If your manufacturing business includes custom projects, you know the challenges of balancing complex production processes with materials, inventory, and capacity planning – often while changes are being made to the design. Any break in the chain of communication between the sales, design, purchasing, production, and installation teams is almost certain to result in chaos, which often means higher overtime expenses, excess inventory, or missed deadlines.
From chaos to control
Most small and midsize businesses start with a highly-collaborative team of experts then, as the company grows, it adds more people, customers, products, and suppliers. This growth comes with new processes, software, and spreadsheets. The problem is that few (if any) of these pieces are connected so any change, whether it’s a delayed shipment or a revised bill of materials, can easily go unnoticed by other departments until it’s too late. The bottom line is that, despite best efforts by everyone, oversights can easily happen and often do. The only way to move from a chaotic-reactive mode to a controlled-proactive mode is to integrate all of the processes and share information across all departments.
Many standard manufacturers, often called make-to-stock or batch producers, successfully implement enterprise resource planning (ERP) software to integrate their operations. This can also be a great solution for manufacturers that are either entirely or partially project-based but there are unique requirements that must be considered. ERP solutions for companies that design, configure, fabricate, install, and service products must be highly-flexible to accommodate their complex processes.
Designed for you
A new breed of ERP solutions is helping custom manufacturers connect the dots across their operations. The software flows with your projects, starting in the sales phase when the specs begin to take shape. During the production phase and through to installation, delivery, and servicing, any deviations from the plan are immediately flagged so they can be addressed before issues arise. All materials that support the production process, including quotes, contracts, work orders, bills of materials, purchase orders, and invoices, stem from the same data so there is no manual re-entry – which means less work and fewer errors. Most importantly, perhaps, you get a dashboard view of each project, which includes timelines and profitability analysis.
Profit-boosting benefits
- Easier, more accurate estimating of costs and timelines
- Lower overtime / outsourcing costs through efficient allocation of labour and machinery
- Real-time budget-vs.-actual data for improved control
- Less excess inventory and shortages
- Flexible, automated billing
- Improved customer and supplier relationships
- Efficient planning and tracking tools for service contracts
Key takeaway – break down the barriers
The right ERP software will break down the barriers between departments so that your people can get a real-time view of what’s happening on every project. The result is higher profit margins – and less chaos! The key is to work with a vendor that understands your business and has the expertise to tailor a solution to your needs.