For increased efficiency, visibility and, ultimately to save money, numerous manufacturing companies are looking into software solutions to improve production for their shop floors. But there is no easy solution to selecting the very best manufacturing software for a facility.

A lot of manufacturing business are contrasting 2 services: Enterprise Resource Planning (ERP) software and Manufacturing Execution System (MES) software. In some facilities, IT groups are mandated to invest into ERP and to utilize ERP functions any place possible, including the store floor, often without regard to practical fit.

The following are 5 common misconceptions about utilizing ERP on the shop floor:

Misconception # 1: A single ERP solution provides lower Overall Cost of Ownership (TCO).

The possibility of handling an organization with a single supreme application suite can be sexy, however in most cases, it does not supply the depth of functionality required to support the requirements of production. To compensate, IT departments have actually established extensive personalizations on top of ERP systems. This custom-made development is frequently made with specialized, costly ERP resources and produces an ongoing maintenance requirement. It prevails for ERP applications to need five-to-seven times the cost of services - on top of the cost of the software licenses - and end up costing far more to support and preserve than initially anticipated.

To minimize execution costs, top ERP suppliers are enabling simpler combination and have actually accepted the integration of third-party manufacturing applications through web services, XML combination standards and partner programs. Yet, lots of IT departments are still attempting to tailor on top of ERP systems.

In addition, MES suppliers have bought off the shelf integration user interfaces to ERP, leveraging industry standards consisting of ISA95 and OAGIS XML.

When investigating services, keep in mind that system integrators tend to adhere to what has worked prior to and may advise customized alternatives, particularly considering that they are in the business of writing interfaces and establishing custom functionality. It is necessary that organizations' IT groups review MES-integration service plans in order to utilize the current XML and requirements based off the shelf combination alternatives.

Myth # 2: You get better exposure and a "single variation of truth" from a central ERP system.

ERP systems normally do not supply adequate performance to turn the shop floor completely paperless. As long as there are several paper logs and spreadsheets on the shop floor, there is an opportunity that these different data sources will become various "truths" for different departments.

Many ERP vendors have actually obtained third-party modules to broaden their production functionality. There is frequently very little difference in between the combination of internal ERP modules and the combination achieved with an MES supplier solution.

The very best method to make sure a "single fact" is to have a great integration technique in between ERP and MES that makes the shop floor truly paperless. Organizations can still support business decision making tools with constant presence into global operations through well integrated ERP and MES applications.

Myth # 3: Standardizing on the exact same ERP system throughout the corporation increases performance.

Lots of leading organizations have realized that their ERP system can service some plants and operations simply fine, however other plants with different manufacturing designs are better serviced with a specialized, incorporated MES system. It is ending up being more common for companies with diverse products and manufacturing models to standardize with two and even 3 solution sets, not simply one. The cost of supporting an extra MES system can be quickly justified in these situations.

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Misconception # 4: A single ERP vendor will supply better ongoing assistance.

Some stakeholders in companies might believe that handling a single supplier or a single system integrator offers better outcomes and technical support. However, the reality is that organizations serviced by smaller MES suppliers that specialize in particular markets receive much better service and quicker reaction.

Misconception # 5: The functionality in ERP is good enough for the discrete-production shop floor.

According to AMR Research's 2006 survey, the following concerns occurred among business using and examining ERP for their plants:.

• ERP has an intricate user interface for the manufacturing personnel.
• ERP doesn't deal with all of our requirements and can't design our complicated manufacturing processes.
• ERP takes too long and costs too much to customize and implement for manufacturing.
• ERP setup needs specialized and expensive ERP software skills.
• ERP screens require pricey setup for prompting and validating information collection.

These survey results on ERP systems are still valid today. To verify these impressions, companies must research the amount of screens and commands required in the ERP system to perform a few typical production transactions, like a work order split. Then, compare the efforts needed to carry out the same functions in an MES designed for a specific market. Also, it would be beneficial to compare the times needed for a mechanic on the shop floor to carry out evaluation data collection and signatures in both systems. These easy information points will offer a fast concept of the distinctions in ease of use and off-the-shelf alternatives in each application.

When looking into which software system would work best for your shop floor, take a look at an ERP system's fit. The best solution may be an integrated ERP-MES system.