Full ERP versus Production Controlling
ERP (Enterprise resource planning) software or system is considered by many managers a “must have” to make the right decisions. It has many supporters in business world. Although, it looks like the “complete solution” for a company, it could have some insufficiencies.
So, what an ERP contains or what are the ERP’s main functions?
– Supply chain management: supplier scheduling, product configuration, order to cash, purchasing, inventory, etc.
– Accounting: making budgets, cost management, cash management, payment etc.
– Human resources: payroll, accounting working hours and targets, benefits etc.
– Costumer relationship management: sales service, customer contact, call center support etc.
– Order processing: order entry, order to cash, pricing, inventory, shipping, billing, sales analyses etc.
And sometimes, the most important module (for many industries) the Production Control or Production Planning is relatively ignored.
What are the reasons of this problem? We consider that one of the main reason is that general ERP’s are suitable for almost any type of companies, maybe with some small adjustments. Billing, receiving orders, sales reports, or even payrolls are almost the same for many business fields. But when it comes to production management everything is getting more complicated. There are many differences between computer controlled high-tech production versus handmade manufacturing, or automotive industry versus shoe-making, dairy versus furniture manufacturing etc.
One important factor influencing production management is the level of automation versus the percent of handwork. There are industries like some car manufactures which are controlled almost 100% by computers and machine works dominates the production flow. On the other side one can find for example garment industry (apparel), where handwork dominates the production flow and costs. There are no production management module for ERP which could manage so different fields.
There are some IT firms developing special production management modules, or production controlling software for the specific industries. For example Kontrollis developed a production controlling software for light industry which allows to control costs, to increase productivity using bar code system to control individual and group production. This software doesn’t offer the same range of modules like a general ERP, but offers more detailed and more precise information about the production itself.
So, which is better? Full ERP versus Production Controlling
The optimal situation is when a general ERP is completed with a Production Management Software or Production Controlling System and all the systems works together in harmony.
READ MORE: http://kontrollis.com/
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