This blog is written assuming that you are following some sort of methodology for managing your ERP evaluations. The following questions are geared toward helping you decide which vendor to work with, not the mechanics of the evaluation itself. If you don’t have a methodology, my suggestion would be to first download our ebook to get some fantastic advice on how to carry out your ERP evaluations. You can download it here.
Before I get into the best costing methodology for a work-order-driven manufacturing company, let me define both methods. With standard cost versus actual cost, the discussion centers around how the ERP system values an inventory or labor transaction. Here is how the different costing methods calculate the value of the transactions.
ERP users run the spectrum in regard to their ability to properly use their current system. Some are Jedi masters, many are proficient, and others know only the basics. Oftentimes, a user’s ability is directly related to their role in the organization and amount of training they’ve received on their ERP system.
I have been in the ERP industry for over 21 years and have worked with companies of all sizes and industries, but primarily have experience with small to medium-sized manufacturing businesses. I am currently in a sales role, so I frequently talk with companies that are interested in one of our Infor ERP products. One of the questions I always ask is “What are you using today?” A lot of times the answer to my question is QuickBooks.
I used to be a plant manager, an operations manager, and a supervisor. I understand the importance of on-time delivery. If a company I worked for wasn’t tracking it, I started to. Anyone who reported to me also knew the importance of on-time delivery.
Aerospace and defense customers need ERP with industry-specific functional attributes to help them comply with mandatory regulations. For that reason, ERP for the aerospace industry includes the standard functionality provided in general manufacturing systems, plus additional tools. In this article, I focus on one of the most important functional areas for those who are evaluating or seeking to improve their aerospace ERP software.
Visual South works with manufacturers who use work orders, so this article focuses on job shops and discreet manufacturers. In this type of environment, production’s job is to deliver a certain quantity of a certain product. There is a defined start and a defined finish. Maybe production has made it before, maybe they haven’t. They may make it again, they may not.
An ERP implementation in the manufacturing industry typically consists of two companies—the company that provides implementation services and the company that procures them—working together to successfully bring the ERP implementation live.
Let me start out by saying I like spreadsheets. I use Excel to analyze data, create different scenarios, communicate ideas, etc. Excel is on every computer I own. I really can’t imagine not being able to use Excel in my daily life.
Engineer-to-order manufacturers seldom make the same product twice, which makes them unique when compared with their make-to-stock and make-to-order counterparts.
These engineer-to-order manufacturers are project oriented and manage front-end loaded engineering efforts. They handle manufacturing processes, actual costing environments, potentially unique revenue recognition requirements, and installation and potential after-market service requirements.