The Variant Configurator for Materials Management and Its Benefits

April 2007 - IAS Turkey

Zeynep Calik - Variant Configurator for Materials Management

The primary reason organizations invest in ERP systems is the accumulation of the sizable amount of data which needs to be managed and interpreted. Gathering this data in a meaningful manner to generate reports and to utilize in support of decision making is only possible through a system allowing you effective means to manage the data. Therefore, to obtain detailed and targeted reports, it is imperative that correct data is input into the system, and once input, maintained within the system. One of the difficulties currently experienced by organizations using ERP systems is the excessive amount of garbage data with which they need to cope.

Accordingly, when choosing an ERP system, organizations should opt for a system that allows them to conveniently manage the static data (such as materials and customer data cards, product trees and routes) that they will be inputting into the system. One of the best applications in this area is the Variant Configurator.

The objective of the Variant Configurator is to be able to decrease the number of materials data cards to be entered into the system, thereby increasing your capability to manage the corresponding materials. To do this, you will need to be able to collect materials under a single group. Specifically, if a product is offered in alternative options, such as color, size, width, length, height, thickness, and quality, the Variant Configurator allows you to track these attributes as distinct dimensions within that product's inventory data card.

As an example, let's consider a shoe manufacturing operation, where the same model of shoes is produced in differing colors and sizes. In a system lacking the variant configuration capability, a shoe model being offered in 4 colors and 10 sizes would require 40 distinct inventory data cards to be defined. If we take into account the changes in models required seasonally, we can see how quickly and easily the situation would get out of hand. The difficulty lies not in the initial establishment of the data cards, but rather in the future maintenance required for those cards. Additionally, the organization should be free to generate reports with or without the listings of the different attributes of each model (i.e. colors and sizes). The Variant Configurator is primarily targeted for the textile sector, but may also be used by companies involved in custom manufacturing operations such as furniture, pipes and fittings, packaging and construction.

In an ERP system where various modules such as sales, purchasing, production, inventory, accounting and budgeting, work in an integrated manner, the variant configuration feature needs to function actively within and across all modules. Continuing with our previous example, when an order for a size 42, color brown pair of shoes is entered, the materials requirements planning for the required amount of brown shoe polish and leather, as well as the necessary purchasing and production planning, should all be realized automatically.

In such an ERP system, the variant definitions specified for products should also automatically be translated to semi-finished goods, and the requirements for semi-finished goods should be able to be automatically determined. The variant configuration function should also be effective for the raw materials purchased by the organization.

As mentioned earlier, the Variant Configurator may be utilized in several industries and allow for more effective use of the corresponding systems. Therefore, the ERP system you choose should be able to offer the corresponding functionality.

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Zeynep Calik
Senior Systems Consultant - IAS Turkey