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Everything You Need to Know About a Manufacturing Enterprise Resource Planning System

The manufacturing industry is one the most complex in the world. An Enterprise Resource Planning (ERP) solution, a tool that allows you to manage a manufacturing company large or small, with one or multiple locations, is essential. Manufacturing ERP software helps manufacturers manage their supply chain, inventory, production, and other business operations like sales, financial management, customer service, and finance.

But not all systems can handle the operational complexities of modern manufacturing companies.

This article discusses everything you need to know about manufacturing ERP systems. It includes how they work, what they do, and why enterprise resource planning systems are important to your manufacturing business.

In this video, Robert Jurcec CEO of OneKloudX shows how easy it is to use the NetSuite Material Requirements Planning (MRP) solution.

How Does an ERP System for Manufacturing Work?

A manufacturing ERP system is a solution that makes use of computerised planning methods to address customer needs. It is designed to help growing companies manage all aspects of their operations. It can be used to manage procurement, production planning, manufacturing operations management, and quality control.

A manufacturing ERP solution can improve profitability and make sure customers are happy. If you are able to fully understand your customers’ needs, advanced enterprise resource management systems may be used to satisfy them.

Manufacturing companies have specialized requirements. This requires a laser-sharp focus on streamlining all manufacturing-related activities and automating them. Standard ERPs or accounting solutions with add-ons are not able to handle the complexity of today’s fast-paced manufacturing industry.

Manufacturing ERP is designed for operations management. When existing business processes and systems are not sufficient, manufacturing companies should look into an ERP solution for manufacturing management.

  • Current functions are inefficient (throttling/bottlenecking)
  • Stop supporting the growth of the business
  • Provide inadequate security measures to reduce risk

It is crucial to identify and fix broken processes in order to grow and find areas for improvement.

Modern ERP systems for manufacturing can be easily integrated into any business process. This allows companies to manage all aspects of their business from one platform. Manufacturing ERP systems are made up of many interconnected modules, which seamlessly connect all elements and automate tasks. Modern manufacturing ERP systems can be integrated into any business process and flexibly support it. This creates a comprehensive business management platform for manufacturers. Manufacturing ERP systems consist of many interconnected modules that seamlessly integrate all financial and operational aspects, data, and automate tasks.

These systems enable companies to efficiently manage their resources by determining what is needed, when and where. Manufacturers use ERP systems to manage key aspects of manufacturing operations, such as shop floor operations or supply/inventory planning. Every aspect of facility operations can be managed, from production to payroll. ERP gives you unprecedented visibility and coordination across all the processes within a business, which leads to greater operational efficiency.

How ERP Software Benefits the Manufacturing Sector?

ERP software was created to assist manufacturers in many ways. ERP software can be used in many ways. A modern, integrated manufacturing ERP system can provide many benefits for both financial and operational operations.

  • Redundancy reduction and process automation to increase efficiencies
  • Manufacturing operations optimisation for greater productivity
  • Supply chain, warehouse, transportation, and inventory management advancements
  • Risk alleviation while increasing governance and compliance confidence
  • Customer service innovations
  • Elimination of data silos for increased real-time reporting across the business
  • Uniting data and metrics across departments and whole of business
  • Remove multiple systems that are not connected or communicate with each other or the financial management system
  • Improve financial and operational reporting and analytics that can be quickly and easily accessed across the business
  • Being able to adapt to changes and disruptions in the business environment

A manufacturing ERP system helps streamline operations and offers support that allows manufacturers to grow their business, increase revenue and improve quality.

Who Can Use Manufacturing ERP Software?

ERP software is used by manufacturers to manage their raw materials and goods inventory. If there is not enough information, it could take hours to find the exact location of an item. It is much easier to find items if tracking systems are in place. Because all items have the most current data, this makes it easier to locate them. All processes can be seamlessly integrated into one system, removing all bottlenecks, and increasing productivity.

ERP software can be useful for many reasons. It can manage inventory, including raw materials and finished goods shipments. It can track manufacturing orders, including production schedules, from start to finish. You can automate inventory replenishment with just a few clicks from your smartphone. It optimizes warehouse space utilization to minimize shipping delays during peak periods. You can even use it to determine which products are most popular based on the previous purchases of your customers.

This helps manufacturing organisations achieve greater efficiency at all levels.

Which ERP is Best for Manufacturing?

Manufacturing ERP solutions that support fast growing manufacturing enterprises have the ability to adapt to disruption and change, giving them a competitive edge.

There are many types of ERP systems available and different deployment options. These vary depending on the needs and size of manufacturing organizations

  • Once implemented, an on-premise ERP system provides control, support, and ownership. However, the costs and risks associated with maintaining hardware and infrastructure for manufacturers can be exorbitant.
  • A cloud-based ERP system provides manufacturers with a complete and flexible system that can be updated, trained, supported, and customized by an ERP provider easily and seamlessly.
  • Hybrid ERP deployments may provide a mix of cloud-based and on-premise hosting, as well as deployment services for a manufacturing firm. These models allow ERP users to migrate between delivery models or incorporate benefits that are not available in the existing implementations.

What Are the Different Types of Manufacturing?

1. Repetitive Manufacturing

The repetitive manufacturing process is basic manufacturing, which creates the same product from an assembly line. These rapid manufacturing operations can produce identical or similar products in large quantities 24/7. Because the demand for the final product is predictable and stable, these mass-production industries are great for repetitive manufacturing. As one product is produced over time, the assembly line will be constant with very few changes.

Master plans can be created on a time- and quantity-based basis. Repetitive manufacturing is used in make to stock production and high volume, sales order-oriented environments like automotive. These factories can increase throughput and reduce manufacturing costs by using robots and other automated high volume manufacturing equipment.

The industries that use this type of production process includes:

    • Automotive
    • Electronics
    • Semiconductor
    • Durable consumer goods.

2. Discrete Manufacturing

Discrete manufacturing is a cousin to repetitive manufacturing. Although it too is run on production lines, the final products created in this process can often be vastly different. The assembly line configuration is often changed when switching between product models. This is called a changeover in manufacturing facilities and can incur setup costs in the form of time, labour, or resources.

Discrete manufacturing process is used by many industries including:

    • Automotive
    • Furniture
    • Aeroplanes
    • Toys
    • Computers and Smartphones
    • Defence Systems

3. Job Shop Manufacturing

Instead of using an assembly line, job shop manufacturing uses production areas such as workstations or workshops. Every worker can add to the product as it passes through their station. Then it moves on to another station until the final product is complete. This manufacturing method is great for custom manufacturing as it produces smaller volumes of highly customized products.

This will allow for smaller batches of custom-made products (Made-To-Order or Made-To-Stock). A job shop environment allows manufacturers to produce one or more versions of a particular product. If the customer requires it, the operation may be transformed into a discrete manufacturing facility with some labour operations potentially being replaced by automated equipment.

Different industries use the Job Shop manufacturing process, including:

  • Aerospace & Defence Part Fabricators
  • Automotive Stamping Shops
  • Industrial & Commercial Machinery
  • Job Shops
  • Medical Device Fabricators
  • Metal Fabrication Shops
  • Plastics Productions Shops
  • Semiconductor Production Shops
  • Ship Building and Marine Manufacturers

4. Continuous Process

The continuous manufacturing process is similar to repetitive manufacturing. It runs 24/7. Continuous manufacturing is different because the raw materials can be liquids, gases, powders, or slurries. However, products in mining areas can be made from granule material. Unless the production processes or disciplines used to create the final product are more varied, product designs will be similar.

This production process can be found in:

  • Oil Refining
  • Metal Smelting
  • Food manufacturing such as peanut butter

5. Batch Process

Batch production provides manufacturers with control over any number of elements within the production process allowing them to be precise. Although goods can be manufactured in large quantities, the assembly line allows for adjustments along the way. These variations create different versions of the same or similar product, which is a key advantage over continuous and mass production. This allows for quality control at various stages of the production process and minimizes the risk of waste.

Industries that use Batch production processes range from:

  • Pharmaceuticals
  • Clothing manufacturing
  • Chemicals
  • Food manufacturing
  • Beer manufacturing

Can You Manage Your Entire Manufacturing Operations with NetSuite ERP for Manufacturing?

The difference between great success or failure is a world-class ERP cloud-based manufacturing software solution. Do you want your company to flourish or just survive? The sky is your limit if you want it to thrive. The best manufacturing ERP software can enable manufacturers of any size to achieve what they thought was impossible.

NetSuite’s leading cloud software can help you improve your production, CRM, financials, as well as manage your supply chain. NetSuite’s manufacturing cloud ERP lets manufacturers manage, coordinate, and control every aspect of their operations from the shop floor to the top.

NetSuite Manufacturing ERP is built specifically for the manufacturing industry with all your manufacturing needs managed from one unified platform:

  • Flexibility – NetSuite supports and adapts to the unique processes of every business.
  • Global ERP. NetSuite’s multilingual, multi-currency capabilities allow you to support your processes and global supply chains no matter where they are located.
  • Cloud storage – Oracle NetSuite currently runs data centres in Australia in Sydney, Melbourne, North America, and Europe.
Manufacturing Needs NetSuite Manufacturing Edition
Demand Planning √ Leaner inventory
Materials Requirement Planning (MRP) √  More control
Production Engineering √  More collaboration
Shop Floor Control √  Schedule, dispatch, and track
Manufacturing Inventory Control √  Comprehensive, real-time view
Manufacturing Cost Control √  Synchronize control with one truth
Project Control √  Advanced planning and scheduling
Lot and Serial Control √ Synchronize control full visibility and traceability
Multi-Division/MultiSite Solutions √  Advanced planning and scheduling

 

NetSuite Manufacturing Edition Features

  • Role-based, customizable dashboards
  • Integrated manufacturing, CRM, accounting/ERP, eCommerce
  • Self-service vendor, partner, and customer centres
  • Complete SaaS on-demand business suite for manufacturers
  • Accounting/ERP
    – Accounts receivable, accounts payable, general ledger
    – Multi-currency
    – Subsidiary consolidation
  • Manufacturing Processes
    – Kits and assemblies
    – Demand planning
    – Production engineering
    – Manufacturing inventory control
    – Shop floor control
  • Advanced Manufacturing
    – Materials Required Planning (NetSuite MRP)
    – Quality Management
    – Manufacturing Execution System (MES)
    – NetSuite Mobile Capability

NetSuite ERP for manufacturing

Why NetSuite ERP for Manufacturing?

NetSuite can be used immediately by manufacturers and has lower upfront costs than legacy methods.

  • Engineering – Enhance product design and BOM Management.
  • Sales and Marketing – Manage opportunities, execute campaigns, and expedite estimating or quoting.
  • Order Management – Control input type and speed up demand planning.
  • Supply Chain Management – Synergize and purchase with suppliers and buyers to streamline distribution resource planning.
  • Production Control – Improve scheduling, work order administration and product quality.
  • Service and Support – Streamline case management, manage warranty returns, and empower customers to take control of their own service.
  • Financial Management – Improve intercompany accounting and costing as well as payment management.
  • Commerce – Enable omnichannel purchasing in both B2B environments and B2C.

Do you have questions about NetSuite ERP?

The OneKloudX NetSuite Solution Provider team is here to provide the information you need with confidence. If you are looking for a scalable cloud-based solution with a full set of advanced production planning tools that have been designed specifically to meet the needs of modern companies, the experienced and accredited OneKloudX team has the skills and is ready to help you with your ERP selection.

To learn more, contact the OneKloudX team at info@onekloudx.com.au or call 1800 155 683 to talk to a Senior NetSuite Consulting Team Member. As an innovative NetSuite implementation partner, our FlexSafe™ methodology enjoys a 100% success rate. We are happy to answer your questions.

Please take advantage of a few complimentary downloads about NetSuite Cloud ERP if you are considering a modern cloud ERP solution for your business this year.

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