ERP Tutorials
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ERPERP for Manufacturers
Limiting Factors of ERP Implementation
Getting through the Limiting Factors of Implementation
It is important to remember that installing ERP requires you to do work under global coordination, which involves a solid concept of order and discipline all over the enterprise. In this case, ERP works as a guideline technology. The implementation should contribute to a benefit, but if it is not accompanied with an operational change, it will not make a significant change.
If the enterprise already has a technological means of calculation, sometimes it could interfere and complicate the situation. Regarding this matter, the implementation should be suitable to the needs, taking into consideration adequate training.
The key for success with the ERP model is in the combination of three important elements: team work, proper Business processes and a calculation tool. In order to make the technology work properly and give the expected results, it requires the support of these three phases: the management revision, training in situ, and implementation of the software.
Simulation and Benefits
The simulation is a technique through which the systems of the real world are represented by a computer program. This action is fundamental to obtaining a better knowledge of ERP, and to identify specific problems or problematic areas of the system. It is also helpful to develop plans and special politics on the system, evaluating concepts and systems before the implementation.
The simulation allows for the prediction of the behaviour of a new system, without the need to build it physically and predict the changes of an existing system. This reduces the need to affect the operation. However, the global benefit of this technique is to provide the management with the possibility of obtaining a global vision of the local changes made on the system.
The potential benefits include improving the performance of the system, saving money by reducing costs, and to guarantee a solution that is expected. It also allows for improvements in the comprehension of the system by different sectors of the organization.
The specific advantages for the manufacturing area is the creation of a global sight for the manufacturing environment. This allows for the evaluation in time of the local changes and to increase the throughput. Another benefit appreciated by the manufacturers is the reduction of inventory in process, the increase in the use of machinery and the number of orders sent in time to clients. In several opportunities, the simulation technique helped the manufacturing area to reduce the investment of capital or the costs of operation.
Besides, it gave security that a system design will operate as expected. It is important to take into account the fortuitous sources that the manufacturing system has, such as the time between the arrival of work or materials to system (also known as production programs); processing time, operation time between damages and flaws, reparation time and time to repair.
Some aspects of the manufacturing were successful on the needs of equipment and personnel, having bearing on the number and type of transport bands and other equipment for support. It has also had an effect of the location and type of security inventories, as well as the quantity and type of machines for specific objectives.
Furthermore, the influence reaches the evaluation of the change in volume, and a mix of products and the evaluation of the effect in a new piece of equipment. The simulation was successful for the assessment of the investment of capital, the requirements for manpower, and reports on performance.
Due to the previous mentioned benefits, ERP makes a difference. The flexibility in calculating infrastructure is turned into speed of Business, obtained through a better facility and lower cost to implement changes on the Business processes. This dynamism is one of the main strengths of the manufacturers, and improves the capacity to react quickly considering the changes in market.
Through the management of master files, groups of work, operation of machines, operations calendar, costs report, material positions and lists, budget calculator and the administration of the production order, ERP is shaping up as the better solution for integrating the manufacturing process and obtaining profit from improving the productivity, reducing the costs and keeping the clients satisfied.
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