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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.

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

Lists of ERP Vendors

We have put together a list of vendors and their software at http://www.erpandmore.com/erp-vendors/ It is not exhaustive, but it is a good start. We will update the list as time goes on.
Also, we have listings of various ERP Vendors within each of our ERP Buyers Guides.
Another interesting resource is http://istudyerp.com/2006/10/31/erp-vendos-overview/
A comprehensive review of vendors can be found at http://www.vendor-showcase.com which is a sub-site of Technology Evaluation Centers.

Please comment if you know of other vendor lists.

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.

Revenue and Receivables Management: Myths and Truths About ERP

Do you take best of breed or do you find a single source? The question of whether to implement multiple solutions that fit the specific niche areas of your business or to implement a single platform, single database solution of a modern ERP system.

There is an interesting article that debunks the myths of going best of breed. Taken with an accounting slant, this article does point out some of the key considerations an IT manager must make when considering whether to implement specialized solutions or to roll out a single ERP system:

Revenue and Receivables Management: Myths and Truths About ERP

By Sanjay Srivastava

Six myths about ERP debunked

Enterprise resource planning ERP technology has a proven history of delivering value to todays corporations by enabling a centralized information warehouse to be leveraged enterprise-wide. However, ERP has a broad focus, and best-of-breed BoB applications have been developed to provide the depth of functionality required by key functional areas, such as accounts receivable. As a result, corporations have long recognized the need for best-of-breed applications to bridge fill the void of ERPs functional limitations.

With ERPs broad focus, it is easy to believe that it can provide a single solution to all of your corporations challenges. However, it is important to know where the lines of reality and myth collide. There is no doubt that ERP plays a very crucial role in todays enterprise, but as with any technology, naturally there are functional limitations. It is crucial to understand what these limitations are.

Read the Article here…

Microsoft Plans More Links From Office To ERP

Eight new Snap modules will connect the upcoming Microsoft Office 2007 front end to Microsoft’s ERP and CRM software packages.

By Barbara Darrow
CRN

May 4, 2006 12:30 PM

Microsoft is touting its Duet links from Microsoft Office to SAP ERP, but Microsoft Business Solutions (MBS) doesn’t want its own Office-to-ERP links to get lost in the hubbub.

Microsoft has eight new Snap modules in the works. These software nuggets will link the upcoming Microsoft Office 2007 front end to MBS’ ERP and CRM back end, said James Utzschneider, general manager of Microsoft Dynamics marketing.

Best Practices in ERP Software Selection

This is a great post that gets right to the point about ERP Selections:

Best Practices in ERP Software Selection
Posted 8/2/2006 by Eric Kimberling (ERP Consultant)

ERP vendor selection can be a daunting task, and one that is often not given the appropriate attention. CIOs or other executives in charge of making such major decisions often make decisions based on perception, gut feel, or faulty information. For example, executives often choose ERP software vendors based on what competitors or other large companies have chosen. However, information such as this does not necessarily reflect what is appropriate or inappropriate for your specific company. Further, planning for a successful implementation involves more than choosing the right software; it also involves preparation to ensure that ERP enables measurable improvements to your business.
In choosing an ERP or IT software package and planning for the overall project, executives need to make decisions based on objective and unbiased information rather than gut feel. In particular, organizations should consider the following:
Read More…

ERP and OS Security Concerns

An interesting topic concerning ERP is which platform to run on. This is one of the first questions that needs to be asked in deciding on an ERP system. But the answer is not always as simple as you think. Below is an interesting article about Operating Systems and their security. More so, how it can affect and ERP system.

Security Concern

Which operating system is most secure open source or Windows? For manufacturers that all depends, says John Harney

According to most experts, vendors of the dominant enterprise manufacturing applications like ERP, supply chain and CRM have long-proven, proactive patch and other security programs. Instead, problems arise due to security vulnerabilities in the operating systems (OS) they run on or the applications (their own suite modules and related apps) they support.