ERP for manufacturing - more efficient production planning

What is an ERP system for manufacturing?

ERP is a system that is an extension of MRP, which is used to production planning and management. It enables control and monitoring processes that go into the manufacture of the products on offer from the company. What sets it apart is that it regulates the production process through a single interface, which is very convenient.

What features does a good ERP production management programme have?

Production management software should improve business processes, so that orders can be completed more efficiently and quickly. A good enterprise resource planning system is one that has multiple functionalities and the ability to expand. Ease of use is also important.

Functionality

An ERP system should be built based on the individual needs of the company. Its functionalities, depending on the industry in which the company operates and its structure, may be of a different nature. Examples of these include:

• handling of deliveries, including in terms of their frequency;
• a service module to monitor the technical condition of the machines and ensure timely servicing;
• finance and accounting, which includes, among other things, the handling of invoices.

Scalability through extensibility of modules

A good ERP programme allows further modules to be added. This may be needed, for example, when a company is growing intensively and gradually establishes partnerships with other market players. In such a situation, a supply chain module can be included in the production management system to monitor the inventory of customers.

Integration of business processes

ERP does not only encompass planning or production scheduling processes. The capabilities of ERP systems are much greater, as they will allow you to manage:

• personnel - this is about delegation of tasks, remuneration, etc;
• risks, including the possibility of safety or quality risks in production;
• projects - the ERP solution will help determine the necessary resources and timetable;
• customer relations - the CRM module is used for this.

ERP will ensure effective data management from the receipt of a production order through to its completion. This will significantly improve the flow of information.

ERP software should be easy to use and provide mobility

It is best to choose production planning software that has a clear interface. This will allow you to quickly navigate between the various options, making your manufacturing processes more efficient.

The ideal solution is ERP in the cloud. This is an advanced ERP system that will provide access to the resources stored within it via the internet. The solution will come in handy, for example, when a company has multiple manufacturing divisions that work together.

What is ERP software used for in a company?

An enterprise resource planning system is an excellent support for product manufacturing processes. It is essential in logistics, where integration between the areas of procurement, production and distribution is required. The software will ensure that production operations are efficiently planned and controlled.

Production planning

ERP will ensure effective production planning. With the system you will determine:

• what is the current level of demand for the goods produced in the company;
• how many raw materials are needed to respond to this demand;
• what the frequency of delivery of production materials should be.

ERP will make it possible to create production plan taking into account the company's capabilities and market needs.

Production scheduling

ERP in manufacturing will help determine how many products need to be produced in a specific time frame. With the help of the system, not only a short-term but also a long-term production schedule can be determined. A broad perspective in this respect is provided by artificial intelligence, which is able to forecast demand.

Production monitoring

The use of ERP in manufacturing is also becoming important because the programme will help control manufacturing processes. With it you will check:

• whether orders are being delivered on time and, if not, what is causing the problems - the source of the problems is often material shortages;
• whether the products are of the right quality and therefore comply with customer specifications.

Monitoring of stock levels in the warehouse

The ERP continuously monitors your stock and informs you of any excess or shortage of stock. In this way, you can determine the optimum level of stock, thus reducing the expenses associated with warehouse space management.

An ERP system will help companies that operate in supply chains to realise production. It will enable monitoring of inventory levels among partners, which is needed to determine the frequency of deliveries to meet demand. It can also be used to implement a Just in Time system, i.e. just-in-time deliveries where raw materials do not need to be stocked.

ERP system for manufacturing companies enables data management and reporting

ERP for production planning will provide convenient access to company data. With its help, you will quickly check and also generate reports on, among other things:

• stock turnover;
• HR and payroll statements;
• settlements with counterparties.

A modern ERP system will also allow production costs to be accounted for

Using ERP, you can quickly check your procurement expenditure and the value of the manufacturing cost products. The system will also help to settle accounts with contractors. It is therefore an ideal tool for the financial management of a company.

What does an ERP implementation look like in a company?

In order to manage production resources effectively, it is necessary to know how to build and run an ERP programme. Before this can happen, a pre-implementation analysis should be carried out to answer the following questions:

• How do the company's production processes work and what is the integration between them?
• Do they have bottlenecks that result in downtime and missed deadlines?
• What should the implementation of an ERP system for production management lead to?

Once this analysis has been carried out, you can move on to designing the system and determining which functionalities will be available within it. The next stages are its configuration and integration with the company's existing programmes.

Remember that efficient production management is not only possible with ERP. It is also worth investing in other programmes. For example, an access control system is a good idea, as it makes it possible to secure company buildings against the possibility of theft and to account for staff working hours. It is worth entrusting the implementation of this system to a specialised agency.

What are the benefits of implementing an ERP system in manufacturing?

ERP is the ideal solution for all manufacturing companies. The software will streamline production planning methods and serve to effectively manage logistics.

Optimisation of business and logistics processes

ERP will increase efficiency on the shop floor. Automating the flow of raw materials and data or billing contractors is an ideal way to streamline logistics. The result is on-time order fulfilment and increased capacity and therefore increased profits.

Reducing production costs

An ERP system will help to reduce costs through the elimination of downtime, reduced consumption of raw materials or higher employee productivity. In addition, it can help to realise professional quality control. This will contribute to reducing the number of complaints or returns, which are always an additional financial burden for the company.

An effective ERP planning system also means better business decisions

The ERP programme is able to determine the optimum levels of demand and supply at different time intervals. As a result, the company is better able to adapt to market realities and respond effectively to changing customer needs.