Transitıoning From ERP To Sub-Systems

Companies use ERP software to better monitor internal processes, find out about failures and develop solutions. With the help of these systems they aim to reorganize their operations and eventually expand.

Expected benefits of ERP:

• Allowing the creation of legal statements and documents by managing accounting processes.
• Tracking the cash inflow-outflow by managing financial processes
• Creating better customer relations and increasing sales by managing sales operations.
• Allowing efficient warehouse tracking, improved storing activities, lowering the cost of material entry therefore reducing the overall sales costs by managing the supply chain.
• Improving personnel efficiency with better training, performance and career management by monitoring HR processes.
• Reducing the amount of refunds by managing the after-sales services.
• Increasing the manufacturing performance by managing the human, machine, finance processes therefore minimizing material and capacity requirements.

In my next article, we will talk about increasing the material and capacity efficiency by using measurement systems.

With improvements, manufacturing processes offer the most profit in the shortest time. Because in other processes, you always need more resources to increase your profits.

Let’s think about how much we’d increase the amount of money we earn by improving the sales operations.

You need to do the following in order to increase sales:

• Locate more customers.
• Employ more or better qualified customer representatives.
• Discover new markets.
• Increase the number of products you put on the market
• Release more products by resorting to discounts and special offers.

As you can see, improvements are unlikely in current conditions. To earn two units you always have to invest at least one unit. That of course, means additional source consumption. This applies to purchasing operations as well. In order to benefit more from purchasing i.e. decreasing purchasing costs, you need to improve the cash inflow by raising the number of suppliers or boosting the purchasing amount. Yet, you can earn more without having to spend more. All you have to do is to eliminate your manufacturing losses.

Manufacturing processes respond well to improvements. And the easisest way to improve them is to detect your manufacturing losses. There are various ways to detect these losses. Whether you apply these detection systems internally or externally determines your improvement costs. You can keep the costs substantially low by activating improvements only by using your own employees. The issue is developing smart projects with just some additional personnel. If you are unable to achieve this, you can always get support from companies or software solutions that specialize in this.

So, what are these methods that improve performance and make more money?

• SMED (Single Minute Exchange of Die)
• Autonomous Maintenance
• 5S
• Kaizen
• OEE
• JIT (Just In Time)
• Process Management
• Sampling
• Production Data Collection Systems

Even by applying some of these methods, you can decrease your manufacturing losses by up to 30%. If you have trained personnel, you can carry out these projects yourself. Otherwise, you need professional support.