erp emulator to conduct (mosimtec)€¢ economic order quantity • dynamic lot-sizing •...
TRANSCRIPT
AnyLogic Conference
This document is intended for the exclusive use of the parties herein and cannot be copied or shared with other parties without the express written permission of MOSIMTEC, LLC
ERP Emulator to Conduct
Supply Chain Diagnostics
Agenda
Who is MOSIMTEC
What is ERP?
What is MRP & MRPII?
Shortcomings of ERP
Shortcomings of Planning & Assessing
Significance of ERP Emulator
Architecture & Constructs
Application
Other Use Cases
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Headquarters in Washington, D.C.
Focus on modeling, simulation & data management
Provide data analytics and visualization, consulting, advisory services, software sales, support & training
Extensive experience in multiple industries
Industry partner of Virginia Modeling, Analysis and Simulation Center (VMASC)
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Helping industry to make informed decisions by applying Modeling and Simulation Technology
What is ERP?
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Human Resource
Financial Resource
Business Intelligence
Manufacturing
Maintenance
Project Management
Logistics
Inventory
E-commerce
CRM
Sales & Marketing
Customer Supply Chain
Admin, Finance,
AccountingProduction
*Layout derived from ERP prezi by Rania Hamdy
ERP
Input Output
What is MRP & MRPII?
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Customer Orders
Sales Forecast
BoM
Master Production Schedule
Material Requirements
Planning
Purchase Orders
Material Plan
Work Orders
Reports
• Economic Order Quantity• Dynamic Lot-Sizing• Silver-Medal Heuristic• Least-Unit-Cost Heuristic• …
𝑓 𝑥 = ?
Inventory Control
ERP & MRP Shortcomings
Assumption of unlimited capacity of resources
Non-stochastic
Fixed Lead-time
Fixed Routing – alternative routings during unplanned events
Overall inflexible because it is designed as for transactional bookkeeping purposes, not dynamic planning
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How ERP is Used for Planning
Master Planning
Integrated Planning
Detailed Planning
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• Silo’d preparation• Different goals• Level of detail
Shortcomings of ERP Planning
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Variability
1. Product lines2. Unstable process3. Changes in learnings
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Buffer1
200 180
Constraint
200 180
Buffer2WC1 WC2 WC4 WC5
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Buffer1
200 180
Constraint
80 180
Buffer2WC1 WC2 WC3 WC5
Simulation as an ERP Emulator
* The “Digital Twin” identified as one of Gartner’s Top 10 Strategic Technologies for 2017
Better decisions.
What-if scenarios.
Systems view.
Risk mitigation tool.
Counter-intuitive effects.
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Information is Money
Order Algorithms
Location1
Emulation Architecture
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Hot Tender Planned Order
Production Order
Purchase Order
Tender WinApproval
All Material Available
Make or
BuySales Order
Design Complete
All Production Orders
CompleteProduction OrderProduction Order
Purchase OrderPurchase Order
Quotation Order Entry Engineering Logistics Production Planning
Location2
Sales Order
Location3
Sales OrderSales
OrderSales OrderSales
OrderSales Order
Planning Algorithms
Production Algorithms
Customer Specific Application
Rebalancing of the production locations
Service Level Agreements validation
Testing staffing levels
Learning curves and productivity levels
MRP reorder algorithms
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Entire Supply ChainProduction SystemManufacturing LineEquipment
OR?AND?WHY?
ERP/MRP Emulator Constructs
Processing Times
Supplier Lead Times Buffer Sizes
Equipment Downtime
Safety Stock Logic
Routing Logic
Safety Lead Time
Product Types
Quality Settings
Lot Sizing Quantity
Lot Sizing Rules
Demand
Conveyor Speeds
Carrying Costs
Transport Costs
NPV
Throughput
Capacity
Utilization Costs
Revenue
Net Income
ROI
IRR
Inputs
Statistics Financials Investment
(Derivatives)
Parameters Logic Data
Outputs
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Why AnyLogic?Instantiate Locations Instantiate Parts & BoM
Instantiate Production
User Defined Interface
Instantiate Statistics
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Select OptimizationOr Heuristic
Use Case Possibilities
Strategic Planning & Analysis (2 to 5 years) Capacity PlanningRisk MitigationBusiness Continuity Planning
Tactical (6 to 24 months)Demand fluctuationsSupplier Material shortagesDepartmental Alignment – “Getting all to communicate and have better understanding of decisions”
Operational (1 to 12 weeks)Resource planning: personnel, equipment, vehiclesFinished Products Delivered Late (FPDL)Daily production planning covering 2 to 5 weeks of activity
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S&OP / IBP
Possibilities of Industry 4.0
Simulation Software ERP Software
Fixed Data- Work Centers- Routing Data- Setup Times- Process Times- Fixed Capacities
Dynamic Data- Shift Schedules- Preventive Maintenance- Labor Capacity
Lead Time
Moon, Y., Phatak, D.(2005) Enhancing ERP system’s functionality with discrete event simulation, Industrial Management & Data Systems, 105(9), 1206-1224
Parameters
Framework for Determining Production Lead Time
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