Assigment Example on Enterprise Resource Planning of Business Process Systems

Question One: Why is it important to balance production capacity with market demand?

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Production entails the creation of goods and services with the needed input or raw materials while the ability of output is production capacity. The production capacity of a firm is fundamental at every level which relies on the market demand to ensure vital resource planning systems. The levels of production capacity may vary per the market demand. If the market demand is high, then, it is essential for the resource planning department to increase the production capacity. On the other hand, if the market demand is low, it is significant to decrease the production capacity. Thus, creating importance as to why production capacity needs balancing with market demand.

Question Two: Describe long-range, medium-range and short-range planning in the context of materials plan and capacity plan. How are they related?

In materials plan and capacity plan, long-range planning entails plans that are generally related to equipment buying or building and accumulate a year or longer. Medium-range is utilized for scheduling and planning which ranges from a period of between 6 to 18 months. As for the short-range, it spells out the operational need which entails few weeks or days. Both long-range, medium-range, and short-range are related whereby they are all parts of the operation planning process and function by defining every aspect of operation in the resource planning.

Question Three: Describe aggregate production planning, master production planning, material requirements planning and distribution requirements planning. How are these plans related?

Aggregate production planning revolves around a process meant to convert the demand projections and forecasts and the annual business plans into a production plan. The master production schedule includes a method for the resource planning system and is meant to provide a time-based schedule concerning the given scenario. Material requirement planning comprises scheduling, production plan and inventory system based on a given software that plays a significant role in the manufacturing cycle. Similarly, the distribution requirements planning seeks a systematic system that facilitates the delivery of the goods and helps in maintaining reliability and efficiency. With a focus on the different programs, they are related because of various reasons. The programs play a fundamental role in accomplishing the production plans. Also, they are essential in the resource planning within every manufacturing firm.

Question Four: What is the purpose of low-level coding?

A low-level code includes the lowest level code of an item in the materials bill indicating the sequence the elements can be run through the MRP. The purpose of low-level coding in the resource planning systems relies on different events. The MRP system recognizes and joins or connects the level through which an item occurs in the chain. Also, the low-level coding is purposed to plan the appropriate time meant to achieve every system demand.

Question Five: What is the purpose of available-to-promise quantity, and how is it different from on-hand inventory?

The available-to-promise accumulates on-hand inventory minus the inventory allocated for backorders and reserved inventory. It responds to customer order inquiries relying on resource delivery and availability. However, the purpose of available-to-promise quantity includes; support orders fulfilment, helps match to the production plans, supports the allocation of stocks for the future processing of orders, helps maintain order promising, and aim to manage the product demands within the manufacturing firm concerning the resource planning systems. It is different from the on-hand inventory whereby, the on-hand inventory comprises the quantity that is physically available in the warehouse.

Question Six: What is system nervousness? Discuss how it can be minimized or avoided.

A system nervousness is an occurrence where a small change or effect in the upper levels of production affect the lower level production or rather cause a massive shift in the lower level of production. However, it can be minimized or avoided through different strategies. First, the firm may opt to use smaller lot sizes since it aims at helping in the minimization of the security nervousness by maintaining the proper progress of level production. Moreover, firms may use a time fence system that plays a significant role in separating the planning horizon which may accumulate of both a tentative segment and a filmed segment.

Question Seven: Why have so many firms rushed to implement ERP systems over the past ten years?

Enterprise resource planning systems (ERP) is an integrated system that is capable of managing both the internal and external resources comprised that are available in business. The ERP is causing significant evolutions in the in the resource planning, and firms are rushing to implement it over the past ten years for various reasons. The ERP is utilizing the knowledge of a shared database system purposed to hold the entire firm through centralization. Since information is only keyed to the ERP systems and available to every user, the systems are getting rid of incompatibility, inconsistency, and an enormous risk that may result from other systems. Also, firms have shifted to ERP systems since the system is increasing productivity.

Question Eight: Describe the limitations of a legacy MRP system.

With the use of the legacy MRP systems, they are delivering different benefits alongside other limitations. The Legacy MRP systems were built to serve specified and assigned purposes. As a result, the legacy system has fewer functions compared to other systems setting this as a limitation. Similarly, the visibility between and across functional areas faces significant restriction which delivers a constraint. The communication between legacy MRP systems is also limited which provides challenges in using the system thus a limitation.

Question Ten: Why is it important to learn the fundamentals of the traditional MRP system, even if it is considered an outdated, legacy system?

It is imperative to learn the fundamentals of the traditional MRP system even though it is outdated since it offers different benefits. The MRP is associated with the production planning, scheduling, and control of inventory essential in the manufacturing levels. Learning the fundamentals of the traditional MRP system helps in expanding the knowledge of resource planning. With the understanding of these fundamentals, there are chances that resource planning will be developed along with other advancement linked to the new systems since they are software-based.

Question Eleven: Explain why many ERP implementations have failed to yield the expected benefits over the last ten years.

During the last ten years, numerous implementations of ERP have failed to deliver the expected outcome because of different reasons. The insufficient or lack of communication is among the main reasons as to why there has been an unsuccessful implementation (Al-Mashari & Al-Mosheleh, 2015). The issue concerning lack of communication develops as a result of a communication gap between the information technology professionals and other employees. Lack of proper user-training is another reason as to why ERP implementation has failed to deliver anticipated results. Since ERP comprise automation of processes, training is essential. With poor practice among the users, it has stirred a challenge in its implementation over the last ten years. Also, the lack of clear objective by firms is posing the reasons for the failure of the ERP implementation over the last decade.

References

Al-Mashari, M., & Al-Mosheleh, H. (2015, April). Enterprise Resource Planning of Business Process Systems. In UKAIS (p. 2).