A Project Report On IT Applications in manufacturing Sector
CERTIFICATE This is to certify that the research project entitled “IT Application in Manufacturing Sector� Submitted in partial fulfillment requirements for the award of the degree of master of Business Administration to XYZ University is a record if bonafide work carried out by Ms. XYZ student of MBA part II of central institute of business management Research and development, under my guidance and supervision. The candidate has satisfactorily Prosecuted her project for not less than one academic session. The project work is the result of her Original work and her sufficiently high standard to warrant its Presentation for evaluation and adjudication for award of the degree.
Nagpur. Date:
DECLARATION I Sonali R. Shrirame a student of MBA part II of XYZ hereby declare that I have worked on the project title ‘IT Application in Manufacturing Sector.’ During the session 2007 – 2008 in partial fulfillment of the requirement for the award of master Degree in Business Administration of XYZ University.
I further declare that this is my original work and no such work has been done by anyone or published anywhere or has been submitted to any university or institute for the award of any degree.
XYZ
Signature of student XYZ
ACKNOWLEDGEMENT Any research work is never an individual effort. It is contribution of many hearts, hands and heads. The project work of “IT Application in Manufacturing Sector� has been made possible through the direct and indirect co-operation of various persons whom I express my felt gratitude. I am greatly indebted and express profound gratitude towards my guide Prof. XYZ (Academic Project Guide), who suggested the problem and has been close and valued guide throughout ,in rectifying our mistakes and prove to be source of unending inspiration for which we are extremely grateful to her. I am sincerely thankful to Dr. XYZ for permitting us to do the project work and submitting the report in department and for being motivating to know the value behind the project. Last but not the least I am thankful to my parents , friends and all who have directly or indirectly extended there co-operation and suggestion in completing this project.
XYZ
INDEX Sr. No.
Chapter
1
Introduction
2 3
The potential of IT in Manufacturing Objective
4
Research Methodology
5
Company Profile
6 7
IT applications in Mahindra and Mahindra CAD/CAM/CIM
8
SAP modules
9
Scope of the project
10
Conclusions
11
Limitations
12
Bibliography
Page No.
INTRODUCTION A manufacturing business is devoted to the production of tangible objects that are high in quality and competitive in cost, meet customers' expectations for performance, and are delivered in a timely manner. Finding and achieving the appropriate balance among these attributes—quality, cost, performance, and time to market—challenge all manufacturing businesses. Those companies that are successful in meeting that challenge remain in business; those that are not usually disappear. In a manufacturing environment that is perhaps changing more rapidly now than during the Industrial Revolution, competing successfully, manufacturers increasingly provide customers with shorter times between order and delivery and between product conceptualization and realization, greater product customization, and higher product quality and performance, while meeting more stringent environmental constraints. Accomplishing these goals will require major changes in current manufacturing practices; such changes include the use of new and/or more complex manufacturing processes, greater use of information to reduce waste and defects, and more flexible manufacturing styles. This report outlines the application of information technology (IT) to improving the manner in which discrete manufacturing processes will be carried out in the 21st century. IT includes the hardware that computes and communicates; the software that provides data, knowledge, and information while at the same time controlling the hardware; and the interfaces between computers and the tools and machines on the manufacturing shop floor.
products and processes (e.g., converting customer requirements and expectations into engineering specifications, converting specifications into subsystems), production (e.g., moving materials, converting or transforming material properties or shapes, assembling systems or subsystems, verifying process results), and manufacturing-related business practices (e.g., converting a customer order into a list of required parts, cost accounting, and documenting of all procedures). This report also discusses the need for non-technology research to better understand human resource and other non-technical aspects of manufacturing.
THE POTENTIAL OF INFORMATION TECHNOLOGY IN MANUFACTURING An enormous amount of information is generated and used during the design, manufacture, and use of a product to satisfy customer needs and to meet environmental requirements. Thus it is reasonable to suppose that the use of information technology can enable substantial improvements in the operation, organization, and effectiveness of information-intensive manufacturing processes and activities, largely by facilitating their integration (Figure ES.1). Equipment and stations within factories, entire manufacturing enterprises, and networks of suppliers, partners, and customers located throughout the world can be more effectively connected and integrated through the use of information technology. Information technology can provide the tools to help enterprises achieve goals widely regarded as critical to the future of manufacturing, including: •
Rapid shifts in production from one product to another;
•
Faster implementation of new concepts in products;
•
Faster delivery of products to customers;
•
More intimate and detailed interactions with customers;
•
Fuller utilization of capital and human resources
•
Streamlining of operations to focus on essential business needs and
•
Elimination of unnecessary, redundant, or wasteful activities
The development and implementation of new information technology to meet these goals will be shaped by organizational, managerial, and human resource concerns that have prevented manufacturers from exploiting fully even the technology that exists today. Sensitivity to these concerns will be essential to the successful development and implementation of the information technology associated with visions of manufacturing for the 21st century. Information technology as a means to integrate various basic manufacturing activities. Information technology can be used to meet a range of needs of manufacturing decision makers). These needs suggest a research agenda with both technological and non-technological dimensions; the primary targets of this research agenda include:
Fig: Information technology as a means to integrate various basic manufacturing activities.
•
Operational control of factories and their suppliers
•
Tools for product and process design
•
Modeling and simulation of the entire spectrum of factory operations (virtual manufacturing), and
•
Enterprise integration and use of other capabilities provided by the evolving National Information Infrastructure to support 21st-century manufacturing.
Other aspects of manufacturing, specifically physical processes, are not addressed in this report except as they relate to information technology's potential role in controlling them.
Information Technology for Manufacturing—Definition and Elements Although there are many definitions of information technology (IT), this report defines IT as encompassing a wide range of computer and communications technologies. IT includes the hardware that computes and communicates; the software that provides data, knowledge, and information while at the same time controlling the hardware; and the robots, machinery, sensors, and actuators or effectors that serve as the interface between computers and the outside world, specifically the manufacturing shop floor. Note also that the effective use of information technologies demands considerable investment in training and maintenance. Examples of IT include the following: •
Computers Workstation Mainframe
Server Personal digital assistant •
Communications devices and infrastructure Telephone Local area network Wide area network Wireless network
•
Software Operating system Artificial intelligence expert system for product configuration Computer-assisted design package Animation and simulation software Virtual reality simulations Software for total quality management and inventory control Scheduling package
•
Sensors Machine vision Tactile and force sensors Temperature sensors Pressure sensors
•
Actuators or effectors Robot arm Automated ground vehicle Numerically controlled cutter Microactuators Information technologies are focusing to an increasing degree on knowledge and information rather than data alone. That is, advances in information technologies over the last 40 years have enabled the manipulation and processing of increasingly abstract and higher-level forms of information. For example, industries cannot rely only on postmortem quality control data to detect product defects: modern quality assurance requires that potential problems be traced back
through the manufacturing system for high-level analysis at each manufacturing unit. IT that is used in support of such an approach depends as much on knowledge and diagnosis as on simple data gathering.
Product Cycle in conventional Manufacturing systems DESIGN
Product Concept
Design
Part Prints/ Part Drawings
Feedback
Order Tooling
Process Planning
Order Materials and \ Machines
Marketing
Tool Tryout
Scheduling Manufacturing Operations
Establishing Work Standards
Need/ Forecast
Quality Control
PRODUCTION
Actual Production
OBJECTIVE OF THE PROJECT This project is emphasizing on the importance and the applications of information technology which are used in manufacturing sector. These IT tools improve the quality of the product, as well as enhance business efficiency and increase the profitability of the sector. In this project, Mahindra and Mahindra is considered as a reference, which are using the following IT tools to improve the productivity. •
CAD/CAM/CIM
•
SAP Modules Production planning module HR module Quality management modules Warehouse Management
The main purpose of this project is to study the following facts in the IT application in manufacturing sector: How IT helps in maintaining coordination between different domains of the business? How can it improve productivity , efficiency of the firm ? What are the recent technology adopted by the firms? Up to what level it is successful at different levels? These and many different things can be studied by this project.
RESEARCH METHODOLOGY Research is the process of systematic and in-depth study or research for any particular topic, subject or area of investigation ,backed by collection, compilation, presentation and interpretation of relevant details or data. It is a careful search or inquiry into any subject or subject matter, which is an endeavor to discover or find out valuable facts, which would be useful for further application or utilization. Research may involved a scientific study or experimentation and result in discover or invention, which would aid either scientific development or decision making. It may also established relationship between variable and identified the ways and means for problem solving. In this project the following type of research is to be done.
Exploratory or formulative research Exploratory research is a primary study of subject matter or investigation of the phenomena. It is not specific in nature but aims at understanding the broad contours of the subject. It is usually preliminary or pilot study and is followed by descriptive, experimental research. It does not have a formal and rigid design and as the research may have a formal and rigid design and as the research may have to change his focus or direction, depending on the availability of new ideas, new hypothesis , increasing the familiarity with the problem, assessing the feasibility of further studies etc.
Descriptive research Descriptive research aims a fact-finding and more often is based on survey, its purpose to descriptive the present state of affairs of the topic of study. Data are collected by one or more of the method of – observation, interview.
Diagnostic research
This type of study is similar to a descriptive study but emphasizes on discovery of what is happening, why is it happening and what can be done about it. It attempts to identify the causes of a problem and its possible solution. it used case study method or in-depth approach to discover the casual relations. It uses small sample sizes and very deep probing data gathering devices. XXXX Sources of data collection It includes primary and secondary data. 
Primary data Primary data can be collected either through experiment or survey. If the research conducts an experiment, he observes some quantity measurements, or the data , with the help of which he examines the truth contained in his hypothesis. In this project the
COMPANY PROFILE The history of Mahindra & Mahindra during World War II, when two- brothers, Mr. J.C. Mahindra and Mr.K.C.Mahindra envisioned a much greater role for themselves in the building and growth of independent India. Mr.J.C.Mahinra was then the advisor to the Government of India and was the first Indian to become the Iron & Steel Controller of India. Mr. K.C.Mahindra was then the head of the Indian supply mission to Washington, USA. The Mahindra brothers left their flourishing career to become entrepreneurs gave shape to their vision and created an organization to be strong pillar in the building and growth of industrial India. The two brothers and Mr. Gulam Mohammed went on to become Pakistan’s first Finance minister in 1947 and later on its Governor General. Mahindra & Mahindra (M&M) is a manufacturer and distributor of a range of farm equipment and related utility vehicles. The two principal divisions of the company are farm equipment and automotive. The company is based in India, but the business is operated across a worldwide market, both in terms of company locations and distribution. M&M acts as the flagship company for the Mahindra Group, which has a significant presence in many sectors of the Indian market. The company was originally set-up to make general-purpose utility vehicles, but has since branched out into manufacturing of agricultural tractors, and also light commercial vehicles. The company constantly manufactures its range of vehicles, whilst researching and developing new products. The more diversified parts of the business have been spun-off as separate business entities, and activities organized under various business groups. These groups
now cover a wide range of markets: automotive, farm equipment, financial services, infrastructure and development, IT and automotive components. The company’s IT sector consists of Mahindra British Telecom, a joint venture between Mahindra & Mahindra and British Telecom that provides software services for the global telecom industry. Mahindra Consulting works in partnership with Computer Associates, IBM, Microsoft, SAP and SDRC and is headquartered in Austin, Texas. M&M offers domain expertise in the automotive industry through Mahindra Logisoft Business Solutions, a joint venture with the TVS family. Additionally, Mahindra Engineering Services provides engineering services to OEMs and automotive suppliers around the world Business Interests of Mahindra Group Automotive Sector: Mahindra Group is the market leader in utility vehicles in India since inception. Mahindra also manufactures and markets utility vehicles and light commercial vehicles, including three-wheelers. Some of the famous automobile brands of Mahindra are: Scorpio and Bolero. Recently, Mahindra joined hands with French automobile major Renault to enter passenger car segment. It has launched a car called Mahindra Renault Logan. Farm Equipment Sector: Mahindra is the largest producer of tractors in India and is among the top five tractor brands in the world. It has its own state-of-the-art plants in India, USA, China and Australia, and a capacity to produce 1,50,000 tractors a year. Trade & Financial Services: Mahindra Intertrade Limited and its subsidiaries have specialized domain knowledge in imports and exports of commodities, domestic trading, marketing and distribution services. Mahindra Finance is one of the largest Non Banking Finance Companies in India with an asset base of about Rs. 5000 crores. Mahindra Insurance Brokers offer Life and Non-life Insurance plans to retail and corporate customers. Mahindra Steel Service Centre is the first steel service centre in the organised sector in India. Infrastructure Development: Mahindra Group has interests in real estate, special economic zones, hospitality industry, infrastructure development, project engineering
consultancy and design. Mahindra Holidays & Resorts is the leader in the lifetime holiday market in India. Mahindra Gesco is fastest growing Construction Company in India. Mahindra World City is developing and promoting India's first Integrated Business City. Mahindra Acres Consulting Engineers is a multidisciplinary engineering consultancy organization. Information Technology: Mahindra Group entered into IT sector in 1986 when it formed a joint venture with British Telecommunications plc. The company was called Mahindra-British Telecom. The Company has recently changed its name to Tech Mahindra. Tech Mahindra is a leading provider of telecommunication solution and service industry world-wide. It is India's 8th largest software exporter. Speciality Businesses: Mahindra Group companies such as Mahindra AshTech, Mahindra Defence, Spares Business Unit and Mahindra Logistics are into Speciality Businesses. Mahindra AshTech undertakes turnkey contract execution for Ash Slurry System and Travelling Water Screens. Mahindra Defence Systems looks after the requirements of India's defence and security forces. Mahindra Logistics provide complete logistics solutions to complex transportation needs of clients across the world. Major Achievements of Mahindra Group •
Mahindra & Mahindra made the first indigenous Jeep in the country in 1949.
•
Fourth largest tractor company in the world.
•
Largest manufacturer of tractors in India.
•
Largest manufacturer of MUVs, offering over 20 models
IT APPLICATION IN MANUFACTURING AT MAHINDRA AND MAHINDRA Today India is leading towards financial superpower. This happened only due to the wide increase in the industrial growth of India. Today production sector stands rank has a major share in development of Indian economic. Day by day this sector is increasing with great pace. It is been notice that though there is a tremendous growth in industrial sector. In many firms the process of production and manufacturing is older and ancient in order to cope up with increased composition in global level. India should go for the automation of manufacturing process. This can be achieved with the help of proper used of IT technology and MIS. This makes easier the following things. 1. Transfer of information. 2. Increased speed of manufacturing. 3. Optimum use of resources. 4. Simplification of complex processes. 5. Cost reduction 6. Decrease in scrap and wastage. 7. Quality Control. 8. Inventory management In the following report we are going to study each aspects of the use of IT system in manufacturing sector with the reference of Mahindra and Mahindra
CAD/CAM/CIM
SAP Modules Quality Management
Production Planning management Warehouse Management HRIS
Manufacturing Environment
Finance, Costing, sales and Marketing, Purchase, Vendors, Sub contracting, Personnel and HR
Computer Aided Design (CAD)
Solid Modeling, Parametric modeling Computer Graphics, Graphic Standards, IGES, DXF Analysis tools, FEM, FEA, Testing and field Analysis
Business data Processing system CIM Technologies Computer Networks System Design and Analysis Distributed processing Database management and back up Modeling and simulation systems Expert systems, Quality engineering
Top level Prod planning Production Management MRP, JIT BOM Capacity Planning (CRP) Inventory and its control
Manufacturing Systems Production roll out, Machining and Assembly Material Handling, Loading, Scheduling, Balancing, Capacity planning, Quality control
Computer Aided Manufacturing (CAM)
Process Planning, Production planning, CNC part programming Robot Programming CMM Programming
COMPUTER-AIDED DESIGN (CAD) Computer-aided design (CAD) involves creating computer models defined by geometrical parameters. These models typically appear on a computer monitor as a three-dimensional representation of a part or a system of parts, which can be readily altered by changing relevant parameters. CAD systems enable designers to view objects under a wide variety of representations and to test these objects by simulating real-world conditions. Computer-aided manufacturing (CAM) uses geometrical design data to control automated machinery. CAM systems are associated with computer numerical control (CNC) or direct numerical control (DNC) systems. These systems differ from older forms of numerical control (NC) in that geometrical data is encoded mechanically. Since both CAD and CAM use computer-based methods for encoding geometrical data, it is possible for the processes of design and manufacture to be highly integrated. Computer-aided design and manufacturing systems are commonly referred to as CAD/CAM.
Advantages •
CAD is faster and more accurate
•
Model development and associated activities like Drafting are easy and accurate
•
Manipulation of dimensions, attributes are easy
•
Repetition of entities is eliminated
•
Model accuracy reduces assembly problems
•
Usage of standard components, sub assemblies speed up design
•
Enhances 3D visualization greatly
•
Design modification is easy and less time consuming
CAD is used throughout the engineering process from conceptual design and layout, through detailed engineering and analysis of components to definition of manufacturing methods. Dominantly, the automotive and aerospace industries form the leading forces for CAD development. Mahindras provides complete range of CAD services specific to industries like Aerospace, Automotive and General Engineering. The team possesses expertise in initial feasibility study, layout preparation, detailed design and manufacturing techniques . The added advantage of familiarity with international designs and practices makes us the right partner when you wish to offload your jobs or need to augment your design teams. We have numerous team members who have worked overseas for automotive and aerospace giants and constitute a veritable knowledge base of international design practices and work culture. The design group primarily works on CATIA, I-DEAS, Pro/Engineer, CADDs5, PDGS, ICEM-SURF and Unigraphics and offers a broad range of specialized services: •
Class A Surfacing
•
3D Modeling
•
2D Detailing
•
Packaging Studies
•
BIW/Trim Development
•
CFD Model Preparation
•
Reverse Engineering
•
PDM Drawings
In Mahindra and Mahindra Product Development Measurement (PDM) technique is used to draw the design the machines and that entries are taken into SAP module.
COMPUTER AIDED MANUFACTURING (CAM) Application of computers to help design, develop, manage, control, manufacturing systems is called Computer Aided Manufacturing (CAM) Manufacturing Processes •
Mass Production
•
Batch Production
•
Job Shop or One off production
Mass Production •
Large lots of production –
High volume production, from thousands to millions
–
Specialized manufacturing or assembly lines
–
Short production time
–
High production efficiency
–
Higher initial costs
–
Lower running costs
EX: Automobiles, two wheelers, Consumer products
Batch Production •
Medium Lots –
Typical batch size is from 100 to few thousands
–
Special purpose machines are employed
–
High productivity
–
Can handle product variety with ease
–
High job satisfaction
–
Fairly lower product costs
EX: machine tools, Aircrafts, Vitrified tiles,
Job Shop Production •
Small lots or one off –
Lot size can be one unit or few tens of units
–
General purpose machines
–
Usually part will be big or intricate
–
Production costs are high
–
Longer lead times
Advantages of CAM •
Integrated with Design makes changes easy to incorporate
•
Greater productivity
•
Flexibility in manufacturing processes
•
Shorter lead times
•
Less down times and hence better productivity
•
Reduced maintenance (Self diagnostic tools and monitoring facilities built in)
•
Reduced scrap and rework (dry runs and CAM simulators)
•
Better utilization of machines
CAD/CAM Integration Engineering design and manufacturing use CAD/CAM software for three distinctly different purposes: • Design Modeling—A mechanical design engineer uses CAD software to create a part. This definition of the part can be called its model. This model can be represented as a drawing or a CAD data file. • Manufacturing
Modeling—A
manufacturing
engineer
or
NC
programmer uses CAD software for a number of important tasks. Perhaps most common is to develop a computer model of a part that was previously defined only by a drawing. Another common task is to evaluate and repair existing CAD data so that it is usable for manufacturing functions. Manufacturing engineers also sometimes create new part models from the original design to allow for manufacturability. This includes adding draft angles or developing models of the part for different steps in multi-process manufacturing. And, of course, someone on the manufacturing side must design models of fixtures, mold cores and cavities, mold bases and other tooling. • NC Programming—A manufacturing engineer or NC programmer uses CAM software to select tools, methods and procedures to machine the models defined in the manufacturing modeling section described above.
Note that whoever performs manufacturing modeling is usually the same person that performs NC programming.
COMPUTER INTEGRATED MANUFACTURING (CIM) Definition Computer Integrated Manufacturing, known as CIM, is the phrase used to describe the complete automation of a manufacturing plant, with all processes functioning under computer control and digital information tying them together. It was promoted by machine tool manufacturers in the 1980's and the Society for Manufacturing Engineers (CASA/SME). Quite often it was mistaken for the concept of a "lights out" factory. It includes CAD/CAM, computer-aided design/computer-aided manufacturing, CAPP, computer-aided process planning, CNC, computer numerical control machine tools, DNC, direct numerical control machine tools, FMS, flexible machining systems, ASRS, automated storage and retrieval systems, AGV, automated guided vehicles, use of robotics and automated conveyance, computerized scheduling and production control, and a business system integrated by a common data base. Computer integrated manufacturing can include different combinations of the tools listed above. The Issues One of the key issues regarding CIM is equipment incompatibility and difficulty of integration of protocols. Integrating different brand equipment controllers with robots, conveyors and supervisory controllers is a time-consuming task with a lot of pitfalls.
Quite often, the large investment and time required for software, hardware, communications, and integration cannot be financially justified easily. Another key issue is data integrity. Machines react clumsily to bad data, and the costs of data upkeep as well as general information systems departmental costs is higher than in a non-CIM facility. Another issue is the attempt to program extensive logic to produce schedules and optimize part sequence. There is no substitute for the human mind in reacting to a dynamic day-to-day manufacturing schedule and changing priorities. Pragmatic Applications It might be more prudent for a company to begin the process of computer integration with CAD/CAM and an integrated business data base. There are many reliable and proven CAD/CAM software packages available, as there are integrated business software systems. Taking small steps instead of a wholesale CIM approach is advisable. POTENTIAL BENEFITS OF CIM Improved customer service Improved quality Shorter time to market with new products Shorter flow time Shorter vendor lead time Reduced inventory levels Improved schedule performance Greater flexibility and responsiveness Improved competitiveness Lower total cost
Shorter customer lead time Increase in manufacturing productivity Decrease in work-in process inventory
Product Cycle in Computerized Manufacturing Environment CIM
Geometric Modeling
Finite Element Analysis
CAD
Need Forecast
Product Concept
CAD
Product Documentation Proving (Simulation)
Customer Feedback
New Equipment
CA Process Planning
CA Tool Design
Tool Mfg., and Tryout
Marketing
Material Requirement Planning
CNC part program
CA Scheduling
CA Work Standards
CNC M/c Allocation
Robots, Material Handling eqpts.
CA Inspection and QA
Production CAM
SAP Modules SAP is known as System Application Programming. The following are the various SAP modules which are use in manufacturing PM Plant Maintenance – • •
Labour Material
•
Down time and outages
MM Materials Management – • •
Requisitions Purchase orders
•
Goods receipts
•
Accounts payable
•
Inventory management
•
Master raw materials, finished goods etc
QM Quality Management – improve the quality of your goods, including
• •
Planning Execution
•
Inspections
•
Certificates
PP Production Planning – manages production process, including • •
Capacity planning Master production scheduling
•
Material requirements planning
•
Shop floor
SD Sales and Distribution – from order to delivery, including • •
RFQ Sales orders
•
Pricing
•
Picking (and other warehouse processes)
•
Packing
•
Shipping
HR Human Resources – • •
Employment history Payroll
•
Training
•
Career management
•
Succession planning
And more.
SAP implementation in Mahindra and Mahindra Ltd; Mahindra & Mahindra Industries an India based sheet metal manufacturing concern wished to implement the SAP Business One system at their manufacturing units so as to automate and integrate their disparate business systems. With the successful implementation of the SAP Business One system Mahindra & Mahindra Industries are integrating their business processes in a single framework thereby enabling them to manage their business in a better and more efficient manner. With the SAP Business One implementation at their manufacturing unit, Mahindra &
Mahindra Industries enjoys the following
benefits:
• The SAP Business One system has enabled Mahindra & Mahindra Industries to integrate their disparate business systems thereby enabling them to obtain an accurate and complete view of their business. This in turn enables them to take more qualified and profitable business decisions.
.
• The SAP Business One system streamlines the flow of information between functional departments thereby reducing data redundancy • With the consolidation of business processes into a single framework, Mahindra & Mahindra Industries can easily review the status and performance of their business at any point in time.
.
Summary Mahindra & Mahindra Industries has successfully implemented the SAP Business One solution at Mahindra & Mahindra Industries thereby providing them with a means to integrate their business processes and streamline the flow of information between the various functional departments.
With implementation of SAP the business process of Mahindra and Mahindra turn into greater efficiency and productivity, Mahindra & Mahindra Industries has successfully implemented ERP applications in various organizations.
In this report I am taking the following modules which are implemented by Mahindra and Mahindra Ltd, Quality Management Module Production Planning Module Warehouse Management Module SAP HR Module
Quality Management Module Quality Control for items is an essential activity as it helps in reducing the operational costs and the delays and number of rejections in the production process. The quality of the items can be verified against a set of parameters. The result of the verification can be stored in the Quality Management module thereby enabling organizations to maintain a record and conduct an analysis of the same.
The Quality Management module can be used to maintain a record of the quality levels of the items being procured by an organization from various suppliers and vendors. Performing a quality check at the incoming stage helps in ensuring that only approved items sent for production thereby reducing the number of rejections and delays. Additionally, a quality check can be performed on the finished goods and the results of the same can be recorded in the Quality Management module. The Quality Management module also handles and records the rejection of items from the shop floor. The data pertaining to the items and their quality levels can be used to analyze the performance and generate ratings for various suppliers and vendors. This in turn enables managers to make decisions on the vendors/suppliers from whom the orders are to be placed. The Quality Management module can be used to record the quality levels of individual or batch items. In case of batch items, quality checks can be performed on samples. FEATURES The Quality Management module includes the following elements and features: Parameter Master. The quality of the goods is measured against a set of parameters. Using the parameter master, managers can create a database of quality parameters/attributes against which the quality of an item can be verified. Apart from the name of the parameter, its unit or measure can also be stored in the parameter master. Depending on the nature of the attribute, a parameter can be qualitative or quantitative. The parameter master also includes an option to disable specific parameters from the listing. A disabled parameter cannot be associated with items. Item-Parameter Association The Quality Management module is integrated with the Inventory module of the SAP Business One application. While adding the details of an item in the system, managers can associate parameters, from the parameter master, against which the quality of the item will be verified. The manger has the option to specify the maximum and minimum permissible parameter limits for the item. The manager can also assign a separate rejection and approved warehouse for the item. In case an item does not pass the quality check, it is assigned to the rejection warehouse defined for the item. Similarly, an item passes the quality check is assigned to the
approved warehouse. The manger can enter his remarks pertaining to the approval/rejection of the item. We have also built a provision that enables the manger to set whether a quality check, for an item, is mandatory or not. In case the quality check is mandatory, the invoice cannot be raised till the quality check has been completed. Quality Control To record the quality levels of items, an interface displaying all the assigned quality parameters with their maximum and minimum permissible limits, for an item, is displayed to the manager. The manager can verify the quality of the item against the parameters and record the results of the same, along with his comments. The item can then accordingly be assigned to the approved or rejected warehouse. Managers can approve or reject items at various stages. These include: •
Incoming QC: An incoming quality check takes place when the goods are received from a vendor/supplier. On receipt of the goods, a Goods Receipt Purchase Order needs to be raised in the SAP system. In case a mandatory quality check option has been set for an item/batch contained in the goods receipt purchase order, the manager will not be able to raise the goods receipt order, till the quality process for the incoming goods has been completed. The items that are approved are sent for production.
•
In Process QC: The Quality Management module can be used to record the items that were rejected from the shop floor. The manager is provided with options to record the reasons for the same and raise a shop floor rejection within the application. A rejected item is sent to the assigned rejected warehouse.
•
Final QC: Before the finished goods are sold to the customer a quality check of the finished goods takes place. As in the same of incoming QC the manager can record the results of the quality check in the system. Rejected goods are sent to the assigned rejection warehouse. Conversely, approved goods are sent to the dispatch warehouse where it awaits distribution.
The Quality Management module includes a reporting section that enables the evaluation and analysis of the results of the quality checks performed on various items/batches. On the basis of the results of the quality checks, the system also generates and assigns ratings for the various vendors and suppliers. A review of the rating reports can help
managers in taking decisions. ADVANTAGES •
With item/batch wise details of rejections and acceptances stored, it is easy for managers to generate and view a rating of various vendors/suppliers thereby enabling them to take decisions regarding the vendors/suppliers from whom future orders are to be placed.
•
Enforcing a quality check on items ensures that a quality check is performed and only those goods that pass the quality checks are sent for production.
•
The Quality Management module also helps in keeping track of the item/batch rejections and the reasons for the same. Quality parameters and their permissible limits are defined within the system. This in turn helps in judging and evaluating the level and degree of rejections.
Based on the rejections, a rating report can be generated for all vendors and suppliers. Based on these reports, managers can take decisions regarding which vendor to place orders from.
Production Planning Module Production Planning add-on for SAP Business One that enables organizations to track and schedule the production on basis of the machine capacity and availability. Through the Production Planning module managers can plan and forecast the utilization and availability of resources for the production process thereby enabling organizations to increase efficiency and productivity and at the same time minimizing production time and
costs.
Through the Production Planning module managers can determine which machines are to be utilized. They can also prioritize the production schedule on the basis of the availability of resources to determine the estimated date of delivery (i.e. forward planning) or on the basis of the committed delivery date (i.e. backward planning). Through the Production Planning module managers can effectively track the progress of production orders through the various stages and can determine whether or not the delivery
schedules
will
be
met.
.
FEATURES The features and elements available within the Production Planning add-on module are as follows: Masters The Production Planning module enables managers to create and maintain a database of parameters/attributes that are required for proper scheduling or the production orders. The
various
masters
available
within
the
add-on
are
as
follows:
• Setup: Managers can use this screen to define the working hours (i.e. start time and end time) followed in the manufacturing unit. Through this screen managers can also define the lead time to be taken into consideration while scheduling the production orders.
• Work shifts: Through the Work Shifts interface the managers can define and store the various
work
shifts
that
are
being
followed
in
the
unit.
• Machine Group Center: Multiple machines can be grouped together. The machine group center interface enables managers to define machine group centers into which the machines can be classified.
.
.
• Machine Calendar: A calendar for the machines (detailed the working days and the holidays) can be created in the Production Planning add-on module. The calendar in turn can be used to schedule the availability of the machines. Through the Machine Calendar interface the manager can define the days of the week on which the machine will be
operated. For each day of the week that the machine will be operated the working hours (i.e. start time and end time) can be defined. Through the interface the manager can also define the holiday list (i.e. days on which the manufacturing unit is closed). The production orders are scheduled keeping in mind the list of holidays. • Machine Center: The Machine Center interface is used to define and store the details of the machines that are available for use in the production process. Details such as the machine name, cost of operating the machine (direct cost, indirect costs, and overheads), machine capacity and efficiency can be stored. The machine can be assigned to a machine center group. A machine calendar needs to be associated with the machine.
• Calendar Entries: The manager can generate a calendar for a machine, for a specific time period. The system will use the working days and holidays (as mentioned in the Machine Calendar) to generate the calendar for the specified date range. Details such as machine name, work shift when the machine was used, the start date/time, the end date/time, capacity, efficiency is displayed. The capacity of the machine will vary according to the start and end times. The manager can enter the actual capacity of the machine
and
his
comments/reasoning
for
the
same.
• Operation Master: The various operations that are to be performed on the machines can be defined and stored in the Operation Master. The operations thus defined are then associated with a machine.
.
.
• Routing Master: The Routing Master can be used to define a route i.e. various operations to be included in a production process and the order in which they are to be performed.
A
route
is
then
associated
with
a
production
order.
Scheduling After assigning a route to a production order the manager can now schedule the production. The scheduling interface lists all the pending production orders. The manager can set the priority of the production orders and schedule them according to the start date of the production orders or on the basis of the date of delivery. In case the date of delivery option has been selected, the lead time (as defined in the setup screen) will be
used to calculate the date. The Reports generated through the Production Planning module enables managers to track and monitor the production schedules and their progress. The reports that can be generated are: • Production Scheduling Report: The production scheduling report details all the productions orders that have been scheduled. The report can be filtered according to various
criteria
such
as
date,
machines
used,
production
orders
etc.
• Job Card: The Job Card displays the details of all production processes that have been completed. The manager can enter his comments on the same thereby enabling it to be monitored.
ADVANTAGES The
Production
Planning
add-on
module
offers
the
following
advantages:
• The Production Planning module provides real time information on the availability of resources. • It helps accurately determining the date or completion and start dates so as to ensure timely delivery of the orders. • Through the Production Planning module the various stages in the production process can be scheduled.
WAREHOUSE MANAGEMENT The spare parts required for Automotive & Farm Equipment Sector dealers are managed through this warehouse. Wireless hand-held terminals are used to scan the barcodes on the component packs. The same is integrated with SAP R/3 System and being used to track the material during Pre-packing, Binning, Picking & Packing and error-free
warehouse processes. This has facilitated substantial improvement in productivity and efficiency of warehouse staff to support high volume needs of the business. Computer support for the organization and management of warehouses has become imperative for timely, effective processing of logistic requirements within a company. The SAP Warehouse Management (WM) application provides flexible, automated support to assist you in processing all goods movements and in maintaining current stock inventories in your warehousing complex.
The following are the documentation flow which is use in warehouse
Computer support for the organization and management of warehouses has become imperative for timely, effective processing of logistic requirements within a company. The SAP Warehouse Management (WM) application provides flexible, automated support to assist you in processing all goods movements and in maintaining current stock inventories in your warehousing complex. WM supports warehousing processes by making it possible for you to Define and manage complex warehousing structures Optimize material flow using advanced put away and picking techniques Process goods receipts, goods issues and stock transfers quickly and easily .Currently, the work process in the warehouse is characterized by speed, reliability, and precision in processing individual goods movements.
To make sure that work is performed efficiently and at a reasonable cost, the warehouse staff requires simple and easy-to-view control of each individual process. The radio frequency (RF) solution provides fast and error-free data communication through the use of mobile RF terminals. This, in turn, provides a high standard of quality. The RF terminals receive data directly from the SAP System and transmit the results back to the system. You can scan the information that needs to be recorded, such as storage unit numbers, using a bar code (for example, based on UCC/EAN128 standards), and also use the bar code scan to verify the storage bins. The display of information on the RF terminal is possible with a graphical user interface. You can execute the individual functions using pushbuttons on a touch screen. If you are using a character-based device, SAP provides a special, non-graphic user interface.
SCOPE
Today's manufacturing enterprise, whether it produces consumer goods or weapons systems, must often juggle a range of conflicting demands. Smaller lot sizes, increased product flexibility, higher product quality, decreased delivery time, and smaller profit
margins are typical of the ambitious goals in many such organizations. Through it all, the enterprise must consistently aim for the five R's-- produce the right product, with the right quality, in the right quantity, at the right price, and at the right time-- and it must do more than satisfy its customers; it must delight them. Correct and timely information is key to meeting these goals, and information technology-- database management systems, enterprise resource planning systems, and simulation and computer-aided design tools-has become indispensable to most manufacturing enterprises. Although its role in manufacturing has been more to support processes, IT is evolving to become a catalyst for process and product change. This study was conducted to identify areas of information technology-related research needed to support future manufacturing. The committee chose to define manufacturing broadly as the entire product realization process, from specification through design and production to marketing and distribution. Although it believes that information technology has important applications to both continuous and discrete manufacturing, the committee focused on discrete manufacturing as the type in which the problems of applying information technology are most pressing. It did not include in its deliberations such important dimensions of manufacturing as the study of physical processes in manufacturing, although it did address information technology as it might be applied to controlling these processes.
Flexibility For The Future In the manufacturing environment of the 21st century, several trends will place increasing pressure on manufacturers:
Larger numbers of product variants will be required to meet user demands for greater product customization. This will lead to pressures to reduce production lot sizes while maintaining unit costs at an economic level. Manufacturers will need production facilities that are economic and profitable at very low volumes and that have low "fixed" costs.
Increasing dispersion of manufacturing operations is likely. Successful manufacturing companies will be forced to develop effective global manufacturing networks, "knitting together" the skills and capabilities of individual units located around the globe to create a seamless international production capability; organizationally, the factory floor will see self-directed work teams "managing" the day-to-day operations of the firm with minimal real-time supervision, with white-collar labor focusing much more on the creation of new and improved products. These trends will almost certainly lead to a reduction in the average size of manufacturing facilities, the increasing use of "temporary" assets (via leasing or other cost-sharing arrangements), and the development of common processes so that manufacturing activities can be moved rapidly to locations that need increased production. Shorter time to market will become even more important than it is today. One aspect of this issue will be the ability to deploy technology rapidly. Another will be the ability to execute customer orders rapidly. Manufacturing concerns will emphasize work force skills and empowerment in order to meet marketplace needs for speed Global environmental concerns seem certain to motivate the development of ''green" and recyclable products and manufacturing systems that use fewer material resources.2 Manufacturing systems should be able to accept "used" products that they have fabricated, disassemble the received items into component parts, and determine which parts are reusable or which are convertible into recyclable raw material with the ultimate goal of a product that leads to zero scrap material. Of course, products will need to be designed with such goals in mind.
CONCLUSION
IT is evolving to become a catalyst for process and product change.
IT also has implications for the way we think about the skills required in a manufacturing environment.
As the implementation of any IT application likewise SAP is may very costly for the organization but the impact of these type of technology is for long term benefits and help in business growth.
IT applications are driven with the objective of providing the best products and services to the customer at optimal cost and simultaneously ensuring the value to M&M's business partners
The adoption of Information Technology has moved up the value chain, from cost savings to business enablement. The business benefits of various business solutions implemented have resulted in standardization, synergistic operations, inventory reduction, easier consolidation, cycle time reduction and optimized business processes leading to faster operations and informed decision-making.
IT has impacted all the business functions and processes in the organization, the value of which can be seen more in creation strategic capabilities - such as anytime, anywhere availability of secured information, facilitating collaboration and improved communication within and outside the organization, effective leveraging knowledge within the organization for business benefits, enabling organization to be more customer centric and agile.
From the research I can judge the very much secured future of the IT application in the manufacturing sector in terms of robotics , MIS , automations of the processes etc;
It will certainly help the Indian manufacturers to serve the consumers effectively due to the proper and pragmatic use of the information technology in the systems.
LIMITATIONS OF PROJECTS
The study of this project has been constrained upto a single manufacturing unit. i.e. Mahindra and Mahindra Ltd; Hence, the information obtained is comparatively restricted.
As Information technology is dynamic in nature. Hence, this study will may become obsolete soon.
Requiremnts may change from organization to organization.