So, you've decided to take the plunge and purchase an enterprise resource planning software system (ERP) for your job shop or manufacturing operation. You've come to appreciate the power of organization such systems have, and how they're able to lean businesses in order to enhance bottom-lines. However, you also know that because of the sort of work your company engages in, your greatest need in any ERP package will be found in its capabilities as a complete project management (PM) function.
Well, by knowing and understanding what your need really is in an ERP solution, you're more than halfway there in choosing what is right for you-what to look for in your new software. In other words, taking steps to investigate and self-assess company requirements will guide you in making informed acquisition decisions. Many times, companies in search of ERP software make purchases on criteria other than actual need or the prospect of expanding their operations through economic growth in the future. They are glamorized by the "bells and whistles" and after considerable time, effort, and money is spent, they end up with an ERP software package that is much too large and costly for their operation, or one that is-while cheaper-limited in terms of capabilities that allow for growth.
Knowing exactly what is important to the way you administer front office and produce on the shop floor will be the benchmarks by which the ERP software purchases with the best ROI possibilities are made. Here are a few factors to consider when putting your own ERP purchase criteria together, particularly as it addresses the need for PM capabilities:
1) Time & Attendance-Is task management important to you? Do you wish to have the capability to monitor employee time on and off a job? If so, then a clocking capability must be a part of your PM. This is certainly vital when it comes to having a better grasp on direct and in-direct costs.
2) Project Scheduling-Backwards, forwards, infinite, finite, PM's in ERP packages should integrate task management and time & attendance with project scheduling. By scheduling efficiently, you make life easier for everyone in the shop to produce projects efficiently and on time; and, on-time delivery makes your customers even happier.
3) Bill of Material Management-A place for every part, and every part in its place. A robust Bill of Material (BOM) module will be the heart of workflow for the PM. BOM's are used to keep track of materials and the other physical elements needed for a job, and the way the parts will be manufactured. The BOM is covered in more detail in an additional article in this series.
4) Data Management-There is no sense in having to reinvent the wheel every time a reoccurring job comes back into the shop. It's immensely advantageous to have a central repository of project information that includes product history, results and quality reports, inventory levels, actual and estimate costs, and other associated data. A good PM within an ERP system will allow access to and analysis of this data by authorized managers in real time and instantaneously.
There are, of course, many other aspects to consider when looking achieving a comprehensive PM capability within an ERP software purchase. Depending on the size of the shop and the sort of tasks it engages in, everyone in the operation will have their own idea of what would work best in such a system. It is the goal of research to find and select ERP solutions that are just that-solutions that will best weigh the cost-to-benefit ROI. That there is value in such an ERP system is just as important a consideration as capability to expand as the company expands. These are, perhaps, the most daunting factors in your search.
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.
Copyright 2008 - Global Shop Solutions. All Rights Reserved Worldwide. Reprint Rights: You may reprint this article as long as you leave all of the links active, do not edit the article in any way, and give the author name credit.
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