Punctuality in Shipment:
The major challenge faced by companies today is to deliver custom-built products in the same time as standardized products are delivered. This indicates that companies need to change from make-to-stock to make-to-order type of production. And the companies have to do this without charging a premium from the customer. This may require the company to modify its production and planning methods in order to achieve cost and time efficiencies.
An ERP system provides flexibility to the company to modify manufacturing and planning methods, without reorganizing the work place or plant layout. Using ERP, a company does not have to invest heavily each time it changes its manufacturing method, unless the method requires completely different equipment. The management is free to use a combination of methods and arrive at the best method. A method may be changed at any stage of production of the product and at any stage of its life cycle, because the change involves minimum costs or no costs. ERP packages offer simulation features that enable the management to generate various production scenarios and select the best one. Thus, ERP avoids the cost of implementing a method in order to check its suitability. The ERP system supports the entire range of production activities and helps the management ensure that efficiency is not lost despite having a variety of production methods.
ERP integrates all the functions involved in the on-time delivery of products to the final customer. All the essential information with adequate details is available to all the managers concerned. Moreover, the system issues warning signals when something goes out of control so that the management can take appropriate action. The time taken for data transfer comes down dramatically because of the high level of integration between departments. The flow of information between the engineering and production departments enhances coordination and reduces errors in design and production.
If the management selects an appropriate ERP system that can be integrated well with existing CAD packages in the organization, the exchange of information about drawings, items, BOMs (Bill of Materials) and routings becomes smooth. Clients propose changes in product specifications from time to time. By using the Engineering Change Control System (ECCS) in the ERP package, the organization can quickly meet any demand for changes in the specifications and deliver the product on time to the customer.
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