Wednesday, December 2, 2009

Following is a summary of constraint requirements of the ERP systems for process industries

* have sophisticated data conversion algorithms (liters, gallons, and weights of mixes), allowing packaging size variations to be accurately reflected in the calculation of production batch sizes
* be real-time in execution on the production floor
* quickly create a new production schedule from new orders, allowing for extra production runs of the same product
* be responsive to changes in raw product concentrations
* provide a dashboard that gives management real-time views of pertinent business processes
* allow for varying manufacturing methods, such as continuous, make-to-order, make-to-forecast, and engineer-to-order
* function equally well in discrete and process industry modes, with reliable software bridges between the two

The extremely specialized nature of the process industries means that, among other factors, their regulatory compliance issues, best-practice scenarios, and concomitant enterprise software needs can vary greatly. Further, there are great differences amongst these factors for process manufacturing and discrete manufacturing, which means that process manufacturers are getting short shrift if they choose a solution designed for discrete. Though perhaps these are some of the reasons why vendors have sometimes shied away from providing ERP systems for SMB process industries, it seems that change is not only on the horizon but is well underway. If vendors continue to offer solutions that are versatile enough to address the needs of process, discrete, and mixed-mode manufacturers, the benefits will surely be experienced by vendors and manufacturers alike.

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