ERP in mechanical engineering: A challenging industry.
4 october

ERP in mechanical engineering: A demanding industry

While many companies have gone quite a long time without a ERP software If the machine-builders are able to keep their heads above water, the need for a system that unites all processes quickly becomes clear. The entire development process is illustrated here: From the design in the CAD (via interface or integrated) up to delivery.

Transparency is everything

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Both large, established companies in mechanical engineering and smaller, young companies: The processes between design, production and delivery, and above all their interaction, quickly fall out of the management's focus. This is not due to their lack of competence, but to the complexity of the processes, which are always dependent on mutual information. Information here means data from the respective company division. For example, production must be in contact with the logistics can interact, inform about any changes but also the construction (Interactive BOMs).

Companies with both series products and individual machines have this requirement. This results in the following challenges for the ERP solution:

The more frequently the company produces an end product, the more important it is that the ERP variants and repetitions can be checked and calculated. This could be ensured, for example, by a corresponding configuration tool to relieve the design department. Such a flexible ERP system can provide concrete (and correct) price information even if the machine has not yet been finally designed. Without an ERP system that has the corresponding data from previous productions at its disposal, this is not possible. pre-calculation very error-prone.

React quickly, stay flexible, maintain an overview

In addition, machine builders must be able to react quickly to minor incidents, such as material defects. An ERP system that covers all processes also makes it possible to intervene in the ongoing process and update the data at all levels. If, for example, a material is faulty in production or fails due to a shortage and is replaced by another in order to meet the planned time, the design department must be informed about the changed design. This is because the data from the design department will in turn be available to e.g. the service department in case of malfunctions or the like after delivery. In case of a delay, the delivery and thus the customer should also receive the new information.

If there is no ERP system at hand, information is often shifted from department to department. This results in falsified or redundant data. For the management, it is difficult to understand afterwards what the correct information is. With an integrated DMS an ERP complete solution provides quick help here. All changes and adjustments are easily traceable - even during the process.

Mechanical engineering: an industry in transition

As in almost every industry, competition in mechanical engineering is becoming tougher. Even if things have worked "just fine" up to now, suppliers from China and other countries are continuing to catch up. Their products are often cheaper and still meet the requirements in this country. However, local companies can service on site. In order to appear as a flexible, modern and reliable company as possible, good ERP software is definitely helpful.

Read more about the SAP Business One software solution for mechanical engineering. 

We invite you to the SAP Infoday 2017 for plant and mechanical engineering. More about the event here.

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