Synchronicity. It is something every organization hopes to achieve, but more often than not falls a bit short of attaining. When we talk about synchronicity we are speaking of principles of connection, where the parts work in total alliance with the whole. Historically, synchronicity has been of particular importance in manufacturing where the quest is always for a seamless connectivity between product planning, product development, material sourcing, and shop management. Indeed, synchronicity in manufacturing is a direct result of the knowledge (data) that any one part of the system has about the whole facility at any one moment.
To achieve synchronicity in manufacturing, enterprise resource planning systems (ERPs) have been developed to integrate all data of an organization into a unified system. Typically, ERP systems use multiple components of computer software and hardware to achieve the desired integration of a manufacturing system. A primary part of most ERP systems is the use of a real-time, connected database structure to store information for use by the various system modules.
In short, ERP systems combine hardware and software in a single functional package that covers two or more systems in the manufacturing operation. What are some of the benefits for the use of an ERP system in manufacturing? Though the list is long, here are nine great reasons for implementing ERP in a manufacturing operation:
1) Synchronicity: Again, the greatest benefit to be gained from ERP integration is having everyone in the production operation on the same page looking at the same real-time data.
2) Data Input Only Once: When data is input in one part of the system, the whole system has access to it. From estimates to work orders, from payroll to shipping, any input data is available to everyone. This, then, leads to the next point of...
3) Less Spreadsheets: Since all data is in the single-source system, production information does not have to be reproduced on traveling (and often out-of-date) spreadsheets.
4) Orderliness: When ERP is used to replace two or more independent applications, it eliminates the need for the external interfaces that used to be required between systems in non-ERP operations.
5) Shortened Cycle Times: ERP works well with just-in-time pull-production, increasing inventory turnover and reducing inventory cycle times.
6) Efficient Direct Labor: Direct labor costs are reduced through more precise and real-time production data. For example, routers might give clear and concise production instructions. As well, clocking on and off a job is made easier through the use of integrated recording systems such as Graphic User Interfaces (GUI).
7) Less In-Direct Labor: Through integrated GUI time clocks, in-direct and non-productive labor time is accounted for by employees, and production is measured in terms of output relative to time spent.
8) Reduced Set-Up Times: In ERP, scheduling is tailored to build production around standardization, repetitive processes, and other lean manufacturing principles to reduce machine set-up and break-down times.
9) On-Time Delivery: Ultimately, the primary goal of on-time delivery is achieved through the efficiencies gained in ERP system unification. Production contingencies are anticipated and built into the scheduling system as a result of continuous data flow.
In conclusion, these nine great benefits realized through ERP integration are the result of one thing-synchronicity in the total operation. Manufacturers who chose to utilize ERP principles, as well as robust software and hardware within the system, can expect greater productivity through enhanced efficiencies, as well as better bottom-line profits.
