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ERP software creates efficiencies, prevents mistakes

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Tech Talk by Peter Mate
Peter Mate is owner and president of Planit Canada, a software and services company devoted to servicing the manufacturing industry. For more info email peterm@planitcanada.ca

Summer is here and the living is easy. It’s also a good time to step back and take a good look at the efficiency of your business. I left a few ERP-related topics out of the last two columns and now I want to talk about how to handle unexpected changes in the shop, equipment maintenance and shipping. I will also talk about some revolutionary developments in ERP that will change the way production can be controlled.
I know none of your customers are likely to change their mind. Yeah, right! Wouldn’t it be great if we get an order, submit it to production and get it completed without equipment malfunctions or other delays? In reality however, these are the challenges every shop faces. If we can’t eliminate these variables, then how can we effectively deal with them? Having the work orders published electronically from the office and sent to computer terminals on the shop floor allows you to make changes to work orders on the fly. If the shop hasn’t started the work, they won’t even notice changes have been made. It makes it easier than reprinting paperwork and running to each station to replace or scribble on work orders. These changes can be initiated to accommodate changes in customer requests, machine breakdowns or human resource challenges. To be able to adjust on the fly and to do it efficiently is one advantage of well-integrated ERP software.
Software can also help us prevent some of these ‘issues’ from becoming a problem in the first place. Regular maintenance on your equipment is one way to reduce breakdowns. ERP software can track all maintenance required on each piece of equipment as well as what has been done and when. Employees will be notified by the system when scheduled maintenance is due and the work can be tracked.
And how about shipping? What has been shipped? To whom? When? What’s missing? We react to these situations as they occur but it can be difficult to identify what went wrong. We think it’s an employee who forgot or made a mistake, but ERP software can eliminate the problem altogether and make everything more efficient. Software can track everything and provide us with all the information we need to make decisions. It will prevent mistakes by flagging items that should not be in the current shipment or items that are missing. Imagine trucks leaving your dock with exactly what they’re supposed to contain. Nothing more and nothing less.
So what’s in store for the future of ERP? More automation. Easier, faster and better is what we all want. There’s been some development with RFID and ERP software. RFID is the same technology used in retail stores to deter theft. You sometimes see it in the form of a square label that looks like a circuit board, for example in books. This is what the wands at the exit of the stores capture and then sound the alarm. How does this benefit a shop? Imagine no more parts or cabinet labels! RFID tags can come in many forms. Maybe a chip inserted in the edge of the panel. It contains all the information for that part including finishing, edgebanding, etc. Picture a wand at your edgebander. The wand detects the part as it passes through the edgebander and updates the status of that part in the ERP system. The result is incredible production control from the comfort of your office without any extra work for the shop workforce. Another example could be at the loading dock where all items are recognized by the ERP software and accounted for. The result: Nothing gets into the truck that shouldn’t and nothing gets forgotten. Sounds far fetched, but it isn’t. It’s coming.
I am very interested in technology and in advancing our industry. This is exciting technology and if you want to talk to me about RFID, ERP, or bridge nesting send me an email or book your flight and come see me at IWF Atlanta.

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