Managing enterprise resources / resources is not easy, especially for large-scale businesses. How can we manage a company with dozens of factories in different locations? tens, hundreds of thousands of items of input materials, … and dozens of other questions about human resources, costs, markets, customers, …
ERP solutions for manufacturing businesses are a powerful tool to help you solve all these problems.
I. SOLID PRODUCTION
Is the production process different from continuous production. This is a manufacturing process where the finished product is one or several separate finished products. In other words, the finished, semi-finished products of discrete manufacturing are relatively easy to identify throughout the manufacturing process. In continuous production, the finished product undergoes a series of blending or chemical reactions and there cannot be a reverse process to reclaim raw materials for re-manufacturing.
Some typical trends for discrete manufacturing:
• Global competition is becoming increasingly fierce;
• Flexibility is the key to survival;
• Lack of skilled labor;
• Green production is an inevitable trend (avoiding environmental impacts)
According to the latest statistics, productivity is increasing in North America, Europe and Asia. “This is one of the world’s most fiercely competitive fields” – Hank Cox, vice president of the American Manufacturers Association – “Manufacturers not only compete with manufacturers in the same country but also with manufacturers in other countries ”.
To succeed in a global competitive environment, companies need to improve customer service quality, optimize their supply chains and ensure product quality. For most small and medium-sized manufacturers – often with factories with 500 to 1,000 employees – the most appropriate approach is to focus on product quality and customer satisfaction on the product, service.
“You cannot sell low quality goods anywhere in the world” – Mr Hank Cox.
Another advantage of small and medium manufacturing companies is the rapid adaptability. Manufacturing companies must constantly be aware of market trends and change flexibly to suit market trends.
“You have to be constantly retraining and improving,” said Mr Cox, adding a downside to this flexibility.
Therefore, the shortage of skilled workers who are able to receive continuous re-training courses is a big challenge. “Nearly half of the members of our association are in shortage of skilled workers because they cannot find suitable candidates.” Today, many manufacturers are interested in “green production.” This may be due to consumer interest in protecting the environment, or governments have begun to enact laws on environmental protection, or sometimes due to both. A lot of manufacturing companies feel these environmental regulations are harsh and quite expensive. But besides that, a lot of manufacturing companies follow production methods that conform to environmental regulations and still save more on production costs (such as using recycled materials, investment and install newer, more efficient and cleaner machine systems).
A number of governments have specified and forced manufacturers to change their production methods, to ensure environmental quality and product quality (such as some of the substances that can be used in products). power electronics
III. TECHNOLOGY IN SOLID PRODUCTION
Technology has changed the way companies operate and today a trend becomes clear:
• Production machines are linked to databases, and form a unified production chain from the “first stage to the final product”;
• Advanced technologies are applied to production support to improve product efficiency and quality (such as barcodes, RFID ..);
• The data is linked, so the ability to monitor and adjust production management is quick and immediate;
• Comprehensive management software that helps the production process go smoothly and smoothly, from design, supply chain management to product completion and delivery.
Most companies today believe that information technology can help them maintain a competitive advantage. One of the most important technological utilities in production is the connection of production centers (machinery and equipment) to comprehensive management software systems through computer networks.
In the past, production equipment and machines were designed and installed as separate functions from the production management system. Now, with existing networking capabilities (for example, modern CNC machines can connect to the network), modern production equipment can transmit continuous, real-time production information and accurate to related systems (such as warehouse management systems, accounting and financial ..).
In this scenario, when any incident occurs during the production process, the information is immediately transmitted to the relevant departments to execute appropriate business and production decisions (Example: Article adjust delivery schedule for customers; Adjust production schedule – produce replacement product codes; Statistics data related to downtime and related costs, profits … to make the first decisions. Investing in purchasing new machines or adjusting and upgrading equipment ..)
More and more companies are applying technology in production. For example, the application of RFID technology to control pallets of materials and goods. Using robotics, increase accuracy and productivity. Or simply use the barcode printing and scanning system to automatically update the finished product into the administration software system when the product is complete.
“Every day, people improve and create more efficient production processes,” and companies find they can gain more from those improvements. Accenture executives survey reports show that 59% say they want to focus their resources more on analytics. The report also pointed out that, with analytical and forecasting reports, executives want to improve the efficiency of the product during product lifecycle management (PLM). Customer Care (CRM) and effective supply chain management (SCM).
More and more manufacturers are using overall management software to manage the product lifecycle. From design, component norms, product improvements and product quality enhancements. Manufacturers also use the software to more effectively manage the procurement process, better control inventory, and control the warranty and return process to increase service quality.
With a comprehensive management system, the software supports the most effective supply chain management. There is clear information from production to work with suppliers and transport partners. For small producers, one of the core issues of success is accessibility and management information centers, and this information must be clear, transparent and accurate. As a result, small producers can compete with larger manufacturers in today’s harsh global competitive environment.
IV. FREQUENTLY ASKED ISSUES
Today a trend with safe and environmentally friendly products is becoming clear. Some countries have strict rules on this. Therefore, a quick response, tracing the exact cause when there are issues related to safety, product quality is essential.
V. OPTIMIZING THE PRODUCTION PROCESS WITH THE WAREHOUSE AND GOODS MANAGEMENT SYSTEM IN SAP ERP/MES
Warehouse and inventory management tools in SAP ERP/MES allow you to better manage your supply chain, increase service quality and enhance customer satisfaction, by providing customers with information. reliable, and fast on the status of customer orders.
You can track the amount of product inventory on each warehouse, so you know exactly how much you can deliver to your customers. The history of stock transactions tells you about trends, seasons and other related issues. With real-time inventory data and details for each type of warehouse, we can know the ability to respond immediately to customer needs.
The association with the financial and accounting operations helps the inventory data accurately reflect the company’s accounting system. The value of inventory is also automatically calculated whenever there is a change in the cost of goods in stock.
The integration with the production profession helps the process of supplying raw materials for production become optimal. SAP ERP/MES can collect inventory management reports, helping warehouse managers get all the necessary information quickly and immediately. Therefore, decisions related to inventory become more reliable and efficient than ever. With the inventory and inventory information system in SAP ERP/MES, we have all inventory information in all warehouses in real time. From the quantity promised to the customer, the quantity received from the supplier (based on the orders sent), the amount of inventory actually available.
And above all we have the right amount of supply (Available to Promise). With the ability to manage multiple units (Unit of Measure), SAP ERP/MES allows us to optimize the units when making purchases, sales and storage … We can create unlimited expressions. price list in SAP ERP/MES, create discount groups and apply price lists and discount groups to each customer and customer group. SAP ERP/MES also allows us to manage inventory by lot and serial number, to control the goods during the entire operation of the goods. As used in product warranty for customers, monitoring the quality of input materials from suppliers …
Warehouse operations in SAP ERP/MES are also very diverse, from normal warehousing and export operations to warehouse transfer operations. Warehouses in SAP ERP/MES can also be defined without restrictions and according to customer requirements such as none item cost warehouses, outsourced warehouses, consignment warehouses, etc.
Production and Raw Material Demand Planning (Production & MRP)
SAP ERP/MES allows us to create an unlimited number of BOMs (norms for finished products, semi-finished products) and BOMs organized in a tree model (Multilevels BOM) to allow production management on a per-job basis. detailed segment (calculation of price by stage). With multi-level BOM norms and structures, when we have production plans related to the final product, the SAP ERP/MES system can assist us in calculating the details of the semi-finished products required. , materials needed for production. As a result, the supply process is optimized and cost-effective while ensuring adequate supply for production, without interruption.
As a result of the MRP process, along with user-defined input information (leadtime for production, purchase, purchase rotation, minimum quantity, etc.), the system will make recommendations on the number. quantity of semi-finished products, materials required and time to order, and production. At this point, the production manager (or production plan) only needs to re-check other factors before putting the recommended results into an official production schedule (such as a check on production capacity, maintenance schedules). , maintenance…)