ERP Systems Functionality Selection Checklist

This document is not intended to pick up all of the functionality of a typical ERP system, for example it does not cover areas such as ledgers, CRM, HR or basic purchase orders and stock transactions. Its objective is to act as a checklist for the key planning and control functionality required for best practice ERP during a systems selection process.

IBP

• Aggregation/disaggregation to multiple families
• RCCP at family level using resource profiles and long-term time fences

Demand Planning/Management

• Statistical forecast capability
• Assumption management functionality
• Forecast accuracy KPIs using customer demand not shipments or customer orders
• Multiple views of forecast accuracy e.g. by customer, account manager, sector etc.
• Forecast bias KPIs
• Available to promise functionality based upon the MPS and stock
• Abnormal demand filters
• How is unconsumed forecast and forecast roll handled?
• Customer service KPIs – OTIF against customer demand and customer order (requested and promised)

Master Production Scheduling (Master Supply Planning)

• Types of order status – planned, firm planned (FPO) and released
• Time fence management capability, FPO time fence and released time fence.
• Change management and KPIs within each time zone
• Planning buckets month, week, day, shift, hour
• Action messages types and filters
• Pegging capability to support bottom up re planning
• MPS/MRP calculation net to gross not gross to gross
• RCCP capability at MPS level using resource profiles
• Detailed capacity planning (infinite) using released orders, FPO’s and planned orders using detailed work centre and operational routings and demonstrated capacity
• Full distribution resource planning functionality using DC demand and distribution resource requirements e.g. Logistics, Warehouse space (if required)
• Planning bill functionality
• Does a requirements file exist allowing changes made to manage exception and bottom up re-planning not to be overridden next time MPs/MRP is run?
• MRP run net change and can it be online allowing better scenario planning during the re-planning process

Bills of Material

• Modular BOM functionality
• Pseudo item numbers
• Phantom item numbers correctly used in MRP
• Lot control capability
• Back flushing capability by shop order or routing operation
• BOM maintenance functionality e.g. mass replace, where used
• Change management functionality, discrete effectivity date, use up
• Multiple views of one BOM database – live, manufacturing, planning, development and costed
• Detail work centre and operations routings used by CRP and production scheduling

Vendor Management

• Vendor scheduling functionality, with time fences and the ability to handle multi (duel) sourced items
• Vendor analysis based upon segmentation and cash flow projections

Stock Control

• Cycle counting (Perpetual inventory) functionality, including ‘process control’ cycle counting
• FIFO functionality
• Lot control functionality with traceable capability
• Standard stock control transactions
• Back flushing and KANBAN functionality
• Discrete picklist functionality

Shop Floor Control

• Material availability check prior to shop order release
• Production scheduling based upon routing operations and work centre profiles e.g. move time, Q’s, SHITS, shop calendar
• Production scheduling is based upon standard operation times and set up while MRP is based upon item master lead times. What comparison capability exists to ensure alignment.
• Finite production scheduling functionality
• Planning board capability for communication of production schedule
• Production reporting functionality by order, by operation with option for specific count points
• Full production and material traceability functionality
• Schedule adherence KPIs

Business Information

• What BI tools exist to support KPIs, analysis and the IBP Review Steps.

I hope that this checklist serves as a help during the system selection process. Enjoy the ‘shopping’ but don’t procrastinate.