What are the Benefits of ERP For Manufacturing?

In an industry such as manufacturing, where efficiency is consistently sought yet difficult to find, enterprise resource planning (ERP) could be a game-changer. Manufacturing ERP is a centralized method of managing every aspect of facility operations and processes, from manufacturing to payroll. ERP permits for unprecedented visibility, coordination and management across the disparate processes that make up a enterprise — ultimately resulting in greater operational efficiency.

Manufacturing ERP: The “hows” and “whys”

ERP is a natural fit for the manufacturing sector, given the quite a few processes that should happen daily simply to keep a facility running. Some examples of processes that ERP will help handle and streamline are listed under — you’ll want to word the quite a few methods in which these processes can now “talk” to one another via ERP, a major benefit that shall be discussed further below.

• Inventory management: From MRO to gear spares, ERP can act as a centralized resource for inventory tracking, data analysis and replenishment strategy.
• Supply chain: ERP allows visibility and organization for vendor efficiency tracking and may draw on data from internal and external sources in order to help with extra efficient supply chain planning and management.
• Maintenance: By centralizing scheduling, tickets, and work orders, manufacturing ERP software facilitates effective maintenance as well as enabling powerful data tracking and analytics.
• Equipment performance tracking: ERP modules can store, track and analyze tools efficiency data from sensors and reports, enabling more informed, proactive, targeted maintenance.
• Quality assurance: Enterprise resource planning software can monitor QA results, creating huge data stores over time that can play a role in early identification of maintenance needs.
• Purchasing: With ERP, purchasing and requisition could be simply organized and can operate with visibility into different related areas of the operation.
• HR: In addition to manufacturing operations and support, ERP will also be utilized to HR features similar to efficiency reviews, goal tracking and more.
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Now that you understand the “hows” of ERP’s affect, let’s have a look at the “whys” — the advantages of implementing an ERP project.

• Increased visibility into processes: ERP acts as a centralized, accessible “single source of truth” for each process in the system. Anyone can access information from any other process or department, which makes it a lot simpler to foster coordination, collaboration and — as mentioned under — communication to introduce advantages and improvements.
• Communication between totally different departments: With elevated visibility across features and processes comes the breakdown of boundaries to communication. Process “silos” — the invisible (or actual) “walls” between totally different groups and features — may result in redundant work, inefficiencies and missed alternatives for collaboration. ERP solves these issues by open channels and transparency.
• Centralized data assortment and evaluation: From machine sensors to QA tracking and more, ERP facilitates the modern, data-focused facility and all the advantages that this unprecedented quantity of data and perception affords. Data evaluation can drive more informed, effective decision-making in areas similar to maintenance, machine usage, procurement, supply chain and more.
• Greater effectivity in processes: Over time, as more data is collected and personnel grows accustomed to the elevated visibility provided by ERP, processes will become streamlined, cross-functional efficiencies shall be recognized and productiveness will improve.
• Overall cost reductions: With the above advantages come price reductions and efficiencies — one of many primary final advantages of investing in ERP.
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ERP software can streamline numerous processes, together with maintenance planning, scheduling and technique. At Apagen, one of our core missions is to help manufacturers make use of data-driven technologies similar to ERP and CMMS in order to maintain plant operations up and operating while continuously improving. To learn more about industrial maintenance and Odoo management solutions from Apagen, contact today.