The Benefits of automatization of your production processes using ERP system
To identify and analyze the business benefits of using an ERP system is difficult for any manufacturing industry. Most domestic companies are not even aware of the importance of process management using business system while worldwide ERP systems successfully govern and are essential business tool for three decades now.
ERP System (Enterprise Resource Planning) software has provided the infrastructure for the efficient conduct of all operational processes in manufacturing companies of all shapes and sizes. These systems are preferred technology that must be implemented because the business environment in the manufacturing sector is becoming extremely competitive, companies of any activity must consider, develop and deliver high quality products in a short period of time with the lowest possible cost and high quality in order to win and then retain the customers.
Team INKOM EDC over the years has accumulated QUALITY LESSONS from the vast experience with the implementation of manufacturing ERP system in small and large manufacturing companies across the Balkans. Our proftolioto is filled with firms from the textile industry, then leaders in the region for production of furniture and mattresses, international companies with local factories who are making parts for buses and automobiles, companies carrying on a manufacturing of metal and steel structures as well as many factories from the food industry.
Overall, daily operational functioning in manufacturing companies is anything but simple. The processes are complicated and must be carried out effectively while following protocols for quality and reliability. In addition to this there are different variables and aspects that management should take into consideration in order to ensure proper and perfect workmanship. Basically requirements of manufacturing companies are many and solutions therefore can be found only if we invest in efficient and quality business system.
In this article I will briefly enumerate and discuss part of the benefits that our customers got after the impelementation ,meaning with the automatization of their production processes using PANTHEON ERP system.
1. Standardization of business processes
As a production grows , the actual operations in the company become further complicated. Pantheon business system allows you automatization of all business operations while ensuring accurate and on time information. Efficiency and productivity are increased because employees now easily perform complex processes, errors and double data entry are eliminated which allows reallocation of resources to be peformed so STRATEGIC OPERATIONS who give bigger value can be carried out . In other words, additional time is provided and good, transparent flow of information and that is way companies get employees focused on business processes and improving the services they offer instead of managing the system.
2. Reducing the costs
By optimizing stock levels our customers have noticed a significant reduction in costs. It is due to improved planning of demand, more effective coordinated system of purchase and distribution, numerous reports showing inactive inventory and planning according to trends from previous periods. All this allows capital (funds) which we possess not to be pegged as stock and management costs for the same, but to be used for other purposes for the growth of the enterprise, and on the other hand we receive timely and efficient system of production and JIT delivery.
Pantheon ERP system enables you to reduce the costs on several other ways. Increased employee productivity leads to reductions in overtime and other costs associated with employees and wages (payments at higher rates for work on holidays, night, monitoring employee performance by introducing norms etc.). Increased preciseness in the execution of production processes will allow reduction of Kahlo and waste and also reduce the corrections due to errors, important aspects on which you spend considerable financial resources
3. Obtaining competitive advantages through precise price calculation
Improved traceability and visibility of all sub-processes enabled through numerous reports and analyzes offered by Pantheon will significantly help you in identifying potential areas where you can cut costs and thus the value of the cost of the final product. The exact calculation of the cost of the product according to any of the accepted modes of valuation of stocks (Fifo, Average and Planning prices) allows our customers to get competitive advantages by reducing its prices or to make a higher margin without having to raise the selling prices or reduce the profit
4. Planning of capacity utilization
It is one of the most significant benefits when it comes to production company. A common example of the practice are the companies that have invested in modern machinery, invest wholeheartedly in hiring highly educated staff and pay higher prices for their training. Still, something is lost in this story and still occurs a sharp slowdown in production: some machines are overloaded, we have a bottleneck while others are not used efficiently, and we have low production with high cost.
Planning of capacity utilization is an aspect on which we pay great attention in the implementation of business system Pantheon. This means resource planning and termination of work shits based on historical data (trends from previous quarters / years) or based on orders received from customers with final delivery terms.
Planning the production facilities starting from receiving an order our customers receive information about how many employees will be needed, which raw materials have to be ordered from suppliers, precise schedule of operations on machines in order to achieve the most efficient production plant with the lowest costs. Having all this information we get Gantt Chart and information about required time for construction and the first final term to finalize the application order.
5. Other benefits
Other benefits that are worth outlining are an opportunity for early identification of possible problems that could occur during production as faulty regulations, insufficient resources or staff to carry out the order and so on. Pantheon also offers the option to quickly and easily recharge production plans. For example it happens a client to call in the last minute with an occasional request for additional product. Management can easily check the plan to see whether it has the necessary resources and whether a machine has a free term to incorporate additional levy. Information on whether we can meet the emergency order from the customer we are able to receive even on the telephone conversation and it will be based on quality and accurate information.It is common that after the implementation process and the reorganization of production processes companies become aware of the actual volume of orders that they could process. Due to improved dealing with large volume orders companies are growing significantly without the need to invest in additional resources..
6. Analysis
In terms of analysis by Pantheon you get affordable and quality information that enables companies to make smart business decisions and decisions on further steps that they need to steer. One of the main advantages that our customers often say is that you finally have a version of the truth. What does this means: before the implementation of such an integrated system, each department usually works in different programs that are not related to each other or worse each employee leads individual excel tables. In this way very often it happens that the management gets different data, numbers and answers to the same questions posed to the various business units, which significantly complicates the monitoring of KPI and the making of new business decisions.
Besides numerous systemic printouts that Pantheon offers during implementation we produce a variety of custom made statements that are necessary to users for improved analysis or specific requirements of top management or group.
Team Incom is avaiable for additional discussion regarding the above benefits and some other specified. Additionally our reference customers are transparently listed on our Website (incom.mk) if you want to see a real example and experience directly from the users of Pantheon ERP system.
Aneta Dolinska
InCom – Senior ERP Consultant