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What an ERP Software Can Do for Your Product Manufacturing

by: jamieshellman on Date: Tue, 10 Jan 2012 Time: 9:39 AM

You are most likely considering to improve production which can only be possible through an Enterprise Resource Planning (ERP) software. If you haven’t tried using this software for your company, you might need to have a look at some details on ERP software below.

Components

A common ERP system used by most manufacturing corporations is meant to integrate business operations and departments in a computer system with a minimum of one database. The components of most ERP systems usually differ from one vendor to another, but all of them have a minimum of two key components: a modular software and a universal database. ERP system developers may also offer not only tools but also solutions for a personalized ERP system for your company.

The modular software in an ERP system carries out numerous tasks for each department of your company. It comes as a single set of software that could cover different departments like payroll and accounting. On the other hand, a universal database permits information sharing and communication among several departments. With the use of a modular software and a universal database, organizing, budgeting, and running the company can be easier.

Configurability

Most types of ERP systems are created to permit configuration of details, work flows, and dashboards. Configuration of an ERP software for manufacturing is typically performed by programmers to allow alterations in a continuous improvement program usually employed by a company. Take note that configurability is dependent upon the kind of ERP software you use and configuration services provided by the vendor or developer. For instance, a complex ERP software gives a wide range of configuration types unlike other pieces of ERP software, with only basic features.

Implementation

ERP software solutions are implemented not just through installation of the software and database. Implementation also entails workflow changes to match the demands of the company. Complete implementation of ERP systems generally takes years to complete, specifically in a business composed of a lot of departments. Such an implementation time frame assures that the ERP software is works with the company.

Cost

The overall cost of operation and upkeep of ERP software for manufacturing starts at $400,000. This can even be doubled resulting from additional costs such as the cost of training new users. An average ERP project can cost approximately $50,000 per trainee within a two-year period. Nonetheless, the cost can be recovered in as little as eight months, according to professionals in ERP sofware.

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