Is near-perfect, on-time delivery possible for manufacturing?

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Manufacturers are under considerable pressure to not only deliver a quality product, but to ensure that the item gets to its destination by the established deadline. The supply chain is vast, and manufacturers are just one part of it – anything that goes wrong could negatively impact the project and set back scheduling. As organizations strive to meet delivery expectations, is near-perfect, on-time delivery even possible for manufacturers, and if so, how can they achieve that goal?

Be aware of the challenges

If manufacturers are going to be scheduling jobs effectively, they must fully understand the difficult situations they may face. This knowledge will help them incorporate buffers to ensure that they have enough time to handle the situations while also getting the products out on time. MoldMaking Technology contributor Dr. Lisa Lang noted that manufacturers can encounter a number of problems, including clients changing their mind, unreliable vendors, machine or tool breakdown, lack of communication and unavailable data. Some of these situations are easier to fix and prevent than others. However, with a buffer, manufacturers can better absorb any variability while still ensuring efficiency.

Metrics can reveal a lot about the shop floor.Metrics can reveal a lot about the shop floor.

Use your metrics

If manufacturing operators and employees aren't able to access critical data from anywhere on the floor, that can create a number of complications. However, it's also important to monitor this information and identify any trends that emerge. Manufacturers must use this data to make improvements to their processes and ensure they are effectively meeting time expectations.

Organizations should look at the percentage of on-time delivery to commit, the time it takes to switch over to making a different product and the time it takes to complete a given product from order to production, LNS Research recommended. These metrics will be critical to bolstering the client experience and overall responsiveness. Manufacturers should also track throughput, production attainment and capacity utilization to gauge overall efficiency.

Leverage adaptable tools

"Tools have to contend with multiple active projects and all of the variables that take place therein."

Near-perfect, on-time delivery is only attainable if manufacturers have tools that can accurately schedule jobs and various tasks and are easily adaptable to a variety of situations. The Fabricator contributor Tim Heston noted that while a schedule won't solve all problems, accurate information within the system will provide a snapshot of the current state of the shop floor. This provides better overall visibility and can help prioritize current tasks.

Because the shop floor can change so much in so little time, it's critical that your tool is capable of handling these adjustments. The solution must be able to recognize the shift and the sequence of events that need to happen in order to complete the task. Tools have to contend with multiple active projects and all of the variables that take place therein.

While near-perfect, on-time delivery might seem impossible now, with the right tools, an understanding of the challenges and available metrics, manufacturers can take a step toward achieving it. Through these efforts, organizations will be able to improve the customer experience and establish better visibility throughout the shop floor to bolster future scheduling efforts.

How manufacturers can improve their scheduling

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In a manufacturing shop of any size, it's critical to have the right resources in the right places at the right time. However, coordinating all of these moving parts is a major challenge that manufacturers face on a regular basis. Scheduling processes and tools have significantly improved over the years to help organizations arrange, control and optimize workloads. Let's take a look at a few of the ways that manufacturers can improve their scheduling:

1. Understand the entire supply chain

The manufacturing supply chain is much like a complex dance, where different elements work together to deliver a singular product. Manufacturers must work with suppliers and distributors to have the right materials on hand and deploy the completed goods. In order to make accurate scheduling forecasts, organizations must understand how each part of the supply chain works and how it operates. The Houston Chronicle contributor Susan S. Davis suggested that manufacturers can use this knowledge to make the supply chain more efficient and create better scheduling plans. Businesses must align their scheduling considerations with their partners to get requests in on time and ensure that they receive the services they need.

Manufacturers must understand every part of the supply chain to improve scheduling.Manufacturers must understand every part of the supply chain to improve scheduling.

2. Map out processes and potential risks

A typical manufacturing shop is made up of a variety of steps and processes, but these should all be standardized to ensure that tasks are completed the same way every time. This will help uphold quality standards and enable operators to reliably predict how long jobs will take. According to the Business Development Bank of Canada, manufacturers should map out their processes in the order that they happen and incorporate the average time it takes to finish. It's important to consider that not all steps will happen in a sequence; some may occur at the same time. This type of overview will be useful for standardizing timelines and establishing future routings.

In addition to processes, operators should also consider the potential risks involved with each step, and the time it might take to address it. Collecting historical information on similar experiences can help put in controls to eliminate or minimize issues that may emerge. This can improve scheduling considerations and overall planning capabilities.

3. Utilize capable tools

"With the right tools, manufacturing staff can significantly bolster their scheduling processes."

Workers can only do so much on their own. With the right tools, manufacturing staff can significantly bolster their scheduling processes. Pairing ERP and inventory management solutions can be critical to keeping tabs on available resources and ensuring that decision-makers have a full picture of progress across their projects. These tools can also generate reports concerning how long it took to complete a job as well as the flow of materials throughout the organization. Metrics like these will help inform scheduling decisions for the future.

Being able to coordinate resources across every part of the manufacturing process is important, and scheduling can help accomplish this. With the right tools, standardized steps and an understanding of the supply chain, businesses can improve their scheduling capabilities and make their operations more efficient.

Top manufacturing trends for 2017

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After a somwhat lackluster year, organizations in nearly every industry are looking forward to the opportunities and advancements that 2017 has in store. For manufacturers, there's a lot of change on the horizon in terms of how to operate, the best ways to deliver value to clients and how to further evolve. Let's take a look at some of the most prevalent manufacturing trends that we can expect to see within the next year.

1. Going green

Manufacturing plants can utilize a significant amount of resources when powering and cooling these facilities. Even smaller shops can end up with high utility bills for their operations. As more advanced technology becomes available, manufacturers will increasingly go green by adopting lean practices and reducing overall waste. The Manzella Report contributor Steve Erickson noted that renewable energy sources can reduce overall material and operational costs. Going green can also gain consumer favor, which is critical to improving a manufacturer's reputation and sales.

Renewable energy and lean processes can help manufacturers cut costs. Renewable energy and lean processes can help manufacturers cut costs.

2. Adopting analytics

Having oversight into all operations is a luxury that not many manufacturers have. However, analytics tools can be leveraged to monitor critical metrics and guide managers to make better decisions. Small Business's Ben Lobel noted that with actionable insights from collected data, manufacturers can create more efficient cost and product propositions, reduce errors and drive efficiency. These will be critical advantages for meeting client needs as well as delivering quality products and services.

Manufacturers can also pair analytics capabilities with sensors. When sensors are put into products, organizations can track usage, customer behavior and any other issues. This type of information is critical to resolving problems early and monitoring historical data to track any emerging patterns. Organizations will certainly put more emphasis on these technologies in the next year.

3. Innovating for more opportunities

"Organizations can no longer rely on their traditional tools and processes."

The idea of continuous innovation has become a main priority among more manufacturers. Operators must constantly improve their skills, take advantage of new technology and reevaluate their strategies to ensure they bring the most value. World Economic Forum contributor Jennifer McNelly noted that there's pressure to be adaptable, accountable and innovative, all of which require the best people as well as the most capable tools to do the job effectively. Organizations can no longer rely on their traditional tools and processes. Instead, utilizing an ERP system that integrates well with analytics and automation technology can help give manufacturers the boost they need to stay ahead of the competition.

Technology will play a large role in shaping the future of the manufacturing industry. Organizations are starting to utilize tools that will help them be leaner, more innovative and more insightful. With these capabilities, manufacturers can expect to cut operational costs, predict behaviors and continue to scale in the future. As we head into 2017, it looks to be a promising opportunity for manufacturers to take advantage of new processes and tools to bolster their services and products.

Why job costing is critical for manufacturers

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Manufacturing organizations are responsible for creating items that consistently live up to quality standards and are uniform according to their product lines. For example, if you make tables, you'd expect each table to have legs that are the correct length, to be stained the right colors and to be stable when put together. However, tables also need to be built for various use cases within homes and offices, and the costs associated with making these items versus the revenue they bring in will vary. Job costing is a critical process for manufacturers for a few key reasons:

1. Attach costs to jobs

Manufacturers make a number of different products and often customize items according to customer specifications. It's important to not only understand how much material will be required to put the item together, but how much it will cost and how many man-hours can be expected to complete it. According to "Accounting for Managers", organizations can record the raw materials purchased and how much was placed into production. The flow of direct materials is critical to ensuring there's enough inventory on hand for other jobs and for pricing out the total cost of the items used.

Along with material costs, managers must also monitor labor wages. Many systems log in hours through timesheets. Putting these expenses together with the material totals will provide an overall picture of that particular job's cost. These logs will go a long way for reporting and project planning purposes.

Job costing can be essential to accurate expense forecasting.Job costing can be essential to accurate expense forecasting.

2. Track each client's projects

Businesses get a variety of customers, and it's important to ensure that each order is filled and goes to the right place. Manufacturing companies may have different approaches to pricing their jobs. According to Houston Chronicle Jonathan Lister, each client is considered a separate job, and sometimes, projects over a certain value may be counted as a single job itself. Organizations must not only understand what their clients are looking for, but also provide an estimate for how much the project will cost to complete. Job costing efforts will ensure that manufacturers are considering each initiative and are providing a price that reflects the materials and work necessary for that particular product.

3. Accurately predict expenses for future efforts

"By collecting job cost data, you'll be able to tighten your current expenditures."

Manufacturing businesses can better predict future costs and identify areas that may cause overruns. By collecting job cost data, you'll be able to tighten your current expenditures through reining in mounting expenses on various projects. Accurate job costing information will help reduce losses and ensure that you're better in line with your goals. Tighter and more accurate budgets reduce the area for risk and can prevent overspending.

Manufacturers have a number of things to think about when it comes to job costing. They may produce one product, but that item can be customized in a vast number of ways, making it necessary to understand the labor and material costs attached to each project. With job costing within an ERP system, manufacturers can better manage their inventory and understand the expenses associated with each client's project.

How to evaluate ERP vendors

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These days, it can be difficult to differentiate between manufacturing ERP software vendors, as most offer seemingly comparable features and service plans. As a result of the numerous options, many organizations spend little time actually evaluating prospective software providers before making a decision. Unfortunately, this approach normally produces less-than-ideal results, CIO reported.

"Many of my best clients are 'sold' by the [vendor's] marketing team; however once the implementation is complete they are surprised by system functionality restrictions, lack of capabilities and the impact on existing internal best practices," technology consultant Shawn Casemore told the magazine.

To avoid a similar situation, you must look past the bells and whistles that vendors often showcase during demos and dig deeper. As you field proposals, keep in mind these essential ERP evaluation strategies:

Understand your own needs
Before you speak with any vendors, meet with the executive and information technology teams to establish high-level goals and single out the specific system components that might help you meet them, CIO advised. This way, you can go into each demo with a clear picture of the solution you're searching for and reduce your chances of succumbing to slick software salesmen who will try to entice your with extras you don't want or need.

"Your objective is to adopt impactful manufacturing ERP software that will allow you to address pain points unique to your industry."

Pinpoint ERP vendors with industry knowledge
Ultimately, your objective is to adopt impactful manufacturing ERP software that will allow you to address pain points unique to your industry. To accomplish this aim you must identify vendors with sector-specific offerings, according to Panorama Consulting Solutions.

While reviewing possible solutions, look for specific system features tailored to your field and speak with vendor representatives and implementation personnel to gauge their knowledge. You need partners who not only understand your goals but also grasp the industry-related challenges that might slow the product development and roll out processes.

Get references
Most legitimate manufacturing ERP software vendors provide references. Of course, many companies either don't do anything with these contacts or ask them innocuous questions about pricing or other incidental matters. Be sure to contact the references your vendors give out. Additionally, don't lob softballs during these chats – ask some hard-hitting questions.

Dig into the implementation process and ask these customers to cite any issues. Talk about service as well. Does the vendor offer strong support or do they leave clients to their own devices? You must know these things before establishing a partnership that could potentially transform your business.

Cloud vs. on-premise: Which ERP is works for you?

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These days, organizations in the market for manufacturing ERP software must choose between on-premise solutions and cloud-based alternatives. Though the latter are gaining traction in multiple sectors, traditional on-site server-based ERPs still offer many benefits. With this in mind, be sure to consider all of the variables before selecting your platform.

Cost
Many chief information officers gravitate toward cloud-based ERP manufacturing software in an effort to cut costs. According to many industry experts, these business leaders are correct in thinking that server-less solutions will save them money. Cloud-based ERP platforms are cheaper to develop and deploy than their on-premise counterparts, Software Advice reported.

Plus, most are subscription-based, meaning companies can scale back should they so choose. However, in many cases, organizations with cloud ERPs end up spending just as much money as they would on an on-premise solution over the lifespan of their products, as subscription fees and data demands often change.

Of course, many offset these expenditures by cutting costs usually associated with maintaining on-premise solutions, ERP Software blog reported. For instance, once physical servers are out of the equation, organizations no longer have perform costly maintenance or reserve office space for on-site data centers. Additionally, most cloud-based ERP vendors provide backup services, meaning unforeseen periods of downtime and catastrophic server failures carry fewer financial consequences.

However, as you look over your options, avoid basing your decision entirely on money-saving potential. Instead, look for the system that works best for you and gives your organization the tools and insights it needs to grow.

Cloud-based and on-premise ERP manufacturing software offer unique benefits.Cloud-based and on-premise ERP manufacturing software offer unique benefits.

Deployment
Projected implementation times weigh heavy on the minds of executives looking into ERP options. Organizations in need of such software are hungry for change and often want to get a solution in place as quickly as possible. When it comes to deployment, cloud-based ERPs are much easier to install than on-premise solutions. The average cloud ERP platform takes 4 to 8 months to implement, according to PricewaterhouseCoopers. Conversely, implementation periods for traditional on-site solutions can be as long as 36 months.

Of course, cloud implementations feature some complicating factors. For example, cloud-based manufacturing ERP software is standardized to some extent, meaning adopters must reshape their business processes to account for these solutions. On-premise platforms are more customizable, allowing businesses to stick with their original workflows and develop a system that complements them.

"Cloud-based ERPs are just as secure as on-premise platforms."

Scalability
In today's mercurial business world, enterprises must have the tools to weather trends and changes in consumer behavior. This goes doubly for manufacturers, many of which already contend with wafer-thin margins. When it comes to scalability, on-premise solutions are no match for cloud-based ERP software. These solutions can evolve to match business needs.

If increased market demand necessitates more processing power and storage space, vendors can scale up to accommodate these shifts. And, once busy season dies down, things return to normal. 

For growing enterprises, this capability is especially enticing, as they can implement manufacturing ERP software that serves their current needs but can expand as they do. Augmenting an on-premise solutions is no easy task. The process takes time and requires substantial reinvestment. 

Security
CIOs in every sector balk at the prospect of implementing cloud-based ERPs for fear of suffering crippling data breaches. In reality, these systems are just as secure as on-premise platforms, TechTarget reported. Vendors offer robust data encryption services and employ security experts that monitor for new threats and code and apply system patches to address them. In the end, both solutions offer put up effective defenses against hackers.

With these variables in mind, carefully consider your options and choose the solution that works for your enterprise.

3 strategies for negotiating cloud SLAs

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Businesses in the market for cloud-based or hybrid-cloud manufacturing ERP software must wade through copious paperwork during the vendor selection process. From product specs to system training manuals, internal information technology personnel are tasked with reviewing countless documents. However, none are more important than service-level agreements. These contracts articulate vendor service expectations and establish baseline ERP performance metrics.

With this in mind, carefully review each SLA you encounter. When it comes time to make a final decision and ultimately negotiate your terms, follow these strategies:

Integrate SLA review into vendor selection
Many organizations wait until after they have selected a vendor to consider the SLA and start negotiating. Unfortunately, this tactic rarely produces favorable results, as these documents are fairly iron-clad, with most vendors using industry-standard contract terms and service commitments. It's best to consider the SLA during the opening evaluations, Information Week reported. After all, these contracts dictate essential system operations and go hand-in-hand with the actual software.

As you screen vendors, ask for copies of their SLAs. This will not only help you to grasp the breadth of services each prospective solution provider offers but also lend you leverage and make it possible for you to negotiate more favorable service terms.

"If you are able to say that competitors are providing this SLA clause and you can demonstrate why it's important to you, it goes a long way in creating a strong argument," David Snead, an attorney and SLA expert based in Washington D.C., explained in an interview with Information Week.

When negotiating SLAs, look at the specifics. When negotiating SLAs, look at the specifics.

Move past uptime
IT experts young and old often fixate on uptime and downtime stipulations within SLA agreements. Of course, this makes sense to some degree – most manufacturing ERP software solutions are only as effective as the networks that support them. However, connectivity isn't everything, TechTarget reported. SLAs address a whole host of equally essential terms and services. For instance, most include extensive sections devoted solely to system repair stipulations. Look over this language and make sure your vendors categorize technical issues by severity and offer corresponding mean repair times. Additionally, it's best for software providers to offer more immediate repair services to essential system users.

"It is important to recognize that you have some users who are more important than others," William Corrington, federal director at the Cloud Security Alliance in Washington D.C., told TechTarget. "The vendor needs to understand who these folks are, by name or title, and the vendor has to understand that they need to meet the right SLAs."

Review the language regarding data security and confidentiality as well. Vendors should offer some sort of encryption services, according ERP Software Blog. Of course, these security protocols should fall in line with your own organizational bylaws governing the use of customer and essential business data.

"You may negotiate an ideal SLA but that doesn't mean your manufacturing ERP software will run uninterrupted for eternity."

Depending on your industry, you may be required to comply with one or several federal regulations mandating data confidentiality. If this is indeed the case, make sure prospective vendors are in compliance with these laws.

Focus on the details
Most manufacturing ERP software providers are more than happy to offer broad language ensuring service excellence. Of course, these oblique promises mean little when things live and issues arise. So, as you look over vendor SLAs, focus on the details. Do the stated uptime guarantees meet your expectations? Is there a detailed escalation path for serious service interruptions? Is the credit system fair? Concern yourself with these specific variables.

While navigating this process, remember that SLAs don't dictate system performance. You may masterfully negotiate an ideal SLA but that doesn't mean your manufacturing ERP software will run uninterrupted for eternity. You and your vendor share responsibility for system continuity.

ERP security strategies you need to know

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Last year, hackers executed attacks against more than 1,000 organizations and looted over 700 million records, according to the data security firm Gemalto. Of course, as technology improves, these attacks will only become more frequent, as cyberthieves develop new methods for invading secured servers and stealing essential business information. With this in mind, enterprises using manufacturing ERP software must take steps to secure their data as best they can.

If you're interested in ramping up your security protocols to ward off hackers, review these essential ERP security strategies:

Classify your data
In most cases, cyberthieves target only valuable information. For instance, the intruders that invaded the servers at the file-sharing giant Dropbox back in 2012 went directly after user account information, Motherboard reported. Chances are, these hackers passed up all sorts of non-essential data to reach the 60 million user credentials they eventually released for public consumption. So, before you start developing a security strategy for your ERP, review your digital assets and assign them security levels. You first want to focus your attention on data that, if compromised, could do immediate harm to you, your vendors and customers, ERP Software Blog advised.

Once you understand just how valuable your information is, you can craft tailored security protocols to fit specific assets.

Build an airtight plan
Effective ERP security plans cover a number of essential areas. Internal system access is often a primary concern for organizations with such software, Deloitte found. When you consider the available information on the subject, this makes perfect sense. Data security experts estimate that individuals with system access are responsible for more than 40 percent of all data breaches, according to Info Security.

To protect yourself against internal data mismanagement – both intentional and unintentional – institute a strict, role-based permissions scheme. This way, only the most trusted and savvy system users can directly access essential business data. Additionally, you will want to pair this with a change management plan that includes instructions on how to revoke access to users who have resigned or been terminated. You don't want disgruntled workers walking out the door with active ERP credentials.

Of course, no matter what protocols you put in place, breaches are still possible and you must be prepared handle them. If you're working with an on-premise solution, draft incident reports and response procedures and develop an in-depth emergency response plan. Conversely, if you have cloud-based manufacturing ERP software, you will need to collaborate with your vendor and review the services they offer.

You must secure your manufacturing ERP software to keep safe precious company data.You must secure your manufacturing ERP software to keep safe precious company data.

Don't forget mobile
In the event that you have an ERP solution with mobile capabilities, you will need to develop data security protocols to address device use and offsite access. To start, figure out how you plan to manage and track devices. Organizations big and small lose company-owned devices regularly and, on occasion, these lost smartphones and tablets end up in the hands of hackers, Information Week reported. You can avoid this situation by carefully tracking your devices, especially when users leave the company. If you have a bring-your-own-device policy in place, you will need to organize a system for wiping company data from devices owned by departing personnel.

Give employees best-practices for keeping their equipment secure as well. For instance, advise them how to identify questionable apps that could be fronts for data-extracting Trojan horse viruses. Of course, ask them to stick to common, web-based software stores like the Android Marketplace and iTunes.

Document everything
After you've developed your ERP security plan, document it. This strategy must outlast the administrators and users it serves, so avoid relying on corporate oral history. Instead, put together an editable online portal that includes all of your security protocols and give every employee in your organization access.

Empower your personnel
When it comes to enterprise data security, policies are only as effective as the their practitioners. In short, your employees need to know a thing or two about protecting the company data they access. With this in mind, organize some training to address key topics such as how to draft a secure password.

"Reusing an existing password is never smart."

These credentials are the first line of defense against data-hungry hackers and must be built to stand up to decryption tools that can formulate thousands of guesses in seconds. Effective passwords are usually on the long side and contain an array of evenly dispersed special characters, Wired reported. It's also important that you advise employees to create unique passwords for their ERP accounts. Reusing an existing password is never smart and can result in multiple accounts being compromised.

With these ERP security strategies, you can keep out the cyberthieves and keep the executives in the C-suite happy.

4 ERP maintenance and support strategies you need to know

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When reviewing vendor ERP offerings, many manufacturers focus solely on system features and fail to consider equally important variables such as maintenance and support. Of course, this approach can set the stage for costly post-implementation problems. To avoid these issues, pinpoint software providers with robust maintenance and support services and take internal steps to make sure your solution is updated and your employees know how to unlock its full potential.

Lay the groundwork for support success
Once you've selected a vendor with a solution that meets your current and future organizational needs, take a close look at the post-adoption offerings within the service-level agreement. First, see how long they plan to support your solution. Many adopters in the manufacturing industry find that longer service contracts yield more discounts and are generally more cost-effective, TechTarget reported. Then, move onto the specifics.

Most vendors offer a variety of ongoing professional services to clients in need of ERP updates and support. These are billed on an hourly basis. Luckily, most vendors are willing to negotiate the rates but make sure these services fit your expectations before discussing money. Additionally, dive into the minutiae and work with your solution providers to define essential service-related metrics.

"What is considered a severe issue? A non-critical issue? You need a common understanding. It's not that you want the SLA there so you can hit your vendor over head with it, or if you have a penalty clause so you can extract money by triggering a penalty – you want to avoid having to trigger a penalty clause," Howard Kiewe, a senior researcher at the Info-Tech Research Group, explained in an interview with TechTarget.

Manufacturing ERP solutions are only as effective as the maintenance and support services that accompany them.Manufacturing ERP solutions are only as effective as the maintenance and support services that accompany them.

Consider third-party support
If you're unsatisfied with the maintenance and support services your vendor offers, consider contracting a third-party to take over these tasks, Enterprise Apps Today suggested. In recent years, many adopters have turned to these companies, looking to trim costs or maintain highly customized systems with components that vendors simply won't support. Of course, there are drawbacks to this approach.

For instance, these third-party service providers are required by law to respect the rights of original equipment manufacturers but some don't. If you're considering this approach, be sure to get assurance from your third-party support provider that they are adhering to intellectual property laws. To do this, request internal audit results or write an indemnity clause into your SLA. Of course, you could avoid this situation altogether by finding a third-party service provider that's willing to partner with your vendor.

Develop a long-term maintenance and support strategy
In addition to securing actual maintenance and support services, develop an internal strategy for supporting your solution, CIO advised. Manufacturers that fail to develop and implement such plans often find themselves overspending on support or, even worse, working with outdated or broken software.

"Customers not conducting preventative maintenance are not taking full advantage of their ERP investment and their maintenance dollars," Marco Valencia, vice president of cloud management and company innovation at SAP, told the magazine. "By not applying maintenance, their systems will quickly become obsolete (from a technical perspective) as will their business processes."

When putting together your strategy, be sure to forecast organizational changes and plan system maintenance to support these shifts. Additionally, keep your vendor or third-party maintenance and support provider updated to ensure that they are prepared to lend a hand when changes are necessary.

"To achieve system continuity, you should provide ongoing to training programs for end-users."

Provide ongoing staff training
To unlock the full potential of your manufacturing ERP and achieve system continuity, you should provide ongoing to training programs for end-users, ERP Focus suggested. This will improve employee efficiency and make it easier for you to fix system issues, as well-trained users can spot problems and report them. 

As you develop your employee ERP training program, include employee protocols for escalating platform issues or requesting support. You don't want your users sending trouble tickets to vendors when they could instead contact the internal information technology staff.

3 common ERP implementation errors to avoid

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Implementing manufacturing ERP software is a complicated process with myriad pitfalls. Unfortunately, many manufacturers fall victim to these hazards, adopting inadequate solutions that fail to meet project goals.

ERP failure rates have steadily risen over the last five years, according to research from Panorama Consulting Solutions. In 2014, more than 20 percent of implementers deemed their adoption attempts failures. Even those that manage to rollout new software saw fewer benefits than they had anticipated.

In most cases, serious missteps normally precipitate such situations. As you set out on your ERP journey, be sure to familiarize yourself with some of these common errors and try to avoid them at all costs.

Ineffective planning
Organizations often set the groundwork for failure with poor planning, TechTarget reported. ERP software experts uniformly agree that potential adopters must first carefully evaluate their operational needs and assess essential technology infrastructure via exhaustive internal audits. Yet, many skip this step completely, choosing to forge ahead with little idea of what they actually need, CIO reported.

"This often leads to confusion down the road because they might not fully understand their current processes and how to evolve them to maximize business benefits and efficiencies," Erik Kaas, vice president of product management for mid-market ERP products at a leading software vendor, told the magazine.

You can easily avoid this situation by properly evaluating your processes and pinpointing trouble spots that might improve with a little ERP automation. Using this information, you can create a required features list and research solutions with a firm grasp on your specific software needs.

Adopting impactful manufacturing ERP software is possible if you avoid these common pitfalls.Adopting impactful manufacturing ERP software is possible if you avoid these common pitfalls.

Poor change management
In 2014, technology consulting company Deloitte asked over 1,200 chief information officers from companies across the globe to identify key ERP implementation roadblocks. More than 80 percent cited internal resistance to change as the biggest barrier. This response came as no surprise to seasoned information technology professionals.

Employees often resist such shifts, as most don't particularly enjoy learning new systems and reshaping their usual workflows. Unfortunately, many organizations fail to address this issue and simply drop new systems into the laps of their workers, expecting them to innately understand their benefits and happily accept the change. In most cases, employees begrudgingly adopt the new software but fail to unlock its full potential. And, sometimes, widespread resistance forces companies to completely abandon newly implemented ERP platforms.

Again, this easy to avoid. After sketching out an implementation strategy, share it with your employees and gather their input. By engaging them in the process, you can build support early and possibly develop some internal product champions. Additionally, be sure to explicitly outline the overarching business goals the system will address. Employees need to understand how the ERP will tangibly improve operations and the company, as a whole.

Of course, spend considerable time developing a customized training plan for end-users. You can't expect your employees to pick the new system without assistance.

Inaccurate cost and resource estimation
More than half of implementers go over budget, according to Panorama Consulting Solutions. Most often, this occurs because they underestimate the costs in the first place. The average ERP implementation costs $6.1 million and takes almost 16 months to complete.

"Formulate a realistic budget that includes sections for post-rollout support and maintenance."

So, formulate a realistic budget that includes sections for post-rollout support and maintenance, expenses that many organizations fail to consider. Additionally, once you've developed a project scope and started the implementation process in earnest, avoid altering project goals or tacking on new objectives. This will increase costs and most likely put you over budget.

With these common pitfalls in mind, carefully plan the implementation process for your new manufacturing ERP software and stay vigilant as things move forward. Though the odds are stacked against you, adopting an impactful, bottom-line altering manufacturing software solution is possible.