Complex Project Manufacturing requires integrated information management

In large-scale, mass-market consumer manufacturing, production planning and supply chain management are critical, interwoven functions. Keeping inventory levels low through Just In Time inventory requires continuously monitored and updated projections in order to meet shifts in customer demand.  In environments where items are produced in the thousands or millions, the scale and quantity of units produced, as well as the existence of secondary markets, allows for some variability and flexibility in production.
In Project Manufacturing, however, where development may take years leading and production may require manufacturing just a few items (or even just one) in very low, yet very expensive quantities, supply chain delays due to misjudged lead times, vendor payment processing, or poor materials quality can cause major disruptions in the project schedule, even if all other elements are perfectly aligned.
In order to fully integrate the supply chain, financial, and production functions, it is necessary to implement solutions that allow for cross-functional communication well in advance of projected milestones.  While an Enterprise Resource Planning (ERP) system might be thought of as something that only large producers who manufacture significant quantities required, but the integration of key functions is a must for organizations of any size.  The dependencies within a project manufacturing environment are much more acute as well, requiring the identification and resolution of issues much sooner.  Even seemingly minor problems can cause serious delays.  Some examples are:

  • Late invoices
  • Late payments past net-30 or net-60 day windows
  • Late receivables inhibiting cash flow
  • Purchase Orders stuck in the procurement inbox
  • selection of slower-than-needed shipping methods (ground vs. overnight)
  • Items failing incoming inspection
  • and so on

In spite of the best efforts of everyone from engineer to assembler, there are always unforeseeable cost and schedule problems in the development and delivery of one-off products.  These problems can be mitigated by way of a fully integrated system that receives and returns inputs from all functions that plan, monitor and execute the work of the organization.
LBSI has extensive experience working with mid-sized businesses to implement the SAP Business One ERP system.  Contact us to learn more about our approaches to integrating and optimizing your project manufacturing processes.

LBSi offers SAP® Business One sales and services.  We sell, install, implement, train and support our customers for this software solution. For over 30 years, our team has helped clients determine and implement solutions to their problems to maximize potential profit and success. We look forward to the opportunity to get to know you.

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