How ERP has Changed Business Processes in Manufacturing
The world of
industrial manufacturing has undergone a renaissance in the last two decades.
Since the
Industrial Revolution, manufacturing has remained relatively unchanged since
the 1800s. Processes relied on countless reams of paper and word of mouth to
communicate vital business information, meaning if a certain employee got sick
or left, a knowledge hole would inevitably open up and impact productivity.
With the dawn of
the internet age in the 1990s, manufacturing was poised to enter the digital
age and flourish. Computers and their inherent connectivity promised a world of
shared data and knowledge, allowing for access to different business processes
at the click of a button. The answer to this untapped potential was the
development of Enterprise Resource Planning, or ERP.
So what is ERP and
how has it revolutionized business processes in manufacturing?
What is ERP?
ERP is a complete
integrated business solution that solves many of the pain points in the
manufacturing process. Capitalizing on the immense processing power of modern
computers, ERP programs collect, organize and present data from all business
units in an enterprise in a single user interface. An ERP takes the mountains
of paper shipping reports, inventory lists and vendor invoices and digitizes
them for instant search and display. Computers and the internet held the
potential to make manufacturing paperless, and ERP programs deliver on that
promise.
With the
introduction of cloud computing and the Internet of Things (IoT), ERP has
become even more intelligent and crucial to effective business management. Each
aspect of a businesses manufacturing processes can be accessed remotely via the
cloud, allowing for on the go overviews, and in depth analysis no matter where
you are in the world. IoT sensors and machines mean that previously unconnected
machines can now contribute all the vital information they carry seamlessly and
wirelessly. Now everyone from executives to employees have the entire big
picture at their fingertips, saving money and time through trend forecasting,
pattern recognition and efficiency maximization.
So how did this
incredible technology come to be?
The rise of the
ERP:
ERP I (1990’s)
Leading up the
introduction of ERP, the main focus in resource planning had been in the form
of material requirements planning (MRP), manufacturing resource planning (MRP
II), and computer-integrated manufacturing. The term Enterprise Resource
Planning was first coined by The Gartner Group in the 1990s to refer to the
wholistic programs that encompassed their work with manufacturing facilities.
ERP represented an umbrella program that would provide unparalleled access to
business data to those who needed it most.
ERP truly became a
must-have for industry leaders during the lead up to the infamous Y2K issues at
the turn of the millenium. Millions of computer systems were predicted to fail
catastrophically with date change, and whilst the actual impact is debatable,
many businesses took this as a chance to upgrade their systems to the latest
productivity enhancing ERP programs.
Early iterations of
ERP programs focused exclusively on back end functions such as inventory
management and staff scheduling. As technology advanced and high speed internet
protocols became widespread, more customer facing aspects were added including
CRM and SRM integration. Whilst the ERP moniker would eventually move beyond
manufacturing and be utilized by countless other industries, the groundwork was
laid for a new world of integrated business planning.
ERP II (2000s)
In the 2000s, ERPs
continued to expand as internet speeds increased and digitization became more
commonplace. ERP II was characterized by a move beyond “corporate walls” and
deeper integration with external partner organizations. This allowed for more
cohesive collaboration on a range of customer-centric business processes such
as enhanced CRM as well as integral internal functions like SRM and SCM. This
new breed of ERP encouraged the sharing of knowledge and expertise between
business partners, increasing the competitiveness and productivity of both
parties in the process.
ERP II also opened
up its wealth of data to a broader range of users for the first time. No longer
restricted to corporate executives or plant managers, the benefits of ERP could
now be access by everyone from work floor employees to customers directly. This
allowed for further enhancement of ERP’s capabilities, as different employees
were able to contribute their knowledge and get the data they needed quickly
and accurately.
Postmodern ERP
(2010s)
With fibre optic
internet and mobile applications a part of everyday life, ERP evolved once
again in the 2010s to better meet growing business demands. First described in
2013, Postmodern ERP made its mark by embracing cloud technology and
flexibility in its design and focus. Shifting away from purely onsite,
monolithic ERP II systems towards universally accessible cloud based platform
put the entire ERP productivity suite online. Now, anyone with the right
credentials could log in and have a complete picture of the business as a whole
wherever they were in the world.
Customers in the
modern era demand a high level of customization to their specific needs, and
businesses have come to expect the same. Postmodern ERP systems removed intense
reliance and dependencies between ERP systems, allowing for more customization
and easily exchanged business modules. Of course, the move towards more “plug
and play” style programs that are meant to cover a wide range of different
industries comes at the cost of lost niche functionality and highly specific
business processes.
That’s where Onramp
Solutions comes in.
The Onramp
Solutions Difference:
Onramp Solutions
was born out of continued frustration with modern ERP programs and their lack
of focus on the manufacturing industry. Art Church, CEO of Mancor Industries,
knew there was a better way to manage the exponentially increasing amounts of
data from six different manufacturing plants across North America. He knew
about the benefits of ERPs, and after some research, decided to pay top dollar
for a big name system. Despite having been first developed with manufacturing
in mind, the expansion into hundreds of different industries had led to a “one
size fits all” approach to ERP modules, which meant many company specific
business processes were left out in the cold.
After hundreds of
hours creating complex workarounds to properly account for business processes
unique to manufacturing, Church realised his team was more than capable of
creating their own ERP program focused exclusively on manufacturing.
Thus, Onramp
Solutions was born. As Onramp Solutions ERP program is built by
manufacturers for manufacturers, it is uniquely positioned to offer a range of
key advantages over other ERPs.
Bespoke Business
Modules
One key
disadvantage of modern ERPs is their “lowest common denominator needs” ethos,
whereby disparate industries are reduced to their base requirements, and a
program is built that services that need broadly. This forces organisation to
find workarounds for their individual business needs, decreasing productivity
and increasing frustration.
Onramp Solutions
works directly with every customer to fully understand and assess their
facility needs, and to build bespoke functionality to do exactly what is
required. Church made it a key objective to be able to provide solutions that
simply worked without the headache of “hacking” a solution. Whilst some ERP
programs require businesses to reengineer their processes to suit the platform,
Onramp Solutions prides itself on offering the reverse to its loyal customers.
Intelligent Data
Conversion
Change can be a
daunting and stress-provoking experience, especially when it comes to your
business. Onramp Solutions has developed an advanced data conversion system
that can intelligently extract data from your old system and import it into the
new system. In effect, this means the two systems can run concurrently until
you and your staff feel comfortable enough to switch over to the new system
completely. This limits any potential downtime required for training or impacts
on managerial resources, as the dedicated Onramp Solutions team assists with
training at a pace that suits your business.
Tribal Knowledge
Extraction
One of the hardest
hurdles to overcome when integrating an ERP is the accurate extraction of all
the situational and experiential knowledge key members of your staff hold in
their heads, known as tribal knowledge. This can cover a range of things from
trivial facts to crucial business processes that would adversely impact the
company should it not be passed on to anyone else. Onramp Solutions has
developed a comprehensive tribal knowledge extraction program that ensures all
your important business information, from the nitty gritty to the high level,
are accurately transcribed and uploaded into your ERP system. Now your business
efficiency won’t hinge on a single person, meaning the knowledge is shared and
accessible to everyone.
There are hundreds
of ERP programs available for your manufacturing business, all promising to
revolutionize your workflow. However, many of them are less integrated and
comprehensive than a bespoke solution tailor made for your business would be.
Onramp Solutions provides manufacturers with a completely customized ERP
platform made exclusively for the manufacturing industry. Businesses cannot
afford to lose any competitive edge available in the current economic climate.
Onramp Solutions has dedicated to bringing manufacturing into the modern era
with bespoke programs that enhance productivity and competitiveness.
For more
information, please contact a solutions expert at hubai.in today.