Core Business Processes in Enterprise Planning: Choosing the Structure of the System

Abstract

It was pointed out in Chapter VII that before implementation of an ERP systemin EA Cakes Ltd., it was necessary to completely reengineer the productionplanning process. To change the strategy from make-to-order to make-to-stock involves not only the company’s decision to invest money in accumulationand keeping stocks of finished goods. It requires a complete redesign of itsproduction planning system, because:•There is no forecasting for MTO, it is driven by customers’ orders, so aforecasting system had to be designed and implemented.•An inventory management system for finished goods had to be developed.•Under MTS, it is vital that the planning system preserves continuity; theplans produced by each level should be detailed plans of the top level.Also, there must be feedback continuity: feedback of the top levels is anaggregation of bottom level feedback — for more detail see McNair andVangermeersch (1998).