Enterprise Resource Planning (ERP) software is a much more complex system than standard ERP systems. However, before we talk about software, we need to understand that production ERP also consists of the business processes needed to run production operations.
In addition to manufacturing ERP software, there are inventory processes, workshop processes, design processes, ordering processes, quality control steps and processes, and order management processes that must be managed properly in a production ERP system. Many people have tried to solve the problems associated with all these processes by implementing new process management software solutions and failed.
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The combination of people, technology and process factors must be evaluated and optimized. If any of these three areas are missing or weak, the entire production process will fail. What makes you successful is improving processes before implementing a productive ERP software solution.
When evaluating ERP production software, it is important to evaluate the functional requirements for each of the three factors. How are people managed and assessed in a production ERP system? How is control over machinery and other technologies managed in a production ERP system? How does technology enable efficient processes?
Trends in manufacturing over the past decade have been to apply lean manufacturing principles. Basically, you want to get rid of process waste before automating it. Failure to do so will result in faster action, leading to a greater imbalance between supply and demand.
It doesn't matter what you create in terms of products or what you use as input. Lean principles balance supply and demand and thus ensure better productivity.
