Report on ERP (Enterprise resource planning) in manufacturing

Introduction ERP (Enterprise resource planning) in manufacturing

ERP is a complete system of planning the resources of enterprise in a framework that offers a change for assembling firms from the conventional programming. In the present antagonistic business condition, it is fundamental to be set up to confront a serious world. ERP offers an arrangement that empowers fabricating organizations to contend in the predominant market. A superior administration of your assembling forms changes the store network to accomplish creation plan with your business plan, fund and clients. In initial time ERPs were designed for accrual links, they have reached out to help organization, forced training, convenience, social protection, cash related organizations, and government. All of the industry has its own habit especially to deal with matters in the manufacturing business. For example, government ERP uses Contract Lifecycle Management rather than traditional purchasing and holds fast to government accounting rules instead of GAAP or it might be used in the construction projects. Banks have back-office settlement strategies to suit checks, MasterCard, charge cards, and various instruments.

Why manufacturing firm needs ERP (Enterprise resource planning)

In the manufacturing business, it becomes a need to address a few key vital issues in the event that they required to effectively challenge right now business condition. A typical procedure utilized by firms to complete this objective is without a moment to spare and quality improvement programs. Electronic ERP framework is intended to address the issue of separation of data in assembling associations (Rahmadano, Sarno, & Sarwosri, 2016). ERP framework controls the whole business methodologies with a suite of programming modules in all the regions of business. Additionally, ERP is utilized as an alluring connects to improve mix between every single useful territory inside the assembling enterprise resources. It could be implementing while business is promoted as a global business on the international level.

 It must be a bound together system, with easy to-use applications and interfaces that works perfectly over various divisions with the fundamental controlled access. These hunt and itemizing utilities to make reports subject to various parameters comparative in working. RP programming is a simple to introduce a framework that streamlines producing forms through robotized arranging, booking and satisfaction. The ERP framework yields new information insight that revives dynamic and decreases organization costs. In the assembling procedure, each progression can tremendously influence benefit. Increasing greater deceivability into forms and improving each progression effectively is essential for any organization needing to contend all around. The ERP device improves the IT condition and manufacturing business to make each business procedure straightforward and progressively viable (Susanti & Hapsari, 2017).

Implementation of ERP (Enterprise resource planning) in manufacturing

In a manufacturing organization, the designs of an ERP execution is the essential inspirations to get business change, business process coordination and the innovation renovate which in the long run on time substitution of the legacy framework. With the business change, the point of the administration is to embrace changes at the top line or main concern of its business procedure. Business process management is a business change practice where the goal is to create process benefits over the association. During an innovation redesign, the IT association is relied upon to supplant the inheritance framework with the most recent innovation to diminish application the board expenses and all-out expense of proprietorship.

There is no mischief if chiefs are given minimal all the more resting time during the assessment of the privilege ERP bundling for their association. Choosing an unseemly ERP bundle resembles welcoming difficulties and business challenges. An ERP framework that is definitely not a correct fit will in general burden the whole association. The wrong choice of an ERP bundle can bargain security and review necessities and have a hampering impact on representative confidence (Anardani & Putera, 2018).

Problems and solution in ERP (Enterprise resource planning) implementation

Enterprise Resource Planning (ERP) framework encourages incorporated information that is of incredible key significance to the business. There are different challenges which are faced by the management while implementing an ERP system and these challenges resolved by distinguishing the force powers and improving the pace of appropriation is the prime goal of any innovation usage program. By implementing an ERP framework all the business exercises will be limited. At the point when the ERP is actualized effectively then it will give more advantages just as when the execution of ERP is exploded it will influence the entire business and it cause to close down the business (Mahendra, 2016).

In this way, while actualizing an ERP that organization should mindful of ERP frameworks and they need to examine and see increasingly about ERP to actualize it effectively. After the effective execution of ERP, that organization begin to procure more advantages and they will effectively get the criticism from clients about their item disadvantages. Forced items will fulfil the clients. Along these lines, this ERP will assist with embracing the new innovation to create fulfilled items for clients. This would be helpful to overcome the other difficulties as well as with the enforcement of resources in the proper place.

In a manufacturing business, it is required by the management to manage the resources such as labour and workforce in different departments with the help of ERP system and it is considered to be essential in manufacturing business to learn about the demand and production to supply in the market. As manufacturing business is larger and complex therefore it would require being more essential to implement the ERP system in the manufacturing business. However, it is essential but there also may be the problem of execution of the system as manufacturing department is mostly based on workforce and it is hard to know about every individual and his skills, therefore it may be a difficult and challenging task to do (Anardani & Putera, 2018).

Sharing Date In Enterprise Resources Planning

In enterprise resources planning (ERP), organizations are required to plan for the timing and schedules. Organizations working in the manufacturing sector and services sector are required to develop plans and schedules for the purchase of required materials, services, and everything concerning with the final product or service delivery. Regarding all these companies are required to share a date plan covering all important dates for the purchase of resources, manufacturing process of resources, and supply of these resources in the ready to sell condition. The following are the most important plans as the key component of enterprise resources planning that concerns with the dates and time schedule.

v  Timelines and Gantt Charts of ERP (Enterprise resource planning) in manufacturing

Timeline and Gantt Charts have specifically used tools in organizations for time planning and scheduling. The timeline includes specific details regarding to-do list of activities and important dates concerned with these activities. For instance, in a timeline of a manufacturing company the key activities can be concerned with the management of human resources. Human resources include workforce working in the production or manufacturing plant, an employee working in the organization, and all managerial staff working on different position to ensure completion of business operations in the desired manners. Regarding human resources, management time provide a clear about the sequence of activities to be done by various workers and managerial staff of the organization. In other words, the timeline allows the human resources of an organization to understand what task is required to be done after the completion of which task and who will be responsible to work on that task in which dates (Yena, Chou, & Chang, 2002).

Timeline is required to be developed in a chronological order. Project management or organizational management develop a timeline for the execution of project or business operations in a sequence. While creating a timeline they follow up this sequence to make a timeline easy to understand for all concerning people in the workforce, stakeholders or managerial staff. Timeline is a useful and important document that is used to represent the temporal relationship between activities. The timeline provides an easy to understand history and plan of activities to be done in future or had done in the past with ongoing trends. Several enterprise resources planning software are available in the market on paid and open access for the manufacturing companies and service sector companies to develop timelines and Gantt Charts (Merkas, 2019).

Gantt chart is also an important tool for the representation of time and dates in the enterprise resources planning. Sometimes timelines and schedules become complex and difficult to understand. In such a situation, the visualizing tool Gantt chart is a better option to represent important dates and time duration required for each activity e.g. purchase of resources and management of human resources activities.

v  Purchase Schedules of ERP (Enterprise resource planning) in manufacturing

Purchase schedules are also an essential part of enterprise resources planning (ERP). Purchase schedules is also a kind of timetable about the supply of materials. This kind of schedules is very common in the manufacturing companies to maintain purchases of raw materials and other important resources required by the production sectors. Purchase schedules are also supporting documents for the long term purchasing plans. Long term purchasing includes the purchase of inventory and raw materials for frequent deliveries.

Moreover, purchase schedules are also required to have records of the required organizational resources to complete a start or a future project. Although, enterprise resources planning (ERP) includes the purchase schedules that are backed by the purchase contracts with the supplier organizations. Purchasing schedules are usually developed with details about dates. Managers mention with a date when a particular kind of resources will be purchased. While on the other hand, purchasing plan also provides suggestion to the organizational managers and project managers to make a schedule for purchase orders that will support in the creation of transactions linked with purchases of raw material and other required resources of the organization. Various kind of purchasing schedules includes personal purchases, mercantile purchasing, industrial purchasing, and institutionalized or government purchasing. The purchase orders or purchase schedules are generally developed by the project management team or purchase responsible person. See the following figure representing the purchase schedule. In this schedule, organizations are required to add details regarding purchase codes and date of purchase.

Figure 1 Purchase Schedule

v  Inventory Planning and Inventory Management

Inventory planning and inventory management are also an important part of enterprise resources planning (ERP). An ERP coordinates order taking, manufacturing, inventory, accounting, and distribution. This is much simpler and less error prone with a single system than with a series of separate systems for each step in the process. The inventory management plan includes information about the available inventory in the warehouses or production areas of the organization. In a manufacturing organization, inventory includes resources and finalized products. In the enterprise resources planning, inventory management relates to the management of raw materials and resources. Inventory management includes information about the right stock, right levels of inventory, and the right time to purchase that inventory in the organization. The inventory management plan further includes information about inventory tracking. This tracking system has focused on each item type that comes in the warehouse. Inventory management plan confirms updated stock quantities and sends alerts (notifications) when the selected inventory stocks go below the optimal inventory level in the organization. The key responsibility of this inventory management plan is to store and track the resources required for each product to be manufactured in the organization. In inventory management planning, organizations also use software to keep records and tracks for the purchase and available resources in the warehouses. Inventory management plans in enterprise resources planning (EPR), includes information about dates which should be realistic to ensure control over inventory management cost. Unrealistic dates will make plans failure for the organization (Rahmadano, Sarno, & Sarwosri, 2016).

v  Manufacturing Plans of ERP (Enterprise resource planning) in manufacturing

Manufacturing plans are also supportive of the enterprise resources planning (ERP). Manufacturing plans include details about the activities of production and manufacturing. Manufacturing plan supports the managers and workforce to complete manufacturing processes in the organizations as it includes details about the resources (e.g. time, human resources, and financial) required in the manufacturing process (Mahendra, 2016).

Benefits of Enterprise Resources Planning (ERP)

In this section, key benefits and advantages of enterprise resources planning (ERP) are presented in detail. In manufacturing organizations, enterprise resources planning (ERP) provide the following benefits.

1.      Internal efficiency of ERP (Enterprise resource planning) in manufacturing

Enterprise resources planning (ERP) enable the enterprises and organizations to bring downtime required for the completion of virtually every business process.

2.      Enhanced Security of ERP (Enterprise resource planning) in manufacturing

Centralized databases used by the organizations for making enterprise resources plans to keep data secure in the organization. Enterprise resources planning enable them to contact with the most reliable suppliers while maintaining purchase orders. Therefore, it can enhance the security system.

3.      Increased Agility:

Increased agility is also a common outcome of the enterprise resources planning (ERP) in the organizations. ERP brings standardization and simplification in the rigid organizational structure and provides a realistic view of the activities and tasks to be done by the workforce of an organization.

4.      Better Decision Making:

Enterprise resources planning (ERP) is an effective step toward better decision making. Organizations using this kind of plans are capable to deliver better performance outcomes. In these organizations, managers make better decisions because of clear information available to them regarding available and required resources in the organization for the execution of business operations.

5.      Optimal inventory management

Optimal inventory management is another vital advantage of Enterprise resource planning (ERP) in organizations. Organizations face an increase in the inventory handling cost because of excessive inventory available in the warehouses. While the decrease in the inventory level from the desired level result in the conflicts for the organization. While Enterprise resources planning (ERP) enables them to have an optimal inventory level which makes them capable to control inventory costs.

Conclusion of ERP (Enterprise resource planning) in manufacturing

The whole discussion concludes that Enterprise resources planning (ERP) is a supportive approach for the organization that enable them to earn several benefits in monetary and non-monetary terms. Enterprise resources planning (ERP) includes integrated processes and activities regarding the management of resources. Enterprise resources planning (ERP) include planning about time scheduling, human resources management, and other monetary resources required to complete a process or business operation in the organization. In the Enterprise resources planning (ERP) organizations are required to develop timelines and charts to manage time resources appropriately. While dates added in the task and activities will support managers and another workforce to complete a specific task or activity in the organization within the allocated deadline. There are different challenges associated with the implementation and management of enterprise resources planning (ERP) systems. These challenges are required to be resolved by the distinguishing of the key force powers and improving the policies developed for the manufacturing process and all other processes associated with the business operations of the organizations. However, the benefits associated with the enterprise resources planning (ERP) increases its value for organizations.