11.0 Difference in cost between INITIAL inventory and MINIMIZED 17 Inventory obtained for ALUMINUM WHEEL ASSEMBLY 12.0 PUSH & PULL 18 13.0 Issues with PUSH & PULL Systems 19 14.0 PULL System for GBI 20 15.0 SAP Modules for business operation for GBI 21 16.0 CONCLUSION 21 17.0 REFERENCES 22
After taking decisions about the type of business, its location, layout etc. the entrepreneur steps into the shoe of production manager and attempts to apply managerial principles to the production function in an enterprise. Production is a process whereby raw material is converted into semi finished products and thereby adds to the value of utility of products, which can be measured as the difference between the value of inputs and value of outputs. Production function encompasses the activities of procurement, allocation and utilization of resources. The main objectives of production function is to produce the goods and services demanded by the customers in the most efficient and economical way. Therefore efficient management of the production function is of utmost importance in order to achieve this objective. MRP is used to coordinate orders within the plant and from outside. It focuses on scheduling the purchase orders and jobs to satisfy material requirements generated by external demand. In this paper, MRP computations are done to obtain reduction in the inventory for frame and wheel assembly. Steps involved in the introduction of new component have been done. ERP implementation in GBI can have a significant impact on organizational performance. Paper shows the implementation of ERP system such as SAP into GBI for integrating the business process in GBI. This paper also gives clear view for GBI to identify and understand the issues it faces during implementation of ERP system in it. Various SAP modules that are needed to support the business operations in GBI have been discussed.