Why use an enterprise resource planning solution (ERP) designed for another manufacturer whose operations are nothing like yours? Common sense, right? However, this is the approach taken by less robust ERP software systems that lack the flexibility to integrate customizable features. Sure, most of the standard features are usually there—purchasing, time clock, scheduling, inventory, shipping, and so forth. But what happens when your needs as a manufacturer are more than just the “standard” manufacturing functions? This is where the advanced ERP software systems come in to offer the ability to be customizable for the individual customer.
With all of the benefits ERP has to offer the manufacturer today, it would seem as if we’ve made great strides toward total manufacturing efficiency. Benefits such as the synchronicity of all shop operations, orderliness, efficient direct labor costs, less in-direct labor costs, and so on, means that the job shop today can operate at fuller capacities and with enhanced bottom lines. On the other hand, the inflexibility of many ERP solutions often counteracts any significant gains made through the use of the software. With newer forms of manufacturing here today, and with even more on the horizon, it is imperative that an ERP solution be strong yet flexible enough to deal with the many advances being made.
For example, the concept of nesting is a manufacturing method made to optimize use of standard material sizes with the mix of orders. In short, nesting is a production technique wherein you are able to use more of the raw material available in a fixed and standard size through a mix of orders. Nesting, as a parts and assembly configuration method, takes advantage of the inventory to produce work in the most efficient way possible, and a truly robust ERP software system will be flexible enough to be customized in order to take advantage the technique. Such customization capabilities might include the ability to retrieve available raw materials data in order to proceed with a job. For example, a make-to-order fabricator is best served by knowing how many pieces of raw material are available at any one moment, and what usable square footage exists for each of these raw materials. In less powerful or flexible ERP systems, operators are pretty much stuck with accepting a work order and then searching the shop for the proper dimensioned material to use in the production—if the needed material with the proper dimensions is even in the shop at the moment.
By contrast, a robust and flexible ERP software system will offer the operator the ability to bring up information (sizes, shapes, square footage, shop location, images, etc.) about available raw material and/or remnants in one single view. Indeed, such information can be had at the touch of a terminal button when ERP is allied with a series of shop floor graphical user interface ( GUI) terminals where job related data and even material imagery (photos, illustrations, etc.) is maintained. If the material is properly configured for the job at hand, then the material is easily located and picked-up from where the GUI says it will be found. On the other hand, if the available materials are unsuitable for production, then raw materials may be purchased from the vendor using the same GUI terminal connection.
All in all, a flexible ERP software system allows the manufacturer the ability to realize the maximum benefits associated with their system. That is to say, in a powerful and customizable ERP system production capacity is increased while direct labor costs are reduced, total material used is reduced, and accuracy and quality are maximized.
http://globalshopsolutions.com/
Dusty Alexander is the President of Global Shop Solutions. Global Shop Solutions is the largest privately held ERP software company in the United States.
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