Workdap

How Can ERP Help Manufacturers?

Enterprise resource planning (ERP) can be a game changer in an industry like manufacturing, where efficiency is continually sought but tough to find. Manufacturing ERP is a centralised management system for all aspects of facility operations and activities, from production to payroll. ERP enables unprecedented visibility, coordination, and management across the diverse processes that comprise an organisation, resulting in increased operational efficiency.

ERP for manufacturing

Given the multiple procedures that must occur every day just to keep a plant functioning, ERP is a natural fit for the manufacturing sector. The following are some instances of processes that ERP may assist, manage and streamline – take note of the multiple ways in which these processes can now “speak” to each other via ERP, a significant ERP benefits that will be addressed more below.

Inventory management: ERP can serve as a consolidated resource for inventory tracking, data analysis, and replenishment plan, from MRO to equipment spares.
Supply chain: ERP provides visibility and organisation for vendor performance tracking, as well as the ability to collect data from internal and external sources to aid in more efficient supply chain planning and management.
Maintenance: Manufacturing ERP software improves maintenance effectiveness by centralising scheduling, ticketing, and work order management, as well as providing advanced data tracking and analytics.
ERP modules can store, track, and analyse equipment performance data from sensors and reports, allowing for better informed, proactive, and targeted maintenance.

Monitoring the performance of equipment: ERP modules can store, track, and analyse data from sensors and reports about equipment performance, allowing for better informed, proactive, and targeted maintenance.
Quality control: Enterprise resource planning software can follow QA findings over time, accumulating massive data warehouses that can aid in the early detection of maintenance requirements.
Purchasing: With ERP, purchasing and requisitions can be conveniently structured and run with visibility into other areas of the business.
HR: ERP can be used for HR tasks such as performance reviews, goal tracking, and more, in addition to manufacturing operations and support.

Advantages of establishing an ERP project

Process visibility has improved

ERP serves as a centralised, easily accessible “single source of truth” for all system processes. Anyone can gain access to information from any other process or department, making it much easier to create coordination, collaboration, and — as detailed further below — communication in order to provide benefits and innovations.

Communication between several departments

Increased visibility across functions and processes leads to the removal of communication barriers. Process “silos” – the invisible (or physical) “walls” that separate distinct groups and functions — can lead to repetitive work, inefficiencies, and missed collaboration possibilities. These issues are addressed by ERP through open communication and transparency.

Data gathering and analysis are centralized

ERP facilitates the modern, data-focused facility and all of the benefits that this unprecedented amount of information and insight gives, from machine sensors to QA tracking and more. Data analysis can lead to better informed and effective decision-making in areas such as maintenance, machine utilisation, procurement, supply chain management, and others.

Increased process efficiency

As more data is gathered and employees become accustomed to the improved visibility given by ERP, procedures will become streamlined, cross-functional efficiencies will be recognised, and productivity will rise.

Overall cost savings

With the aforementioned benefits come cost savings and efficiencies — one of the key long-term benefits of investing in ERP. ERP software can help to automate a variety of operations, including maintenance planning, scheduling, and strategy. One of our key responsibilities at Aagnia is to assist manufacturers in implementing data-driven technologies such as ERP and CMMS in order to keep plant operations functioning while continuously improving.