Recommended Guide to Manufacturing ERP! What are the key points to consider when choosing a manufacturing system? How do you choose the right system for your workflow?

preface

Cost calculation and production management have always been a big issue in the manufacturing industry, from inventory, materials, semi-finished products to the most difficult labor cost calculation, without the help of the system to record and calculate in real time, the cost trial calculation alone will be delayed for several months, not to mention the time required to optimize the production line or production strategy after seeing the report. Therefore, systematic management is an indispensable element for the manufacturing industry.

目錄

Why does the manufacturing industry need an ERP system?

The predecessor of the ERP system is actually MRP (Material Requirements Planning), so the logical architecture of the ERP system is the most suitable for the manufacturing industry, whether it is material planning, supplier management, or most importantly, cost calculation, a good ERP system should be able to meet these basic needs.

What functions should be available in a manufacturing system?

In detail, what features should a good ERP system have to help the manufacturing industry solve pain points? We list 5 basic functions and 5 advanced functions required by the manufacturing industry, and we will use Microsoft’s ERP system (Dynamics 365) as a demonstration to give readers a further idea of system selection.

Basic features
Advanced features

Material coding and filing

In the early stage of system introduction, documenting one by one is often the most dreaded and cumbersome homework. However, in Microsoft Dynamics 365 ERP, users can edit data directly on Excel and synchronize it to the system, making it easy to complete the documentation.

Material coding and filing

In Microsoft Dynamics 365 ERP, users can edit data directly on Excel and sync it to the system

Day-to-day accounting operations

Sales orders (SOs), purchase orders (POs) at the front end, and related costs incurred in real-time in the manufacturing process are all integrated in Microsoft Dynamics 365 ERP. Not only can it greatly reduce the situation of heavy work, reduce the time spent by accountants to issue accounts, but also leave a record of all the details of business operations. In addition, Dynamics 365 ERP supports multi-language and multi-currency, and of course, it can also support the needs of Taiwan’s accounting regulations, which is one of the advantages of Dynamics 365 ERP to become one of the top three ERP in the world.

Day-to-day accounting operations

Dynamics 365 ERP supports multiple languages and currencies, and of course, it can also support the needs of Taiwan's accounting regulations, and the complete system architecture can help enterprises significantly reduce rework costs.

Reporting requirements

Microsoft Dynamics 365 ERP not only supports various built-in reports and analysis functions, but also has a variety of flexible customization capabilities, which can not only generate commonly used reports through customization, but also painlessly connect with Microsoft’s own Power BI for internal personnel to make the interactive reports they need, and even use Copilot in the system to let AI analyze data through description!

Reporting requirements

In addition to the built-in reports, it can also support flexible customization needs. You can even analyze your data directly on the system with AI.

MRP Material Requirements Planning

The MRP (Material Requirements Planning) function in Microsoft Dynamics 365 ERP can fully link sales, inventory management, purchasing, and manufacturing units, and will remind users of the urgency of each document according to the schedule, which is very user-friendly. For example, if the purchasing unit receives a purchase order to be completed in 1 month, the system will link to MRP to calculate whether the inventory is sufficient, and if the inventory is sufficient, a production order can be generated, and if the inventory is insufficient, a purchase order will be generated for purchasing.

MRP Material Requirements Planning

MRP in Microsoft Dynamics 365 ERP can fully link sales, inventory management, purchasing, and manufacturing. And the user will be alerted according to the urgency after the calculation.

BOM management

BOM is the core function of the manufacturing industry, and only with BOM can we do a good job in material and production scheduling control. The BOM of Microsoft Dynamics 365 ERP can not only be flexibly adjusted according to demand, but also directly link the production scheduling system MRP and material related information such as PO and SO, so as to improve the efficiency of collaboration between departments and the integrity of data.

BOM management

The BOM can be flexibly adjusted according to different situations, and the information of the BOM will be interrelated with MRP, PO, SO, etc. in the system, so as to improve the collaboration between different departments.

What advanced features can make your business more efficient!

In addition to the above basic features, Microsoft Dynamics 365 ERP has more than 30 years of experience in global development, and of course, it also has many advanced features that are commonly used by enterprises. For example, there are a few advanced functions related to manufacturing

Process outsourcing processing operations

Microsoft Dynamics 365 ERP built-in process outsourcing processing process, set outsourcing BOM on the system, you can automatically generate outsourcing purchase orders in the production process, and synchronize supplier and warehouse management. At the same time, it can also completely record the outsourcing production process on the system, including the management of outsourcing manufacturers, the transfer of materials to the warehouse, and the final completion of the warehousing record.

Process outsourcing processing operations

The outsourcing BOM can be set in the manufacturing process, and the outsourcing purchase order will be automatically generated when used, and the outsourcing and warehouse management can be synchronized.

Trial calculation of production costs

In Microsoft Dynamics 365 ERP, you can set costs for “raw material price”, “labor rate”, and “production rate” respectively, and then the system can integrate the data on BOM, Routing, and work orders according to the specified cost, integrate the complete cost record of the finished product, and view the complete details of the cost. At the same time, the selling price is estimated, and the sales department can provide a quotation benchmark relatively immediately.

Trial calculation of production costs

Dynamics 365 can provide complete cost trial calculations and breakdowns through default cost rules, combined with actual BOM, routing, and other information in the work order.

Batch number expiration date management

In Microsoft Dynamics 365 ERP, you can set an expiration date for a material, so that the expiration date of the material for each batch serial number can be seen at a glance in the system report. In addition to one-stop management of the expiration date, it can also avoid the business side or the manufacturing side from selecting expired materials when using materials for manufacturing.

Batch number expiration date management

The expiration date can be set according to the material in the system, and the expiration date of each batch number can be easily controlled.

Ticket management

The work order management on Microsoft Dynamics 365 ERP can be meticulously planned according to the process, with a complete record of the BOM and Routing consumed in the actual production time, and MRP in the early stage of production to help the production schedule by estimating the supplier status and available capacity!

Ticket management

Work orders on Microsoft Dynamics 365 fully integrate manufacturing-related details. It is also possible to set different specifications that include the same product.

Budget control

Microsoft Dynamics 365 ERP has a built-in budget control module, which allows you to set your own annual budget and control it according to the ledger account, and the budget can also be flexibly set up such as revision and transfer. In addition, in the control of the project budget, there is also a function that can control the budget across years according to the project.

Budget control

Microsoft Dynamics 365 ERP can set budget plans based on ledger accounts. And you can specify in which journals you want budget control to take place.

What ERP vendors are available in Taiwan?

Since its launch, Microsoft Dynamics 365 ERP has been selected as the leading brand of ERP system by Gartner, an internationally renowned market research company, for many years, and is also the first choice of many well-known enterprises in China. Dynamics 365’s twice-yearly system innovations are key to keeping him ahead of the times.

Microsoft Dynamics 365 ERP customer experience

In addition to Microsoft Dynamics 365, there are also internationally renowned ERP brands such as SAP, Oracle, etc. that can be applied in Taiwan.

How do you know if the system is right for your industry?

There is no ERP software in the world that can fully fit a company’s operating processes, and even self-developed systems need to go through countless revisions and adjustments. Therefore, when choosing ERP, the most important thing is whether the logic of the system itself can help the enterprise operate more efficiently, and the details need to consider whether the system can be customized flexibly according to the needs of the enterprise. As long as the system meets both of these criteria, it will be the right choice.

As for the success of the introduction, and the degree of application of the system can help the enterprise to what extent, it depends on the introduction ability of the consulting company. TmicroInfo has been deeply engaged in the field of Microsoft ERP for 20 years, serving customers in the manufacturing industry, extending to the food industry, biotechnology industry, green energy industry, and retail industry. Tianwei Information’s professional ability and introduction experience have been affirmed and recommended by customers at home and abroad. Welcome to use the button below to consult Tianwei information.