discrete manufacturing in sap ERP

Discrete Manufacturing in SAP for Industry


SAP Business One is the most suitable and affordable Manufacturing ERP Software for the discrete industries like Auto / Auto Ancillaries, Aerospace, Industrial Equipment, Engineered products, Electrical and Electronics, Telecommunication products, etc. Can specifically compose to sort out the industries challenges. It is the best business-integrated solution for the SCM (Supply Chain Management), PPC Production Planning and Control, MES (Manufacturing Execution System), IIoT (Industrial Internet of Things) like Machine Data, Man Data collection and analytics through the integrations of equipment and applications like ASRS (Automatic Storage and Retrieval System), Plant Machineries, Utility Equipments, Bank and Banking Applications, Vendor Evaluations, HRMS, be it Engineered to Order, Job Shop, Mass Production, High Volume High Mix, Low Volume High Mix manufacturing environments. The best is it reflects the eccentric business legacy in a correct sense indeed, to enable successful businesses practice to compete in the market you serve in to become the most sustainable and resilient to growth.


    How Manufacturing ERP Software Aids the Discrete Industry?


    Key-Value Enabler

    Business One is a comprehensive business solution that covers every discrete manufacturing need. It provides a seamless workflow to manage discrete manufacturing processes, starting from Customer Relationship Management (CRM) [enquiry to sales and service], Procurement to Pay, Subcontracting, Production Planning and Control, logistics (Delivery and Shipments), KANBAN, Production Leveling, Capacity and Capability risk mitigation, Inventory Management (Raw Material, Work Inprogress, Materials at Vendor locations, Reconciliation and Yield Management), quality management and full compliance to ISO. SAP Business One is an ideal business solution and best fit for small- to medium-sized discrete manufacturing industries.

    Listed below are the 5 most leading value additions for the discrete Manufacturing Industries among all others while selecting the appropriate and best fit ERP.

    1. MRP I & MRP II
    2. Inventory, Traceability, and Yield
    3. BOM & Routing
    4. Estimation, Costing and COGS
    5. KPI's and Measurements (MRM Analytics Ready)

    MRP I & MRP II: Demand-Stir-Key

    A competent and conversant SAP Business One for manufacturing industry exploits the built-in features to adapt the current and future requirements quickly and easily to set up, run and process the results for effective Material Resource Planning (MRP-I), and the demonstrates the connectivity in the relation to Manufacturing Resource Planning (MRP-II) with little or more configurations and customisation to reflect your capacity vs capability legacy management into digital (error-free automation of the complex routines into simplest results), along with yield management.

    Demanding:

    Synchronising the MRP I with MRP II in the discrete manufacturing industry is the need of the hour and most challenging task due to multiple factors and variables of the customer, product, processes, Bill of Material (BOM), Routing (methods of machining, Sequences, alternatives, etc.,) Resource allocation and (Selection Machines and alternatives like labour workgroup skilled, semi-skilled and un-skilled)

    Stir:

    Although your discrete manufacturing business is similar to others, your practice (ways and means) is unique and incomparable with others, which is your strong Intellectual Property, whereby sourcing the materials and job work, tools and consumables, production planning and control, inventory and yield management, inclusive of scrap and swarf reconciliation (nonconformance and material scraps) in the process of value addition; changing shape and form of the raw material to finished product is a greater responsibility. The System has to be robust and agile (flexible to the time) to make the essential process changes sincerely with time-bound results to satisfy the customers and top management.

    Keys:

    Zyple Software offering with Manufacturing ERP Software for discrete industry gives you complacent advantages on the MRP I and MRP II the key business processes with exclusive attention to your legacy requirement to react and pro-act with suitable correction actions and corrective actions to result in ease of operation and sustained results.

    Inventory, Traceability & Yield: Demand-Stir-Key

    Material Batch, heat traceability and Yield management is inevitable (unavoidable) within the SCM (Supply Chain Management) of discrete manufacturing is an essential need to automate and retrieve the data for current and future needs.

    Demand:

    Tracing the material flow, workflow, document flow and change management in the processes are of paramount importance to see through and retrieve to meet and assure the business stakeholders, shareholders, customers, government regulatory departments, independent third-party audits so on so forth.

    Stirs:

    Integrating complex material flow, workflow, documents, test reports and records in a single platform and relating them rightly agitates it critically to realise the business sustainability and profitability.

    Key:

    Zyple software the best SAP Business One Partner ensures and demonstrates vis-versa traceability to customer Purchase Orders and Sales Invoices with the right relationships with the material procurement documents, batch and heat code, workflow in an effective and efficient drill down manner.

    the above listed are some of the must requirements to fit with your legacy SOP's (Standard Operating Procedures) and assure traceability and inventory management is made easy and fully compliance with the customer as well as statutory and legal compliances. (in a nutshell, retrieve the data in secs).

    BOM & Routing: Demand-Stir-Key

    Often product BOM is managed with a spreadsheet or different sources independently and at times it is more complex to reconcile the yield with scrap (non-conformance and swarf), and alternative machines or resources used in production planning and control in the supply chain to reconcile the profitability.

    Demands:

    Establishing the raw material, input quantity, by product group and part number, yield variations and swarf and non-conformance accounting at a single source concerning the complexity of engineered to order, make to order and make to stock scenarios are challenging in nature and becomes added complexity to reflect the legacy as well.

    Stir(s):

    Bill of Material and Routing consisting of the raw material, resource cost (machine, Labour - Skilled, Semi-Skilled and Un-Skilled), Special processes like surface treatments, heat treatments are becoming the part or product realisation cost (conversion cost) in real-time with arise cost calculation to relate with Cost Of Goods Sold (COGS) is a mandate for the business controller to take correction and corrective actions with desired results. at the same time, where the alternative and multiple BOM and Routing options are made available to realise the part or product delivery to the customer by effectively utilising the resources to satisfy the customer needs further agitate the challenge.

    Key(s):

    Zyple Software the leading SAP Business One partner offering in Discrete Manufacturing Industry (DMI) solution is a complete suite to BOM and Routing. A custom configurable solution for your business legacy operations that operate sustainability, profitability and growth. It helps you make do raw materials more efficiently, improve yield, reduce the cost of poor quality and increase productivity.

    • tickRaw Material Vs Batch Vs Yield
    • tickMultiple BOM (Alternate BOM's)
    • tickMultiple Routings (Alternate Routings)
    • tickEstimated Yield Vs Actual Yield
    • tickYield Gain or Loss
    • tickProduction Gain or Loss
    • tickRaw Material Loss in Production
    • tickSwarf Generation
    • tickConformance to Quality
    • tickNon-Conformance to Quality
    • tickFIFO (First-In-First-Out)
    • tickLIFO (Last-In-First-Out)
    • tickMoving Average Cost
    • tickAccrued Cost
    • tickVendor / Subcontracting Reconciliation

    As the raw material conversion progresses, the cost calculation with the yield progresses simultaneously and sequentially is captured in the SAP Business One ERP in real-time. This facilitates the business leaders (management) to take necessary actions with the data evidence.

    ERP for manufacturing Industry pdf

    Zyple MES Hybrid Suit is a supreme add-on designed with MESA 11 standards integrated with SAP Business One Manufacturing ERP software is unlimited licence access installed on the shop floor reveals the following in a real-time.

    • tickPeople Deployment (Machine Vs Operator)
    • tickWork Deployment (Activity Vs Operator)
    • tickCapacity Vs Load
    • tickAlerts (Run, Idle, Break Down, Yet to Start)
    • tickTools & Consumables
    • tickProduction Part Traceability
    • tickGeology (where the material is on the shop floor)
    • tickProduction Qty in Real-Time
    • tickSingle Click Approval of Job Card
    • tickOEE Report
    • tickAlerts & Escalations
    Estimation, Costing and COGs: Demand-Stir-Key

    Part or product price estimate and cost calculation (be Should Costing or Activity Based Costing) are adopted by the discrete manufacturing industries in an ERP is to support and reveal the history to quickly estimate and submit the quote to the customer to bag the orders, then fine-tune it with Cost of Goods Sold (COGS). For more than a decade the pricing and cost calculations are maintained and managed with a spreadsheet, and the limitations in urging the need to automate with a comprehensive solution not only to estimate and compare, additionally to empower the engineers to quickly submit the competitive quote to the customers.

    Order to:

    Material specifications, in house regular production processes, special production processes (either in-house or out-sourced), machine tools trials and selection, inbound and outbound logistics, pricing conditions, vendor managed inventory, payment terms and customer account relationship management are the few imperative combinations that sum up the estimation and costing complexity with high variability to prepare the quote and submit on time to bag the orders. (earlier quote Submission has higher probability to bag the order than on-time submission)

    Stir(s):

    As the challenge complexity increases along with the different customer variability, the estimation breakdown elements and structure further agitates the challenge to the next degree. In addition to this when the sale is realised the COGS to the original or revised estimate is essential to know the profitability concerning the line item (part or product) agitates the business environment between manufacturing operations with Finance and Control functions (Tug of War to conceive and compensate )

    Key(s):

    The pioneer SAP Business One partner, Zyple Software solutions designed a configurable add-on solution to meet every discrete manufacturing estimation and costing legacy in a simplified manner with the following important variables and parameters along with history representations, suggestions and recommendations to submit the quote at the earliest possible.

    • tickProduct / Part Group
    • tickProduct / Part Nomenclature
    • tickMaterial Specs and Approved Alternatives
    • tickBOM and Routing PFD's
    • tickSpecial Processes
    • tickYield
    • tickTools and Consumables
    • tickGauges and Instruments
    • tickConformance to Quality Cost
    • tickNon-Conformance to Quality Cost
    • tickSwarf recovery
    • tickRejection Rate

    As the production run begins and sale is realised the holistic comparison of planned vs actual cost is revealed and alerts the respective functional heads to initiate correction and corrective actions. (Powers Management with COGS actions to improve the profitability)

    KPIs and Measurements: Demand-Stir-Key
    Demands:

    Usually, every organisation sets the Key Performance indicators with lagging or leading ones to drive the business performance in the required direction and wish it realises the results in terms of productivity improvement, cost reduction, improved cash flows, better asset utilisation, lower breakdowns, higher availability, reduce purchase pricing variations, and much more.

    Stir(s):

    In the real world, the reviews and actions take place as long as 12 months and some exceptions do it as short as one month (4 weeks), however, the frequent alignment of the indicators to the metrics are very very little. This demands tweaking the KPI with Business Plan is a challenging task as time progress to sustained profitability.

    KPI & MRM Key(s):

    The SAP Business One Hana built-in analytics and pervasive analytics tools power the business leaders to set up the KPI with time progression against the business plan quickly and easily to measure and monitor (since the measurement is automated, the analysis is also automated). as the KPI's display on the screen at first (login) and every time (navigate to other transactions), the respective KPI owners watching the trend probability is 100% to initiate the actions, further respective alerts and escalations are made easy to have a quick discussion between peers and leaders.

    As we Jump into MRM (Management Review Meetings), at periodical intervals, the time and effort spent for the analysis part of review preparation are zero. and it's time to evaluate the ideas to implement and see the results with appropriate approvals in the MRM. This facilitates "Actions Speaks Louder Than Words" in the MRM with the KPI DashBoard and relevant actions list with flags and reminders.

    Conclusion Note:

    Zyple Software solutions continuously making efforts and investing in research and developments in customized add-on solutions to enhance user experience and business legacy reflection in every vertical, to ensure the clients remain competitive in their market segment. Talk to us, let's explore keys to unlock your business potential to remain profitable at all times.

    Download Manufacturing ERP Requirements Check List: Click