Production environment of push-pull theory

The full name of ERP is enterprise resource planning, which is called enterprise resource planning in Chinese.

JIT, full name Just In Time, is called lean production in Chinese

Let's talk about the application of JIT production in ERP.

All manufacturing enterprises are marching towards world-class manufacturing enterprises, and JIT production is the dream of enterprises. In many successful enterprises that use ERP, they are thinking about how to reach the level of JIT to meet the changing needs of customers and global competition. Batch manufacturing has not adapted to the changing demand, and the manufacturing process is more complex and needs optimization, which leads to the need for demand-driven production, flexible definition of production line, mixed-flow production, electronic kanban drive, automatic recoil, online quality inspection and automatic generation of purchase orders.

ERP also provides order-based management for standard products and customized products, such as ETO, ATO, MTO and MTS engineering projects, new product development or traditional production orders based on production activities. No matter which stage you are implementing JIT-from the beginning of planning to the full implementation of JIT, ERP can effectively help enterprises implement JIT and eliminate all waste. Implementing JIT is to define waste products in a planned way, continuously improve productivity, and aim at zero inventory, that is, only have inventory when necessary, eliminate unqualified products through TQC, and shorten lead time by reducing preparation time, queuing time and batch size through IE.

Many ERP systems have different descriptions of JIT. Such as flow manufacturing, demand flow manufacturing, continuous flow manufacturing, just-in-time manufacturing, flexible manufacturing and manufacturing reengineering. In fact, they are the same as JIT management concept.

In ERP system, as long as the customer order is entered and the delivery is recorded, the customer demand can be quickly reflected, and electronic kanban can be used to generate related procurement, production and delivery. ERP system provides JIT environment support from product design, demand management, procurement, production management and cost management.

However, some basic theories should be changed. For example, MRP adopts the plan push technology, which needs to set the lead time and batch number in advance, and needs a certain WIP inventory to buffer the delay caused by advance planning. JIT uses demand-driven technology, from dependence prediction to dependence on customer demand changes, from batch concept to assembly line, from repetitive production to mixing.

Changes in product manufacturing, batch inspection to online inspection, MRP replenishment to JIT kanban replenishment, production orders to daily output, and versatile personnel.

How to establish logistics in line with JIT environment

In order to implement JIT better, you must optimize the layout of your production line. That is, assembly line operation, the design of assembly line is considered as S-type or U-type, which increases the flexibility of layout and shortens the transportation time as much as possible. The continuity of the supply chain is from supply to dealers and customers. The production line should consider the capacity balance of mixed mode, that is, leveling and leveling.

By flattening BOM with virtual logic of ERP, JIT can eliminate loss rate and reduce lead time deviation, which is reflected in BOM and process flow. Reduce unnecessary intermediate inventory. The design of manufacturing cell is to establish a product-centered assembly line and gradually change the layout and technology. The emphasis is on dressing time (preparation time). ERP provides a powerful resource list BOR to handle assembly line manufacturing, and each resource can reflect a manufacturing unit, an assembly line or a group of people and equipment. Productivity and cost structure. Use the imaginative logic of ERP to embody the new process layout, improve the process and eliminate the preparation (dressing) time.

ERP is used to define the BOM of product family series or the customized BOM of product family series with optional characteristics. The bill of materials of these plans can be broken down according to percentages and appropriate product combinations.

How to manage JIT-compliant demand management

Some enterprises are the production environment of BTO (make to order). ERP provides simple customer order entry and delivery. You can configure customers' unique customization requirements, and you can also support standard products oriented to forecast or forecast-driven procurement, while customer orders drive production orders. EDI and WEB technology can be used to automatically process forecasts and customer orders.

By setting the planning time fence and demand time fence, you can handle whether to pull demand according to forecast, MPS to pull assembly plan, or forecast to pull procurement with long lead time, and actual order to pull production order. The daily output plan of multi-variety mixed drum type and pipeline scheduling is used for forecasting or MPS, supplemented by RCCP rough capacity planning analysis.

How to manage JIT-compliant procurement process

Replenish the required materials with ERP package purchase orders and kanban. Materials can be sent directly to the workshop warehouse or the main warehouse. Generate kanban for packaging purchase order and make paperless payment. Form a strategic alliance with suppliers, and make supplier scheduling and external processing plan.

You may feel that the planning parameters of ERP conflict with the objectives of JIT. In fact, increasing the parameters of batch order days and planning more inventory can be improved.

In fact, the goal of batch day and JIT goal are not contradictory. This is a feasible way to help you achieve JIT goals. Most enterprises realize JIT by simply changing MRP parameters to increase the frequency of placing orders. This change requires a lot of work in production control and procurement. In fact, it is unrealistic to carry out kanban management on thousands or tens of thousands of materials in the company, or materials with long lead time, such as imported procurement.