ERP for Process Manufacturing
If your manufacturing is process based, you must focus on few things
before selection of an ERP. ERP must be made for process based
manufacturing. Production part should be the strongest part of the ERP.
It should be easy to implement and configure with less or no
customization. Linking of manufacturing with inventory, subcontracting,
purchase and other modules should be good and effective.
After implementing the process based ERP, your manufacturing process
will give you the optimum results. You can improve your manufacturing
process to make it more effective. It will save your precious time and
improve your production capacity with better control on inventory,
subcontracting and planning. Organization can take all decisions on the
basis of information not on assumptions or predictions. All reports will
be online, on a click of button you will get information of raw
material, WIP reports, material lying in which process, material
required by particular process at what time etc.
ERP for process based manufacturing work on the simple concept of
integrating all the tools, machines and resources to optimize the
efficiency of the manufacturing processes. In this type of ERP,
production part must be the best part of the software. If production
part is not a strong part in the ERP then you have to do lots of
customization to meet your requirements. If you will involve in more
customization software will not run smoothly and implementation time
will increase. Most of the companies are charging on a man-month or
man-hour basis for implementation, customization, training etc. In this
case, cost of ERP implementation will be very high.
Benefits of process based manufacturing ERP
Process based manufacturing ERP will reduces the inventory, reduce lead
time for production, shorter production cycle, and reduce lead time for
subcontracting and automation.
In process based manufacturing ERP, manufacturing processes work
out of required materials for the manufacturing processes with unwanted
materials not finding a place. This type of ERP will advocates smooth
flow of information between all stages of the production cycle. It also
ensures less probability of errors in subsequent stages of production
and reduction in lead time. Every manufacturing process aims to produce
‘A’ quantity of product within a given time. A company can easily
achieve this by shortening the production cycle time with the help of
appropriate ERP software. Automation is an inherent feature of almost
all the process based manufacturing ERP. Integrating all manufacturing
processes ensure that the chances of errors due to human intervention
are minimized.
Challenges to process based manufacturing ERP
There are many challenges to implement process based manufacturing
ERP in an organization. Firstly, the business owner or key person
like MD must do well to manage the change in the organization without
impacting the performance of the manufacturing process. Involvement of
business owner or MD is essential in ERP implementation. If it is not
managed by the business owner, it may result in a lot of employee
dissatisfaction. Secondly, the selection of ERP must meet the business
line. If you are choosing wrong ERP then it will be pain for you for a
long time.
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