Cloud ERP for Feasible SME’s Manufacturing

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Cloud ERP for Feasible SME’s Manufacturing

Cloud manufacturing can be widely accepted by small businesses to drive production efficiency and timely shipment, however small businesses often neglects it on costs assumptions and thinking about manpower to drive the system. Well the reasons may vary from one industry to another, however manufacturing is not an easy process as there are enormous resources invloved in production. Keeping track of each and every resources are not viable for any enterprises more specifically the growing enterprises. Talking about how Cloud ERP can be feasible for small manufacturing businesses is a matter of concern for most of today’s manufacturers. The complexity of production and the number of processes that comes along the line of product development is a time consuming process. Capturing each and every processes are not viable for small businesses, if you dont have an automated system, so going for an automation will be the right platform, that drives manufacturing efficiency so as to save your time and keeping yourself away from chaos on plant due to jobs overloading on machines and/or workers .

Manufacturing is the core of every businesses, and we all know timely manufactuing leads to timely delivery, so inorder to drive efficiency you should have a total control over your Shop Floor which could provides you with valuable insigths on the ongoing jobs, released jobs, time lapsed on jobs, delayed jobs, completed jobs and so on. In order to optimise your jobs, a shop control panel can guide you through timely allocation of jobs. Allocation of jobs on a particular machine/worker at the right time shall neither overload the machines nor the workers, thus giving your workers the time to complete jobs on timely manner without the need to expedite the processes. When we talk about manufactuing efficiency, it is not just limited to inventory inputs, capital, machinery and manpower, it should all mean how and when jobs are to be allocated, timely completion of all components manufacturing with respective to required job days and doing job receipts on timely interval to streamline further job chains. Managing jobs and shop floors in a plant can only become feasible if the core manufactuing workflow phases gets stronger and better through lean manufacturing practices and refinement of inputs over time.

 

So lets look at the core workflow phases involved in manufactuing. It includes the

 

  • Bill of Manufacturing

  • Inventory Management

  • Manufacturing Sales Order

  • Custom Manufacturing – Engineer to Order (ETO)

  • Material Requirement Planning (MRP)

  • Manufacturing Purchase Order

  • Shop Floor Control – Manufacturing Execution System (MES)

  • Product Costing

  • Manufacturing Accounting

 

The above workflows are core to every manufacturing, so how does a Cloud ERP for Manufacturing make it feasible. The answere to this question is the  “Just in Time” manufactuing. The concept is based on “Pull type” which means Make To Order in which the production is based on actual demand rather than “Push type” means Make to Stock in which the production is not based on actual demand. Any small manufacturing business can easily emulate Toyota’s just in time philosophy to become a manufacturing leader. As a manufacturing leader you will provide customers with rapid time to shipment while keeping inventory and WIP to a minimum. So how can it be done? You must implement Cloud Manufacturing MRP software to get the platform you need for “just in time” planning and execution.  Second, you must commit to using Manufacturing principles prescribed by software. Principles like Rapid Time to Shipment, Lean Inventory, Just in Time Scheduling, Prioritized Production and Efficient Costing etc

JIT Manufacturing replaces inefficient manual planning methods with a just in time system that boosts your manufacturing efficiency. It reduces time to shipment with strategic planning settings, keeps inventory lean with dynamic reorder points, sales order ship dates generate jobs and purchase orders just in time, releases jobs to live production with material availability and boosts shop productivity with job prioritization. Any small business can use Cloud MRP software to dramatically boost manufacturing efficiency with a process workflow scaled for smaller companies.

 

Benefits of Cloud Based Manufacturing ERP for Small Business

  • SaaS model enables small business pricing
  • Small business ERP software is not over-complicated
  • Simple workflow processes makes ease of using
  • Easy implementation with lesser costs
  • No Accounting Conversion at Shop Level

Cloud Manufacturing for small businesses is simple and is based on simple methods that can be applied by any small manufacturing business. It provides fexible and lesser transactions and workflows while retaining the vital elements of production processes and inventory. Cloud ERP in accordance with the prescribed methords is far easier compared to traditional planning and shop control methods. It is easier to

  • Plan shipment in advance using lead time allocations
  • Plan for stock using dynamically calculated reorder points
  • Generate Work Orders and POs triggered by actual net demand.
  • Generate a master job and PO schedule where supply dates are aligned with demand dates
  • Release jobs to production based on material availability
  • Meet required dates by running work center job sequences in job priority order
  • Update material usage and sequence completions in real time for workers
  • Use calculated shop rates for labor and overhead and absorption costing
  • Operate by sharing time to shipment objectives and production priorities with sales people, shop floor supervisors, manager, and even customers.
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