Due diligence is needed for picking proper manufacturing software
Every business has been influenced by the changing technology landscape, though to different levels. You would be hard pressed to find a company that isn't using some kind of computer system to facilitate daily operations, and more organizations are starting to get involved with the latest innovations like mobile devices, the cloud and wireless networks.
While it is easy to see how the modern office has embraced these changes, it is also impacting industries across the board, even if they do not seem to be the most technology savvy.
A recent article from Manufacturing Business Technology Magazine looked at the way that the supply chain in manufacturing has been impacted by the use of new software and hardware solutions. While traditional systems like enterprise resource planning (ERP) solutions are still popular, some experts believe that organizations have been relying too heavily on them and this is causing them to miss out on an opportunity to upgrade to more state of the art solutions.
Jeffrey Vail, the author of the piece, wrote that in too many situations, businesses do not realize until it is too late that the systems they have relied on are outdated or have plateaued because of the unpredictable and ever changing nature of the manufacturing industry.
While there are merits to new approaches like bring-your-own-device (BYOD) strategies, businesses need to make sure that the software systems that are in place can support this approach successfully. Older software enables companies to look backwards but can hinder the ability to look forward. It may not be enough for manufacturing companies to want to maximize delivery efficiency and improve production and process.
"Optimization technology allows manufacturing companies to become more flexible and to more efficiently manage their supply chains by accounting for real life constraints and business rules," Vail wrote. "They can review 'what-if' analysis of various scenarios, tied to key performance indicators that measure success on an ongoing basis. They can generate near optimal plans from the virtually infinite number of possible options. And with a clear set of future-oriented KPIs they can measure tomorrow's performance before it happens."
For peak efficiency to take place, the supply chain planning and optimization is required that is configured for the specific environment it is in. No two businesses are alike, and thinking that a run of the mill software solution can be plugged in and played is a mistake.
Software solutions need to take into account the machine capabilities and alternatives per products, production sequences including sequence-dependent changeovers, specific site constraints, inventory limitations, replenishment options and so on. To make matters more complicated, all of this needs to be handled in real-time as the wrong answer can mean lead to longer lead times, excess inventory, loss of business and lower profit.
Every business is ultimately trying to increase their profits and grow. The supply chain is critical and companies need to embrace end-to-end solutions. In many instances, this means companies need to examine their entire operations to make sure they are deploying a business management software that matches all of the needs of the individual company.