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EBodhisathva Solutions and Venkat Manthri

Fundamentals of Manufacturing for an ERP is a Course released on 26th November 2020, aimed at freshers aspiring to learn and Fundamentals of Manufacturing Functions. The Course than was upgraded on regular intervals till date (18-Jan-2022)

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Fundamentals of Manufacturing for an ERP is a Course released on 26th November 2020, aimed at freshers aspiring to learn and Fundamentals of Manufacturing Functions. The Course than was upgraded on regular intervals till date (18-Jan-2022)

In typical manufacturing organization you may be directly part of manufacturing the Products of your organization. Or you may be dealing with Manufacturing unit while performing functions such as Sales, Marketing, Procurement, Planning, Design, Accounting, Finance, Store keeping and Services. In all your dealings you might be wondering on some of the terms and practices that you might be hearing in the conversations with your Manufacturing counterparts.

You as a Store keeper deal with issuing materials and may realize certain material are issued as a set because they are all used to make certain product. At times, you will be seeing alternative items issued in place of the items in the Material list against the work order for which you are issuing the material. At times, you see some material are not immediately requested even if they are in the Material list of Work order. This is probably because they are needed only in later steps of manufacturing. You will pick a few things about manufacturing and miss many.

As a Sales person you will be wondering why an order for big quantity from customer can not be fulfilled at the given dates. Why cant this order be still taken and fulfil by engaging more people to complete on time. You will be disappointed for the delay of Cash Flow when the Planner or Plant manager firmly confirm the order of such size can be delivered only at a later date. You may really want to know what are those constraints which can not let the Production Plant deliver the order on the date you wanted even with adding man power.

Even as a Lathe Machine expert in the Manufacturing Department, you might be wondering on many aspects on what is impact of your work on the end product and why certain scheduling actions on your piece of work, are not clear to you.

This kind of "missing knowledge" or "gaps of knowledge" is quite common for all interfacing functions of Manufacturing, as well as the function Manufacturing itself. Every one of you know a little bit on Manufacturing not all the basics. If any of you want to pick up Manufacturing as your add-on Skill or full time career, you may first want to get to the basics.

Any career aspirant a new comer from the college or a non-manufacturing SME want to get in to Manufacturing domain, the basics will be the starting point. And basics are the foundation based on which you grow.

eBodhisathva Solution made the course with above kind of professionals and starters.

This course is fully focused on explaining the very fundamentals of Manufacturing, with detailed illustrations where possible.

The examples used in the Course are not very usual examples that you may see from public information. Lot of effort is spent to include more realistic and close to real examples in the Organization.

To make the explanation very appealing, lot of graphics and animations are applied appropriately.

The aspirants of ERP career, IT consultants, Professionals in other domains of Manufacturing industry and Engineering students may take this as a starting point before going in depth to specialized topics within Manufacturing.

The Course is structured as below:

  1. Introduction to Manufacturing

  2. Bill of Material

  3. Routing

  4. Types of Manufacturing

  5. Discrete Job Shop

  6. Repetitive Manufacturing

  7. Assemble to Order Manufacturing

  8. Project Manufacturing

  9. Process Manufacturing

  10. Just in Time (JIT)

  11. Inventory types

    1. Inventory types according to how they are used

    2. Relevance in multiple manufacturing environment (for each inventory type)

  12. Inventory Classification

    1. ABC, Classification

    2. Fast and Slow Moving

    3. How Inventory Management policies are determined for each type

  13. Order Review methods

    1. Quantity Based review methods (Re-Order Point, POQ, Visual reviews etc)

    2. Demand and Quantity based review methods (TPOP and MRP etc)

    3. Briefing on Planning Functions

      1. (Netting requirements,

      2. Scheduling methods and

      3. Lot sizing)

  14. Key information required for Planning

    1. Inventory Data (Item, Planning and Stock info)

    2. Master Scheduling Data (MPS, Plg Horizon, MPS feasibility)

    3. Engineering Data (BOM, Routing, Mfg Instructions)

  15. Planning Hierarchy

    1. Mission Statement

    2. Corporate and Business Strategy

    3. Supporting Strategies (Marketing, Financial,Engineering, Manufacturing etc)

  16. Practice Kits

  17. Quizs

  • The Course has supporting Off-line reading material in the form of eBooks for most of the topics covered.

  • The Course included exercises for Practical understanding of the concepts, wherever applicable.

  • The Course is associated Quizs for students to refresh their understanding during attending course

This course will be Continuously refined according to the feedback received. The enhancements will be included in the course for no extra-cost for the students already enrolled as well as for new students.

The audience are requested to make a note that the course will be a bit slow keeping the target audience (Novices)in view. Any in-depth understanding needs further efforts on top of attending this course.

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What's inside

Learning objectives

  • What is manufacturing
  • Types of manufacturing at a glance
  • Bill of material & routing
  • Discrete job shop
  • Repetitive manufacturing
  • Assemble to order manufacturing
  • Project manufacturing
  • Process manufacturing
  • Just in time (jit)
  • Inventory management: inventory classification
  • Order review methods: quantity based order review methods (rop, poq . hybrid, visual etc)
  • Order review methods: demand and quantity based order review methods (tpop and mrp)

Syllabus

The students will get basic idea of manufacturing terms and will get some understanding on what topics are going to be covered in the rest of course
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This lecture briefs the course content

This lecture briefly explains the section contents.
The section starts with Manufacturing definition by going through some examples, observations on the examples followed by attempt to define manufacturing in terms of technical and economical aspects.

It also helps understand a few terms involved in Manufacturing process.

A typical Manufacturing Process at a high level is narrated for basic understanding.

The session ends with a Summary and recap.

Through a few examples and discussions, an attempt is made to define Manufacturing in Technical and Commercial aspects. Finally the standard definition from APICS is presented.

The transformation from Raw material to Finished product and the state of work in progress before the raw material reaches the state of finished product is explained. A Few important terms are explained as well.

This lecture helps you understand bill of material through a couple of examples and illustrations. This will be followed by Standard Definition given by APICS, USA.

The lecture briefs the importance of Whereused BOM report which provides all the parents of a Component. It also covers the Pegging report which shows the parent items impacted by any issue of the component.

This lecture briefs on how each department such as Design, Manufacturing / Production, Sales, Product Costing and Service teams use BOM as important reference.

This lecture is to summarize the content covered on Bill of Material and conclude the section.

This lecture briefs the contents of the short course on Routing.

This lecture briefly touches various popular manufacturing types in practice and brief highlights of each type of manufacturing in terms of

  • Pros and cons

  • On what circumstances the practices are adopted

  • What kind of metrics are applicable to each type of manufacturing

  • Planning and scheduling approach in each case

This lecture briefly explains the Discrete Job Shop Manufacturing. The characteristics of a typical job shop are explained with examples and scenarios.

In this lesson a brief of Repetitive Manufacturing is given in terms of salient features of this manufacturing method.

In this lesson a simple illustration on how Products of minor variations grouped as Mixed Model are manufactured in Repetitive Manufacturing layouts.

The lecture briefly covers Process Manufacturing. The explanation is done in the form of an illustration (Making Flour from grains). This is followed by running through various parameters and comparing between Discrete and Process Manufacturing scenarios. The session concludes with Summary of overall understanding

This lecture briefs about Just in Time philosophy. Most of the JIT principles are explained one by one with examples and illustrations where applicable.

For making any value adding item you will be using some ingredients and tools to make the same. These ingredients are not always purchased just before making the item. When the time to make the item has to be short, you can not spend time in procuring the items. For striking a balance between holding large quantities of Inventory and keeping low cost of inventory, you need to follow inventory management principles. Inventory classification helps you determine where to have tight controls. This lesson helps you appreciate the importance of Inventory and definition of inventory.

The lesson is about why do we need inventory management. Major drivers for Inventory Management in terms of Customer service, On time delivery and costs are discussed.

In this lesson, you will briefly run through multiple manufacturing environment before discussing list of Inventory types based on the way the inventory is used. The reason for covering basics of prominent manufacturing environments is to relate the way inventory policies are impacted by these environments such as Make to Stock, Make to Order, Assemble to Order, Project Manufacturing and Process Manufacturing etc.

Multiple types of Inventory according to the usage and the accounting principles are discussed briefly.

Major types of inventory such as Raw Material / Component Parts, Work in Progress, Semi-Finished Goods, Finished Goods,  Cosigned Stock and MRO are briefed with examples.

A few other types of inventory such as Excess Inventory, Obsolete Inventory and Non-Conforming Inventory; which do not fall in traditional inventory classification are also discussed.

This lesson covers definition of raw material followed by it's significance in make to stock, make to order and assemble to order environments.

Inventory type Finished Product is relative to the organization. Finished product for you can be raw material for another organization that purchases your product for use in manufacturing of their product. Finished product is the material that you manufacture to sell. Once sold the material will be called "Sold" Item. While on it's way to Customer it is called "In Transit" Inventory. Depending on agreement this same material is called "Consigned Inventory" when these finished items are in possession of customer but the payment is made according to how much of the inventory is consumed by customer.

This lesson discussed finished material and it's demand management, Order methods, fulfilment and  storage methods etc  in multiple Manufacturing environment such as  Make to Order, Assemble to Order and Make to Stock.

Consignment inventory is a special type of Inventory. Unlike Finished Item, Semi-finished Item, WIP Item and Raw Material which are quite relevant to the state of the material at certain stage in the Manufacturing Process, Consigned inventory is a state according to one type of Procurement agreement. The Finished items of one Organization are stored in customer's warehouse for an agreed period. The payment happens based on consumption of inventory at customer (called Consignee) in certain period. Both Consignee and Supplier organization are benefited in different ways in this arrangement.

There are a few types of inventory which are not traditionally categorized Inventory types. But they are briefed here to indicate their significance and to explain how such types of inventory are handled in Manufacturing environment.

The topics covered in this lesson are inventory types excess inventory, obsolete inventory and non-conformance inventory.

Agenda of course within the section Order Review and Planning Methods: Context is covered

Most traditional Order review and planning was on the basis of what is called Order point. Also called as Re-Order Point this was the first inventory planning method which was based on regular review of stock levels and re-filling the inventory at certain point of stock level. This lesson helps the students get a few basics of this method and how the method was improved over a period of time.

This lesson gives a briefing on Periodic review system which addressed some of the setbacks in Order point review method. Apart from explaining the Periodic review system, a snapshot of comparison between Order point, Replenish to Maximum inventory and Periodic review system is provided.

The best of Order point and periodic review system are picked to arrive at a few hybrid order review methods. A couple of such methods are discussed in this lesson.

There were many visual review methods which do not need specific measurement effort to determine the timing of placing fulfilment order. Such review methods such as Two Bin System and a few others are briefed in this lesson.

The section was concluded with a recap and a few meaningful conclusions.

Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
Provides a foundational understanding of manufacturing principles, making it suitable for individuals seeking to enter the field or enhance their knowledge of ERP systems
Explains manufacturing concepts with realistic examples, which helps those in interfacing roles understand the impact of their work on production and delivery timelines
Covers a range of manufacturing types, such as discrete job shop, repetitive, and process manufacturing, which are essential for understanding different production environments
Includes offline reading material in the form of eBooks, which allows for deeper exploration of topics and reinforces learning outside of the course
Explores inventory management techniques, including ABC classification and order review methods, which are crucial for optimizing stock levels and minimizing costs
Presents the material at a slower pace, which may be beneficial for novices but could be less engaging for experienced professionals seeking a more in-depth understanding

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Reviews summary

Manufacturing fundamentals for erp beginners

According to students, this course provides a solid foundational understanding of manufacturing concepts, particularly valuable for those working with or aspiring to work with ERP systems like SAP. Learners frequently praise the clear explanations, the use of realistic examples, and how the content helps connect theoretical concepts to practical applications. Many found it an excellent starting point before diving into more complex topics or specific ERP modules. While the pace is described as slow, catering well to novices, some note that it lacks deep dives or hands-on ERP exercises, though this aligns with its focus on fundamentals.
Course pace and depth are suitable for novices.
"The pace is slow, which is great for absolute beginners like me."
"It's perfect for someone with no prior manufacturing background."
"This course is clearly designed for novices and takes its time explaining things."
"If you are new to manufacturing, this course sets the right pace."
Uses practical, realistic examples and illustrations.
"The examples used were very realistic and helped solidify my understanding."
"I appreciated the detailed illustrations that made the concepts relatable to real-world scenarios."
"Good examples are provided throughout the lectures."
"The illustrations really helped visualise the processes."
Concepts are explained in an easy-to-understand way.
"The instructor explains the concepts clearly with good examples."
"Everything is explained in a way that is easy to understand, even for someone new to the topic."
"I found the explanations very clear and well-structured."
"The way the topics were presented made complex ideas accessible."
Provides a strong base in manufacturing fundamentals.
"This course provides a very good foundational understanding of Manufacturing which is very helpful for my role supporting an ERP system."
"I learned the basic concepts really well. It's a solid starting point for manufacturing fundamentals."
"It gives a solid foundation to understand manufacturing basics."
"The course helped me grasp the core principles needed for my job."
Content is highly relevant for ERP users and consultants.
"Understanding these manufacturing fundamentals is crucial for anyone dealing with SAP or other ERP systems."
"This course is highly relevant if you are working with ERP manufacturing modules."
"It gave me the necessary background to better understand the manufacturing processes within our ERP."
"As an IT consultant, this course is helping me bridge the gap between business processes and the system."
Focuses on fundamentals; lacks advanced detail.
"While good for basics, it doesn't go into advanced topics or specific SAP configurations."
"Don't expect a deep dive; this is purely foundational."
"I wished there were more in-depth explanations for certain complex areas."
"It's a good overview, but you'll need other resources for advanced learning."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Fundamentals of Manufacturing for an ERP like SAP with these activities:
Review Bill of Materials (BOM) Concepts
Reinforce understanding of BOM structures and their importance in manufacturing before starting the course.
Browse courses on Bill of Materials
Show steps
  • Read articles or watch videos explaining different BOM types (EBOM, PBOM, etc.).
  • Create a simple BOM for a familiar product (e.g., a bicycle or a desk).
  • Identify the key components and their relationships in your BOM.
Understand Manufacturing Lead Time Components
Solidify understanding of the different components of manufacturing lead time to better grasp production scheduling concepts.
Show steps
  • Review definitions of setup time, run time, wait time, move time, and queue time.
  • Consider how each component affects overall production time.
  • Think about ways to reduce each type of lead time.
Read 'Orlicky's Material Requirements Planning'
Gain a deeper understanding of MRP concepts, which are crucial for understanding ERP systems in manufacturing.
Show steps
  • Read the book chapter by chapter, taking notes on key concepts.
  • Relate the concepts to the course materials and real-world manufacturing scenarios.
  • Consider how MRP principles are implemented in ERP systems like SAP.
Four other activities
Expand to see all activities and additional details
Show all seven activities
Create a Presentation on Types of Manufacturing
Solidify understanding of different manufacturing types by creating a presentation that explains their characteristics, advantages, and disadvantages.
Show steps
  • Choose 3-4 manufacturing types (e.g., discrete, repetitive, process, assemble-to-order).
  • Research each type and gather information on its key features and applications.
  • Create a presentation with clear explanations and visuals.
  • Present your findings to a peer or record a video presentation.
Review 'Production and Operations Management' by Stevenson
Broaden understanding of production and operations management principles, providing context for manufacturing within an ERP system.
Show steps
  • Read relevant chapters on inventory management, scheduling, and capacity planning.
  • Relate the concepts to the manufacturing types discussed in the course.
  • Consider how these principles are implemented and managed within an ERP system.
Design a Manufacturing Process Flow
Apply knowledge of manufacturing types and processes by designing a process flow for a specific product.
Show steps
  • Choose a product (e.g., a smartphone, a chair, or a food item).
  • Determine the appropriate manufacturing type for the product.
  • Map out the steps involved in the manufacturing process, from raw materials to finished goods.
  • Identify key decision points and potential bottlenecks in the process.
  • Document your process flow using a flowchart or other visual representation.
Develop an Inventory Classification System
Apply inventory management principles by developing an ABC classification system for a hypothetical manufacturing company.
Show steps
  • Gather data on a set of inventory items (e.g., annual usage, unit cost).
  • Calculate the annual value of each item (usage x unit cost).
  • Rank the items by annual value and classify them into A, B, and C categories.
  • Develop inventory management policies for each category (e.g., safety stock levels, order quantities).

Career center

Learners who complete Fundamentals of Manufacturing for an ERP like SAP will develop knowledge and skills that may be useful to these careers:
Manufacturing Planner
A Manufacturing Planner is responsible for creating and maintaining production schedules and ensuring efficient material flow within a manufacturing environment. This course helps build a foundation in key manufacturing concepts such as Bill of Materials, routing, and different types of manufacturing processes, which are essential for a Manufacturing Planner to understand. The course's coverage of inventory management, order review methods, and planning functions provides a practical understanding of the planning process. This course explicitly addresses the information needs of planners, providing critical context for anyone in a planning role.
Production Supervisor
A Production Supervisor oversees the daily operations of a manufacturing facility, ensuring that production plans are followed, and products are manufactured efficiently. This course provides a comprehensive overview of manufacturing fundamentals, including types of manufacturing, bill of materials, and routing, which are crucial for a Production Supervisor to have working knowledge of. The material on different manufacturing types like discrete job shop, repetitive, and project manufacturing, aligns well with the supervisor's need to oversee diverse production processes. The course helps one to understand the overall manufacturing process and how different factors impact production.
Supply Chain Analyst
A Supply Chain Analyst focuses on optimizing the flow of goods and materials from suppliers to customers. This course, while focusing on manufacturing, covers key concepts such as inventory management, order review methods, and different types of manufacturing systems. The Supply Chain Analyst may find this helpful as it will familiarize them with the operational side of supply chains. An understanding of the manufacturing process, and how different teams interplay, will help with analysis and recommendations in this role. Specifically, the course's discussion on Just In Time (JIT) principles and inventory classifications directly aid in effective supply chain management.
Materials Manager
The role of a Materials Manager is to oversee the procurement, storage, and distribution of materials needed for production. This course provides a solid foundation in the bill of materials, inventory types, and order review methods, all of which are vital for a Materials Manager role. The course also covers different manufacturing types and inventory management principles, which directly contribute to effective materials management. With special emphasis on inventory control, this course is particularly useful for those seeking a career as a Materials Manager.
ERP Consultant
An ERP Consultant helps businesses implement and optimize enterprise resource planning systems, often those that support manufacturing operations. This course is particularly useful for an ERP Consultant because it focuses on the fundamentals of manufacturing processes and data structures relevant to ERP, such as bill of materials, routings, and planning methods. The course's focus on different production types, along with its coverage of inventory and planning, makes it more helpful to anyone who works to implement ERP solutions. The course specifically mentions that aspirants of an ERP career may find this course a valuable starting point.
Inventory Specialist
The role of an Inventory Specialist involves maintaining accurate inventory records, managing stock levels, and ensuring efficient inventory flow within a manufacturing facility or warehouse. This course provides a detailed overview of inventory types, classification, and management, which are foundational for an Inventory Specialist. The modules on order review methods, planning functions, and inventory data build critical skills. Anyone looking to become an Inventory Specialist will find this course helpful since it has deep coverage of these specialized topics.
Manufacturing Engineer
A Manufacturing Engineer works to improve manufacturing processes, ensuring efficiency and quality in production. This course covers many of the core manufacturing concepts such as bill of materials, routing, and different types of manufacturing processes that are helpful for a Manufacturing Engineer. The overview of different manufacturing types such as discrete job shop, repetitive, and process manufacturing, helps in understanding how to approach diverse production scenarios. The insight into engineering data such as bills of materials and routings may also be helpful to a Manufacturing Engineer, enhancing one's overall understanding of the manufacturing landscape.
Operations Analyst
An Operations Analyst analyzes data related to operations, identifies performance bottlenecks, and makes recommendations for improvement. This course may be useful for an Operations Analyst because it provides a solid foundation in manufacturing fundamentals concepts and operations, such as bill of materials, routing, and inventory management practices. The knowledge of order review methods and planning hierarchies will help the Operations Analyst to better understand the manufacturing data that they analyze. The course's coverage of the various manufacturing types from job shop to process manufacturing also provides context to those working with such data.
Production Controller
A Production Controller is responsible for overseeing the various timelines involved in the production process. The role involves using knowledge of resources, costs, and manufacturing processes to create a detailed production schedule. The content of this course, from fundamental manufacturing practices to specific types of manufacturing, and including the basics of inventory management, closely relate to the work of a Production Controller. The course provides a comprehensive introduction to manufacturing, which may be helpful in a planning and controlling role.
Logistics Coordinator
A Logistics Coordinator manages the transportation and storage of goods, ensuring efficient movement through a supply chain. This course may be useful as it provides an overview of manufacturing processes, inventory management, and planning, which are all related to logistics. An understanding of manufacturing types, bill of materials, and planning hierarchy may be helpful for a Logistics Coordinator. The insight into different inventory types and inventory management policies is especially relevant for a logistics professional. While not a perfect fit, some of the material may be useful.
Sales Representative
A Sales Representative works to sell products or services to customers. This course, while not directly focused on sales, provides insight into the manufacturing process. This may be useful for a Sales Representative selling manufactured goods because it provides an understanding of constraints and factors that may impact a customer order, such as production capacity, material availability, and lead times. This course also touches upon material information, which might help in the sales process. While not core to their role, a Sales Representative may benefit from this material.
Project Manager
A Project Manager oversees projects from initiation to completion which may be useful in a manufacturing context if the projects relate to manufacturing processes or implementation of new manufacturing systems. This course may be useful by providing foundational knowledge of manufacturing, including bill of materials, routing, and manufacturing types and processes. The course may be useful in that it may provide context to a Project Manager responsible for production-related projects. The material, while not a perfect fit, may be helpful.
Quality Assurance Analyst
A Quality Assurance Analyst ensures that products meet specified quality standards. This course, while primarily focused on manufacturing processes and planning, may be indirectly useful for a Quality Assurance Analyst. Some knowledge of manufacturing types, material routing, and inventory control could be helpful to understand how the product is produced. The manufacturing data covered in the course may also help to contextualize issues that may arise. While the focus of this course is not quality, aspects of it may be beneficial.
Financial Analyst
A Financial Analyst works with financial data to provide insights and recommendations to management. While this course is not directly about finance, some understanding of manufacturing operations may be useful for a financial analyst who works in a manufacturing company. The course provides context by explaining the types of manufacturing and manufacturing processes, as well as inventory management and planning. This may be useful for contextualizing inventory costs and production planning scenarios. Although not essential to their role, a Financial Analyst may find this course useful.
Business Analyst
A Business Analyst works to improve processes and systems within an organization by documenting requirements and advising on solutions. While not directly in their domain, this course may be useful for a Business Analyst working in a manufacturing setting, as it provides an overview of the manufacturing environment. The course material touches on core manufacturing processes such as bill of materials and routing and the information may be helpful for understanding and analyzing manufacturing-related process flows. Those working in this role may find aspects of this course to be useful.

Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Fundamentals of Manufacturing for an ERP like SAP.
Classic and comprehensive guide to Material Requirements Planning (MRP). It provides a deep dive into the concepts and techniques used in MRP systems. It is considered a foundational text for understanding how ERP systems manage materials and production planning. This book is highly recommended for anyone seeking a thorough understanding of MRP principles.
Provides a broad overview of production and operations management principles. It covers topics such as forecasting, capacity planning, inventory management, and scheduling. It useful reference for understanding the context in which manufacturing processes operate. This book is commonly used as a textbook in operations management courses.

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