Flexibility and Reduction in Quality Cost:
Customers want to buy products that are designed to suit their tastes and preferences. As customers' preferences change from time to time, organizations need to design new products or redesign the existing products quickly and efficiently. The organizations should have flexible manufacturing systems to facilitate changes in product designs without disturbing the entire system and without loss of time.
The extent of flexibility required in the system changes with the situation. Sometimes flexibility may mean minor changes in the existing system, while sometimes it may need a complete change in the system. Flexibility may also mean the ability of the system to produce a variety of products with the desired specifications in small quantities, and reduce inventories. If a company does not acquire that kind of flexibility, it may end up with accumulated inventories of obsolete and unwanted products. However, when a particular product is in demand and the organization is not able to produce that product in the required quantity, there is a loss of opportunity for the organization. Both traditional large scale manufacturing facilities and modern make-to-order facilities have their own advantages. Thus, the ability of the organization to switch between the facilities determines its flexibility and efficiency.
Two types of approaches can be used to produce flexible products - the assemble-to-order approach and the engineer-to-order approach. The assemble-to-order approach offers only limited options and features to customers. The engineer-to-order approach enables organizations to configure from scratch the products that meet customer specifications and offer highly customized products.
ERP systems do not just maintain the flexibility of the manufacturing process, but the flexibility of the entire organization. As the intensity of competition increases over time, organizations need to prepare to enter new markets, formulate new strategies and face new challenges. The ERP systems automate the organizational processes and make the information readily available to all departments in the organization. This helps companies to react quickly to changing market conditions, maintaining their profitability.
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