How to evaluate the manufacturing module of an ERP system: what to look for in production planning, scheduling and quality control functions

How to evaluate the manufacturing module of an ERP system: what to look for in production planning, scheduling and quality control functions

An ERP system with a good manufacturing module can help you streamline your manufacturing operations, reduce your costs and increase your quality and efficiency. But how do you find the best ERP system with the best manufacturing module for your business? This article will help you answer that question by showing you how to evaluate the features and functions of a manufacturing module of an ERP system, as well as giving you some examples of ERP systems with manufacturing modules. Read it now and see how a manufacturing module can benefit your business.

An ERP system is a software solution that integrates various business functions and processes, such as finance, accounting, human resources, sales and inventory, with a single, unified platform and database. An ERP system can help a business streamline its workflows, improve its efficiency and accuracy, reduce its costs and risks, and enhance its decision making and performance.

One of the key components of an ERP system is the manufacturing. The manufacturing is the software module that handles the manufacturing functions of an ERP system. It collects, stores and analyzes the manufacturing data from various sources, such as orders, bills of materials, routings, work centers and machines. It also provides various features and functions to help a business manage its manufacturing operations effectively and efficiently.

But not all manufacturing modules are created equal. Depending on the type, size and industry of your business, you may have different requirements and expectations for your manufacturing module. Therefore, before you choose an ERP system for your business, you need to evaluate its manufacturing module and see if it meets your needs and goals.

In this article, we will discuss some of the key features and functions that you should look for in a manufacturing module of an ERP system, as well as some examples of how they can benefit your business.

Production planning

Production planning is the process of determining what, how, when and where to produce the products or goods that meet the customer demand. It involves setting the production objectives, strategies and policies, as well as allocating the resources, such as materials, labor and machines.

A good manufacturing module should provide you with the following production planning features:

• Demand management: This is the feature that allows you to forecast your future demand for your products based on historical data, market trends and customer behavior. It should allow you to use various methods and models to generate accurate and reliable demand forecasts. It should also allow you to adjust your forecasts based on changing conditions or scenarios.
  

• Material requirements planning (MRP): This is the feature that allows you to calculate how much materials or components you need to order or produce to meet your current and future demand. It should allow you to use various techniques and options to optimize your material requirements plans, such as reorder point, lot sizing or safety stock. It should also allow you to monitor your material availability and trigger automatic or manual purchase or production orders.
  

• Capacity planning: This is the feature that allows you to determine how much capacity or resources you have or need to produce your products or goods. It should allow you to use various methods and tools to measure and analyze your capacity availability and utilization, such as load charts, histograms or simulations. It should also allow you to balance your capacity demand and supply by adjusting your production plans or resources
  

Scheduling

Scheduling is the process of assigning tasks or activities to resources or machines in a specific sequence and time frame. It involves optimizing the production schedule to minimize the production time, cost and waste, as well as maximize the production quality and efficiency.

A good manufacturing module should provide the following scheduling features:

• Routing management: This is the feature that allows you to define and maintain the sequence of operations or steps required to produce a product. It should allow you to create and modify routings for different products or goods. It should also allow you to assign attributes, rules and parameters to each operation or step, such as work center, machine, tool or labor.

• Work order management:: This is the feature that allows you to create and execute work orders for each product that needs to be produced. It should allow you to generate work orders from sales orders, purchase orders or production plans. It should also allow you to track and update the status and progress of each work order throughout the production cycle.

• Scheduling optimization: This is the feature that allows you to optimize your production schedule by considering various factors and constraints, such as demand priority, due date, capacity availability, setup time, processing time or material availability. It should allow you to use various algorithms and strategies to optimize your scheduling, such as shortest processing time, earliest due date or critical ratio. It should also allow you to reschedule your production in case of any disruptions or changes.

Quality control

Quality control is the process of ensuring that the products or goods produced meet the quality standards and specifications of the customers. It involves inspecting, testing and measuring the products or goods at various stages of the production cycle, as well as correcting any defects or errors.

A good manufacturing module should provide you with the following quality control features:

• Quality plan management. This is the feature that allows you to define and maintain the quality criteria and requirements for each product or good. It should allow you to create and modify quality plans for different products or goods. It should also allow you to assign attributes, rules and parameters to each quality plan, such as inspection points, sampling methods, acceptance levels or rejection actions.

• Quality inspection management. This is the feature that allows you to perform and record quality inspections for each product or good at various stages of the production cycle. It should allow you to generate inspection orders from work orders, purchase orders or sales orders. It should also allow you to track and update the status and results of each inspection order throughout the production cycle.

• Quality analysis and improvement. This is the feature that allows you to analyze and improve the quality performance and outcomes of your production process. It should allow you to use various methods and tools to analyze your quality data, such as charts, graphs, reports or dashboards. It should also allow you to use various techniques and actions to improve your quality process, such as root cause analysis, corrective actions or preventive actions.

While each of those components are important it is also important to look at the type of manufacturing the software supports.  Its discrete manufacturing process or indiscreet.  Are the outcomes predictable?  for example, in the nut industry there are no specific formulas to determine the output of shell nuts.  There are a lot of factors involved. The size of the nuts, quality, and expected yield. Some ERP systems are not able to manage this unpredictability. The system requires a specific input and specific output, with some accountability for waste.

As with any portion of an ERP system, it is important to completely understand and document your processes before starting your search.  It may seem like a lot of work at the beginning.  But the process will run much smoothly and the ability to select the appropriate software for the business will become much easier to do.

Until Next Time…