Closed-loop MRP System

Designed for LAN-based systems utilizing object-oriented programming

By Steven A. Melnyk

WinMAGI is a closed-loop MRP system designed and written for LAN-based systems in a true Windows environment using object-oriented programming (OOP) technology. As such, it contains all of the modules and capabilities that you would expect in such a program, and more. The package is arranged so the major processing functions fall under the business areas normally associated with them. Also included are modules for systems administration, selecting user preferences and system tailoring. The module that tailors the product provides customization tools for the experienced user or consultant. In addition, the package has excellent customization tools and offers great implementation/support programs.

WinMAGI is well targeted towards companies that place a high value on robust systems that are easy to tailor and attractively priced. This package simplifies mainstream business processes by using well laid out screens to streamline tasks that previously required many programs (see Figure 1). Multipurpose screens eliminate much of movement previously required between screens and menus. Of course, as the entire process becomes more compact, the individual screens become more condensed and less simplistic. It is a trade-off that shows "ease of use" is a term whose meaning is relative to the task at hand. In this case, the net result is a product that requires training to take full advantage of its many options.

Figure 1

Source code is available for most application modules, but not for the systems administration module or the systems development facility. Report layouts are included with the system and can be tailored to meet changing requirements without impacting the original documents. A nice feature offered by MAGI is a safety hatch that can be used by the developer to revert reports or code back to the original logic in case of problems with the modifications. Although you can tailor this product yourself, the system is very large and has an extensive list of options (see Figure 2). Unless you plan on devoting the time necessary to become an "expert" on the product and tool set, I recommend having a consultant knowledgeable on WinMAGI do the tailoring. Chances are the results will be better, take less time and cost less.

Figure 2

Product Features
In terms of the breadth of features, this package covers a wide range of options. It should also be noted that the package provides all the features that one would expect in a MRP II program as described in the APICS literature.


General Operation
These features are common to all modules. First, the print option supports both fax and e-mail in addition to the normal list of printers, data files and screen preview. The system can be setup to support paperwork reduction initiatives and make use of EDI, fax and e-mail facilities to improve communication speed between the customers and suppliers. Second, and my favorite, is a master file audit routine that keeps an eye on selected master files. The system automatically logs all activity against them as to who, what, where and when changes were made. There is no more mystery as to how the data got to its current condition. Third, the layout of the display grids on the data screens can be changed on-the-fly. This presents the information you need the way you want to see it. Fourth, the screen display language is under user control. Translations are customizable and, if none exist, the English equivalent is used until a proper one is entered. Fifth, automatic security protection extends to the field level on the database. Data element security objects can be created that determine access and maintenance rights by user. The sixth, and most important global feature, is the WinMAGI maintenance engine. This series of routines provides the framework for all of the standard master file maintenance and screen displays. It enforces security and invokes user preferences to "customize" the look and feel of the package. The engine also expands to handle files and fields that are user defined.


System Administration
This is key in operating the system. The module interacts with all of the modules and controls the entire package. It identifies the users and provides security protection down to the screen objects and data element level. Data import/export activities are performed along with a system integrity monitor that checks for circular BOM relationships and enforces data integrity that could be compromised by imports. A history purge utility manages database bloat in a controlled manner. Third party accounting and EDI interfaces can be turned on to support the automatic import/export of payables/receivables/ledger information and the processing of EDI transactions.


Inventory Control
This module sets up the item master information, all of the supporting tables are maintained, and reorder point inventory control is supported. Stock status, excess inventory and items below reorder point are the major reports. A really nice item master report shows the detail behind each item. ABC codes are analyzed and reorder points are recalculated. The lot traceability feature is exceptional. Inventory under lot control can be traced from the time received, through all stages of production, and out to the customer. Existing product content can be tracked to purchased lot on which the vendor supplied the material. Full detail is available on all intermediate steps.


Bills of Material/Process Routings
This module supports engineering change order management, product revisions, indented bills, where-used lists, engineering parts lists and routing documents. Both the bills and routings are switched on and off by means of effectivity sthttp://207.69.204.147/apics/art/stop dates. This feature supports the preplanning and entry of changes to existing bills and incorporates future product composition changes into the material planning process. An option bill feature is also available that supports the configuration management routines available in sales order entry &emdash; I'll talk more about that later. Routings can be broken down to any operation level to suit the needs of the user. The tracking of all labor costs and location of WIP can be as detailed as required. Bill changes can be managed manually or controlled through an engineering change order (ECO) process. The ECO process supports electronic approval of changes and new product introductions. It also coordinates the effectivity dates and keeps the revision levels updated (see Figure 3).

Figure 3


Product Costing
Four sets of costs are retained &emdash; average actual, current standard, frozen standard and simulated. Last actual purchase and manufacturing costs are available from actual orders. Each cost set is broken down into material, labor and overhead components and offers a wealth of data for almost any management "what-if" simulation requirement. A nice comparison routine takes two items and does a detailed comparison of the bill and routing and displays cost differences. This product should consider supporting activity-based costing, it currently does not.


Purchasing Control
This module handles purchase requisitions and purchase orders. It has a built-in electronic approval process for speed and security. The buyer has visibility into pending engineering changes so that purchase requests can be evaluated for potential obsolescence prior to order placement. Purchase orders can be released to vendors by fax, electronic data interchange or mail. A file entry is kept on each item provided by a vendor along with contract, cross reference and delivery performance information. Purchase order commitments are presented using released orders, or optionally by including planned orders. Unlimited text can be included on the order and/or item level along with receiving instructions. Vendor pricing can be stated in foreign currency. The system keeps a currency conversion table that translates between the base currency for the package and that used by the vendor. Purchase orders show the home currency of the vendor. A nice feature that would round out this module would be the addition of a request for quotation (RFQ) section for automating communications when pricing material.


Shop Floor Control
This module is used to create and close work (manufacturing) orders, and track work in progress. Jobs (operations) on the floor can be processed using a job scheduling/processing screen. Job processing displays available work in the center in priority sequence and provides logon/logoff capability. A nice feature of this module is a real-time look at production status by operator, work center or job. That process can be expanded to include programmable logic controller (PLC) feedback on piece counts for immediate feedback on process problems. A batch entry process handles manually logged WIP transactions or those coming from other data collection devices. The collection programs also handle automatic backflushing of material and/or labor as specified by the routing or item master coding. A really usable feature in job processing is the computer-aided design and drafting (CADD) drawing screen facility that pulls up the drawing for review, print or redlining. Redlining lets us communicate change requests, or comments, for engineering's consideration.


Requirements Planning
The MRP module is notable for being extremely fast. The system is bucketless and can be set to process in full regeneration, net change, or continuous mode. New manufacturing and purchase orders are entered in a status of "planned." The approval step lets the buyer, or planner, review orders and flag them for release. Pressing the approval button takes the order to the next step where paperwork is transmitted (or printed). This module also contains the capacity review screens, summarized bill of material processing, and lead time analysis. The summarized bill projects gross requirements at each level of the bill. Lead time analysis develops the maximum cumulative lead times for the products and compares standard lead times on the item master file against the actual processing lead time developed from the current routing. Each time MRP is run, the statistics are captured into a single record with the run time, orders planned, recommended date changes, etc. The system contains sensitivity filters that buffer expedite/de-expedite logic. MRP can be set to: 1) recommend changes only; 2) assume that changes will be implemented as processing continues; or 3) automatically make the changes for you.


Warehousing
This is the largest module in the system and the place where much of the execution portion of the package comes together. It includes processing inventory adjustments, purchase and manufacturing order receipts, shipping sales orders, and issuing material to production orders. Order shipments and product issues both make use of a hard allocation process that ties order requirements to the exact warehouse material that will be used to cover the demand. The allocation feature is an extremely powerful tool. Sales orders can be queued by any number of parameters (customer, geographic area, scheduled ship date, etc.) and inventory allocated by pressing a button. Pick lists and bar coded ID tags are printed. Shipping paper and optional invoices are produced for the shipment. Carriers and pro numbers are linked to the shipments for tracking. Physical inventory and cycle counting programs round out the warehousing module.


Sales Order Entry
This module processes orders from quotation through sales order. It supports an optional product configurator that develops and maintains order-generated product configurations. The configurator uses modular bills as input. Costs and selling prices are automatically developed during the configuration process. Orders are processed through a rough-cut capacity scheduling system called management load planning (MLP). MLP integrates the sales and production capacity plans with the sales order entry process so that accurate ship dates are acknowledged to the customer. This module supports extensive backlog reporting. Selling prices are developed through a user-defined matrix that identifies product class/product on one side to customer class/customer on the other. Prices can be stated as actual, per contract, or be covered as markups to cost or markdowns from list. The rules can be enforced through effective in/out dates.


System Development Facility
This is the arm of the system that allows the custom tailoring to occur. A series of supporting files give access to reports, data dictionary items and menu entries. For those that need to go an extra step, source code is available for most application screens and programs. Visual FoxPro development is required to make and compile program/form changes. The menu entries can be rearranged and the icons related to each entry changed. User-designed icons can be substituted for any of the WinMAGI icons used in the menus or screens. Programs and forms can be changed in this facility if the source has been licensed. Report layouts are provided with the standard product at no additional charge.

Additional files can be added to the system through the system dictionary. New files and fields automatically fall under the systemwide maintenance and security umbrella. Setting them up as a menu entry for maintenance will activate them. Transaction-driven file updates can be included by asking MAGI for a user exit at the appropriate point. This allows the system to incorporate your custom needs into its processing without creating a need for internal program alterations.

The system dictionary supports an extensive list of process properties for each data element. Among a few are the default caption used when it is displayed, the field type, length, number of decimal places, editing criteria, type of object used for editing (combo list, check box, etc.), default security restrictions, and so on. The grid displays are also maintainable (see Figure 4). A grid display is of a file, and contains the fields from that file, related files, or user-developed fields. Each grid view can be set as to the actual fields that are displayed, the sequence the records are in, and the captions on the column headings. This feature should not be used by any but the most experienced user. It gives virtually total control over the processing aspects of the system to anyone who has the security rights to use it. In the hands of a novice it could be dangerous.

Figure 4

System Performance
This product is largely data driven, thus I expected to pay a penalty in processing speed. That was not the case. The overall response time was very good. All tests were run using a Pentium 150 with 32 MB RAM. MAGI recommends a minimum of a Pentium 90 with 16 MB RAM and suggests that a Pentium 166 is a better choice. As with all Windows products, performance seems to improve with the amount of memory in place. Run times using a test database 3,500 item master records, 200 parts and five levels per bill yielded run times of three minutes and five minutes, respectively, for processing a standard cost implosion and requirements planning run using full regeneration. Net change ran for less than a minute in each case. The test was carried out using a Pentium 200 Novell file server and a Pentium 200 Windows 95 workstation with 100 MB network interface cards.

The speed of the package is also greatly influenced by the capabilities of the LAN and the hardware platform. WinMAGI currently uses Visual FoxPro from Microsoft as its database manager. VFP reads its indexes first, checks buffers second, and resorts to network I-O last. This greatly reduces network traffic during indexed or direct access of the databases. The capacity of the program is essentially unlimited. Thanks to Visual FoxPro, MAGI can accommodate any size of database.


Ease of Use
Overall, WinMAGI is easy to use. Although a modest amount of training is provided as part of the initial purchase, additional training will certainly decrease the amount of time required to make the user comfortable with the product. A plus is the manual that is incorporated into the online help facility. The help is Windows standard with hypertext jumps to related topics; it also includes "cookbook" directions on how to perform specific tasks.

Help can be obtained at any time by hitting the help key on the top right hand side of each screen. This brings up a context-sensitive help system that places the entire manual on-line, where it can be printed out if hard copy is required. However, the manual cannot be updated by the user to reflect changes or provide clarification where necessary. This is a significant drawback in a system that needs to be overcome.


Technical Operating Information
WinMAGI is a full 32-bit system and requires either Windows 95 or NT at the workstation level. You will be happiest using fast workstations with lots of RAM. Pentium 90s with 16 MB RAM and super VGA monitors are the recommended minimums. However, better performance was obtained by using a Pentium 166 with 32 MB RAM and 17-inch monitors (especially desirable for the sales order entry, purchasing and engineering functions.).

At the server level, WinMAGI runs on either Novell or Windows NT. Although other network software may be compatible, both of those are in operation now and are functioning well. Server hardware requirements include enough hard disk space to hold the initial database and meet historical data storage requirements. Sizing the drive space will be an individual issue, however at least 6 GB should be allocated unless your needs are very modest. WinMAGI supports viewing and redlining of product drawings, storage requirements should be planned accordingly.

WinMAGI currently uses the Visual FoxPro database manager from Microsoft. We think it would be a plus to see this system use one of the more robust client server databases such as Oracle, Informix, Sybase or SQL Server.


Technical Support
Two services that MAGI offers are Help Desk and MIS Support. Help Desk includes phone and modem support on system-related problems and operational issues. MIS Support includes installation of new releases and product updates. MAGI also audits the MIS procedures related to the operation of the system including backup policies. The physical operating environment (server, workstations, network software and cabling) is reviewed periodically against the current WinMAGI recommended configurations with respect to performance, space and security.

A startup package contains some much needed services that are required before running the system. The package contains three days of training at MAGI for up to two people, conversion of existing master files and initial setup of the master files, conversion/setup of existing purchase order, sales acknowledgment, sales invoice and shipping paperwork, and the preparation of an initial SOP manual. These are one-time charges.

In addition to these services, past experiences with the technical staff at MAGI have been both pleasant and excellent. The people know the product and questions are almost always answered quickly and to the point. The only concern to be raised about the technical support is its limited availability. This is especially important if the user is located on the West Coast (MAGI telephone support ends at 5 p.m. EST or 2 p.m. PST). In general, technical support is thorough and well-thought out.

Product Summary: WinMAGI
Type of Product:	MRP II Manufacturing System
Software Vendor:	Manufacturing Action Group Inc. 6650 Crossings Drive, SE Suite D Grand Rapids, MI 49508
E-Mail:	[email protected]