FOCUS ON CONTROL TECHNOLOGIES
There are numerous benefits to manufacturers of implementing an ERP system for their operations . Advantech lists many of these below .
1 . Increased visibility into processes : ERP acts as a centralised , accessible “ single source of truth ” for every process in the system . Anyone can access information from any other process or department , which makes it much easier to foster coordination , collaboration and communication to introduce benefits and innovations .
2 . Communication between different departments : With increased visibility across functions and processes comes the breakdown of barriers to communication . Process “ silos ” — the invisible ( or actual ) “ walls ” between different groups and functions — can result in redundant work , inefficiencies and missed opportunities for collaboration . ERP solves these problems through open channels and transparency .
3 . Centralised data collection and analysis : From machine sensors to QA tracking and more , ERP facilitates the modern , data-focused facility and all the benefits that this unprecedented amount of information and insight affords . Data analysis can drive more informed , effective decision-making in areas such as maintenance , machine usage , procurement , supply chain and more .
4 . Greater efficiency in processes : Over time , as more data is collected and personnel grows accustomed to the increased visibility provided by ERP , processes will become streamlined , cross-functional efficiencies will be identified and productivity will increase .
5 . Overall cost reductions : With the above benefits come cost reductions and efficiencies ; one of the primary ultimate benefits of investing in ERP .
Challenges and hurdles
“ However , certain restrictions and challenges are expected to restrict the Cloud ERP market ’ s overall growth globally . Factors such as limited customisation options for SaaS-based ERP and high CAPEX for PAASbased ERP are impeding market growth during the forecast period ,” continued Vantage Market Research .
“ Integration issues with legacy and onpremises systems , as well as a scarcity of technical professionals and expertise , are suffocating the overall Cloud ERP Market during the forecast period . Organisations have gradually begun to integrate Cloud ERP
market solutions and services . However , system complexities and implementation costs continue to be the most significant challenges that organisations face when integrating these solutions with their existing systems . Existing legacy systems must be tightly coupled with new ones for the successful implementation of Cloud ERP systems ,” explained the analyst .
Few organisations still rely on their existing systems , which use old technologies and have a high error rate and a long turnaround time , due to a lack of resources which are hindering the growth of the market . There may be many legacy applications that are incompatible with new systems or require additional integration effort . Because existing legacy systems are mostly on-premises , integrating these systems is difficult .
“ It ’ s a guaranteed certainty that a manufacturer ’ s existing data is not going to just drop smoothly into a new system , and many companies see this as one of the most daunting areas of migrating systems . However , it ’ s often not the problem that people perceive it to be and there can be additional sidebenefits and opportunities . Before manufacturers look at how they ’ re going to import it , they should consider a little housekeeping ,” advised ERP specialist , 123insight .
“ The chances are that they won ’ t want to transfer every piece of data . There may be customers and suppliers that are not trading anymore or who they no longer contact , along with products that have not been manufactured for years . They should take this opportunity to consider what data they will want to transfer and what can remain in the legacy system .
Depending upon circumstances , it should still be there once the new system is up and running but will only be needed under rare circumstances , the need for which will decrease daily as manufacturers move forward ,” it added .
“ Data import is generally performed in stages – a manufacturer will work out what they need to migrate , how to convert / reshape the data , import it into a test environment of the new system and once they ’ re ready to go live , they ’ ll use the same mechanisms to import the current instance of the same data into their live system ,” it advised .
In conclusion
As manufacturing moves inexorably towards digitalisation , and Industry 4.0 , an ERP is a valuable tool for streamlining and automating the activities needed by manufacturers . Having full control over manufacturing operations is instrumental to conforming with today ’ s agile supply chains .
ERP systems have become extremely popular and are no longer the exclusive domain of multinational operations . Adopting an enterprise resource planning ( ERP ) system means a more competitive and profitable manufacturing business .
“ In the current age of Industry 4.0 , the focus is on flexible manufacturing , standalone yet integrated machines and systems , and autonomous exchanges of process information ,” said Hubertus von Monschaw , Global Director Digital Ecosystems , Deutsche Messe . “ And the key to it all is the software that maps and manages these processes .” n
Sheet metal manufacturing operations .
44 | www . ismr . net | ISMR July / August 2022