The Enterprise Resource Planning (ERP) Implementation Lifecycle

The Enterprise Resource Planning Implementation Lifecycle includes all steps required to plan and build a product. The six steps of the ERP Implementation Lifecycle are initiation, planning, analysis and process design, realization, transition and operations.

Step 1: Initiation. Generate the Part Master for the product. This is the list of all parts needed to build the product. This list is typically generated from the supplied drawings to which the product must be built. It is usually provided with the initial request for quote if not sent with the order.

Step 2: Planning. Generate the Bill of Material for the product after the design is complete. The Bill of Material is the final list of all parts needed to build the product along with their quantity per assembly. Unlike a part master, the BOM also includes alternate parts and substitute parts, software and assembly materials like adhesives which are not included in the Part Master.

Step 3: Analysis and Process Design. Create an assembly router. An assembly router lists each step of the assembly's creation. The expected average cycle time per router step is then added to the router. This will create a baseline estimate of production time required per assembly. This step is required so that the total assembly time for the order can be calculated.

Step 4: Realization. Input the Master Production Schedule. The Master Product Schedule involves inputting the delivery dates of the final assembly. Then the production time per child assembly, and the delivery time and lead time of all parts used in the assembly. This will generate the necessary time windows to order parts so that they arrive when needed. This is the master plan for ordering and building the product.

Step 5: Transition. Begin material planning. Material planning is a manipulation of the master production schedule based upon material availability and material constraints. This is the transition of the master plan into reality. It may include expedite fees if production orders move up in schedule. It also includes planning deliveries, inventory storage, and distribution to work stations and subcontractors so that there is a minimum of inventory on hand without creating shortages.

Step 6: Operations. Implement production control on the shop floor. This requires ongoing scheduling work in process to prevent backlog on the shop floor. It also involves tracking completions toward the final order and moving them to storage for final shipment. Production control continues until the order is complete.

Sources: ERP Lifecycle presentation by Georgia State University. http://www.cis.gsu.edu/~dtruex/courses/CIS8090/pdf/ERPLifeCycle.pdf

ERP Lifecycle overview by Manufacturing Hub Magazine. http://www.management-hub.com/marketing-erp.html