Modern Machine Shop is focused on all aspects of metalworking technology - Providing the new product technologies; process solutions; supplier listings; business management; networking; and event information that companies need to be competitive.
Issue link: https://mms.epubxp.com/i/802599
36 MMS April 2017 mmsonline.com DECIDING FACTORS A Focus on Data-Driven Manufacturing CO NTR I BUTO R L AU R I K L AU S , Keye d I n M a n u f ac t u r i n g ( keye d i n .c o m /m fg) ERP Is Data-Driven E nterprise Resource Planning (ERP) emerged years ago as an integrated software system to make manufacturing operations, shopfloor activities and front-office management easier and more efficient. Business owners and managers embraced ERP because they are faced with a series of important, urgent questions every day. ERP helps meet this challenge. It enabled them to make use of a centralized solution that holds com- pany data in a single place, thus providing all of the information required for each department to carry out its role effectively. Depending on the product, ERP supports such functions as estimating and quoting, shopfloor scheduling, job tracking, pur- chasing, production and manufacturing resource planning, shipping, and financial management. ERP systems have been available and were widely implemented long before companies began to think about data-driven manufacturing. Today, companies are looking at connecting machine tools and other devices to a computer network so machine-generated data can be collected for analysis and reporting. This data can enable shop managers to boost productivity and reduce down- time. In the meantime, manufacturers with an ERP system in place should re-evaluate the system as the essential forerunner of and foundation for emerging data-driven manufacturing concepts. Companies without an ERP system should consider migrating to one, especially as they eye a move to machine monitoring and shop networking. However, the market for ERP systems is becom- ing more saturated. Whether upgrading a shop control system or installing ERP for the first time, businesses may find it difficult decide on the best options. This advice will provide sound guidance: Consider your objectives and requirements. First, consider exactly what you want from your system. What issues or staff inefficiencies must be resolved? Your answers should be specific in order to narrow requirements for your chosen ERP system. To avoid being overly influenced by mar- keting from various vendors, list your requirements before starting to research the options available. Discuss these requirements with different team members to ensure that specific needs are met. Measure return on investment (ROI). Very often, businesses researching ERP systems find it difficult to measure ROI accurately. However, having clearly defined goals and objectives at the start will help considerably. It's possible to measure ERP performance by: An ERP system is a connector that unifies manage- ment and operational functions.