Implementation of a Production Plan and Developing Enterprise Resource Planning (ERP) System at Outdoor Furniture Factory

Abstract

Egyptian Metal & Wood Industries Group is a company specialized in furniture manufacturing. The company was established in 1986. The factory located in the 6th of October industrial zone is specialized in manufacturing of outdoor furniture, home furniture, hotel furniture, aluminum windows & door hardware (fittings). The company recently launched a new brand called ACAJIA for outdoor wooden furniture to expand its market share and to benefit the diversity of the products within similar raw materials. On analysis, sales charts show a trend of high demand at a certain period of the year. In other terms, their products are sold mostly in a specific time interval within the year summer and spring seasons. Along with, the problem of poor documentation of all data and the problems with the data being lost or not documented is also a very serious problem that the company faces. The nonexistence of a system for the sales records, inventory, and production orders, is considered a challenge that needs to be solved. The presence of a proper electronic documenting system that connects the three main departments of the factory, this will allow the administration to know every single action done from the beginning of receiving the order till the final delivery anytime, anywhere and from any device that's connected to the internet. All the company records will be saved automatically in a secured cloud system enterprise resource planning (ERP). Our objectives are to replace the absence of a production plan and the lack of communication between departments by constructing and implementing a proper production planning system through developing a forecasting model suitable for the company for the year 2020, figuring an Aggregate Plan for the company, planning a Material Requirement Plan (MRP) for the company in 2020 along with developing and training the employees to use the developed planning system efficiently.