30 August 2011

5 Ways ERP Supports Efficiency & Helps Create Manufacturing Jobs

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At the most fundamental level, the funding of a job is dependent on one thing: the funding being available. As such, for a manufacturing company to be able to fund new – or bring back recently eliminated – positions, the funding must be in place to support such an initiative.

While there is no magic pill that can be offered that will create this funding out of thin air, I can help illustrate – via the list below – how Enterprise Resource Planning (ERP) and manufacturing technology can help support an efficient environment in which new jobs can be created:

1. Reduces The Risk of Costly Mistakes Manufacturing mistakes, whether related to data entry or misinterpretation of direction, can lead to mistakes that are costly in terms of both time and money.  The risk of these mistakes, in fact, are cited by some as a primary reason against Industrial Equipment Manufacturing (IEM) off-shoring.

The implementation of ERP, and integration with Product Life-cycle Management (PLM) systems, can reduce the risk of costly mistakes – both at granular level (a recent demo I shared illustrated how Microsoft Dynamics and Siemens Teamcenter Integration led to a 70% reduction in data entry errors) and a global level (ie system integration helps ensure project visibility and real-time communication – on a planetary level.)

2. Allows Job Growth To Become A Focus Once such critical and granular focus is no longer necessary, manufacturing organizations are free to focus on more expansive initiatives.  And for many, this means job growth.

A recent Microsoft Dynamics video case study I shared illustrating the success of Met-Pro, a global provider of pollution control and fluid handling application solutions, illustrates how the integration of ERP software is helping the company place a sharper emphasis on R&D, creating new products – and, yes – putting more people to work.

3. Minimize Software & Technology Budget Outlays This may sound counter-intuitive to the title of this post, especially considering any new manufacturing technology or ERP solution will require budgeting.   But the costs for the right solution are likely far more minimal than most manufacturing companies realize.

In addition to sharing how ERP can help support an environment that puts more people back to work, the Met-Pro case study I link to above describes how Microsoft Dynamics stands up to a competitor that charges nearly eight figures.  And if you are an existing ERP customer, you likely qualify for upgrades that can have a significant impact on your efficiency – for low to minimal cost.

4. Eliminates Uncertainty Take the solar manufacturing industry, for instance. In this new and emerging market, defined in part by higher shipping costs, early margins could be razor thin.

Ensuring the ERP software or project planning systems are in place, prior to expanding into these markets, can help ease this uncertainty – helping support the case for a greater investment in necessary jobs.

5. Ease Global Expansion As our business expands, it is very likely that this expansion will spread through multiple locations throughout the globe. This means more positions to fill – on a global level.  And fundamentally – you will need a system that allows for both rapid implementation and training in these new markets.

How do you feel that ERP and manufacturing technology helps support manufacturing jobs? I welcome your feedback.

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Luciano Cunha
Luciano Cunha,
Luciano Cunha,
Chief Executive Officer (CEO)

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