Basic ERP--four quantity of material

Basic ERP--four quantity of material

In the analysis of manufacturing management problems, if you can borrow some of the concepts used in ERP, it will be very simple and clear.

I think that one point that Mr. Liu Chenggang has repeatedly stressed is very useful, to the effect that anyone based on existing knowledge and experience is not able to solve the problem he is facing, only after acquiring new knowledge and experience, standing at a new level to look at the original problem, to have a new understanding, And find a better answer.

The ancients also stressed that learning without thinking is not the case, thinking and not learning is dangerous. The meaning of the preceding sentence is that there will be too much confusion in learning without thinking. Knowledge is only a potential strength, learning if not thinking, not good to use, and not learning is the same. The meaning of the latter sentence is that it is not as effective as taking time to study. When I was a child learning the text, not much feeling, now think of it, the sages are really powerful.

Below I will use two articles to introduce the concept of material four in ERP, master the concept of these four quantities, is our next step to analyze the basis of the problem, but also we learn the principle of ERP, good material Management Core Foundation.

We know that any material from upstream suppliers, through our enterprise, and then reach the hands of customers, in the middle of the need to pass a lot of links, then how the ERP is the different aspects of the material management? Mainly by giving the material set four basic quantity, these four quantities are in the hand quantity, in transit quantity, the allocation quantity, also has one is the usable quantity . Different ERP systems may not have the same name, but the management implications are certainly the same.

The following is an explanation of the management implications of these four volumes.

The first, in the hand volume. The so-called in hand volume, is now in the number of warehouses.

For example, we now go into the warehouse, found that there are 200 A1 placed on the shelves, this 200 is A1 in this warehouse in the hand volume. If the workshop took 50, then the A1 in the hand amount will become 150. What we usually say about inventory accounts, or inventory statements, actually records the amount of material in hand. Hanging on the shelves above the material next to the card, the record is also the amount of material in the hand, we inventory is also counted the material in the hand volume.

Second, in-transit volume. The so-called in-transit volume, is the order has been issued but not the number of storage.

For in-transit quantities, there are two kinds of situations to discuss:

The first is the amount of raw materials in transit. is the number of purchase orders that have been issued but have not yet arrived. For example, we give the raw materials A1 a purchase order, the order quantity is 100, then from the start of the order to the first time to receive the storage between the time, A1 in-Transit volume is 100. Of course, it is assumed that all the purchase orders before A1 have been received, otherwise it should be an accumulation. If the first supplier delivered 30, then the A1 in transit will become 70.

Second, the quantity of semi-finished products and finished goods in transit. Is the production order has been issued, but still in the production process, has not finished the quantity, and the amount of raw materials in transit means the same.

Third, the amount of allocation. The so-called allocation is that the order has been issued but not the number of out of the library.

The amount of allocation is also discussed in two ways:

First, the production of the distribution of finished goods. Is the sales contract has been signed, but there is no delivery of the number of the library. For example, the sales department today signed a product a list, the number is 50, then a distribution is 50, or added 50. If we had 20 deliveries for the first time, then the distribution of product a will become 30.

Second, the distribution of raw materials and semi-finished products. Once the production department has issued a production order, then all the raw materials and semi-finished products required to complete this order are allocated to it, so the amount of the raw material and semi-finished goods is actually assigned to a production order, but the workshop has not come to the number of picking.

Fourth, the amount of available. The so-called available amount, is no specified purpose, can be arbitrarily assigned to the next production order or the number of sales orders. Each item has an available amount.

There are two main ways to calculate available quantities:

The first, the available amount = in Lot- amount. This available amount is also known as the amount of hand available, which is already in the store and can be used immediately for the next order.

The second, the available quantity = in the hand quantity + in transit Quantity-allocation amount . This calculation method, due to the amount of in-transit is also added to the inside, and in transit in order to be in the future storage, so the actual calculation is a future availability.

In ERP, these two available quantities are used in different situations to meet different management needs. For example, when we are dealing with emergency orders, which quantity is better to inquire about? Of course the query in hand is better, because we may not have time to wait for the quantity to be put into storage. In formulating the material demand plan, of course, we should use this future quantity to be better, so that it is more in line with the actual situation.

The four volume of the material is simple to say, but many employees who use ERP do not necessarily understand it. For example, ask a warehouse manager of a business, what is the allocation amount? or let him in the ERP to check the availability of an item is how much, many people may not be able to give you a satisfactory answer. In this way, how can we do a good job in material management?

It is very important to practice the basic skills of ERP. If you want to do the big things well, first have to do small things well, " do not accumulate kuibu, not even thousands of miles," "a Journey, a start", are in the expression of this meaning. Small things do not good, big things will certainly do not, "dikes, destroyed in the nest", is to express this meaning. The ancient sages left us these good advice, a lot of us in primary school know, but really understand how much can it?

The same is true for ERP projects. A complex ERP system is composed of a line of programs, as long as a single line of the program is wrong, it will cause the ERP system often error. When we use ERP, it is the same, in a small place error, then it will lead to the ERP chain error response.

So how to emphasize to practice good ERP basic skills, nor too much.

Basic ERP--four quantity of material