Enterprise Resource Planning
Enterprise resource planning is a method that assists an organization with creating an overall strategic plan. It is backed up by a system that is integrated with software. This system assists the organization in grouping activities into planning, monitoring and achieving the yearly plan. Its main purpose is to enable the flow of information between business functions within the organization.
What are make-to-order (MTO) and make-to-stock (MTS)? Why did EA cakes want MTS over MTO? Do you agree with such a decision? Why or why not?
Make to order is a business strategy that allows consumers to purchase products that are specified to their specifications. The strategy only manufactures the goods once the order is placed. This relieves excessive inventory that is usually common with make to stock strategy. Make to stock is a strategy that is used to match production with future forecasts. Its main disadvantage is that it relies on demand forecasts, which can sometimes be misleading causing losses due to holding excessive inventory (Khosrowpour 99). The EA cakes opted to use the make to stock strategy because they wanted to meet the demand of its consumers, who made shorter and quicker deliveries. The food industry wanted to make quick deliveries to its consumers and since making frozen foods takes time they opted for that. The move is quiet essential. It is the most considerate move since this is a competitive advantage over its rivals. Due to the rising demand of frozen foods, they had to stock more. The foods require complete processing and thus they cannot be processed in bits since they will go stale very easily.
What are aggregate capacity planning (ACP), master product scheduling (MPS) and shop floor scheduling?
Aggregate capacity planning is the matching of the supply of and demands for a product or service by estimating the appropriate quantities and inputs, transformation and outputs. It is used in manufacturing companies to determine the appropriate input mix as well as the overall output mix. Its main reason is to minimize the total cost over the planning horizon. Other objectives are to minimize customer service, minimize inventory investment, reduce changes in production rates and reduce changes in work force levels. Lastly, the aggregate capacity planning increases plant and equipment utilization. Master product scheduling is the plan that has been developed by an organization for inventory, staffing and production. This plan operates at an aggregate level and is cost driven. It is a planning for all times. It gives detailed material and production requirements in the materials requirements’ planning mode. Shop floor scheduling is a system that schedules work for the shop floor and communicates the progress of the work regarding the plans that have been made. Planning is necessary to ensure that expected orders are completed on time and that resources are used efficiently on time with minimal cost.
How is the adoption of SAP viewed by the (a) Production staff, (b) management and (c) the IT Staff?
The systems application software provides the capability to manage financial, cost and asset accounting, production operations, materials and plant management (Khosrowpour 159). The production staff view the use of the system as an advantage since it will restrict over working since the production will be limited. Secondly, it is an advantage since it will reduce overproduction. On the other hand it will limit there production incase they end up making a mistake and utilizing the given amount leading to losses. The management will view it as an advantage since they will minimize the cost of the materials, labor and production management. This is to their advantage since they will earn more returns. The IT staff will have an advantage since this is part of their work. They are on their pay role given that this is their line of profession.
Can the SAP software be of help to individual designed business management system?
The SAP software can run on a number of platforms including the windows 2000 since it is built around the r/3 system. Hence, it can be installed on an individual business management system. It can help in managing the business. The system is of great advantage and very efficient for businesses.
Khosrowpour, Mehdi. Cases on information technology: lessons learned. Southfield, MI: Idea Group Inc (IGI), 2006. Print.