Nowadays companies have to take advantage of all the tools at their disposal to stand out from the competition and ERP software is essential to guarantee the quality and costs of your manufacturing process. In this article you will learn what an ERP is, what its main advantages are, and why you need one in your business.ERP software provides resources and tools for planning and control of personnel and production. In addition, ERP software allows you to plan projects and budgets. The system also allows you to plan your operations by work projects or by production lines and batches. It also offers the tools to maintain total control of each production area. Cost information provided by an ERP system in manufacturing per project/batch:
What is ERP software?An ERP (or Enterprise Resource Planning) system is a platform for effectively managing the operations related to the creation of a product, its manufacturing process, commercialization, and distribution. ERP is manufacturing management software that is essential in any type of company. This is because by automating systems, you reduce costs and ensure that production is carried out on time and with the expected quality. An ERP system in manufacturing is a digital system for structuring and organizing information regarding all the aspects that make up the manufacturing process. It is ideal for industrial manufacturing companies of any kind: valve manufacturing, metalworking, metallurgical, heavy machinery manufacturing, industrial equipment manufacturing and FMCG to name a few.
How can an ERP system in manufacturing help your company?First, with ERP software, your company will be able to ensure a more accurate and faster manufacturing process. This considerably decreases your production costs. In addition, all manufacturing orders are automated, which frees up administration time, allows for better stock control and greater traceability throughout the product processing. Second, by having better control over your manufacturing processes, you will be able to better manage both your human capital and your machinery. This way, you will be able to distribute workloads smarter, plan equipment maintenance and avoid overproduction. Finally, you will have access to all the statistics, reports and analysis on each process in your company, its current status and evolution. With this information, you will be able to make more informed decisions, as you will know the work rhythms of all your employees, the performance of each machine and the production costs that can be controlled.
ERP software allows industries to have all areas of manufacturing under control. These include
- machinery and equipment inventories
- raw material inventory
- assembly lines
- line production per product
- movements and deviations.
An ERP system in manufacturing, allows you to control the management of production personnel, through the planning of people, movement, and time – more specifically:
- schedule planning
- clocking in and clocking out
- production times per employee
- times and movements
- manufacturing quantity
- employee presence and absence.
- raw material
- by item and unit prices
- personnel and task and activity assignments
- suppliers and order status
- purchasing vs. inventory vs. production vs. costs
- total production costs including service consumption per line and per production batch.