Enterprise resource planning (ERP) is a mode of manufacturing built upon the notion of a single software program serving the needs of all aspects of the operation. In strict terms, the true ambition of ERP is to integrate all departments and functions across a manufacturer through the single-source software program, while eliminating departmental standalone computer systems.

It is hoped that such integration will facilitate the sharing of the same real-time data simultaneously to all areas of the plant, thus coordinating decision-making processes and outcomes. To this end, an ERP approach can have significant on-time delivery improvements and positive ROI–if, the software is installed properly, integrated system-wide, and correctly utilized in operation. (more…)

If anything in manufacturing is certain, it is that the greater the materials handling the less efficient the system will be all the way down the production line. Indeed, materials acquisition and issuance has become something of a science since the introduction of lean principles into manufacturing over thirty years ago. The idea of lean in materials management is tied to the notion of estimating the material quantities that will be needed at any moment in the manufacturing operation.

Prior to the automation of the shop floor, materials management (as a function of inventory management) was both a labor-intensive and often-inaccurate process as estimates for material were usually based on out-dated data. Today, however, enterprise resource planning (ERP) software systems take the manual process out of the production loop and through the use of real-time data, achieve the automation of materials management. (more…)

Of the many ways to maintain efficiencies in modern manufacturing, none is perhaps more underutilized than the keeping of accurate inventories. Perhaps, this is due to some ancient notion that inventory simply takes care of itself: Orders get taken, parts get ordered, parts get used in production, product leaves shop—and the cycle starts over anew. Perhaps accurate inventory maintenance is considered unnecessary, that there is little margin loss as a result of obsolescence or overstocking.

However, both considerations operate under the same single primary fallacy—that inventory is only an insignificant means to a production end where other factors such as labor and machinery are considered far more important manufacturing elements.Today, though, it is not enough to say that you have a great grasp on the scheduling and maintenance of men and machine on the shop floor. (more…)

With all the hurdles placed before manufacturers today to compete in the global economy (governmental, competitive, environmental, etc.), the last thing a company needs is to do the sort of actions on its own that work against the operation.

Yet, this happens everyday when excess or obsolete inventory write-offs occur. These costly supply-chain problems result in the unnecessary fraying of bottom-line profits due to wasted materials, wasted time, and wasted opportunities to move parts/products out of the shop before they reach the end of their usefulness for a customer.

However, the cause for these manufacturing inefficiencies is quite common from shop to shop: Poor demand-management practices lead to poor inventory management. All too often, (more…)