Enterprise Resource Planning, commonly known as an ERP system, is used widely among a variety of industries. It can work in collaboration with a real-time production monitoring system (RTPM system) to build a more complete industrial 4.0 solution. Because it gives manufacturers real-time data access, it increases flexibility in management, enhances security, improves production, and integrates information in a single place.

This helps industries manage their businesses thanks to a single platform used either on the floor or remotely.

What is an ERP system?

This is a solution designed to plan an enterprise’s resources. Its main purpose is to generate actionable reports, perform business operations and look after various areas of the plant. It is a solution that connects key business processes and creates a detailed and well-structured database that is accessible around the clock.

This type of system provides manufacturers with information on accounting and operation-oriented tasks. It creates a single database for all the required information and various aspects of operations:

what is an ERP system
  • Finances

  • Product planning

  • BOM (Bill of Materials)

  • Raw-material and part purchasing

  • Distribution and logistics

  • Manufacturing Processes

  • Order management and tracking

Integrating an ERP with an RTPM system

An ERP system and a real-time production monitoring system are two distinct systems that monitor different data, yet they can work in unison and complement each other. In today’s demand-oriented manufacturing industry, real-time data is necessary to mitigate and prevent downtimes, maintain quality, and increase repeatability. The various data collected from RTPM (such as production status, work orders, performance reports, downtimes, quality check, etc.), when combined with the ERP system, gives manufacturers a global real-time database over the static database of an ERP.

These systems then segregate the data, analyze it, figure out the trends in the data, and provide an appropriate solution for an optimization. They integrate the core business process along with adaptive manufacturing production. When integrated with a real-time production monitoring system, they create a complete business solution for modern industries.

Intergrating ERP and RTPM

Advantages of an ERP system

An ERP system integrated with an RTPM system manages the production and creates transparency, simplicity and offers the ability to control all factors affecting the manufacturing process in a single database. It helps manufacturers earn more profit by calculating precisely, strategizing, and making accurate decisions regarding how to invest their capital and revenue.

Manufacturers use ERP systems to improve and optimize various aspects of their industries like:

Production optimization through process automation

Automation of data collection and statistical planning helps optimize the production and optimizes usage of labor time. It enables the manufacturers to utilize all their resources to the fullest. This helps in optimizing inventory management by integrating floor machinery to collect data as well as allowing the access of data remotely.

Automation

Increases security

It improves security as everything is automated and digitalized. There is minimum risk of data breach or data loss as it is an end-to-end encrypted process. It mitigates the current risks and manages future risks.

Minimizes costs

An ERP system helps minimize time and cost involvements and channelizes it in the correct direction. It removes unwanted time consumption from manual labor, lag in reporting, inventory costs and improves supply chain management. This helps in cutting down operational costs and improves efficiency.

Minimize costs witn an ERP system

Joining an ERP system with an RTPM system, like CLARIPROD, shapes an industry into a complete profit-making machine. These two systems together, can help profits skyrocket. Together, they are a capital investment system. These systems should be seen as a profit-making solution as well as a process and product optimizing solution.

References

  • iqms, “Real-Time ShopFloor Integration,Simplified,” iqms, 14 07 2021. [Online]. Available: https://www.iqms.com/products/brochures/ShopFloor_ERP_Integration.pdf

  • QAD, “Manufacturing ERP Software & Solutions,” QAD, 05 07 2021. [Online]. Available: https://www.qad.com/manufacturing-erp

  • L. Nock, “ERP for Manufacturing – How Enterprise Resource Planning Helps Manufacturing,” Terillium, 17 08 2017. [Online]. Available: https://terillium.com/erp-for-manufacturing/

  • Optiproerp, “What is Manufacturing ERP?,” Optiproerp, 05 07 2021. [Online]. Available: https://www.optiproerp.com/what-is-manufacturing-erp/

  • K. Mann, “5 Benefits of ERP Software in the Manufacturing Industry,” MNP, 05 03 2020. [Online]. Available: https://www.mnp.ca/en/insights/directory/5-benefits-of-erp-software-in-the-manufacturing-industry

By Published On: August 19, 2021