Creating the Most Suitable ERP System for Manufacturing Companies
Creating the Most Suitable ERP System for Manufacturing Companies
ERP System Development – When discussing Microsoft Power BI or ERP software systems, one often overlooks the many types and variations. These types and variations are determined by the company model and the line or department in which the ERP application is installed. Not all ERP systems or applications will be suitable and capable of delivering optimal performance when implemented in a company, especially if the business unit is still unfamiliar with the full functionality of the ERP system.
Before deciding to implement an ERP system within a company's business unit, it's crucial to first understand the needs of the unit or department. This is because an ERP system is an application program that runs automatically, as intended, and is implemented within an organization to replace previously manual functions. In other words, if an ERP system has been programmed and installed within a business unit, the system will continue to run as originally programmed. If changes are needed midway, it must be reprogrammed. Although some ERP applications support customization of settings after installation, this is certainly limited.
An ERP system application will deliver maximum performance if it can fill in the gaps in functions that cannot be reached or performed manually by human resources. It's no surprise, then, that some ERP system functions can only be performed by the ERP system itself and cannot be replaced by human resources, especially if they are performed manually.
So, how do you determine the best ERP application suitable for a business unit or department within a company? Are there any points that must be met before deciding to install an ERP system in a business unit? The answer is, of course, and these points must be met to achieve maximum impact when installing an ERP system in a company's business unit. In this article, we will discuss in detail the key points in creating an ERP system suitable for manufacturing companies. Read on for the full review below.
Key Points in Creating the Most Suitable ERP System for Manufacturing Companies
1 Data Requirements
The first, arguably the most crucial, point in creating an ERP system for a company is the data or database requirements. An ERP system will configure the database according to the company's customizations and needs. The database used for the ERP system is not only for design purposes but also concerns the database that will be displayed or accessible to the company for business operations.
The database displayed by the ERP system for user access can be either private or public. In this case, users must carefully determine which data will be set to private and which will be set to public. Data set to private typically concerns important data that should only be accessible to a select few users, such as financial data, attendance, and employee personal data. Public data, on the other hand, refers to data used for operational business activities, such as product inventory or product flow within a company.
2 Inventory Management
Another crucial factor in determining the right ERP system for a company is inventory management. As we know, every company has inventory, both routine and non-routine. If the company manages inventory periodically or routinely, implementing an ERP system in that business unit will undoubtedly have a significant impact. The ERP system will regulate the flow of large amounts of inventory while minimizing errors.
Conversely, if a company's inventory doesn't meet its significant routine needs, implementing an ERP system in that business unit will seem useless and will appear to have little impact compared to when the system wasn't implemented. While implementing a modular ERP system in a business unit is perfectly acceptable, it's preferable if the innovations implemented within the company also have a significant impact on the company's operational processes.
Also Read:
3. Simplify all existing processes within the business unit.
The purpose of ERP in a company is nothing more than to simplify all work processes and maximize work process results compared to when not using an ERP system. Based on this definition and purpose of ERP, it can be concluded that ERP use in a company must include process simplification functions with maximum results.
A lack of knowledge about ERP systems within a company will prevent the implementation of ERP application modules from being achieved. For example, many companies have implemented ERP systems but haven't achieved optimal results. This is because the most important elements of ERP development, namely complete data and ERP requirements, are not met. Consequently, the pre-programmed ERP system fails to meet the company's needs for streamlining all work processes.
4 Presenting Report Data in the Form of Actual, Accurate and Easy-to-Understand Data
At first glance, reading data may seem easy, but understanding it is not. Indeed, understanding data is not easy, especially if the data being processed must have useful information for the company. Unfortunately, not all human resources are capable of processing data into useful information for the company's development. This can be influenced by many factors, for example, processed data can provide information for determining an accurate branding strategy, while the company needs data processing for sales purposes. Ultimately, misunderstandings between business lines can arise, ultimately disrupting the company's well-being.
Using an ERP system can minimize data misunderstandings because it can display processed data into information in a variety of ways, ultimately contributing to the company's goals. This is crucial because before implementing an ERP system in a company, users must understand what data they want to obtain through the ERP implementation.
This concludes our discussion on creating the most suitable ERP system for manufacturing companies . Of course, the points outlined above are only a small fraction of the many points to consider before deciding to implement an ERP system within your company. However, broadly speaking, the four points above adequately represent the importance of implementing an ERP system in manufacturing companies.
If you have any questions about creating an ERP system, please don't hesitate to contact us. We have the experience and competence to meet your ERP system needs and are a Microsoft ERP Partner.
