ERP – Simplifying the Production of Complex Products
We are a far cry away from the days when the customer was happy to wait for a product if it meant that the quality would be better in the outcome. The development of a web-based IT era has meant that businesses and manufacturers have had to up their game to keep up with customer demand. Now, anyone can be a direct competitor to your business. In the industrial equipment sector, if you are unable to fulfil the criteria and demands of the customer 100%, it is likely that someone else can and at a lower price too.
All aspects of the design, implementation and manufacture process has to become far more time and cost efficient in order to compete in this market.
Managing Complexity
Companies that are struggling with the increased demands and time pressures have started to utilise the benefits of Enterprise Resource Planning (ERP) systems in order to compete with growing demand. They have become a widely recognised resource for bringing a sense of order and planning to business processes. A recent study by the Aberdeen Group, leaders in business research and consulting concluded that best-in-class companies in the industrial machinery and components sector were those who used ERP systems more extensively than others.
In the beginning, newly developed ERP systems helped companies by automating business processes and as a result streamlined the operations within the company. Over time, as ERP systems have progressed they have developed systems that imitate best practices for a whole variety of business functions. These include, but are not limited to taking customer orders and planning the timetables for production and manufacture. These systems help instil a sense of structure and discipline that must be adhered to; helping promote productivity, performance and organisation.
Benefits to the company for adopting the ERP best practice systems can ensure that all departments across the board are performing to the same set of rules and expectations, thus standardising the company. This is an extremely beneficial facet as it reduces the risk of duplicate work whilst also creating a happier more content customer and supplier relationship.
A prime example of how an ERP system or Manufacturing systemcan benefit an industrial equipment manufacturer is the product configurator. A well designed product configurator will be linked to an abundance of information on the designs and plansthat the company will already have built up. This is as well as a bulk of knowledge on parts that could fit the original designs to create new configurations. This information is usually gathered by querying the product design and manufacturing experts within the company.
The ability to link all these components of information together in one place means that at ground level, the company can inform the customer almost immediately if the exact product that they require can be built. It also enables the sales representative to inform the customer if the parts that are needed are readily available and if the product can be completed in the required timeframe.
In conclusion, the use of an ERP system enables standardisation across all departments to inform the customer if they can manufacture the product, when they can do it and the reasons why there may be a delay or issue with design. This can lead to a reduction in costs for parts and labour which then may be transferred to benefits for the customer.
