ERP systems ‘vital’ for manufacturing industry

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When it comes to the manufacturing industry, many organizations are aware of the use of enterprise resource planning (ERP) software and adoption levels have been gaining steam. However, with new business technologies taking root, ERP systems can be complicated and challenging to install and maintain, especially as the IT landscape tightens its grip on daily operations.

A recent article from CRN recapped a white paper by IDC Manufacturing Insights. The goal of the report is to reveal barriers for high-tech manufacturing companies that are not using ERP solutions.

The study found that 35 percent of total companies and 80 percent of organizations with over 5,000 employees believe their ERP solution is vital to improve the customer experience. 

However, according to the numbers, 45 percent of companies run into struggles when it comes to integrating front and back office operations into a single solution. This is typically the fault of a rigid IT solution and a lack of flexibility.

The article features comments from John Hiraoka, the Executive Vice President and Chief Marketing Officer of Epicor.

"We believe it is imperative for high-tech manufacturers to create an agile and flexible supply chain by investing in technologies that enable faster decision making, collaboration across the organization and with business partners resulting in superior customer experience," Hiraoka said. "Improving real-time access to data and sharing information with modern ERP solutions leveraging mobile, social and cloud concepts will bring greater competitive advantage and growth."

Implementing a manufacturing ERP software solution can be complicated. With the help of an IT consulting firm that specializes in these solutions, any business can deploy them more easily.

Manufacturing ERP software offers more challenges than other industries

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Every business investment comes with a set of challenges. As the complexity level of these solutions increases, so too do the hurdles that need to be overcome for them to be successful. One prime example of this is enterprise resource planning (ERP) software.

In the manufacturing industry, ERP solutions are becoming a key factor for success. This system improves operations and streamlines data sharing and communication. Unfortunately, according to a new study by Panorama Consulting, 53 percent of companies went over budget and 61 percent exceeded the deployment schedule when implementing ERP.

While those were the averages, the manufacturing industry experienced a worse result. The study found that 63 percent of manufacturing companies exceed the budget. From a financial standpoint, this vertical overran by $3 million. By comparison, non-manufacturing industries averaged $1.7 million.

According to Eric Kimberling, a managing partner at Panorama, manufacturing has a larger gap than other verticals between expected ERP costs and actual costs. The software is only one component of the investment. Businesses need to be aware of the "hidden" costs like re-engineering, training users and interaction applications. Prices can also be driven up by customization and technical integration.

"Because manufacturers deal with purchasing, procurement, logistics, global supply chains and distribution, they do tend to have more complex business processes than non-manufacturing companies," Kimberling said in the report.

When it comes to implementing manufacturing ERP software, partnering with the right vendor can be a wise solution. This will ensure a company is able to limit the "hidden" costs while staying on time and budget.

How is manufacturing is keeping the ‘iWatch’ off your wrist?

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When it comes to Apple, one of the hottest rumors of the last few years has been the "iWatch." This would be some kind of smartwatch with unknown functionality — although running iOS 7, integration with other Apple products, making phone calls have all been speculated — that could jump to the front of the wearable technology marketplace that could be worth billions.

However, as the months have passed, several other companies of various sizes have released their versions of a smartwatch. Despite Apple connectivity or slick marketing campaigns, these devices have yet to take hold. However, with Google Glass — the computerized eyewear — in the pipeline and hopes still high that the "iWatch" can deliver, the landscape could be getting ready to boom.

With this much activity in the marketplace and rumors of an elevated focus on the device by Apple, why has it continued to be just talk for so long? According to an article from CNet, the problem could be manufacturing.

The article says that screen and battery technology and corporate shuffling have slowed down the development process. When it comes to the physical issues, the problems spring from finding a screen that will be able to optimize the battery, but also be cost effective for mass production.

Ultimately, if Apple if working on a not-so-secret smartwatch, being able to keep up demand on launch day will be a challenge. This is where having the right manufacturing ERP software in place to manage every aspect of the process to ensure it remains on track is crucial for success.

All eyes are on the future of manufacturing

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Are preparations in place for you to make the most out of your business accounting program in the new year? As 2014 rolls around, it's becoming clear that there's a serious appreciation for what domestic business needs to do in order to succeed in the future of manufacturing.

As this blog has touched upon before, there are two areas in which businesses might need to focus: technology and staffing. It might seem that mechanization might threaten the presence of live workers, but there is perhaps a way that these two goals can be reconciled with a greater overall net result.

Work Force

There's an NPR story about the way that American companies are reacting to the current state of manufacturing in our country. According to writer Chris Arnold and information from the Bureau of Labor Statistics, the amount of U.S. employees working in production plants may pale in comparison to the astronomically high numbers seen in 1998, but represents a methodical climb up over the past few years to the level of $12 million this past November.

The way Arnold counts it, 665,000 jobs in the industry have opened up over the past three years. And more are expected to come as this generation of workers retires and passes on, which of course is one of the major topics of speculation within this branch of business today.

But it looks like the savvy business may yet be able to "have their cake and eat it too" when it comes to both streamlining production and giving others the chance to organically progress into a sustainable future.

Arnold also quotes a Boston-based economist named Barry Bluestone from Northeastern University on the viability for manufacturing, which he sees as on a definite rebound.

"We're seeing a new, almost renaissance in manufacturing," he said. "There are millions of jobs that will open up in manufacturing as the current workforce retires.

Staffing With an Eye for Technology

But "work force" can also apply to the expertise that is needed to design and maintain useful business accounting systems for optimization. An article from Manufacturing.net examines the ways that putting an emphasis on this aspect of successful expansion doesn't necessarily lock out other kinds of improvements that you may mean to implement.

The author of this piece quotes from Kelly Services America Product Group director Joseph Lampinen on the stratified approach to manufacturing staffing that could help businesses make smarter decisions about who they employ. This could include finding those skilled enough to use the business accounting solutions you take on for success.

"Let's say they're a software engineer that has been displaced out on the West Coast, in Silicon Valley," he's quoted as saying in this article. "They have the raw talent to program, but they just need to pick up the right programming language and they can go to Detroit and program embedded software, or work in developing infotainment systems for the automakers."

This way, you can start thinking about how not just staffing on the floor but also keeping other aspects of the business well-managed can be long-term answer to apparent lack of productivity that you need.

Are you using ‘brute force ERP?’

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A Forbes article by Louis Columbus has addressed the need not just for ERP, but for solutions that are of a certain nuance and can deliver a high quality level of performance. The way he puts it encourages manufacturers to turn away from what he calls "brute force ERP."

According to him, incompatible ERP software can be grandfathered into use simply because it always was, which could lead to mounting inefficiencies overall. It all comes down to an inability to adapt and update.

"Many monolithic, legacy ERP systems aren't capable of keeping up with the information needs of modern business models," Columbus writes. "At best, these legacy ERP systems, encased in their customized code and complex user interfaces like glass cases over protected exhibits at the Smithsonian Institution are only marginally effective in today's turbulent economic times."

What is the solution, then? To Columbus, it involves those solutions that can interact with the cloud and point the way forward to new changes as conditions improve and change. The need to make sure that the ERP software you choose can help you to compete might be the engine that drives evolution.

This is important to keep in mind as NBC News reports that manufacturing in areas like transportation equipment have gone up. New orders for aircraft alone exceeded 21 percent in growth and Boeing will be creating more than 100 new planes.

With a system of ERP manufacturing business software in place that can help companies respond to these changes as they happen, your business might become a part of this drive toward more efficient manufacturing practices.

What can pilots teach us about business intelligence?

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It's easy for newcomers to the IT world to get caught up in the hype surrounding business intelligence and business management software. With IT now touching every department — and not just confined to IT professionals — the language of business intelligence needs to be more accessible than ever before.

Or, as Yahoo contributor contributor Anna Young puts it, "the demand for user-friendly BI tools has been on the increase with business users seeking a more flexible and mobile BI experience."

At its core, business intelligence is meant to streamline operational processes and make it easier for companies to achieve their goals. It shouldn't impede progress or create additional work for employees.

So how can businesses get the most of of their business management software?

According to Harvard Business Review contributors Vijay Govindarajan and Srikanth Srinivas, the best way to optimize returns of your business intelligence system is to think of it in the context of an airplane flight.

"We believe the primary purpose of an investment in business intelligence should be to help companies reach their intended destinations in spite of all the storms they are likely to encounter along the way," they write.

Just like pilots, those who manage business intelligence need to follow these six steps to achieve their goals:

  • Starting Point (the reality of current circumstances)
  • Destination (your goals and vision for the future)
  • Plan (how business intelligence will get you from the present to the future)
  • Variation (the ability to adjust a plan as variables change)
  • Act Early (correct miscalculations and adjust the plan as early as possible)
  • Act Often (account for volatility in your plan)

That's the best way to ensure your business intelligence system gets you to where you want to go, safely and on time.

How to plan ahead for shipping

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This blog has already spoken of the infrastructure dangers that might face your fleets on winter roads, but in addition to those physical elements, what about the larger problems you might find in your path due to the massive Christmas Crush? 

Even if you aren't shipping or managing important materials, your business might be faced with traffic delays caused by those who are, especially when it comes to rush delivery jobs that might tie up the planes and trucks needed to transport packages even further.

And though there's been a lot of press about buying, the last week, in which "deadlines" start cropping up in the news, can finally put both business and consumer priorities into perspective.

The hassle of this time of year might be enough to prompt a rescheduling of any major trucking your business will need to accomplish. Apple, for example, has announced that it will ship its new Mac Pro this February, perhaps to help escape these kinds of hassles and keep its processes running smoothly.

Times writer Salvador Rodriguez has some other theories for why this could be, one of which could apply to other domestic businesses.

"The new machine is the first Apple computer to be built in the U.S. in a long time, so there's a good chance Apple is still fine-tuning the domestic assembly process," he writes. "That may have caused some shortages."

So, in addition to the problems posed by heavy amounts of shipping and travel, the state of your new business can be managed better with some manufacturing business software that allows for this flexibility. Specifically, Microsoft business software can be a way to stay integrated with mainstream solutions.

Respond to changes in local transportation and travel

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Does your supply chain involve multiple fleets of trucks bringing supplies to different plant locations across the country? You will most likely be able to use an ERP software system to support your operations.

Even if you work mainly within one state, chances are your operations could potentially be made difficult with the arrival of unexpected snow. But even aside from that, roadways always offer other potential dangers.

So when significant changes are announced that might make highway travel through Indiana safer and more reliable, your company's ears should pick up. And according to news from the Indiana Department of Transportation (INDOT), this may be, in fact, happening, at least in one location.

The Indiana Department of Homeland Security has released a statement announcing that this state is increasing rotation of snow patrols to keep the roads clear. Some regions stand to have as much as six inches.

"INDOT has had crews pre-treating highways already today, and will begin plowing and treating interstates, U.S. highways and state routes as needed once snow begins," the release states. "A second shift of drivers will exchange at midnight, working until noon Saturday."

Meanwhile, Indiana is also reportedly planning on adding lanes to a stretch of highway in the Northwest area of the state. When that is done, there will reportedly be six lanes to travel on, which could both help reduce the impact of winter weather on travel and allow for your transport vehicles and trucks to move more easily year-round.

ERP manufacturing software can help you look at your transport and infrastructure in the context of other developments that could have an impact on your production.

Car companies to reshuffle its Indiana strategy

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With manufacturing ERP software in place, transitions to new factory spaces or the placement of a different set of resources in other facilities can be streamlined to greater effect. According to Automotive news, there are some changes that are coming to the manufacturing plant in the state of Indiana for one major car company.

The source shows that there are plans from the Subaru company to stop producing the line of Camry vehicles for Toyota in exchange for the space it will need to achieve its higher level of 420,000 sales, as well as a place to start assembling its vehicle known as the Impreza. 

Despite this, the state's Subaru branch insisted that there are no job cuts coming. In fact, if the increased production numbers are matched, this could turn out to be a positive improvement for the company. Subaru has already seen a steady climb in sales over the past few years, suggesting that the future predictions of success may not be entirely off track. 

This appears to be a case of changing tactics to meet an expected demand, and with ERP business software installed in your computer systems, planning could get far easier to account for these changes. This should be a strong focus for your business in order to make it over the bar of your expectations, and this software could be a very useful addition to the planning that you have in mind.  

Even if your particular business is not planning on a change of this sort any time soon, using this software can be a way to help understand the maneuvers of those who do.

USDA reports possible strong numbers for Hoosier crops

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Do you operate a business that depends on a cheap and abundant supply of corn for your production? Then here's some more potential good news courtesy of the USDA: the country is on a positive trend for corn growing, and since this crop is important not just in food manufacturing but other industries as well, there's a good chance that you can stand to benefit by accounting for this information with the help of manufacturing ERP software.

The government agency recently published a report identifying the "crop progress" of selected states and compared them to the corresponding numbers from this past October and November of 2012. The results are encouraging: Indiana placed among the top producers over a four year period with a 72 percent corn harvest rate and a prediction of more than a billion bushels of corn for 2013.

It's not just corn that this state has shown recent successes in, either. The same report also notes that soybeans are an area of strong production as well as reaching harvest levels of 87 percent. In the grand scheme of things, the entire country will supposedly be reaching a mark of 14 billion bushels. Other crops included in the report were such staples as cotton, sorghum and rice.

With manufacturing business software in place and ready to go, the specific results of surpluses, surges and positive numbers can be looked at in relation to a business' various components and partners. Is there proper communication between the different sectors of your business to account for the growth you plan to see? It could make a big difference when it comes to the final product.