Let’s Understand What is Manufacturing ERP and Why its Important
What Is Manufacturing ERP?
Manufacturing ERP is a type of Enterprise Resource Planning system that is
exclusively used for manufacturing functions in the business. Some of the
manufacturing-specific functionalities include streamlining and automating core
business processes, managing inventory levels, daily finances, and accounting, and
creating lasting value for small and midsize manufacturers.
Why Manufacturing ERP Is Important?
A standard manufacturing ERP comes with generic modules like HR management,
Customer Relationship Management, Sales, Finance, etc. While these are key areas of
business, a manufacturing company needs a nuanced version of the ERP system, with
a laser focus on manufacturing functions. Apart from the standard business modules,
the manufacturing ERP also has specific modules like engineering control, product
and operations management, material requirement planning, warehouse management,
and quality assurance.
What Are the Key Features of Manufacturing ERP?
Like every other industry, the manufacturing sector has also turned highly
competitive. Having complete control over manufacturing operations has become
important to conform to today’s agile supply chain environment.
Here are the key features of manufacturing ERP:
- Bill of Materials and Routing
- Master Production Scheduling (MPS)
- Material Requirements Planning (MRP)
- Capacity Requirements Planning (CRP)
- Enhanced Inventory Management
- Advanced Planning and Scheduling (APS)
- Automated Data Collection
- Production Management
- Integration with Floor Machinery
- Quality Control and Assurance
- Mobile Access to Data
What are the Benefits of Using Manufacturing ERP?
Investing in manufacturing ERP enables manufacturers to increase output, improve
scheduling, scale up quicker, and achieve better quality and compliance.
Some of the Key Benefits of Manufacturing ERP are Include:
- Real-time data visibility – The key personnel have access to accurate business information and can leverage the data to make data-driven decisions.
- Intelligent scheduling capabilities – Rather than managing the jobs in chronological order, you can choose the groups based on business priorities. For example, high-value customers can be prioritized to maintain satisfaction levels.
- Standardized work processes – If everyone in the organization uses the same ERP system, business processes get very consistent. Manufacturing ERP can also be used to incorporate quality control, industry compliance, and health and safety checks to ensure high production quality.
- Accurate inventory management – With end-to-end data integration and better scheduling, the inventory requirements can be planned and managed in line with work orders. It will also reduce overstock and minimize outages.
Manufacturing ERP helps manufacturers become agile, efficient, and innovative and
enables them to respond to internal and external changes strategically. It enables
manufacturing companies to keep pace with advanced technologies, embrace changes,
and gain a competitive advantage.