ABSTRACT
The Enterprise Resource Planning (ERP) system implementation into a highrate, low-variety repetitive manufacturing company is a unique application. Unlike the traditional process of a master schedule netting gross to net requirements through to a detailed material plan, the repetitive manufacturer needs to perform rate-based material planning supported by rate-based parts delivery schedules. In some companies this rate-based schedule must be tied to a mixed model sequenced line or may require traceability to a customer order. However, the transactional processing of individual work orders either by the practitioner or under the software covers by the computer does not add value for the enterprise. Rather than detailed job order costing, the variance of expected vs. actual output rates over time is a key performance measure. This linearity of output provides key insight into the overall effectiveness of the process. Product costing involves changing to a four-wall period approach rather than performing detailed issue transactions to a work order.
