Manufacturers across the country rely heavily on their MRP or ERP systems to automate the handling of resources. That's what the "R" stands for, after all. But it turns out that MRP and ERP systems leave a whole lot to be desired when it actually comes to managing resources--including raw materials and labor--on the shop floor. That's where companies like Crossroads RMC and its manufacturing execution system, Crossroads MES comes into play.

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In Baan IV, this session is called Release Commissions/Rebates to Invoicing (tdcms2201m000) and is used to set the status of the commissions/rebates to Reserved, or Closed. In Infor LN, this session is only used to set the status to  Closed. Users can reserve commissions/rebates in the Reservation and Approval of Reserved Commissions/Rebates (tdcms2202m000) session. In addition, the following fields are added to the Release Commissions/Rebates to Invoicing (tdcms2201m000) session:

▪ Commissions to Accounts Payable

▪ Rebates to Central Invoicing

For years, repetitive manufacturing industries have been applying many of the principles in Just-in-Time philosophy. They have established balanced production lines that depend on a steady flow of material to each work station. They schedule production in daily or weekly rates rather than in discrete shop order lots. They track finished inventory by work center rather than by job. They typically backflush stock balances (decrement stock balances upon completion of specific manufacturing steps rather than issued at the beginning of each production run).

Costing is typically based upon a daily rate or hourly rate rather than being associated with specific shop orders. 

Repetitive manufacturers use MRP II software adaptable to their environments

in the following key areas:

▪ Product definition

▪ Inventory tracking

▪ MRP/Master Scheduling

▪ Shop Floor Control

▪ Purchasing

▪ Costing

Just-in-Time (JIT) is a management philosophy that focuses on minimizing the resources necessary to add value to your products and to operate your factory in ways that eliminate waste. Resources are labor, materials, equipment, space, and time. Waste is anything that does not add value to your products. Moving work-in-process from place to place, stacking and sorting, investing capital in large work-in-process and raw material inventories, inspecting materials at your vendors' sites, and tying up warehouse space with finished goods are all activities that add cost, not value, to your products. 

JIT is a process that reduces lead time. JIT does not replace an MRP, an inventory program, a scheduling technique to bypass your Master Schedule, or a materials management project. JIT is the never-ending commitment of everyone, from top management to your workers on the floor, to maximize your effectiveness through continuous, incremental improvements.