Saturday, May 1, 2010

Aligning a Manufacturing Vision with Processes through Mixed-mode ERP

As stated earlier, manufacturers are facing increased pressures in the form of global competition, demand-driven supply chains, and from the challenge to remain cost-competitive by generating a wider product offering having a greater variety of product specifications and performance features. These issues have forced manufacturers to consider how they can integrate a variety of manufacturing processes using a singular approach.

This dilemma is best illustrated by examining how an organization can implement several approaches to meet the complexities of their product mix. Some products may be made-to-stock (MTS), based on sales projections. Others can be made-to-order (MTO), and still others can be engineered-to-order (ETO)—manufactured based on customized specifications. In addition to the challenges mentioned above, issues abound when trying to integrate product design and engineering changes, as well as when trying to integrate quality management systems (such as six sigma) and manufacturing philosophies (such as lean manufacturing techniques) with traditional manufacturing methods. Manufacturers are increasingly finding that one size may not fit all when it comes to implementing ERP solutions across their manufacturing landscape.
Enter the Mixed-mode ERP Solution

Software vendors have heeded the call of the manufacturing industry by introducing mixed-mode enterprise software as a solution that gives organizations the agility to carry out both process and discrete manufacturing processes, as well as the ability to integrate manufacturing styles across the organization (see complexities of product mix listed above). With the mixed-mode approach, manufacturers can facilitate planning, meet market demands, and execute and measure both production results and performance of a manufacturing work center and plant location.

An organization can see measurable payback in several areas: greater efficiency, resulting in increased customer retention; repeat business; improved service levels; and the ability to manufacture a product according to a unique set of customer criteria.

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