FOCUS ON CONTROL TECHNOLOGIES
ERP benefits
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 restrictions
“ 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 .
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 may be 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 side-benefits and opportunities . Before manufacturers look at how they ’ re going to import it , they should consider a little housekeeping ,” advised ERP specialist , 123insight .
In conclusion
As manufacturing embraces digitalisation and Industry 4.0 , ERP software is a valuable tool for streamlining and automating the activities needed by manufacturers . Having full control over manufacturing operations is instrumental in 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 enables 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 at Deutsche Messe . “ And the key to it all is the software that maps and manages these processes .” n
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
ISMR July / August 2023 | ismr . net | 29