Manufacturing companies have many options when it comes to ERP solutions. Many don’t realize the type of manufacturing requires different ERP software capabilities.
It’s important to choose the ERP software system that fits with the type of manufacturing you do.
There are basically two types of manufacturing: discrete and process.
Discrete Manufacturing
Discrete manufacturing refers to production or assembly line manufacturing. Examples would be the assembly of automobiles, computers, or the like. They consist of separate parts and components that can be put together or taken apart. If one part is missing, the final product cannot be completed. This type of manufacturing uses a Bill of Materials (BOM) that lists all required components of a product. It also involves a routing to track labor steps.
Discrete manufacturers require sophisticated planning, scheduling and tracking capabilities to improve operations and profitability. It’s about assembling parts into a product that must be exact—no variations can occur or the product will be defective. The product is made through a sequence of steps using the same procedure.
Some examples of functionality included in discrete manufacturing:
- Product costing
- Shop floor control
- Field service and repairs
- Production planning
- Project management
- Product data management
- Product/item configurator
Process Manufacturing
Process manufacturing uses formulas to develop products. Examples of process manufacturing are pharmaceuticals, food and beauty products. The final product is created through recipes or formulas that are mixed or blended. The components used in the final product can be altered, as desired and batch sizes can be modified by scaling each ingredient accordingly. The results change the composition of the original raw materials and cannot be disassembled or reused.
Process manufacturing involves a set of processes that need to be finished to make the end product. Each process in the set has a separate set of requirements, so planning and controlling them are usually better accomplished separately.
Process industries make products in bulk quantities. Process manufacturers with batch or continuous operations rely on sophisticated tracking and scheduling mechanisms to keep operations running at peak efficiency.
Some examples of functionality included in process manufacturing:
- Formulas/recipes
- Process model (formulas and routings)
- Process batch control and reporting
- Conformance reporting
- Process manufacturing costing
- Material management
- Product costing
- Shop floor control
- Production planning
E3 Consulting Can Provide You with the ERP Solution that’s Right for Your Business
Advancing globalization and stronger competition demand businesses in both discrete and process manufacturing industry to have seamless process control, greater flexibility and cost efficiency. Both discrete and process manufacturers rely on ERP software to compete successfully in the marketplace and to maximize profits.
The best ERP system for your manufacturing business depends on whether you have a discrete or process manufacturing environment. The terminology, workflows, costing and compliance requirements differ for each type. For example, a tradition BOM does not accommodate process manufacturing recipes and formulas.
E3 Consulting can help you choose the system and components best suited for your specific needs. We will handle all communications with the software manufacturer, relieving you of that burden. We will also oversee the installation of the system, train your team to use and maintain your new ERP software, and make the process as pain-free and smooth as possible.
You have enough on your plate managing your business. Let the experts at E3 Consulting take the lead in selecting the best solution for your business and implement it for you.
Contact us today to learn how we can be your partner in helping your business succeed!