Needless to highlight the contribution of manufacturing industry in a nation’s GDP and growth and, consequently, in its people’s prosperity as it’s one of the largest job-creating sectors. In India, the manufacturing hub (machinery and equipment, motor vehicles and transport, computer and electrical, metals and metal products, chemicals and pharmaceuticals, etc.) employed nearly 52.4 million people, and together with mining and electricity it was accountable for 97.1 percent of GDP in 2011-12. However, today in the globalized world manufacturing units are shrouded with challenges, and to stay at the helm they need to focus on reducing operational costs, improving efficiency and doing more with less resources i.e. governing their businesses well.
Thankfully, cloud-based ERP solutions work as a beacon to help them steer well through this turbulent time. ERP is aimed at making manufacturing tasks agile, flexible and responsive by synchronizing and integrating different processes and techniques in the production environment. Learn below how can ERP enhance core competencies by helping manufactures to plan, record, track, and control their outputs in a better way.
Optimizing Availability vs. Cost demand: It leads to better inventory management which in turn helps in better decision making as what to manufacture, what resources to use in that and when, where, and in what sequence.
Providing accurate insights to check costs: ERP facilitates capability to automatically sync, relate and enhance all supply actions related to fulfilling the client’s order. It manages rules-based order processing tasks for assembling, configuring and provisioning final products.
Defining bills of materials (BOM) from simple to very complex bills: ERP can easily deal with simple to complex bills bearing multiple units of measure and relationship definitions.
Calculating lead and elapsed times, and order quantities: ERP helps in optimizing the production order quantities by monitoring lead times and checking dynamic elapsed times.
Planning and scheduling of production – ERP helps in managing and re-scheduling activities as per changing manufacturing plans including forecasting, master planning, material requirements planning and capacity planning. Scheduling functionality extends from single-constraint scheduling to multi-constraint scheduling and sequencing.
Material requirements and capacity planning – ERP facilities work-in-progress evaluation of manufacturing goods in terms of materials and workmanship consumed. It allows a product to be receipted against multiple items if grades of the final product vary.
Managing material, labor and scrap during work-in-progress – It helps in estimating the actual manufacturing cost against the estimated one, and the insights obtained so can be used later to reduce it. Manufacturing costs is assessed after analyzing expenses involved with material and scrap, internal and external labor, fixed and overhead costs per job, or group of jobs and R&D job.
Integrating with CAD and shop-floor data collection systems – ERP framework allows version-independent integration to CAD and shop-floor data collection systems.
Cost control and tracking – ERP works as a consolidated tool to capture, track and analyze different jobs and product costs and, hence, is ideal in evaluating profitability in real-time.
Date: October 29, 2014