SPONSORED BY 123 INSIGHT
BETWEEN A ROCK AND If implemented properly, manufacturing software can signifi cantly boost
shopfl oor productivity – even when times are hard
CONTRIBUTOR 123 INSIGHT
To say that 2020 has been a challenge for manufacturers
is an understatement. Between the rock of Brexit and the
hard place of COVID-19, businesses have been hit hard
this year in ways nobody could have predicted.
Even when times are good, manufacturing is a
sector fraught with risks – on-time delivery, complex
orders, ensuring traceability. Managing all this is the job of your
MRP system. But that may not be the case, says Simon Badger,
managing director of 123 Insight.
“Most ERP or MRP systems are designed with a steady-state
model in mind, not massive or, more specifi cally, more rapid
changes in business activity such as recessions,” he explains.
“Many systems are too regimented, infl exible and leave the
customer stuck with legacy contracts and long-term payment
plans. It’s frankly an outdated way of doing things.”
While everyone in manufacturing knows the nature of the
beast and can accept that there will always be some element of
‘internal’ risk, these are largely within their control. It’s up to them
to improve delivery times, for instance.
“What people don’t account for are the external threats, such
as natural disasters,” says Simon. “Their impact is growing, not
necessarily because they’re happening more often, but because
one event can impact the whole world. Business has become
more interconnected with global supply chains, so a disaster
like an earthquake on the other side of the world will a ect a
company in the UK. In addition, new threats like cyber-attacks are
becoming a lot more prevalent.”
Building on the QCD model
For this reason, it’s now more important than ever that your
manufacturing software is robust. Many manufacturing leaders
will be familiar with the QCD (Quality, Cost and Delivery) model,
and the challenge of striking a balance between
the three – namely, bringing quality up while
pushing costs down. Traditionally, the fi rst
priority of any manufacturing software has
been on delivery – making sure the right parts
were available at the right time. “When the fi rst
ERP systems were launched back in the 1970s,
delivery was the only consideration,” notes
Simon. “Nobody had imagined that they could
also manage costs or quality.”
However, he continues, as the threats
outlined above pose more of a threat, even
the traditional QCD model for manufacturing
software is insu cient. Added into the mix now
should be robustness and fl exibility.
“Nowadays, modern systems should not just
be able to deliver on quality, cost and delivery,
but also be robust – available and reliable at all
times – and fl exible – able to adapt and shift to
the ever-changing environment they are in,” he
explains. “Under the Law of Requisite Variety you
have to have at least as much fl exibility as the
environment in which you operate in order to
survive.”
The right MRP/ERP o ers fl exibility and allows
you to adapt the way you enter data, create new
products, new routings, or even entire company
divisions. The system has to be able to cope any
with changes that comes its way. Of course,
there’s even more to consider when thinking
about manufacturing software.
“A good ERP system is not just the software
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