Dan Natchek, CFPIM
ACME Perfect Putting Systems (APPS)
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			This is an exercise I developed to introduce basic ERP concepts and transactions to a novice audience. Using easily available materials and tools (paper/plastic coffee cups, coffee stirrers, index cards, labels, stapler, and tape), I built this product (a practice putting cup), and used it to introduce concepts like bills of material, costing, MRP planning, purchasing, payables, inventory, work in process (including scrap and rework), sales orders, shipping, and receivables. The most elaborate execution was a several-day session. I had pre-loaded a demo system with most of the parts, bills, routing, etc. that were needed, but they were missing one element. We would discuss the concept, show the incomplete entity in the demo system, and invite one of the students to play the role of the person who would be responsible to complete the data entry. For example, after discussing the function of part numbers, we’d look at existing parts in the demo system, and would then choose an “engineer” to enter the data for one missing part (the cup). We’d discuss the function of a bill of material, and choose another “engineer” to add the new part to the unfinished bill of material. We’d discuss cost management, and choose a “cost accountant” to enter cost information for the new part, and run a cost rollup for the now-complete bill of material. We would run an MRP plan, showing requirements for the cup, place a purchase order, receive it, and then build the product on the shop floor. This was hands-on for the majority of the class, as each performed a step in the routing (staple the card to the cup, attach the flag, and attach the pre-printed label. At each step, we’d record the appropriate activity in the system. This was very well received, as it emphasized the rationale and value of the transactions that are required in a typical ERP system. We also used this product in a flow manufacturing class, to re-enact the famous video that Hewlett-Packard produced many years ago, showing the benefits of “pull” vs. “push” manufacturing.
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