B Structure

69 60 XYZ Company s working time is Monday to Friday. Each day works start from 9.00 to The detail of product and material are described by table as below. Table 27 Product A s capacity Work Center Unit/Week WC_ASM 1,000 Table 28 Product B s capacity Work Center Unit/Week WC_ASM 1,000 Table 29 Part A s capacity Work Center Unit/Week WC_A 1,200 Table 30 Part Comm 1 s capacity Work Center Unit/Week WC_COMM 2,000 Table 31 Part Comm 2 s capacity Work Center Unit/Week WC_COMM 1,000 Table 32 List of product s lead time Products Lead Manufacturing Lead Time Time Supplier Lead Time Material Material Material Material Material Part A Part Comm Part Comm Product A Product B 7 5 1

70 61 Table 33 Initial Inventory of products and materials Products Product Initial Inventory (PCE) Product A 0 Product B 0 Part A 1,000 Part Comm 1 3,000 Part Comm 2 2,000 Material 1 1,000 Material 2 1,500 Material 3 1,500 Material 4 2,000 Material 5 1,000 Table 34 Minimum Stock Rules of products and materials Products Minimum Quantity (PCE) Maximum Quantity (PCE) Material Material Material Material Material Part A Part Comm Part Comm Product A Product B 0 100

71 62 Table 35 List of XYZ Company s partners Name Type of Partner s Code Contact Name Partner product Vendor Supplier Material 1, vendermaterial Tom Material Material 2, Material 3, Material 4, Material 5 XYZ Supplier& Product A xyz XYZ Company Company Product B 1 - cus1 A 2 - cus2 B 3 - cus3 C 4 - cus4 D 5 - cus5 E 6 - cus6 F 7 - cus7 G 8 - cus8 H 9 - cus9 I 10 - cus10 J 11 - cus11 K 12 - cus12 L 13 - cus13 M 14 - cus14 N 15 - cus15 O Table 36 List of Products and materials price Product Cost Price Sale price Material ,200 Material ,000 Material Material ,300 Material Part A 500 1,500 Part Comm ,000 Part Comm 2 1,000 2,000 Product A 1,500 5,000 Product B 2,500 8,000

72 63 Table 37 Sales orders Of Product A in week 45 until week 48 Name Week 45 Week 46 Week 47 Week Total Table 38 Sales orders Of Product B in week 45 until week 48 Name Week 45 Week 46 Week 47 Week Total

73 64 64 and B as table 39. This research use Open ERP to generate advance laboratory instruction. The result is MRP time-phased record of product A Table 39 The MRP time-phased record of product A and B at week 45 to week 48 Product A Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 800 1,000 1, Scheduled receipts Projected available balance Net Requirements 900 1,000 1, Plan order receipt 900 1,000 1, Planned order releases 900 1,000 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week Product B Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements , Scheduled receipts Projected available balance Net Requirements 1, , Plan order receipt 1, , Planned order releases 1, , Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week

74 65 65 Part A Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 900 1,000 1, Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 0 1,100 1, Plan order receipt 0 1,100 1, Planned order releases 0 1,100 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 200 units and Capacity = 1,200 pieces/week Part comm 1 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 2,000 1,600 2,600 1,000 Scheduled receipts Projected available balance 3,000 3,000 3,000 1, Net Requirements 0 1,100 2,600 1,000 Plan order receipt 0 1,100 2,600 1,000 Planned order releases 0 1,100 2,600 1,000 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units and Capacity = 2,000 pieces/week Part comm 2 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 1, , Scheduled receipts Projected available balance 2,000 2,000 2,000 1, Net Requirements 0 0 1, Plan order receipt 0 0 1, Planned order releases 0 0 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week

75 66 66 Material 1 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 2,800 2,800 4,300 2,100 Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 2,300 2,800 4,300 2,100 Plan order receipt 2,300 2,800 4,300 2,100 Planned order releases 2,300 2,800 4,300 2,100 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 500 units Material 2 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 1, , Scheduled receipts Projected available balance 1,500 1,500 1, Net Requirements , Plan order receipt , Planned order releases 700 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units Material 3 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 2,200 3,000 1,600 Scheduled receipts Projected available balance 1,500 1,500 1, Net Requirements 1,100 3,000 1,600 Plan order receipt 1,100 3,000 1,600 Planned order releases 1,100 3,000 1,600 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units

76 67 67 Material 4 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 3,500 8,200 3,600 Scheduled receipts Projected available balance 2,000 2,000 2, Net Requirements 2,000 8,200 3,600 Plan order receipt 2,000 8,200 3,600 Planned order releases 2,000 8,200 3,600 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units Material 5 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 2,400 1,000 Scheduled receipts Projected available balance 1,000 1,000 1,000 1, Net Requirements 1,700 1,000 Plan order receipt 1,700 1,000 Planned order releases 1,700 1,000 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 300 units

77 Balancing production plan base on customer s due date Students can understand in balancing capacity in order to suitable adjust production planning. This laboratory instruction manual teaches students to adjust production plan and apply over time for work order Adjusting production plan based on due date of customer Planners use data of sales order to adjust production plan based on due date of customer. This data consists of name of customers, amount of orders and due date of product A as show in table 40 and table 41 for product B. This research shows example of adjusting production plan based on due date of customer by planners. We can see that week 46 of product A and B have over capacity. Week 46 has over capacity 20 hours from 40 hours of product A as table 42. Week 46 has over capacity 12 hours from 40 hours of product B as show in table 44. In addition, Week 46 has over capacity 500 pieces from 1,000 pieces of product A as show in table 43. Week 48 has over capacity 300 pieces from 1,000 pieces of product B as show in table 45. After planners see production plan, planners choose orders below to adjust production plan based on due date of customer. Product A Order of customer2 at week 47 which orders 100 pieces changes to week 48. Order of customer5 at week 47 which orders 200 pieces changes to week 48. Order of customer11 at week 47 which orders 200 pieces changes to week48. Product B Order of customer2 at week 47 which orders 100 pieces changes to week 48. Order of customer5 at week 47 which orders 100 pieces changes to week 48. Order of customer7 at week 47 which orders 100 pieces changes to week 48.

78 69 After planners adjust production plan based on due date of customer, Planners can get new data of sales order as show in table 52 for product A and table 53 for product B. Table 40 Amount and due date s sales order of product A at week 45 to week 48 before adjusting production plan Week 45 Due date 46 Due date 47 Due date 48 Due date /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ Total

79 70 Table 41 Amount and due date s sales order of product B at week 45 to week 48 before adjusting production plan Week 45 Due date 46 Due date 47 Due date 48 Due date /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ Total

80 71 Table 42 Product A s WC_ASM capacity in hours before adjusting production plan Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 43 Product A s WC_ASM capacity in pieces before adjusting production plan Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing 900 1,000 1, demand (pieces) Capacity (pieces) 1,000 1,000 1,000 1,000 1,000 1,000 Capacity remaining (pieces) 1, ,000 Table 44 Product B s WC_ASM capacity in hours before adjusting production plan Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 45 Product B s WC_ASM capacity in pieces before adjusting production plan Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing 1, , demand (pieces) Capacity (pieces) 1,000 1,000 1,000 1,000 1,000 1,000 Capacity remaining (pieces) 1, ,000

81 72 Table 46 Part A s WC_A capacity in hours before adjusting production plan Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 47 Part A s WC_A capacity in pieces before adjusting production plan Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing 1,100 1, demand (pieces) Capacity (pieces) 1,200 1,200 1,200 1,200 1,200 1,200 Capacity remaining (pieces) 1, ,200 1,200 Table 48 Part Comm 1 s WC_COMM capacity in hours before adjusting production plan Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 49 Part Comm 1 s WC_COMM capacity in pieces before adjusting production plan Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing 1,100 2,600 1,000 demand (pieces) Capacity (pieces) 2,000 2,000 2,000 2,000 2,000 2,000 Capacity remaining (pieces) 2, ,000 2,000 2,000

82 73 Table 50 Part Comm 2 s WC_COMM capacity in hours before adjusting production plan Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 51 Part Comm 2 s WC_COMM capacity in pieces before adjusting production plan Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing 1, demand (pieces) Capacity (pieces) 1,000 1,000 1,000 1,000 1,000 1,000 Capacity remaining (pieces) 1,000 1, ,000 1,000

83 74 Table 52 Amount and due date s sales order of product A at week 45 to week 48 after adjusting production plan Week 45 Due date 46 Due date 47 Due date 48 Due date /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ Total

84 75 Table 53 Amount and due date s sales order of product B at week 45 to week 48 after adjusting production plan Week 45 Due date 46 Due date 47 Due date 48 Due date /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ Total After planners change due date s sales orders, planners can get production capacity plan that not over capacity as in table 54 for product A and table 56 for product B. Moreover, planners can get new MRP record as show in table 64.

85 76 Table 54 Product A s WC_ASM capacity in hours Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 55 Product A s WC_ASM capacity in pieces Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing 900 1,000 1, demand (pieces) Capacity (pieces) 1,000 1,000 1,000 1,000 1,000 1,000 Capacity remaining (pieces) 1, ,000 Table 56 Product B s WC_ASM capacity in hours Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 57 Product B s WC_ASM capacity in pieces Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing 1, , demand (pieces) Capacity (pieces) 1,000 1,000 1,000 1,000 1,000 1,000 Capacity remaining (pieces) 1, ,000

86 77 Table 58 Part A s WC_A capacity in hours Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 59 Part A s WC_A capacity in pieces Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing 1,100 1, demand (pieces) Capacity (pieces) 1,200 1,200 1,200 1,200 1,200 1,200 Capacity remaining (pieces) 1, ,200 1,200 Table 60 Part Comm 1 s WC_COMM capacity in hours Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 61 Part Comm 1 s WC_COMM capacity in pieces Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing 1,100 2,000 1,600 demand (pieces) Capacity (pieces) 2,000 2,000 2,000 2,000 2,000 2,000 Capacity remaining (pieces) 2, ,000 2,000

87 78 Table 62 Part Comm 2 s WC_COMM capacity in hours Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 63 Part Comm 2 s WC_COMM capacity in pieces Week Week43 Week44 Week45 Week46 Week47 Week48 Manufacturing demand (pieces) Capacity (pieces) 1,000 1,000 1,000 1,000 1,000 1,000 Capacity remaining (pieces) 1,000 1, ,000 1,000

88 79 79 Table 64 The new MRP time-phased record of product A and B Product A Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 800 1,000 1, Scheduled receipts Projected available balance Net Requirements 900 1,000 1, Plan order receipt 900 1,000 1, Planned order releases 900 1,000 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week Product B Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements , Scheduled receipts Projected available balance Net Requirements 1, , Plan order receipt 1, , Planned order releases 1, , Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week

89 80 80 Part A Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 900 1,000 1, Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 0 1,100 1, Plan order receipt 0 1,100 1, Planned order releases 0 1,100 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 200 units and Capacity = 1,200 pieces/week Part comm 1 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 2,000 1,600 2,000 1,600 Scheduled receipts Projected available balance 3,000 3,000 3,000 1, Net Requirements 0 1,100 2,000 1,600 Plan order receipt 0 1,100 2,000 1,600 Planned order releases 0 1,100 2,000 1,600 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units and Capacity = 2,000 pieces/week Part comm 2 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 1, , Scheduled receipts Projected available balance 2,000 2,000 2,000 1, Net Requirements Plan order receipt Planned order releases Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week

90 Material 1 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 2,800 2,800 3,000 2,600 Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 2,300 2,800 3,000 2,600 Plan order receipt 2,300 2,800 3,000 2,600 Planned order releases 2,300 2,800 3,000 2,600 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 500 units Material 2 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 1, , Scheduled receipts Projected available balance 1,500 1,500 1, Net Requirements , Plan order receipt , Planned order releases 700 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units Material 3 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 2,200 2,000 1,800 Scheduled receipts Projected available balance 1,500 1,500 1, Net Requirements 1,100 2,000 1,800 Plan order receipt 1,100 2,000 1,800 Planned order releases 1,100 2,000 1,800 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units

91 82 82 Material 4 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 3,500 6,000 5,000 Scheduled receipts Projected available balance 2,000 2,000 2, Net Requirements 2,000 6,000 5,000 Plan order receipt 2,000 6,000 5,000 Planned order releases 2,000 6,000 5,000 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units Material 5 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 1,800 1,600 Scheduled receipts Projected available balance 1,000 1,000 1,000 1, Net Requirements 1,100 1,600 Plan order receipt 1,100 1,600 Planned order releases 1,100 1,600 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 300 units

92 Apply over time of work orders When production plan is over capacity of plant, planners can plan production has over time to meet customer s due date. Planners can get MRP record with over time as table 65.

93 84 84 Table 65 The MRP time-phased record of product A and B with over time Product A Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 800 1,000 1, Scheduled receipts Projected available balance Net Requirements 900 1,000 1, Plan order receipt 900 1,000 1, Planned order releases 900 1,000 1, Amount of over time (hours) 20 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week Product B Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements , Scheduled receipts Projected available balance Net Requirements 1, , Plan order receipt 1, , Planned order releases 1, , Amount of over time (hours) 12 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week

94 85 85 Part A Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 900 1,000 1, Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 0 1,100 1, Plan order receipt 0 1,100 1, Planned order releases 0 1,100 1, Amount of over time (hours) 10 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 200 units and Capacity = 1,200 pieces/week Part comm 1 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 2,000 1,600 2,600 1,000 Scheduled receipts Projected available balance 3,000 3,000 3,000 1, Net Requirements 0 1,100 2,600 1,000 Plan order receipt 0 1,100 2,600 1,000 Planned order releases 0 1,100 2,600 1,000 Amount of over time (hours) 12 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units and Capacity = 2,000 pieces/week

95 86 86 Part comm 2 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 1, , Scheduled receipts Projected available balance 2,000 2,000 2,000 1, Net Requirements 0 0 1, Plan order receipt 0 0 1, Planned order releases 0 0 1, Amount of over time (hours) 8 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week Material 1 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 2,800 2,800 4,300 2,100 Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 2,300 2,800 4,300 2,100 Plan order receipt 2,300 2,800 4,300 2,100 Planned order releases 2,300 2,800 4,300 2,100 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 500 units

96 87 87 Material 2 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 1, , Scheduled receipts Projected available balance 1,500 1,500 1, Net Requirements , Plan order receipt , Planned order releases 700 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units Material 3 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 2,200 3,000 1,600 Scheduled receipts Projected available balance 1,500 1,500 1, Net Requirements 1,100 3,000 1,600 Plan order receipt 1,100 3,000 1,600 Planned order releases 1,100 3,000 1,600 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units Material 4 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 3,500 8,200 3,600 Scheduled receipts Projected available balance 2,000 2,000 2, Net Requirements 2,000 8,200 3,600 Plan order receipt 2,000 8,200 3,600 Planned order releases 2,000 8,200 3,600 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units

97 88 88 Material 5 Week42 Week43 Week44 Week45 Week46 Week47 Week48 Gross requirements 2,400 1,000 Scheduled receipts Projected available balance 1,000 1,000 1,000 1, Net Requirements 1,700 1,000 Plan order receipt 1,700 1,000 Planned order releases 1,700 1,000 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 300 units

98 Revising production plan When planner can get four-week production plan which start from week 45 to week 48, planner will use this plan to start production. However, production plan is dynamic plan. 1 week later, planner must revise production plan due to more sales orders from customer. Planner plans next four-week production plan which start from week 46 to week 49. After adjusting production plan, planner can get week 46 to week 49 MRP record as show in table 71 with adjusting production plan and table 77 with over time.

99 90 Table 66 Amount and due date s sales order of product A at week 46 to week 49 before adjusting production plan Week 46 Due date 47 Due date 48 Due date 49 Due date /11/ /11/ /11/ /11/ /12/ /11/ /11/ /11/ /11/ /11/ /11/ /12/ /11/ /11/ /11/ /12/ /11/ /12/ /11/ /11/ /12/ /11/ /12/ /11/ /11/ /11/ /12/ Total

100 91 Table 67 Amount and due date s sales order of product B at week 46 to week 49 before adjusting production plan Week 46 Due date 47 Due date 48 Due date 49 Due date /11/ /11/ /11/ /11/ /12/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /12/ /11/ /12/ /11/ /11/ /11/ /12/ /11/ /12/10 Total

101 92 92 Table 68 The MRP time-phased record of product A and B at week 45 to week 49 before adjusting production plan Product A Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 800 1,000 1,000 1, Scheduled receipts Projected available balance Net Requirements 900 1,000 1,000 1, Plan order receipt 900 1,000 1,000 1, Planned order releases 900 1,000 1,000 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week Product B Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements ,000 1, Scheduled receipts Projected available balance Net Requirements 1, ,000 1, Plan order receipt 1, ,000 1, Planned order releases 1, ,000 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week

102 93 93 Part A Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 900 1,000 1,000 1, Scheduled receipts Projected available balance 1,000 1, Net Requirements 0 1,100 1,000 1, Plan order receipt 0 1,100 1,000 1, Planned order releases 1,100 1,000 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 200 units and Capacity = 1,200 pieces/week Part comm 1 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 2,000 1,600 2,000 2, Scheduled receipts Projected available balance 3,000 3,000 1, Net Requirements 0 1,100 2,000 2, Plan order receipt 0 1,100 2,000 2, Planned order releases 0 1,100 2,000 2, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units and Capacity = 2,000 pieces/week Part comm 2 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 1, ,000 1, Scheduled receipts Projected available balance 2,000 2,000 1, Net Requirements , Plan order receipt , Planned order releases , Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week

103 94 94 Material 1 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 2,800 2,800 3,000 4,000 1,400 Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 2,300 2,800 3,000 4,000 1,400 Plan order receipt 2,300 2,800 3,000 4,000 1,400 Planned order releases 2,800 3,000 4,000 1,400 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 500 units Material 2 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 1, ,000 1, Scheduled receipts Projected available balance 1,500 1, Net Requirements ,000 1, Plan order receipt ,000 1, Planned order releases 700 1,000 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units Material 3 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 2,200 2,000 2,800 1,000 Scheduled receipts Projected available balance 1,500 1, Net Requirements 1,100 2,000 2,800 1,000 Plan order receipt 1,100 2,000 2,800 1,000 Planned order releases 1,100 2,000 2,800 1,000 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units

104 95 95 Material 4 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 3,500 6,000 7,600 2,600 Scheduled receipts Projected available balance 2,000 2, Net Requirements 2,000 6,000 7,600 2,600 Plan order receipt 2,000 6,000 7,600 2,600 Planned order releases 2,000 6,000 7,600 2,600 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units Material 5 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 1,800 2,400 1,600 Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 1,100 2,400 1,600 Plan order receipt 1,100 2,400 1,600 Planned order releases 1,100 2,400 1,600 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 300 units

105 96 Table 69 Amount and due date s sales order of product A at week 46 to week 49 after adjusting production plan Week 46 Due date 47 Due date 48 Due date 49 Due date /11/ /11/ /11/ /11/ /12/ /11/ /11/ /11/ /11/ /11/ /11/ /12/ /11/ /11/ /11/ /12/ /11/ /12/ /11/ /11/ /12/ /11/ /12/ /11/ /11/ /11/ /12/10 Total

106 97 Table 70 Amount and due date s sales order of product B at week 46 to week 49 after adjusting production plan Week 46 Due date 47 Due date 48 Due date 49 Due date /11/ /11/ /11/ /11/ /12/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /11/ /12/ /11/ /12/ /11/ /11/ /11/ /12/ /11/ /12/10 Total

107 98 98 Table 71 The MRP time-phased record of product A and B after adjusting production plan Product A Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 800 1,000 1,000 1, Scheduled receipts Projected available balance Net Requirements 900 1,000 1,000 1, Plan order receipt 900 1,000 1,000 1, Planned order releases 900 1,000 1,000 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week Product B Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements ,000 1, Scheduled receipts Projected available balance Net Requirements 1, ,000 1, Plan order receipt 1, ,000 1, Planned order releases 1, ,000 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week

108 99 99 Part A Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 900 1,000 1,000 1, Scheduled receipts Projected available balance 1,000 1, Net Requirements 0 1,100 1,000 1, Plan order receipt 0 1,100 1,000 1, Planned order releases 1,100 1,000 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 200 units and Capacity = 1,200 pieces/week Part comm 1 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 2,000 1,600 2,000 2,000 1,200 Scheduled receipts Projected available balance 3,000 3,000 1, Net Requirements 0 1,100 2,000 2,000 1,200 Plan order receipt 0 1,100 2,000 2,000 1,200 Planned order releases 0 1,100 2,000 2,000 1,200 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units and Capacity = 2,000 pieces/week Part comm 2 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 1, ,000 1, Scheduled receipts Projected available balance 2,000 2,000 1, Net Requirements , Plan order receipt , Planned order releases , Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week

109 Material 1 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 2,800 2,800 3,000 3,000 2,400 Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 2,300 2,800 3,000 3,000 2,400 Plan order receipt 2,300 2,800 3,000 3,000 2,400 Planned order releases 2,800 3,000 3,000 2,400 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 500 units Material 2 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 1, ,000 1, Scheduled receipts Projected available balance 1,500 1, Net Requirements ,000 1, Plan order receipt ,000 1, Planned order releases 700 1,000 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units Material 3 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 2,200 2,000 2,000 1,800 Scheduled receipts Projected available balance 1,500 1, Net Requirements 1,100 2,000 2,000 1,800 Plan order receipt 1,100 2,000 2,000 1,800 Planned order releases 1,100 2,000 2,000 1,800 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units

110 Material 4 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 3,500 6,000 6,000 4,200 Scheduled receipts Projected available balance 2,000 2, Net Requirements 2,000 6,000 6,000 4,200 Plan order receipt 2,000 6,000 6,000 4,200 Planned order releases 2,000 6,000 6,000 4,200 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units Material 5 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 1,800 2,000 1,200 Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 1,100 2,000 1,200 Plan order receipt 1,100 2,000 1,200 Planned order releases 1,100 2,000 1,200 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 300 units

111 102 Table 72 Product A s WC_ASM capacity in hours Week Week44 Week45 Week46 Week47 Week48 Week49 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 73 Product B s WC_ASM capacity in hours Week Week44 Week45 Week46 Week47 Week48 Week49 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 74 Part A s WC_A capacity in hours Week Week44 Week45 Week46 Week47 Week48 Week49 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours) Table 75 Part Comm 1 s WC_COMM capacity in hours Week Week44 Week45 Week46 Week47 Week48 Week49 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours)

112 103 Table 76 Part Comm 2 s WC_COMM capacity in hours Week Week44 Week45 Week46 Week47 Week48 Week49 Manufacturing demand (hours) Capacity (hours) Capacity remaining (hours)

113 Table 77 The MRP time-phased record of product A and B with over time Product A Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 800 1,000 1,000 1, Scheduled receipts Projected available balance Net Requirements 900 1,000 1,000 1, Plan order receipt 900 1,000 1,000 1, Planned order releases 900 1,000 1,000 1, Amount of over time (hours) 16 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week Product B Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements ,000 1, Scheduled receipts Projected available balance Net Requirements 1, ,000 1, Plan order receipt 1, ,000 1, Planned order releases 1, ,000 1, Amount of over time (hours) 8 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week

114 Part A Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 900 1,000 1,000 1, Scheduled receipts Projected available balance 1,000 1, Net Requirements 0 1,100 1,000 1, Plan order receipt 0 1,100 1,000 1, Planned order releases 1,100 1,000 1, Amount of over time (hours) 6.67 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 200 units and Capacity = 1,200 pieces/week Part comm 1 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 2,000 1,600 2,000 2, Scheduled receipts Projected available balance 3,000 3,000 1, Net Requirements 0 1,100 2,000 2, Plan order receipt 0 1,100 2,000 2, Planned order releases 0 1,100 2,000 2, Amount of over time (hours) 8 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units and Capacity = 2,000 pieces/week

115 Part comm 2 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 1, ,000 1, Scheduled receipts Projected available balance 2,000 2,000 1, Net Requirements , Plan order receipt , Planned order releases , Amount of over time (hours) 8 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 100 units and Capacity = 1,000 pieces/week Material 1 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 2,800 2,800 3,000 4,000 1,400 Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 2,300 2,800 3,000 4,000 1,400 Plan order receipt 2,300 2,800 3,000 4,000 1,400 Planned order releases 2,800 3,000 4,000 1,400 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 500 units

116 Material 2 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 1, ,000 1, Scheduled receipts Projected available balance 1,500 1, Net Requirements ,000 1, Plan order receipt ,000 1, Planned order releases 700 1,000 1, Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units Material 3 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 2,200 2,000 2,800 1,000 Scheduled receipts Projected available balance 1,500 1, Net Requirements 1,100 2,000 2,800 1,000 Plan order receipt 1,100 2,000 2,800 1,000 Planned order releases 1,100 2,000 2,800 1,000 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 400 units

117 Material 4 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 3,500 6,000 7,600 2,600 Scheduled receipts Projected available balance 2,000 2, Net Requirements 2,000 6,000 7,600 2,600 Plan order receipt 2,000 6,000 7,600 2,600 Planned order releases 2,000 6,000 7,600 2,600 Lead time = 7 days, Lot size = lot for lot, Safety Stock = 500 units Material 5 Week43 Week44 Week45 Week46 Week47 Week48 Week49 Gross requirements 1,800 2,400 1,600 Scheduled receipts Projected available balance 1,000 1,000 1, Net Requirements 1,100 2,400 1,600 Plan order receipt 1,100 2,400 1,600 Planned order releases 1,100 2,400 1,600 Lead time = 14 days, Lot size = lot for lot, Safety Stock = 300 units

118 Make a laboratory instruction manual Laboratory instruction manual is important tool for doing laboratory. If laboratory does not have instruction manual, people or students will do not know how to apply Open ERP and computerized MRP. When People or students use Open ERP without direction, it could make causes to people or students confuse during using Open ERP and computerized MRP. Finally, people or students do not understand computerized MRP and MRP system. So this research must develop a laboratory instruction manual for student from undergraduate student in course such as Production Planning and Control: PPC.

119 110 CONCLUSION AND RECOMMENDATION Conclusion Due to failure of ERP system implementation, in academic institutes view, students should study clearly in computerized MRP system. However, commercial ERP software has high cost for purchasing and implementing. It is not worthy to use it. Therefore, this research identifies open source ERP softwares which their functions are similar to commercial ERP package. Open ERP is identified to be a tool that students can study and apply in computerized MRP system. Moreover, the computerized MRP planning process is different than the theoretical one. So this research develops laboratory instructions on open source ERP software. These laboratory instructions are basic laboratory instruction and advance laboratory instruction. Beside laboratory instructions, this research also develops a laboratory instruction manual in order to more understand for using open source ERP software and clearly understand computerized MRP system.

120 111 Recommendation Base on the results of the proposed open source ERP software and the above conclusion, the following recommendations are: 1. Open ERP does not available provides MRP time-phased record report. Students have to write MRP time-phased record by themselves. So Open ERP should provide MRP time-phased record report. 2. In Open ERP, procurement plan does not relate to work order plan due to work order does not has packing list. Therefore, adjusting work order is not links to procurement order. Open ERP should have relationship between procurement plan and work order plan. 3. In Open ERP, every user can imports and exports data in Open ERP even is operators. This function should not permits every user can do it because data is private information.

121 112 LITERATURE CITED D. Aloini, R. Dulmin and V. Mininno Risk management in ERP project introduction: Review of the literature. Information & Management 44 (2007): Anonymous Compiere. Documentation Home. Available Source: June 15, Anonymous About Openbravo. Getting started with Openbravo. Available Source: June 17, 2009 Anonymous SAP ERP. SAP BUSINESS SUITE. Available Source: July 2, 2009 Beheshti, H.M What managers should know about ERP/ERP II. Management Research News Vol. 29 Iss: 4: P. Bingi, M.K. Sharma and J. Godla Critical issues affecting an ERP implementation. Information Systems Management: Boykin, R.F Enterprise resource-planning software: a solution to the return material authorization problem. Computers in Industry Vol. 45: Chen, I.J Planning for ERP systems: analysis and future trend. Business Process Management Journal Vol. 7 No. 5: I.C. Ehie and M. Madsen Identifying critical issues in enterprise resource planning (ERP) implementation. Computers in Industry Vol. 56: P. Hawking, B. McCarthy and A. Stein Second Wave ERP Education. Journal of Information Systems Education Vol. 15(3).

122 113 Herzog, Thomas A Comparison of Open Source ERP Systems. A Comparison of Open Source ERP Systems (MA). Available Source: June 20, B. Johansson and F. Sudzina ERP systems and open source: an initial review and some implications for SMEs. Journal of Enterprise Information Management Vol. 21 No. 6: A.P. Kakouris and G. Polychronopoulos Enterprise Resource Planning (ERP) System: An Effective Tool for Production Management. Management Research News 28(6): S.C.L. Koh, A.Gunasekaran and J.R.Cooper The demand for training and consultancy investment in SME-specific ERP systems implementation and operation. Int. J. Production Economics 122 (2009): R. Malhotra and C. Temponi Critical decisions for ERP integration: Small business issues. International Journal of Information Management Vol. 30: J. Motwani, R. Subramanian and P. Gopalakrishna Critical factors for successful ERP implementation: Exploratory findings from four case studies. Computers in Industry Vol. 56: A. Noudoostbeni, N.A. Ismail, H.S. Jenatabadi and N.M. Yasin An Effective End-User Knowledge Concern Training Method in Enterprise Resource Planning (ERP) Based on Critical Factors (CFs) in Malaysian SMEs. International Journal of Business and Management Vol. 5, No.7. F. Pinckaers and G. Gardiner Open ERP, a modern approach to integrated business management Release 1.0. Open ERP Book. Available Source: June 15, 2009.

123 114 N. Rittammanart, W. Wongyued and M.N. Dailey ERP application development frameworks: Case study and evaluation, pp Electrical Engineering/Electronics, Computer, Telecommunications and Information Technology, ECTI-CON th International Conference. ECTI Association, Krabi, Thailand. J. Sager, J. Mensching, G. Corbitt and J. Connolly Market Power of ERP Education An Investigative Analysis. Journal of Information Systems Education Vol. 17(2): Salimi, F A case Study on Chinese Failure in ERP Implementation. TIIM 2009, Kasetsart University, Bangkok, Thailand. E.M. Shehab, M.W. Sharp, L. Supramaniam and T.A. Spedding Enterprise resource planning An integrative review. Business Process Management Vol. 10 No. 4: Sheikh, Khalid Manufacturing Resource planning (MRP II) with introduction to ERP, SCM and CRM. Tata McGraw-Hill Publishing Company Limited., n.p. Sheldon, Donald H World class master scheduling: best practices and lean Six Sigma continuous improvement. J.Ross Publishing, Inc., Florida. T. Stoilov and K. Stoilova Functional Analysis of Enterprise Resource Planning Systems, the 9th International Conference on Computer Systems and Technologies and Workshop for PhD Students in Computing. ACM International Conference Proceeding Series; Vol. 374, New York. Sumner, M Critical Success Factors in Enterprise Wide Information Management Systems Projects, pp The 1999 ACM SIGCPR conference on Computer personnel research. ACM, New York, USA.

124 115 T.E Vollmann, W.L. Berry, D.C. Whybark and F.R. Jacobs Manufacturing Planning and Control for Supply Chain Management. 5 th ed. The McGraw-Hill Companies, Inc., New York. Wu, H. Lan Cao Community Collaboration for ERP Implementation. Software, IEEE Vol. 26:

125 APPENDIX 116

126 117 Category of core functional areas Financial applications Financial and Management Accounting modules: The Financial and Management Accounting area contains the following account Open ERP porvides a fully integrated accounting module than cover financial accounting, analytic accounting, third party management, taxes management, budgets, assets, etc. Open ERP has more than 50 extra modules for specific accounting features: electronic bank transfers, assets management, automatic invoicing, analytic controls, financial indicators, statements management, etc. Key Points: Multi-company, multi-currencies, multi analytic axes, Real-time consolidation of multiple charts of accounts, Very good ergonomy for fast encoding of entries and invoices, An integrated analytic/cost accounting, Lots of customizables reports. Integration Benefits: Avoid re-encoding everything, all documents are pre-generated, Accountants decisions may have impact on the whole system, Cross reporting with others modules.

127 118 account_analytic_analysis Modify account analytic view to show important data for project manager of services companies. Add menu to show relevant information for each manager. account_analytic_default The analytic accounting is the core of all management modules of Open ERP. It is perfectly integrated with all operations that have a (direct or indirect) cost or revenue. As an example, for services companies, the analytic accounting is used as the financial part of project management. As all tools are integrated, it gives you a full control and automatisation of your company: Plannings are integrated with budgets, Project management is integrated with contracts and affairs managmeent, etc. Key Points: Work with one or multiple analytic plans, About 40+ modules available to integrate best management practices, Nearly all transactions are automated to simplify encodings, etc. Integration Benefits: Fully integrated to all modules of Open ERP, here are the main onces: Timesheets or tasks are analytic costs on projects, Manufacturing operation reports costs on cost centers, Sales, purchases and invoices are also costs on analytic accounts, Holidays, expenses tracking, etc.

128 119 account_analytic_plans This module allows to use several analytic plans, according to the general journal, so that multiple analytic lines are created when the invoice or the entries are confirmed. account_asset For businesses from foundries to pharmaceuticals, tracking a complex fixed asset inventory becomes really easy with Open ERP. Having a good fixed asset module will make you avoid losing millions of dollars each year in tax overpayment, regulatory non-compliance, and inefficiency. Manages your assets easily with Open ERP. This module is fully integrated to the financial and analytic accounting modules for a maximum of power. Key Points: Different methods of costing, IFRS compliant, Integration Benefits: Fully integrated to the financial an analytic accouting modules Track changes on asset from any document in Open ERP account_balance Account Balance Module is an added functionality to the Financial Management module. This module gives you the various options for printing balance sheet. 1. You can compare the balance sheet for different years. 2. You can set the cash or percentage comparison between two years. 3. You can set the referential account for the percentage comparison for particular

129 120 years. 4. You can select periods as an actual date or periods as creation date. 5. You have an option to print the desired report in Landscape format. account_budget The Open ERP budgets module allows you to manage financial and analytic budgets. You can manage the same budgets from three different points of views, according to the user role: Accountant: work on master and consolidated budget Project manager: work on analytic budgets on his projects Department manager: get a consolidated view on budget positions Key-Points: Workflows on budgets (ex: a budget must be validated before launching a project), Three different points of view on the same budgets Analytic and financial budgets integration Mulitple axes Integration benefits: Integrated to purchases, sales, timesheets and expenses notes Analytic budgets are integrated to the project management module account_chart Remove minimal account chart account_coda, account_coda_2_1_d Open ERP support electronic banking and invoicing through different modules. It allows you to communicate automatically with banks to send payment orders and receive bank statements automatically.

130 121 It currently supports CODA (Belgium+Luxemburg), SEPA (New European Standard), BVR/V11/DTA (Switzerland), Check printing (US), EDI (with SAP). Key Points: Payment preparation system (advances, prioritizes, treasury management), Automatic reconciliation of entries Integration Benefits: Fully integrated with accouting so that you never have to encode anything, It prepares the propositions of payments according to purchases, sales, invoices, etc. Visibility of payments from any module: CRM, sales management, etc. account_date_check This module adds a field on journals: "Allows date not in the period".by default, this field is checked. If this field is not checked, the system control that the date is in the period when you create an account entry. Otherwise, it generates an error message: "The date of your account move is not in the defined period! account_followup Modules to automate letters for unpaid invoices, with multi-level recalls. You can define your multiple levels of recall through the menu: Financial Management/Configuration/PaymentTerms/Follow-Ups. Once it's defined, you can automatically prints recall every days through simply clicking on the menu: Financial_Management/Periodical_Processing/Print_Follow-Ups. It will generate a PDF with all the letters according the the different levels of recall defined. You can define different policies for different companies.

131 122 account_invoice_layout This module provides some features to improve the layout of the invoices. It gives you the possibility to order all the lines of an invoice add titles, comment lines, sub total lines draw horizontal lines and put page breaks Moreover, there is one option which allows you to print all the selected invoices with a given special message at the bottom of it. This feature can be very useful for printing your invoices with end-of-year wishes, special punctual conditions. account_payment As to help you to manage your treasury and your payments to suppliers, Open ERP provides tools to help you on the preparation of payments. They support workflows so that you can assign different responsibilities in the process. Key Points: Different roles for encoding payments, approving payments and sending to bank Manage your treasury accross your different bank accounts Multi-Currency management facilities Support electronic bank formats and check printing Integration Benefits: Fully integrated with the accounting system to avoid double encoding, Import and automatic reconciliation when encoding bank statements. account_report Indicators. This module consist Financial and accounting reporting, Fiscal statements and

132 123 account_reporting Report. This module reports Financial and accounting reporting and Balance Sheet account_tax_include Allow the user to work tax included prices. Especially, it is useful for b2c businesses. This module implements the modification on the invoice form. account_voucher India Accounting module includes all the basic requirenment of Basic Accounting, like Bank Payment, Receipt and Cash Payent, Receipt analytic_journal_billing_rate This module allows you to define what the default invoicing rate for a specific journal on a given account is. This is mostly used when a user encodes his timesheet: the values are retrieved and the fields are auto-filled but the possibility to change these values is still available. Obviously if no data has been recorded for the current account, the default value is given as usual by the account data so that this module is perfectly compatible with older configurations. base_iban This module installs the base for IBAN bank accounts.

133 124 board_account This module creates dashboards for accountants that include: List of analytic accounts to close List of uninvoiced quotations List of invoices to confirm Graph of costs to invoice Graph of aged receivables Graph of aged incomes l10n_be This is the base module to manage the accounting chart for Belgium in Open ERP. After installing this module, The Configuration wizard for accounting is launched. We have the account templates which can be helpful to generate Charts of Accounts. On that particular wizard, you will be asked to pass the name of the company, the chart template to follow, the no. of digits to generate the code for your account and Bank account, currency to create Journals. Thus, the pure copy of Chart Template is generated. This is the same wizard that runs from Financial Management/Configuration/Financial Accounting/Financial Accounts/Generate Chart of Accounts from a Chart Template. Wizards provided by this module: Enlist the partners with their related VAT and invoiced amounts.prepares an XML file format.path to access: Financial Management/Reporting/Listing of VAT s. Prepares an XML file for Vat Declaration of the Main company of the User currently Logged in.path to access : Financial Management/Reporting/Listing of VAT s.

134 125 l10n_ch Open ERP. This is the base module to manage the accounting chart for Switzerland in l10n_ch_chart_c2c_pcg Swiss account chart that add also tax template definition. l10n_chart_uk_minimal in Open ERP. This is the base module to manage the accounting chart for United Kingdom l10n_fr This is the module to manage the accounting chart for France in Open ERP. l10n_lu This module installs: the KLUWER Chart of Accounts, the Tax Code Chart for Luxembourg the main taxes used in Luxembourg

135 126 Human Capital Management applications The Human resources applications include the following modules: hr Module is for human resource management. You can manage: Employees and hierarchies Work hours sheets Attendances and sign in/out system hr_attendance This module aims to manage employee's attendances. hr_contract Add all information on the employee form to manage contracts: Martial status, Security number, Place of birth, birth date, etc. You can assign several contracts per employee. hr_expense This module allows you to manage your company s daily expenses. It gives you access to your employees notes fees and give you the right to complete and validate the notes of a period or to refuse them. After validation it creates an invoice for the employee. Employee can encode their own expenses and the validation flow puts it automatically in the accounting after validation of managers.

136 127 Key points: Customizable workflow Validation system included Integration benefits: Allows you to re-invoice expenses to your clients Integrated with financial and analytic accounting for costs control hr_holidays This module s main task is to control the holiday s schedule of your company. It allows employees to requests holidays. Then, managers can review requests for holiday, and control the overall holiday s planning for the company or department. Key points: Validation system included Customizable workflow for validation Support all kinds of leaves (sickness, holidays, paid days, etc.) Calendar view Integration benefits: Integrated to the company calendar Integrated with the payroll system for automatic computation hr_timesheet The timesheet system allows you to record time spent by employees on projects or activities. Its integration with the analytic accounting allows you to manage budgets, planning, costs and rein voicing of human resources. Different working methods are provided according to the need: Sign in/out by projects

137 128 Simple timesheet encoding Full timesheet integrated with attendances and validation process by manager Key Points: Fast encoding of activities on tasks or globally Easy and fast project selection, supporting alerts Fully customizable workflow Multi unit of measure: hours, days, weeks. Integration Benefits: Integrated with analytic accounting for cost control of employee s time on projects Accouting integration to reinvoice based on time spent automatically Integrated with tasks from project management, calendar for meetings Integrated with attendances tracking system to spread worked time on projects hr_timesheet_invoice Module to generate invoices based on costs (human resources, expenses, etc). You can define price lists in analytic account, make some theoretical revenue reports, etc. hr_timesheet_sheet This module help you easily encode and validate timesheet and attendances within the same view. The upper part of the view is for attendances and track (sign in/sign out) events. The lower part is for timesheet. Others tabs contain statistics views to help you analyze your time or the time of your team: Time spent by day (with attendances) Time spent by project

138 129 This module also implement a complete timesheet validation process: Draft sheet Confirmation at the end of the period by the employee Validation by the project manager The validation can be configured in the company: Period size (day, week, month, year) Maximal difference between timesheet and attendances hr_skill Open ERP provides about 20 modules related to human resources management. Some modules will allow you to manage the skills of your employees, you can relate these to the periodical evaluation or the contract. Key Points: Unique skill referential Ability to perform computations on skills Integration Benefits: Integrated with periodical evaluations You can use the portal so that employees can consult their datas idea Sometimes the smallest modules are the most useful ones. The ideas module has been developed in 3 hours. It allows employees to suggest ideas, sorted in different boxes or subjects. Then, people can rate the proposed ideas and discuss on the different points. Key Points: Very simple module to track employees ideas,

139 130 A workflow allows tracking ideas efficiently, A discussion system on ideas, A rating system. Integration Benefits: Integrated with the wiki to easily describe ideas point_of_sale Manage your point of sales directly with Open ERP. It allows you to easily manage all point of sales operations: selling, stock, encashment, invoicing, etc. Key Points: Very easy and complete touch screen interface for end-users Multiple payments systems Support for direct invoicing Support for reimbursements and products exchanges 12 types of supported barcodes Integration Benefits: Integrated with stocks and accounting to avoid double entries Integrated with sales management Fully customizable lunch Open ERP has lots of modules to simplify and automate your daily activities. The lunch module allows tracking employee orders for lunch time, their preferences, the cost of their lunch, etc. It automatically prepares orders for the suppliers and manages employees preferences.

140 131 Key Points: Cost control and amount due per employee if they have to pay their lunch, Automatic orders to suppliers, Consolidation of the requests for the whole company, Cashbox management. Integration Benefits: Linked with invoicing for accounting control analytic_user_function This module allows you to define what the default function of a specific user on a given account is. This is mostly used when a user encodes his timesheet: the values are retrieved and the fields are auto-filled... but the possibility to change these values is still available. Obviously if no data has been recorded for the current account, the default value is given as usual by the employee data so that this module is perfectly compatible with older configurations.

141 132 Operation applications The Logistic applications include the following modules: crm The generic Open ERP Relationship Management system enables a group of people to intelligently and efficiently manage leads, opportunities, tasks, issues, requests, bugs, campaign, claims, etc. It manages key tasks such as communication, identification, prioritization, assignment, resolution and notification. Open ERP ensures that all cases are successfully tracked by users, customers and suppliers. It can automatically send reminders, escalate the request, trigger specific methods and lots of others actions based on your enterprise own rules. Key Points: Automatic incoming and outgoing processing using the mail gateway, A generic and fully customizable system, A configuration wizard to help you setup it as per your requirements. Integration Benefits: Integrated with the enterprise calendars, Integrated with sales, purchases and after-sales services, Get your enterprise processes running through workflows. crm_configuration The fund raising module allows you to manage your fund raising operations. From the searching of investors/donors to the tracking on how the money is used across your different projects and resources.

142 133 Key Points: Independent or part of the association management module, Pre-configured and easy to start with, Lots of dashboards and reporting available. Integration Benefits: Fully integrated with CRM tools: automatic segmentation, report designer, campaign management, gateway, etc. Integrated with analytic accounting to track how the money is used. crm_profiling This module allows users to perform segmentation within partners. It uses the profiles criteria from the earlier segmentation module and improves it. Thanks to the new concept of questionnaire. You can now regroup questions into a questionnaire and directly use it on a partner. It also has been merged with the earlier CRM & SRM segmentation tool because they were overlapping. The menu items related are in "CRM & SRM\Configuration\Segmentations" profile_crm Profile for CRM board_crm_configuration This module implements a dashboard for CRM that includes: My Leads (list) Leads by Stage (graph) My Meetings (list) Sales Pipeline by Stage (graph) My Cases (list) Jobs Tracking (graph)

143 134 board_manufacturing This module creates a dashboard for Manufacturing that includes: List of next production orders List of deliveries (out packing) Graph of work center load List of procurement in exception board_project This module implements a dashboard for project member that includes: List of my open tasks List of my next deadlines List of public notes Graph of my timesheet Graph of my work analysis board_sale This module implements a dashboard for salesman that includes: You open quotations Top 10 sales of the month Cases statistics Graph of sales by product Graph of cases of the month dm and profile_dm The direct marketing modules manages and automatizes the development, execution and monitoring of campaigns across multiple channels. It provides tools to manage offers, campaigns, steps, workflows, etc. The report composition engine allows you to create bulk documents.

144 135 Key Points: Multi-channel: , sms, paper, phone. Barcode support for paper propositions, Configurable Workflows, Offers management, Complete statistics and dashboards, Fast orders encoding. Integration Benefits: Integrated with analytic accounting for cost control Integrated with helpdesk and after-sales services Automatic procurements (purchases, production) on campaigns Integrated with sales and CRM modules example and profile_accounting Open ERP intagrates financial project management allowing you to stay in control of you different activities. It keep track of costs, budgets, automatic invoicing based on tasks achieved, profitability reports, etc. Key Points: Based on the analytic accounting Fully integrated with human resources for cost control Integration Benefits: Planning automatically impacts budgets and treasury Tasks and timesheets are fully integrated Sales orders and tasks control are integrated mrp and profile_manufacturing The manufacturing modules of Open ERP manage all the best-practices concerning manufacturing industries: multilevel BoM and routings, JIT, different

145 136 costs methods available, phantom BoMs, configurable products, workcenter operations, integrates sales forecasts, etc. It supports several methods to automate productions or purchases propositions: MTS/MTO, Master Production Schedule, and Minimum Stock Rules. The scheduler will compute the best proposed planning according to the different constraints on products, customers, orders or workcenters. The production manager will be able to use our Gantt views to organize the different resources or orders. Key Points: Double-entry stock operations for a powerfull traceability, Support all best-practices and standards, Control costs and margins on orders, projects, products, partners, Easy to setup and run. Integration Benefits: Schedule on products, services, sub-contractings Integrated with accounting for automatic transactions Integrated to HR management to get the availability of resources mrp_jit This module allows Just In Time computation of all procurement. If you install this module, you will not have to run the regular procurement scheduler anymore (but you still need to run the minimum order point rule scheduler, or for example let it run daily.) All procurement orders will be processed immediately, which could in some cases entails a small performance impact. It may also increase your stock size because products are reserved as soon as possible and the scheduler time range is not taken into account anymore. In that case, you cannot use priorities any more on the different picking.

146 137 mrp_operations This module adds state, date_start,date_stop in production order operation lines (in the "Workcenters" tab) State: draft, confirm, done, cancel When finishing/confirming,cancelling production orders set all state lines to the according state Create menus: Production Management > All Operations Production Management > All Operations > Operations To Do (state="confirm") Which is a view on "Workcenters" lines in production order, editable tree Add buttons in the form view of production order under workcenter tab: start (set state to confirm), set date_start done (set state to done), set date_stop set to draft (set state to draft) cancel set state to cancel When the production order becomes "ready to produce", operations must become 'confirmed'. When the production order is done, all operations must become done. The field delay is the delay (stop date - start date). So we can compare the theoretic delay and real delay. mrp_repair The aim is to have a complete module to manage all products repairs. The following topics should be covered by this module: Add/remove products in the reparation Impact for stocks Invoicing (products and/or services) Warranty concept

147 138 Repair quotation report Notes for the technician and for the final customer mrp_subpeoduct This module allows you to produce several products from one production order. You can configure sub-products in the bill of material. Without this module: A + B + C -> D With this module: A + B + C -> D + E product Open ERP pricelists are extremely power full and easy to use. They allow you to efficiently manage promotions, customers special prices, segmentations of customers contracts made with customers or suppliers, etc. You can set fixed prices or work by rules to auto-compute prices according to the cost, the date, the currency, the category of product, etc. Key Points: A powerful rule system to allows all kinds of automatic computations Easy or extended mode of work Manages long term and short term contracts and conditions Integration Benefits: Integrated with sales, point of sales, and end of campaign discounts Use them for costs or sales controls

148 139 product_margin Adds a reporting menu in products that computes sales, purchases, margins and others interesting indicators based on invoices. The wizard to launch the report has several options to help you get the data you need. purchase Purchase management enables you to track your supplier s price quotations and convert them into Purchase Orders. Open ERP has several methods of monitoring invoices and tracking the receipt of ordered goods. You can handle partial deliveries in Open ERP, so you can keep track of items that are still to be delivered on your orders, and you can issue reminders automatically. Open ERP s replenishment management rules enable the system to generate draft purchase orders automatically, or you can configure it to run a lean process driven entirely by current production needs. Key points: Purchase tender management, Integrates best practices: MTS / MTO, JIT, MPS, Kanban, Invoices, delivered products and services control. Integration Benefits: Automatic procurement propositions based on different logistics, Perfectly integrated with accounting, stock, manufacturing and project management. profile_service Profile for service companies

149 140 portal The portal module allows you to provide accesses on your system to customers or suppliers. Show only a part of your Open ERP application without developing all modules of your system. It is a useful module to allow customers, partners, suppliers, etc to use your system for particular tasks. Key points: Rights management included to the portal All functionalities of OpenERP can be included into your portail Allow your collaborators to manage your system directly and safely Integration benefits: Every OpenERP feature can be included into your portail Integrated with analytic account management system project Open ERP integrates a powerful multi-level project management system. It allows to manages tasks allocation, short and long term plannings, delegations, etc. It s fully integrated with sales or purchases. Key Points: Dynamic Gantt view to organise projects and tasks Retro-Planning computations Integrates best practices: GTD, Scrum Integration Benefits: Integrated with analytic accounting for financial part Integrated with sales and invoicing to automates tasks Integrated with HR modules for the organisation of the resources

150 141 project_gtd This module implements all concepts defined by the Getting Things Done methodology. This world-wide used methodology is used for personal time management improvement. Getting Things Done (commonly abbreviated as GTD) is an action management method created by David Allen, and described in a book of the same name. GTD rests on the principle that a person needs to move tasks out of the mind by recording them externally. That way, the mind is freed from the job of remembering everything that needs to be done, and can concentrate on actually performing those tasks. event_project This module allows you to create retro planning for managing your events. scrum These modules implement all concepts defined by the scrum project management methodology for IT companies: projects with sprints, product owner, scrum master, sprints reviews, daily meetings, feedbacks, product backlog, sprint backlog, etc. The scrum module allows to easily managing long-term roadmaps, frequent evaluation of works, customers interaction, etc. It provides interesting reports like the burn down chart. The scrum methodology is used by Microsoft and Google to manage all their new products.

151 142 Key Points: All scrum concepts implemented Helps you to keep into control of your development project Integration Benefits: Integrated with project management to manage scrum and non-scrum projects at a central place Integrated with gantt and calendar views base The Open Object engine allows you to customize all actions of the system in a few clicks. You can easily define new objects, modify workflows, change the result of actions, open new windows or reports, etc. Key Points: Full customization of every part of the software without development Integrated with the module recorder to save your customization Integration Benefits: Triggers actions from anywhere: workflows, views, buttons, etc. Use workflow and view designer to adapt screens according to your requirements base_module_quality This module's aim is to check the quality of other modules.it defines a wizard on the list of modules in OpenERP, which allow you to evaluate them on different criteria such as: the respect of OpenERP coding standards, the speed efficiency. This module also provides generic framework to define your own quality test. For further info, coders may take a look into base_module_quality\readme.txt

152 143 WARNING: This module cannot work as a ZIP file, you must unzip it before using it, and otherwise it may crash. base_report_designer OpenOffice. This module adds wizards to import/export documents to be edited in base_contact This module allows you to manage entirely your contacts. It lets you define contacts unrelated to a partner, contacts working at several addresses (possibly for different partners), contacts with possibly different functions for each of its job's addresses base_vat Number. Enable the VAT Number for the partner. Check the validity of that VAT stock This module provides functionality to manage multi-warehouses, multi and structured stock locations. For each warehouse, input location, output location and stock location can be defined. Key Points: Easily create multi-warehouses with locations.

153 144 Thanks to the double entry management, the inventory controlling is powerful and flexible (moves history and planning, stock valuation, robustness faced with Inventory differences, automatic reordering rules, bar code supported, rapid detection of mistakes through double entry system, traceability, so on). Integration Benefits: Keep track of stock moves between warehouses (from where goods are coming in and going out). Integrated with stock module. sale Sales modules allow you to manage and classify your sales orders on a structural and hierarchical system. It gives you the ability to create new orders and to review the existing orders in their various states. Confirmation of an order can triggers delivery of the goods, and invoicing timing is defined by a setting in each individual order. Key points: Get all information needed by the salesman to do his quote in one screen Complete follow-up and control of sales orders, deliveries and invoicing Traceability of all customers operations Integration benefits: Integrated with point of sales Automatic accounting (financial and analytic) entries creation, Integrated with contracts, projects, master production shedule, Integrated with different ecommerce platforms for online selling. Design templates of re-useable offers with the report designer

154 145 tititab_planning This module creates menus as below MPS MPS/Configuration MPS/Configuration/Create MPS Periods MPS/Configuration/MPS Periods MPS/Master Production Schedule MPS/Master Production Schedule/Master Production Schedule MPS/Master Production Schedule/All Work Orders MPS/Master Production Schedule/Workcenter Monitoring In order to students can write MRP record easily, this module provides important data of MRP record. delivery To allows you to add delivery methods in sales orders and packing. You can define your own carrier and delivery grids for prices. When creating invoices from picking, Open ERP is able to add and compute the shipping line. google_map The module adds google map field in partner address so that we can directly open google map from the url widget.

155 146 Cross application modules The Cross application modules include the following modules: calendar This module allows you to get a quick overview of your enterprise calendar. You can link your calendars with lots of other modules: timesheet, project management, tasks, meetings, opportunities, Filtering datas upon a large among of criterias will bring you directly to what you are looking for. Key-points: Multi-users, company, group Powerfull search and filter options Validation system included Integration benefits: All management objects can be viewed as a calendar Linked to all hierarchical company system (overall company, departement, users and so on). document The document management system allows you to store, classify, and search your enterprise s documents. This module provides an FTP access to all your ERP s resources. For a dynamic and efficient classification, the folders structure is provided by other objects. It is very useful to track documents related to projects, products, sales, contracts, etc. Key points: FTP Access for authenticated users, Automatic indexation of PDF, DOC, ODT, SXW, TXT.

156 147 Virtual files and folders to automate any kind of document generation Integration Benefits: Stores automatically ERP reports Automatic classification of resources Shared access rights for DMS and ERP Store s with outlook Plugin warning Open ERP has an integrated alert/warning system. You can configure alerts on any step of any operation. The end-user will receive alerts on different events. We can trigger alerts on the screen or through the internal requests system. It allows showing the right information at the right time for each user. It also simplifies a lot the communication between the different employees of a same company. Key Points: Pre-configured warning module, Configure messages on partners, products, etc. Fully customizable. Integration Benefits: The same alert can be triggered from different operations: sales, invoices, stock deliveries. The alert system is a generic concept that can be used in any module. Board Dashboards give you an overview of all the informations that is important to you on a single page. The menu gives you access to predefined boards for Accounting, Production and Project Management. Unlike most other ERP systems and classic statistically-based systems, Open ERP lets dashboards be provided to all of the system s users, and not just to directors and accountants.

157 148 Key points: Dashboards are dynamic, which enables you to easily navigate around the whole information base. Dashboards are adaptable to the needs of each user and each company. Integration benefits: Users can each have their own dashboard to enable them to manage their own work efficently. board_document This module implements a dashboard for Document. base_report_creator This module allows you to create any statistic report on several objects. It's a SQL query builder and browser for and users. After installing the module, it adds a menu to define custom report in the "Dashboard" menu. base_report_designer OpenOffice. This module adds wizards to import/export documents to be edited in base_setup This module implements a configuration system that helps user to configure the system at the installation of a new database. It allows you to select between a list of profiles to install: Minimal profile Accounting only Services companies

158 149 Manufacturing companies It also asks screens to help easily configure your company, the header and footer, the account chart to install and the language. webmail Open Object integrates a full featured webmail. It allows people to work, manage and read through a single interface containing all services of the company. It s a fully integrated system, with a drag and drop ergonomy and full use of Ajax to faster the application. This is the very first extensible webmail system ever made. With the Open Object view designer, you can customize every interface to fullfill your specific needs and improve your productivity. Key Points: Support for POP, IMAP and SMTP Connects automatically on your existing accounts Integration Benefits: Attach files, report from Open ERP or documents from the DMS. Link any document of the system in your s (sales order to confirm, documents from the project management and etc.) Use the object and view designer to extend the interface to customize according to your needs. A single point of access rights management. Wiki The Open ERP wiki allows you to manage your enterprise s contents using wiki restructured texts. This module provides a collaborative way to manage internal FAQs, quality manuals, technical references, etc.

159 150 Key points: Same formating style than MediaWiki, Any number of wiki groups for different purposes, Detailed history on all pages, Integrated with the document management system. Why you should use the Open ERP integrated wiki than a separate wiki system? Allows links to any document of the system, Uses the access controls of Open ERP for unique access rights management, Use it to describe projects, tasks, products, Integrated with customers portal to provide restricted external accesses, Linked to users processes for quality manuals. To get more information: Basic Wiki Editing Wiki Documentation The Open ERP website Process Open ERP supports technical workflow and also end-users processes. It provides an easy and visual way to manage the different processes of your business and to improve your quality manual. Key Points: Integrated process designer to customize or integrate your methodology, Help the user to understand the globality of the company, Integration Benefits: Integrated to the document management system to provide samples of documents at any step Integrated with workflow to evolve in real time according to the reported document

160 151 Event The event module allows you efficiently organise events and all related tasks: planification, registration tracking, invoicing, attendances, getting the payments, etc. It is completely integrated with the CRM and accounting modules. You can also use the mail gateway to get information requests or registrations directly by . Key Points: calendar view and customer portal to make online registrations, s integration to automatically confirm and send acknowledgements for any registration to an event, automatic invoicing based on registrations. Integration Benefits: Integrated to the project management module for retro-planning of tasks, Integrated to the CRM to sell to track customers and opportunities or invite them the events, Automatic invoicing through the accounting modules. Membership The membership module allows associations to manage their members. From the search of new members to the periodical invoicing of current members. It s linked to the portal module to allow you to provide online access to members on your system: calendar of events, current projects, members lists, etc. Key Points: Free members, fixed price, associated members, price management. Automatic invoicing and propositions Configurable workflow

161 152 Integration Benefits: Integrated with accounting for membership invoicing Integrated to pricelists to provide specific prices for members Integrated with portal to provide access to members Network Open ERP has modules to help you to manage and maintain your IT infrastructure. You can manage your softwares, licences, hardwares, waranties and control interventions on the different components. Each components can be linked together to design your network infrastructure. Key Points: Manages networks, hardwares and softwares Track changes and interventions on components Integration Benefits: Install the module in three clicks Access controls related to users rights audit trail To allows the administrator to track every user operations on all objects of the system. Subscribe Rules for read, write, create and delete on objects and check logs.

162 153 Corporate Services applications applications: The Openerp s industry solution applications contain the following Openerp s industry solution for Auction The auction house profile contains all you need to manage an auction house. It allows you to manage objects and sellers, bids and buyers, to set-up exhibitions, to generate catalogs. It is integrated with the other modules of Open ERP providing automatic invoicing, cost control using timesheets, etc. Key Points: Manages all operations of an auction house Fully integrated and very complete Integration Benefits: Integrated with accounting and invoicing Integrated with human resources modules Links: Module: profile_auction,auction Openerp s industry solution for Medical Medical provides an universal Electronic Medical Record (EMR), so doctors and institutions all over the world, independently of their economic status, will benefit from a centralized, high quality, secure and scalable system. Key Points: 100% paperless patient examination and history taking Patient Administration (creation, evaluations / consultations, history)

163 154 Strong focus in family medicine and Primary Health Care Doctor Administration Lab Administration Medicine / Drugs information (vademécum) Medical stock and supply chain management Demographics and other statistical reports Financial Administration (Invoicing and so on). Designed with industry standards in mind Openerp s industry solution for Trainings organization Open ERP is used by one of the most prestigious training organisation in France: l ENA (Ecole Nationaled Administration). Open ERP provides different module to organise trainings: resources management (classes), teachers,planning, training material, etc. Key Points: Portal for teachers and students A dynamic gantt view to planify resources Fits all needs of a training organization Integration Benefits: Integrated with document management system for training material Based on analytic accounting to manage costs and revenues per course Integrated with invoicing, sales, CRM, etc. Openerp s industry solution for Chambers of Commerce Open ERP is used by 50% of the Chambers of Commerce of Belgium. More than 10 modules are available for this specific business: advances CRM, contact management, membership management, training and conferences organisation, embassy folders, etc.

164 155 Key Points: Very complete About 10 optionnal modules Integration Benefits: Integration with accounting to provide invoicing automation Integration with the CRM for a global overview Integration with the document management system Openerp s industry solution for Food industries Open ERP provides different modules for food industries companies. It is able to manage a full traceability of the products, from the supplier to the customer, including specific datas on each lot. The master production schedule allows a accurate tuning of your automatic procurements. Key Points: Master Production Schedule for accurate planification of procurements Upstream and downstream graphical traceability Lot management system adapted to food industries Management of consumables Integration Benefits: Sales triggers validity dates on lots, Traceability from purchases to sales Openerp s industry solution for Book stores Open ERP provides modules that configure automatically the system for a book store company. It allows to manages books, authors, editors and suppliers. It manages barcodes and sales from the website, from a point of sale, by quotation or phone.

165 156 Key Points: Integrates all the needs of a book store Ready to use, out-of-the-box. Integration Benefits: Integrated with invoicing and accounting Integrated with Joomla website Links: Module : bookstore E-Commerce application modules The E-Commerce application modules include the following modules: Ecommerce Open ERP provides modules to synchronise automatically with all main open source ecommerce systems: OSCommerce, ezpublish, Magento, Joomla. It allows you to streamline and automate the sales process, from the online order to the delivery and the invoicing. In order to benefit from all the power of Open ERP (pricelists management, complex taxes, warehouse integration, etc.), you can also use our own ecommerce system that automatically plugs in an existing website. Add a few lines of HTML in your website and Open ERP turns it as a full featured ecommerce platform. Key Points: Portal access for customers to manage their accounts and orders, Integrated with most popular ecommerce or builtin existing module Integration Benefits: Streamline your sales process, from the website to the delivery Effective stock visibility and customer special prices computations

166 157 Take benefit of marketing campaigns and CRM integration to increase your sales Links: Module: ecommerce Edi The Open Object framework provides lots of tools to help you synchronise your databases or import new data in Open ERP. Tools dedicated to some software (ecommerce, crm, etc.) are also provided. The EDI module allows you to synchronise orders and deliveries with you suppliers and customers. It is used to synchronise Open ERP with SAP in distributions and food industries companies. Key Points: Operationnal in a few clicks On module to synchronise different documents: Sales orders, purchases, deliveries, etc. Links: Module : edi