Class A ERP Implementation Integrating Lean and Six Sigma

by Sheldon, Donald

• ISBN13: 9781932159349
• ISBN10: 1932159347
• Format: Hardcover
• Copyright: 2005-05-01
• Publisher: J. Ross Publishing
• More Book Details

Summary

Class A ERP is often misunderstood and confused with software tools and implementations but is actually management system for continuous improvement. This book will resolve these myths by thoroughly describing the definition of Class A ERP and giving specifics for achieving Class A performance in a reasonable timeframe. Examples from successes will be referenced to and the author will build a case for breaking the journey to world-class performance into bite-sized, doable focus areas. Class A ERP Implementation will help organisations set the stage for maximum effectiveness of both Lean strategies and Six Sigma and establish ERP disciplines as the prerequisite to success.

Author Biography

Donald H. Sheldon is president of DH Sheldon & Associates, an international consulting firm headquartered in New York. As a practitioner, this leading expert previously served as Director and General Manager of The Raymond Corporation's Worldwide Aftermarket Services Division and as Vice President of Global Quality and Six Sigma Services for the NCR Corporation. Prior to forming his own firm, Mr. Sheldon was Vice President for BUKER, Inc, of Chicago, a world-recognized leader in management education and consulting. He has been published in numerous magazines and journals and is author of the book Achieving Inventory Accuracy and was co-author of The Road to Class A Manufacturing Resource Planning (MPR II). He has been a frequent speaker at colleges, international conventions and seminars and he is certified by APICS as CFPIM (Certified Fellow in Production and Inventory Management) and as CIRM (Certified in Resource Management).

Table of Contents

Preface	xi
About the Author	xiii
Acknowledgments	xv
About APICS	xvii
Web Added Value™	xix
Chapter 1. What Is ERP?	1	(16)
Top-Management Planning	2	(2)
Master Production Scheduling and Materials Management	4	(3)
Data Accuracy	7	(1)
Bill of Material Accuracy	7	(1)
Inventory Balance Accuracy	8	(2)
Integration with Lean and Six Sigma	10	(2)
ERP as the Starting Point	12	(5)
Chapter 2. Class A ERP Performance	17	(16)
Material Requirements Planning	17	(1)
Manufacturing Resource Planning	18	(6)
The Class A ERP Standard of Today	24	(3)
Class A ERP Certification	27	(4)
Summary	31	(2)
Chapter 3. Business Planning	33	(22)
Business Imperatives	36	(1)
Top-Level Management Systems	37	(1)
Tricks in Building the Right Business Plan	38	(1)
Financial Objectives Planning	38	(2)
Internal Business Process	40	(2)
Learning and Growth	42	(2)
Customer Influences on Business Imperative Choices	44	(1)
Supply Chain Influences on Business Imperative Choices	45	(1)
Technology Affecting Business Imperative Decisions	46	(1)
How Many Business Imperatives Should You End Up With?	47	(1)
Linking the Financial Plans with the S&OP Process	48	(1)
Product Planning in Class A ERP	49	(1)
The Class A Measurement for Business Planning	49	(2)
Talent Review	51	(1)
Process Ownership of the Business Plan	52	(1)
Summary	52	(3)
Chapter 4. Sales and Marketing Planning: Creating the Demand Plan	55	(16)
Business Planning as an Input to Demand Planning	56	(1)
Marketing Plans as an Input to Demand Planning	57	(2)
Sales Planning as an Input to Demand Planning	59	(2)
Historical Inputs to the Demand Planning Process	61	(1)
Understanding the Outputs of Demand Planning	62	(1)
The Weekly Demand Review	62	(3)
Process Ownership in the Demand Plan	65	(1)
The Measurement Process for the Class A Demand Plan	66	(5)
Chapter 5. Operations Planning	71	(16)
Product Families	74	(2)
Elements of Operations Planning	76	(11)
Chapter 6. Sales and Operations Planning	87	(16)
Participants to the S&OP and Their Roles in Larger Multiplant Environment	89	(2)
Some Thoughts on Alternative Labels for S&OP	91	(1)
Roles in the S&OP Meeting	91	(3)
Timing for the S&OP Process and the "Monthly Closing of the Books"	94	(2)
Agenda for the Pre-S&OP	96	(2)
The Spreadsheets for Both the Pre-S&OP and the S&OP Processes	98	(1)
Summary: Keys to the Success of the S&OP Process	99	(4)
Chapter 7. Master Scheduling	103	(24)
The Master Production Schedule	103	(5)
Capacity Planning in the Master Production Schedule	108	(6)
Rules for Level Loading	114	(1)
Linking to the Operations Plan	115	(4)
Master Scheduler's Role	119	(2)
Master Scheduling Metrics	121	(2)
Management Systems Requirements	123	(2)
Process Ownership	125	(2)
Chapter 8. Class A ERP Material Planning	127	(12)
Order Policy Decisions	129	(2)
ABC Stratification	131	(1)
Process Ownership in Material Planning	131	(1)
Material Planning Metrics	132	(1)
Integration with Lean and Six Sigma	132	(2)
Running the Net-Change Calculation	134	(2)
Inventory Management	136	(3)
Chapter 9. Class A ERP Data Accuracy Requirements	139	(20)
Inventory Location Balance Accuracy	139	(1)
Inventory as an Asset	140	(1)
Allowing the Elimination of Buffer Inventory	140	(1)
Control Groups	141	(7)
Physical Inventory	148	(1)
Eliminating the Physical Inventory Forever	148	(1)
Process Owner of Inventory Accuracy	149	(1)
Inventory Accuracy Metrics	150	(1)
Bill of Material and Routing Record Accuracy	151	(7)
Summary	158	(1)
Chapter 10. Class A ERP Procurement Process	159	(16)
Why Develop Partnerships with Suppliers?	161	(1)
Selecting Suppliers for Partnerships	162	(3)
Implementing Supplier Partnerships	165	(2)
Aligning the Sales and Operations Planning Processes	167	(1)
Information Sharing	168	(1)
A Word About Reverse Auctions	168	(1)
Logistics as a Competitive Advantage	169	(1)
Supplier Performance Ratings and Certification	170	(2)
Integration of Lean and Six Sigma in Procurement	172	(1)
Process Ownership in Procurement	172	(1)
Class A Metrics in Procurement	173	(2)
Chapter 11. Shop Floor Control	175	(26)
Communicating the Schedule to the Factory	177	(2)
The Role of Material Requirements Planning	179	(1)
Functional Manufacturing Versus Process Flow	180	(3)
Dealing with the Word "Can't"	183	(1)
Setup/Changeover Reduction	184	(2)
Customer-Focused Six Sigma Quality	186	(2)
Employee Involvement	188	(1)
Team Planning and Management	189	(3)
Kaizen Events on the Factory Floor	192	(2)
Areas of Waste	194	(1)
5-S Housekeeping and Workplace Organization	195	(1)
Simple Problem-Solving Tools	196	(1)
Process Owners for Shop Floor Control	197	(1)
The Metrics in Shop Floor Control	198	(1)
First-Time Quality	199	(1)
Safety	200	(1)
Chapter 12. Customer Service	201	(6)
Rules of Engagement	203	(1)
Customer Service Exceptions	204	(1)
Deliver on Time or Ship on Time	204	(1)
Process Ownership for Customer Service	205	(1)
The Metric for Customer Service	206	(1)
Shipping Ahead of the Promise Date	206	(1)
Chapter 13. Class A ERP Project Management/Six Sigma Process Integration	207	(12)
Class A Project Management	208	(1)
Lean-Focused Project Management	209	(3)
Six Sigma-Focused Project Management	212	(3)
Defects	215	(1)
Project Management Structure	215	(4)
Chapter 14. Class A ERP Management System	219	(12)
Weekly Performance Review	220	(4)
Clear-to-Build	224	(1)
Weekly Project Review	224	(1)
Daily Management System Events	224	(5)
Other Management Systems in the Business	229	(2)
Chapter 15. Education and Training	231	(14)
Class A ERP Education	231	(3)
Training Requirements	234	(9)
DVD Education for ERP	243	(2)
Chapter 16. Class A ERP Performance Metrics	245	(8)
Barometric and Diagnostic Measures	245	(4)
Starting the Metric Process in Class A	249	(1)
Weekly Performance Review	250	(1)
Posting the Metrics	250	(3)
Chapter 17. A Word About ERP Software	253	(4)
Chapter 18. Class A ERP Implementation	257	(10)
Steps for Successful Class A ERP Implementation	257	(8)
Summary	265	(2)
Chapter 19. Class A ERP Integration with Lean and Six Sigma	267	(14)
Best-in-Class Lean	267	(4)
Lean Tools	271	(2)
Customer-Focused Quality (Six Sigma)	273	(5)
Other Six Sigma Tools	278	(3)
Chapter 20. The Role of Consultants in Class A ERP	281	(4)
Payback	282	(3)
Appendix A. Summary of Class A ERP Certification Criteria	285	(7)
Appendix B. Steps for Successful Class A ERP Implementation	292	(1)
Index	293