The Essential Features of an ERP for Manufacturing Industry

In case you are on the verge of taking a call on whether to implement an ERP system for your business or simply thinking in terms of up gradation of existing systems, it is easy to be bewildered by the plethora of options available. This holds true especially for ERP for Manufacturing Industry as this segment is catered to by a number of players.

 But all things not being equal, it is only natural that some ERPs will tend to suit your business activities more than others specifically when you consider particular fields in which the activity of manufacturing takes place. You need to pay attention to how the ERP looks after the control of production, how it enables adherence to stringent levels of quality. It should also effectively manage inventory and materials. Comparatively larger business may have a number of plants and operate from several sites. Do consider process manufacturing vis-à-vis discrete manufacturing. Your ERP needs to effectively govern all of these.

The manufacturing sector in India is projected to reach the US $1 trillion by the year 2025. It is expected that 25 to 30 % of the GDP of the country would come from manufacturing and would create about 90 million jobs. So, manufacturing is a sector that has a large potential for your business. And to optimize your operations you need an ERP. Here are the essentials you want in such a software.

Shop Floor Control or Management

By virtue of shop floor control, you get a database of all the activities going on, on the shop floor in real-time. Such activities are inclusive of new work or work in progress and work that has already been completed. Throughout the variety of processes undergone during the manufacturing, you get real-time feedback that enables you to respond promptly to emerging issues.

MRP or Materials Planning and Costing

This lets you forecast or schedule products. It comes up with a comprehensive material plan which gives you detailed information on the quantity and the delivery schedule of all the necessary components.

EDI or Electronic Data Interchange

This digital process facilitates the invoicing processes, order entry and even goes to the extent of looking after the shipping notice process with granular precision. Conventional filings and forms in the paper medium are made obsolete. Transmission of data is made instantaneous rather than through the mail.

Management of Quality

By management of quality, manufacturers are able to keep an eye on the quality of products produced by the process of manufacturing.

Kanban or Lean

These terms refer to the system of communication that regulates the shop flow and keeps the production levels and customer demand in sync with each other.

Manufacturing ERP modules have numerous features that cater to the diverse needs of a manufacturing business. The list of features above does not form a comprehensive overview but only form the barebone must-have features. It is quite probable that your manufacturing niche absolutely needs a feature not mentioned above. Do your own research and remember the keyword of “Caveat Emptor” or “Let the Buyer Beware.”

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