Properly defining and explaining company operations for purposes of choosing an ERP system is far more subtle and complex than most companies realize. Given the high failure/disappoint rate of ERP systems, it would seem that few users have the capability to properly express meaningful manufacturing software requirements and explain in-depth what they do and how they do it.
CTS Manufacturing Blog
Changing ERP Software? There is a relationship between cost and value in this decision. A small company need not invest $300,000 to $500,000 on new software given that the value to the company is more modest than that sum. Alternatively, a large company may be able to find strong solutions for a few hundred thousand dollars that offers significant value to the company because of its “new” capabilities in comparison to the capability of the current solution.
Choosing mid market ERP manufacturing software is fraught with potential traps besides the software itself. These may involve such issues as the character of the vendor, its ownership and litigation history, technology and the quality of its implementation and project management staff.
A visionary individual is not enough to help your company succeed at evaluating, purchasing and implementing new MFG software Finding the right software – whether it is job shop, inventory, or primarily manufacturing accounting software – requires that managers and users commit to learning a new manufacturing software system well, and changing your business practices, at least a little bit, to accommodate the new software.
In the mid to late 1980’s through the 1990’s two major thoughts took root that changed the manufacturing software picture. First was the idea that manufacturing is only part of the picture; companies still had to deal with Order Entry and the Accounting Systems. Software companies then began to include these modules in an integrated database. This became known as ERP. Second was that as companies continued to grow with increasing order quantities, Job Shop technology was no longer the most efficient way of manufacturing. Aligning work centers into assembly lines for dedicated production facilities provided economies of scale for repetitive manufacturing. Software companies scrambled to adapt their existing discrete applications software to include Repetitive Manufacturing capabilities. Their logic – “we have 90% of the functionality already coded in our product.” This was a fatal mistake. It is the 10% difference combined with the existing functionality that over extends the software product and makes it unwieldy.