What Does Process Manufacturing Enterprise Resource Planning Mean?
Process manufacturing enterprise resource planning (process manufacturing ERP) refers to the use of enterprise resource planning (ERP) in conjunction with process manufacturing to maximize the potency of manufacturing processes. Process manufacturing is a production strategy that adds value by separating, mixing, building and/or executing chemical reactions. This can be done either in batch or in continuous mode. When an output is generated using this process, it is impossible to distill the output back to the basic component form. A few examples of products based on process manufacturing are beverages, food, chemicals, paints, dietary supplements, pharmaceuticals, etc.
ERP for process-based manufacturing mainly operates on the basic concept of combining all the machines, tools and resources to maximize the efficiency of the manufacturing process. It saves valuable time and enhances production capacity with greater command over subcontracting, planning and inventory.
Techopedia Explains Process Manufacturing Enterprise Resource Planning
Organizations that use process manufacturing ERP are capable of making every decision based on real information, not on predictions or assumptions. Because all reports about the process are available online, users can easily retrieve information about raw materials, what materials are used in certain processes, which material is needed for a particular process, what time the material is required, and so on.
A few things must be considered prior to selecting a process manufacturing ERP system:
- The ERP system should be designed for process-based manufacturing.
- Production has to be the most potent element of the software.
- The system must be simple to integrate and configure with very little or virtually no customization.
- The connection between manufacturing and subcontracting, inventory, purchasing and other modules must be superior and efficient.
The advantages of process based manufacturing ERP include:
- It minimizes the inventory, cuts down lead the time required for production, cuts down the production cycle duration, and minimizes the lead time required for automation and subcontracting.
- Manufacturing processes are completed using only essential materials. This prevents manufacturing waste.
- It reduces errors during subsequent production stages, which minimizes the duration of the production cycle.
- Automation is a built-in feature for almost all process-based manufacturing software. Integration of every manufacturing process reduces human error.