Improve Scheduling, Production, and Quality Using Cloud ERP
Improve Scheduling Production and Quality Using Cloud ERP
Introduction
The software as a service (SaaS) model of application delivery, more commonly known as “cloud
deployment,” in which software features are accessed through a Web browser, is an excellent way
for manufacturing companies to get the benefits of enterprise resource planning (ERP) systems
without the need to build additional IT infrastructure. ERP functionality delivered “from the cloud”
avoids the complexity and costs that often accompany on-premises ERP implementations, and
typically provides a much more favorable total cost of ownership (TCO), compared to legacy
on-premises deployment. Companies subscribe to the software features that they need and can
add new ones as business requirements change, without buying additional servers or storage to
support new functionality. The ERP features are the same as for an on premises ERP system, except
that it is hosted and maintained on the cloud provider’s infrastructure.
Epicor Software Corporation is a leading developer of ERP software and systems based in Austin,
Texas, with more than 40 years of experience in building ERP systems for thousands of customers
around the world. Christine Hansen, a product marketing manager at Epicor with experience
in the manufacturing business sector, presents some of the best practices used by discrete
manufacturers. She also explains the benefits of the Epicor Cloud ERP solution.
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Improve Scheduling Production and Quality Using Cloud ERP
Best Practices for Discrete Manufacturers
Epicor ERP systems are designed to manage many types of manufacturing methods; but for this
discussion, we will concentrate on discrete manufacturing, which is typically used for low-volume,
job-based production. By way of contrast, inventory-based manufacturing is typically used for
high-volume production. Table 1 summarizes the process steps for both types of manufacturing.
Inventory-based manufacturing
Hansen notes that most of the process steps for inventory-based manufacturing (e.g., quoting,
producing, and shipping), producing, and shipping, require simply checking inventory, whether
for raw materials, components, or finished goods. She outlines the manufacturing process steps
as follows:
XXQuoting a customer on a particular manufacturing job involves checking to see if
materials are available in inventory or whether they need to be ordered, which may affect
both pricing and delivery times.
XXAn order will require a similar check of inventory, and may need materials to be
purchased for inventory. Once the materials are received, they must be entered into
inventory before production can proceed.
XXOnce production begins, material is issued from inventory to be used in manufacturing;
as production proceeds, finished goods are placed back into inventory.
XXWhen production is complete, finished goods are taken from inventory to be shipped to
the customer.
Table 1: Comparison of Inventory-Based and Discrete Manufacturing
Inventory-Based
Discrete
Manufacturing
Manufacturing
Maintain items in inventory
“Parts-on-the-fly“
Receive items to inventory
Purchase direct to inventory
Issue inventory to production
Receive directly to production
Receive production output to
Accurate work-in-progress
inventory
(WIP)
Ship from inventory
Ship directly from WIP
Process Step
Quoting or Ordering
Purchasing for
Production
Production
Shipping
Source: Epicor Software Corporation
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