PRESENTATION

TOPIC:ERP,SIX
SIGMA, MRP.
By: Muhammad Umair.
To: Miss Wardah Irfan.
ERP (Enterprise
resource planning)
It is a cross- functional enterprise system driven by an
integrated suite of software modules that supports the
basic internal business processes of a company
 The practice of consolidating an enterprise’s
planning, manufacturing, sales and marketing
efforts into one management system.
 Combines all databases across departments into a
single database that can be accessed by all
employees.
 ERP automates the tasks involved in performing
a business process.
ERP COMPONENTS
1. Financial Management.
The financial management component within your ERP
system stores, monitors and analyzes all your financial data,
including accounts payable, accounts receivable, costs,
budgets and forecasts.
2. Business Intelligence (BI).
The BI component of your ERP software collects and analyzes
data, providing you with actionable insights related to your
business processes.
3. Human Resources.
An HR component automates payments, including tax and
benefits deductions, which saves you time to focus on more
important tasks.
4. Supply Chain Management.
As ERP solutions mainly cater to manufacturing and
distribution companies, your ERP system should absolutely be
able to monitor demand, supply, manufacturing status,
logistics and distribution in record time. The SCM component,
with the aid of real-time data, can help with demand planning,
so you can create an up-to-the-minute accurate production
plan that meets demand, but doesn’t exceed it.
 Six Sigma seeks to improve the quality of process outputs
by identifying and removing the causes of defects. Six
Sigma approach is a collection of managerial and statistical
concept and techniques that focuses on reducing variation
SIX in processes and preventing deficiencies in product.
SIGMA In a process that has achieved six sigma capability, the
variation is small compared to the range of specification
limit. A six-sigma process is one in which 99.9999966% of
the products manufactured are statistically expected to be
free of defects.
Methodologies of Six Sigma:
1. DMAIC (DMAIC is used for projects aimed at
improving an existing business process.).
2. DMADV (DMADV is used for projects aimed at
creating new product or process designs.)
The DMAIC project
methodology
The DMAIC project methodology has Five phases:
1. Define.
2. Measure.
3. Analyze.
4. Improve.
5. Control.
DMADV project methodology has Five phase

Benefits of six sigma:

 Increased Productivity
 Increased Quality
 Reduced Operation Cost
 High Customer Satisfaction
 Improved Employee Morale
 Efficient Work environment
What is a Materials Requirement Planning(MRP)?

A Material Requirements Planning (MRP) system is a planning and decision-making tool used in the production process which analyses current

inventory levels vs production capacity and the need to manufacture goods, based on forecasts. MRP schedules production as per bills of materials

while minimizing inventory. The technique is computerized and looks at requirements within a fixed period.

MRP focus is on what materials are required and when they need to be sourced. It is also helpful in product customization
MRP has historically been seen as giving additional advantage because it is known to schedule and track every order whether for production or
purchase

Main features of an MRP system

• A master production schedule.
• Bill of materials (BOM)
• Inventory status file.

How does an MRP system work?

Step 1. Exploding.
Step 2. Netting.
Step 3. Offsetting.

MRP I
MRP II Manufacturing resource planning (MRP II) is
defined as a method for the effective planning of all
resources of a manufacturing company. Ideally, it addresses
operational planning in units, financial planning, and has a
simulation capability to answer "what-if" questions and
extension of closed-loop MRP. 
MRP II includes the following functionalities:
•master production scheduling
•bill of materials
•inventory tracking
•machine capacity scheduling
•demand forecasting
•quality assurance
•general accounting