PART 9: ENTERPRISE RESOURCE PLANNING AND LEAN OPERATIONS
9.1. Materials and Requirement Planning (MRP) and Enterprise Resource Planning (ERP) * Materials and Requirement Planning (MRP): A compute-based production planning and inventory control system. It is a material control system that attempts to keep sufficient inventory levels to promise that requires materials are available when needed. In other words, it is a process that helps companies makes volume and timing calculations. * Enterprise Resource Planning (ERP): Business management software that allows a company to use a system of integrated applications to manage the business.ERP software combined all aspects of an operation like development, manufacturing, sales and marketing. In addition, according to Slack et al. (2010:409) “ERP systems allow decisions from all parts of the organisation to be integrated so that the consequences of decisions in one part of the organisation are reflected in the planning and control systems of the rest of the organisation” (Figure 9.1.1.).
Figure 9.1.1. The development of ERP (Slack et al., 2010:409).
In Carrefour there is only one marketing department and a national buying team for a country and based on the supplies of each store and then the orders are placed to the international buyer. However, all the information is received through the internal EPR system. After that when all the information received with the help of the EPR system the international buyer transmits this information to both the Global sourcing office and the import department. Import and Logistic Department is responsible now to bring the goods on time and the international buyer at the final stage has a regular check on the supplier in order to make sure the quality and the time spend for delivery for the goods. With the use of EPR systems Carrefour is able to communicate across all functions within the company because there is visibility and control of what happening within the company. EPR systems helps the company of integrating whole supply chains, as a result, better understanding of suppliers’ suppliers and customers’ customer. Carrefour’s mission is absolutely focused on meeting the expectations of their customers so that to satisfy them. 9.2. Lean Philosophy and Just-In-Time (JIT) Techniques
The main purpose of the lean philosophy is to eliminate the waste in every step of work processes in the company while JIT emphasizes the idea of producing items only when they are needed. Lean philosophy produces high quality products and services and, above all, operations at low cost (Figure 9.2.1.).
Figure 9.2.1. The Lean Philosophy of Operations and JIT Techniques and Methods of Planning and Control (Lecture notes: Topic 9: Enterprise Resource
Planning and Lean Operations).
Carrefour tries to eliminate waste by optimize the roles of each department and having a simpler and much leaner system. Leaner system means selective sufficient number of people for the job and assigning the tasks and responsibilities to those who add value to the operations. The lean design, each department should have defined responsibilities, the team should work closely with effective inter-department communication and avoid duplication of information. For example, each team should be headed by a divisional manager responsible for sourcing, who key role is to evaluate the process and identify problems or inefficiencies in the system. JIT aims to meet demand immediately, with perfect quality and no waste. In Carrefour they do not use JIT because the marketing team and the designers are responsible to work together and remove some of the products from the range. For example, previous season records and reduce the quantity of the average performing products and bring in new/fresh range of products based on consumer preferences.
PART 12: PROJECT PLANNING AND CONTROL
12.1. Define a project
According to Slack et al....
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