Tag: erp mrp

Discrete vs. Process ERP Software

Discrete vs. Process in ERP
by Chris Shaul

One of the saddest things is a manufacturer who chooses an ERP software system that does not a fit with what they do. For example, a chemical producer who selects and implements software designed for a type of company which manufactures solid objects such as furniture. There once was a company that provided consumer packaged goods to the convenience marketplace who selected fish disassembly software. These are obvious mismatches. But the specifics may not be clear.

There are two types of manufacturing. There is discrete manufacturing, or a company that assembles products from widgets. There is also process manufacturing, or companies that blend liquids. Process manufacturing companies process formulas or recipes. While the majority of manufacturing is discrete (automotive, aerospace, or anyone else who builds component parts), there are a select group of manufacturers who are process manufacturers. These include food processors, cosmetics, chemical producers, paints and coatings manufacturers, and anyone else who deal with liquid or batch produced products.

What makes process manufacturing different from discrete? Process manufacturing uses formulations or recipes. A discrete manufacturer uses Bills of Materials (BOMs). A discrete manufacturer assembles along a routing, whereas a process manufacturer blends in a batch.

There are companies who operate in both environments and are often called mixed mode manufacturers. These manufacturers need both a process and discrete manufacturing system.

So what sort of ERP system works with these types of manufacturing modes? This can only be answered by looking at the markets these software companies serve. There are certain products which are clearly process, such as Batchmaster Software or Ross Software. These software deal with formulations, batching, and the other specific issues around process manufacturing. There are other software systems that are clearly discrete such as DBA software, Intuitive, or Made2Manage. These handle Bills of Materials, Routings, and specific discrete requirements. These are all systems that serve their niche.

When you get into larger systems, there is not a clear cut solution as they operate in Mixed-Mode. For example QAD software can handle both discrete and process requirements. Others that can do the same are MS Dynamics AX, Deacom, Ramco, and of course the Tier 1 players SAP and Oracle.

So the real lesson is to understand what you do first before looking at software. Are you a processor of liquids, or do you assemble individual items to create an assembled product? Knowing this will go a long way to help you properly choose software that fits you like a glove.

Related Article: the-top-10-process-manufacturing-erp-software

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Chris Shaul is an ERP Consultant and a regular contributor to ERPandMore.com

ERP Software as GDP Indicator for China

ERP Software as GDP Indicator for China
By Frank Mulligan, Talent Software
The rollout of international level enterprise software in China has, over the
past 10 years, tended to follow a definite pattern.

The first phase began
in the early 90’s and only saw large scale systems such as SAP and Oracle. These systems
were rolled out in the US first. Closely after the US came Europe followed by
the first world markets such as Singapore, Hong Kong and Japan. Finally, China
was rolled out based on business models developed in the other countries. And
often there was no rollout at all, at least not for a few years
more. Before the 90’s, of course, international companies in China were
unlikely to get any of the kind of software and had to rely on manual systems.
Aaah, the good old days….. By the end of the 90’s China was on a par
with small first world countries like Singapore. The volume of software was
increasingly higher than these small markets but with its huge distances China
still posed a challenge. Now you began to see the emergence of software
specifically for HR and local systems like Platinum emerging. Another
five years on and things have changed again. I note with interest the
recent announcement by Adidas Group that they will roll out an e-recruitment
solution from a company called Jobpartners. This company is not at all known to me but
obviously they have something if Adidas is rolling them out
worldwide. What got my attention was that the rollout would be
simultaneously in Germany, the US, Hong Kong and Greater China. So now we are on
a par with a multinational’s HQ country and the US. Other countries will have to
wait and they don’t even get a mention in the press release. China has really
arrived. As if to emphasize this point, a report by Kevin Wheeler Global Recruiting
Trend 2006, informs us that Chinese is now the number one language, besides
English, for Applicant Tracking Systems(ATS). It ranks alongside German as the
second language of choice for ATS’s that are installed on a world-wide basis.
This tells you a lot about the installed base of ATS’s globally. Sometime
you find alternatives to GDP figures in surprising places.

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ERP Outlook by Microsoft

In reading this article on MS and ERP, the question came up “Is Microsoft really going after the smaller companies with their Dynamics ERP offerings?” So far all of the indications are that they are targeting SAP and Oracle as their competition. Is this a little arrogant of Microsoft, trying to compete against the established Tier 1 vendors in ERP? Oh… Yeah… they’re Microsoft. The same company that went after Lotus 123, Netscape, Word Perfect, and others. Find a niche that uses software, exploit it with the fact that MS software runs well on MS Windows, it has a familiar look and feel to it, and give it away for free or market the hell out of it.

So far that is not what has happened with Dynamics, but it is still early. What has happened so far is that they have completed wave 1 of their project Green integration. They have built a common user interface for all the Dynamics products (AX-Axapta, NV-Navision, GP-Great Plains, SL-Solomon). They have also built common database tools. Now Mr. Gates is outlining a future with CRM and Dynamics that integrates to the “Live” tools on the web, including MS CRM integration to the Live website for targeted advertising. Add to that that 2007 Office is going to have intimate linkages into and from Dynamics. The user interface is MS Outlook. Based on MS CRM, which essentially now plugs into Outlook, Dynamics will soon do the same. So you will have a single, familiar Desktop tool for managing Email, Customer Relationships, and Enterprise Data. All with the familiar Microsoft look and feel plus links into Microsoft Live.

Sounds irresistable for a midsized company who wants simplicity and flexibility. However, now your entire enterprise is dependent upon a single vendor for the Back Office (servers and database), Front Office tools (MS Office), and your enterprise data.

Further, as it stands right now, Microsoft is taking a familiar approach of providing a development platform for partners to extend. In Dynamics, the code is flexible with many MS partners building niche add-ins to the products. As we understand it, the core product of Dynamics works fine, but doesn’t drill to deep into any industry. The Microsoft Industry Builder addresses that by having MS VARS (Value Added Resellers) become specialists into certain industries and then developing the vertical software necessary on top of the Dynamics product. Yes, it is integrated and native, being built with the Dynamics tool set. Yes, it is supported. If anything happens to the VAR, then as long as it is a Microsoft certified Industry Builder solution, you get the Microsoft support for that vertical extension.

So is SAP and Oracle out of reach? Based on history, no they are not. And based on history, they should be preparing for a real fight.

ERP Definition

The Future of ERP

The Future of ERP
November 15, 2006
By James Maguire

The dream of enterprise resource planning systems is that a single application can track and monitor all of a business’s functions. In a perfect world, a manager opens a single ERP app to find data about any aspect of the business, from financials to HR to distribution schedules.

Alas, we’re not there yet – or at least most companies aren’t.

Looking at the ERP landscape, “there still tends to be a lot of disparate components, that are either homegrown or older packages,” says Forrester analyst Paul Hamerman.

Moreover, there are still a lot of gaps in ERP systems, particularly in industries where ERP functionality has grown up from its historic origins in manufacturing. There are even gaps in core ERP areas, Hamerman tells Datamation, “where they just haven’t done a particularly good job, in areas like budgeting, and recruitment…where the vast majority of customer use something other than their ERP vendor.”

But despite the challenges, the movement toward a global ERP system is a key factor shaping the future of enterprise resource planning.

“It’s a trend that’s going on, and most companies are going in this direction: Read more about The Future of ERP

What is your ERP interface?

Being techno-enthusiasts, how ERP vendors are pushing the envelope to develop new and easier ways for people to process their business data has fascinated us. But we often forget the end-user, who simply has to work with an ERP Software tool day-in and day-out.

Recently we participated in a series of demonstrations that included SAP MySAP, Oracle EBusiness Suite, Microsoft Dynamics AX, IFS, and JD Edwards Enterprise One. The interesting outcome of this demonstration series was that the users gravitated towards the systems that had “old fashioned” grey data form. They were confused by the Web Based Portals and any other non-traditional form. MySAP even showed a great interface from Adobe Forms, but that confused the team even more.

Bottom line, the team was looking at the systems from the current frame of reference that they all possessed, which was a Windows-like form that was easy to understand. It was interesting in how little they grasped that was outside of what they were familiar with. Even with great explanations on how this could help them, if it didn’t make sense, it didn’t register.

Lesson learned: keep the discussion within the frame of reference within the users and introduce the new interface options in small easy to understand sessions. Do not give the latest and greatest to a group that cannot conceptualize it.

An ERP who owns who

If you have been around even a short time in the ERP software business as either a user or a provider, you are sure to know of the latest acquisitions. The big ones of course are all the companies Infor bought as well as the Oracle mega mergers of PeopleSoft/JDE. Here is a website dedicated to tracking these acquisitions, called fittingly enough The ERP Graveyard.

The ERP Graveyard has a spreadsheet of acquisitions going back to the 1990’s. So if you are interested in what happened to so-and-so software, you might find your answer to dead ERPs here.

The top 20 ERP implementation tips

Stumbling through various ERP websites, we came across this article that shows some of the key factors for doing an implementation correctly. You should probably read this one…

The top 20 ERP implementation tips
By Jan Stafford, Site Editor
22 Jun 2005 | SearchOpenSource.com

An enterprise resource planning ERP software project can be daunting for first-timers or veterans handling a migration. Get started on the right foot with the top 20 ERP implementation tips from Linux users, consultants and vendors.The top 20 ERP implementation tips

ERP Packages Feature Comparison

ERP Software Solution: A Closer Look at What It Is

ERP Software Solution: A Closer Look at What It Is
Mike Piotrowski
ERP Solution

Information technology has not only transformed the way we live in modern society, but also the way in which we do business. Enterprise Resource Planning, often referred to as ERP, is becoming one of the most commonly used software systems in several industries and organizations. The object of this article is to provide pertinent highlights about exactly what ERP is.

The definition of Enterprise Resource Planning refers to not only software but also the business strategies employed as part of the implementation of ERP systems. This implementation makes use of various software applications in order to improve the performances of organizations in resource planning, control of operations, and control of management.

ERP software contains several software modules that work to integrate vital activities across operating departments. An ERP System not only includes the ERP Software but also the business processes and hardware that make this system work. These systems are more than the sums of their parts as the many components work together in order to achieve one common objective-to provide an organization with a greatly improved and streamlined business process.

History of ERP

ERP has been well over 20 years in the making. This system is the result of the trial, error, and growth of Manufacturing Requirements Planning (MRP) during the 80’s. MRP was the evolution of Inventory Management and Control, which was conceived during the 1960’s. ERP has grown beyond the coordination of manufacturing processes into the integration of back end processing on very large scales. From its origins as a legacy implementation ERP has morphed into a new and improved client-server architecture.

Benefits of ERP

This software attempts to bring all aspects of the business into one single enterprise-wide database or information system. This allows instantaneous information and communications to be shared between multiple departments. The primary benefit of this is a greatly improved efficiency in business operations. Implementing this system will not only help communications between departments but in day-to-day management functions as well. ERP is an ambitious design that also supports the resource planning part of corporate planning as this is often the weakest link in strategic planning as the result of the inadequate integration of ERP software with Decision Support Systems.

ERP Failures

It would be quite rude to conclude without at least mentioning the fact that failures in this system are occasionally reported in one of the four components of an ERP System. These systems are: ERP software, Business processes supported by the ERP System, Users of the ERP Systems, and the hardware and/or operating systems upon which the ERP applications are actually run. The failure of one or more of these components has the potential to cause the entire ERP project to fail.
Ontech Systems of Milwaukee Wisconsin, is committed to making a difference in your business through the productive use of computers, networks, software and the vast array of products and services we offer. Contact Mike Piotrowski, President of Ontech Systems to discuss a new ERP business solution for your company today.
Provided By: Computers and Technology

ERP Packages Feature Comparison