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DMi White Paper: ERP Systems Functionality Selection Checklist

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.


  • 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.

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