Tag: erp acronym

Open Source ERP for SMEs

ERP (Enterprise Resource Planning) software has traditionally been used by large corporations to integrate and automate diverse departments across the enterprise.

For a long time, smaller companies purchased individual accounting and payroll packages and then migrated to expensive ERP solutions as they grew. They did not have many options as ERP solutions were costlier and required magnitude and many employees to justify their use.

Now, with many Open Source software coming out, it is possible for SMEs to go in for ERPs at an earlier stage. There are several in the market including…
Open Source ERP for SMEs

Machine Design Magazine Profiles Manufacturing ERP for ETOs

Roger Meloy

Manufacturing ERP for ETOs profiled in Machine Design Magazine.

(PRWEB) October 13, 2005 — The October issue of Machine Design profiles Engineer-to-Order ERP Solutions in an article by leading manufacturing journalist Thomas R. Cutler (www.trcutlerinc.com).

Roger Meloy of Encompix Inc., (www.encompix.com) an Engineer to Order (ETO) Enterprise Resource Planning (ERP) software maker based in Cincinnati, said, “Ask most design engineers what an ERP system means to them and you are likely to hear ‘nothing’ or ‘more work,'” One reason for the perception: Most ERP systems are not integrated with CAD. That’s because traditional ERP systems were developed for repetitive, make-to-stock manufacturers where there is a clear demarcation between design and production.

In this environment design engineers create a product in CAD. After testing and prototyping, the item goes to engineers who tailor it for mass production and create a bill of materials (BOM). The BOM is based solely on how an item is to be manufactured, not on its design, all of which takes place in ERP software. The design engineer throughout the process has little or no interaction with the ERP system. Once a design is frozen there is little interaction between the design and production departments.

In ETO firms the role of design engineer is very different. Such companies build products specifically for individual customers. Design and manufacturing departments work together more closely. In many cases product design continues through production (design in process), incorporating several engineering changes along the way. These changes may be driven by the customer or by the manufacturer, necessitating a seamless flow of data between engineering and production.

Integrated CAD-ERP software lets ETO companies pass data both ways and handle engineering changes in both systems. Without it, designers are constantly re-keying data from CAD to ERP software, which wastes valuable engineering time or requires additional staff.

ETOs, unlike repetitive manufacturers purchase items only one time for a particular job. Typically the engineer will specify the item and its manufacturer, bypassing the ERP system altogether. Makers of ERP systems that collaborate with Product Life Cycle (PLM) vendors can address these needs. Information about ETOs can be found at the ETO Institute (www.etoinstitute.org).

Encompix
www.encompix.com
Roger Meloy
513-733-0066

http://www.encompix.com

New ERP Bookstore

In association with Amazon.com, ERPandmore.com now has a complete bookstore to assist you in finding ERP, CRM, PLM, or other software/process books. To access this new store, please click on “books” at the top right of the page. We hope you find this to be a valuable part of the site.

Adding Value to ERP

During the 1990s, the vast majority of Global 2000 companies deployed client/server systems for enterprise resource planning (ERP) to replace their mainframe-based accounting packages. Some did it as part of the business process re-engineering (BPR) boom, others as Y2K upgrades at the end of the decade and others simply to replace aging financial systems. A recurring theme throughout the ’90s was that implementing ERP was difficult, expensive and frustrating. Study after study showed substandard returns for ERP investments. Perhaps because of this experience, many organizations have been very cautious about making changes to their ERP environments. However, doing nothing may be a costly mistake because most companies can use their ERP software more effectively than they are doing today.
Intelligent Enterprise Magazine: Adding Value to ERP

Handle your resources optimally, ERP is here – Newindpress.com

As many companies are part of the global or domestic supply chain, they have their own reservations, which include cost challenge, quality as well as less rejection of the product apart from the tight deadline to cater to the need of the customers.

The panacea for the above problems is a right platform to utilise resources like man, material, machine and money intelligently and here comes the role of Enterprise Resource Planning (ERP) system.

ERP helps how to effectively utilise all these resources to get the optimum result.

Once implemented, all departments can more easily share information and the workflow that takes place between departments can become much more automated, thus serving the customers much better way.

Handle your resources optimally, ERP is here – Newindpress.com

ERP and Lean

Chris Shaul

Today, many ERP vendors are offering Lean Manufacturing modules in their solutions. These modules propose to assist companies in their lean effort. The real question is to what degree will these modules be used. Can a traditional manufacturer going to a lean model utilize a lean software tool immediately? When implementing an ERP system, process redesign is a must. The change that must occur in order to support an ERP system can be tremendous. But can a company bite off and digest all of the changes? Which should be done first, lean or ERP? These are all some of the questions that a typical manufacturing manager who is about to embark on an ERP implementation might ask.

First, lets define a few things. Lean is the removal of waste within a process and the concept of pulling items to a demand. It is also known as the Toyota Production system as it was developed and refined by Toyota in Japan. ERP is a business process enabled by software tools. It is not a software project! ERP streamlines your information flow such that it parallels your process flow. ERP works to build product to a forecast and then execute a production plan and inventory purchases synchronized to meet the predicted and actual demand. Lean, on the other hand, uses a pull system to meet an actual customer requirement. Lean uses the philosophy of smaller batches and reduction in non-value-added activities to create a much shorter lead time, thus delivering faster to a customer. ERP does not by its’ nature drive efficiencies in the production process. It only provides planners with information on what is going on and allows them to plan faster. If the process is broken, then automating it with the use of ERP will only highlight the problems.

What is the answer? The answer for many is to implement lean as part of an ERP intiative. Some would say that it should be a predecessor to an ERP initiative. Lean purists will argue that you do not need MRP and MPS to drive the production. ERP folks will argue that MRP and MPS are essential to having parts in-house and suppliers coordinated with the production. The answer for most companies is a hybrid solution, where lean is driving waste from the production and supply chain process (although also in the above-the-shop-floor activities too), while ERP is being implemented, such that you are automating value added processes and not trying to replicated waste processes in your new system. MRP can be used to plan longer lead time items, or items with higher value, whereas a Kanban can be setup for the faster turning and less expensive items.

Working from the perspective of a hybrid model, lean principles and practices can be implemented just prior to the ERP initiative. Then during the ERP implementation, the lean concepts must be considered and utilized in the setup of the new system. Tools such as Value Stream Mapping can define areas for quick improvements. Then once those improvements are made, a process flow based on the future state model can be applied to the ERP system. For example, a production cell might be setup for a particular product line with kanban inventory control. This would change how you would define your production process in the ERP system. Better ERP systems can run in this hybrid mode of traditional MRP and modern Lean concepts. Some product lines might be more suited to the MRP/MPS method because of supply chain issues or because of the long lead times that are associated with the products. Other product lines might be easy to immediately switch to flow manufacturing. Because of this, you want a system that can handle both methods.

Using a hybrid model, you select and position the ERP system to work alongside your lean initiatives. By leaning out processes (above and below the shop floor), you are avoiding “automating the mess.” Doing so will shorten lead times, reduce inventory, reduce production costs, improve employee moral and streamline your ERP implementation. Be sure to choose an implementation partner that is familiar with lean and is able to work in a hybrid manner. What order should these two tranforming intiatives occur? It might be best to have the lean initiative lead the ERP intiative by a few months. Then begin to implement the system. But do not stop the lean transformation. That should now be an ongoing philosophy of continual improvement. Use it to your advantage during the ERP implementation. Doing so will only help you on go-live day.

References:

http://www.advancedmanufacturing.com/September00/informationtech.htm

http://www.lean-manufacturing-info.com

http://www.qad.com/company/newsroom/lean_value.html

http://www.mapics.com/software/EE/SyteLine/sl7-aps.asp

http://www.cmtc.com/

http://www.inventoryinc.com/complimentary.html

Chris Shaul is a Sr. IT Consultant and specializes about ERP selections and implementations.

A developers view of ERP

A fascinating article on the design and functionality of an ERP system from a different perspective:

“… The task of IT is to begin building systems on a new foundation, using a new kind of blueprint. First, adopt the following rule: Business processes define database table relationships; database table configurations drive application components; applications drive interface development.

This hierarchy is powerful and effective, as long as you stick to it. Break away, and start redefining database tables to serve apps, or basing apps on interfaces (two long-standing standards from the old days), and your ERP framework will not bear the weight of it long. …

If your company is going ERP, then there are probably several driving forces behind the decision, possibly including: the need to increase supply chain efficiency; the need to increase customer access to products or services; the need to reduce operating costs; the need to respond more rapidly and flexibly to a changing marketplace; and the need to extract business intelligence from data over time.

All of this is fine for the decision-makers, but what does it mean to you as a developer? To achieve senior management’s objectives above, IT needs to make the following things happen:…:

Read more about ERP from a Develops point of view here.

6 ‘must ask’ questions when buying a mid-tier ERP solution

The following articles is important for people considering looking ERP vendors. Too often people follow the salesperson blindly and do not ask the right questions. Here are 6 questions that should be part of the buying plan.

6 ‘must ask’ questions when buying a mid-tier ERP solution