ERP vs.

PDM

Dr Mattias Johansson Eurostep Commercial Solutions AB

All Presentation Material Copyright Eurostep Group AB

Background MRP Material Reqirement Planning

Introduced during 70s Focus on production material flow support
analyse material need delivery schedules delivery quantities

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Background MRP II Manufacturing Resource Planning

Further development of MRP due to the lack of support in
availible capacity storage and assets

MRP II supports
resource planning master scheduling capacity planning shop floor control feedback from production in future planning

All Presentation Material Copyright Eurostep Group AB

MRP II

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Scope ERP Enterprise Resource Planning

Engineering

Development
Product Engineering

Process Engineering

Market entry
Production Service

Dealer

Production planning

Order

Delivery

After Sales Services

Sales

JIT to line

Field Service Customer Support

Purchasing
Purchasing

Supplier

Service Provider

from SAP AG

All Presentation Material Copyright Eurostep Group AB

Scope ERP Enterprise Resource Planning

ERP commonly supports
Availible resources Routing Sales forcasting Customer orders Internal orders Resource usage analysis Inventory management As-built product definitions

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Scope - ERP
Supported information, but ERP is not original creator
Change orders Part definitions and defining documents Bill-of-materials Variant control

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PDM scope

Engineering

Development
Product Engineering

Process Engineering

Market entry
Production Service

Dealer

Production planning

Order

Delivery

After Sales Services

Sales

JIT to line

Field Service Customer Support

Purchasing
Purchasing

Supplier

Service Provider

from SAP AG

All Presentation Material Copyright Eurostep Group AB

ERP vs. PDM

Main scope difference: PDM supports the product definition development process: Time to market ERP supports the product production process: Time to customer

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ERP vs. PDM PDM scope

Calendar Event Mailbox

Resource

Facility

Activity

Change

Document

Project

Equipment Forecast Process stage Employee Customer Order Shop traveller Product instance

Item Part

Role

Property Product Variant combination

Person Organisation Unit Operation

Material

from Volvo Penta

All Presentation Material Copyright Eurostep Group AB

ERP vs. PDM ERP scope

Calendar Event Mailbox

Resource

Facility

Activity

Change

Document

Project

Equipment Forecast Process stage Employee Customer Order Shop traveller

Item Part

Role

Property Product Variant combination

Person Organisation Unit Operation

Product instance

Material

from Volvo Penta

All Presentation Material Copyright Eurostep Group AB

PDM vs. ERP Overlap in scope

Calendar Event Mailbox

Resource

Facility

Activity

Change

Document

Project

Equipment Forecast Process stage Employee Customer Order Shop traveller

Item Part

Role

Property Product Variant combination

Person Organisation Unit Operation

Product instance

Material

All Presentation Material Copyright Eurostep Group AB

ERP vs. PDM Production vs. Design

PDM is design
PDM is mainly used for development of product definitions. The information is static. Information generated will support later stages of the product life cycle.

ERP is production
ERP is used for optimization and control of production/company processes. The information is dynamic. Information used is mostly valid within the process supported.

All Presentation Material Copyright Eurostep Group AB

ERP vs. PDM Production vs. Design Structures

The product defining information is not unambiguous, it depends upon its usage. The PDM system supports the ERP with the BOM valid for production.

Requirement breakdown & solution development

Assembly sequence

Verification

from Volvo Aero

All Presentation Material Copyright Eurostep Group AB

ERP vs. PDM Process execution vs. Process definition

The PDM system defines the generally valid way of producing the product The ERP system executes the production based on this definition with complementary information based on avialibility, resources, inventory, other production processes etc.

All Presentation Material Copyright Eurostep Group AB

ERP vs. PDM Change Management

Changes on the product defining information (including production process) shall be controlled and issued from the PDM system. Changes concerning the real-time production shall be controlled and issued from the ERP system. Changes and information validity in the PDM system is concerned with usage (approval) of the definition. Changes and information validity in the ERP system is concerned with usage of a definition for a specific production situation (production week, batchno, serno).

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ERP vs. PDM Summary

Design Production, Distribution Aftermarket Service

ERP,CRM

Supply Chain Management

Product Life Cycle Management

First idea Start of production

End of production

Obsolescence of product/part
from SAP AG

All Presentation Material Copyright Eurostep Group AB

ERP vs. PDM Summary

PDM is used as primary system in engineering intense industries. ERP is used as primary system in production intense industries.

All Presentation Material Copyright Eurostep Group AB