How to reduce waste in manufacturing using ERP

Posted by Stephen Whitehouse on 18 Nov


Enterprise resource planning (ERP) systems are a great way of integrating processes and ensuring your business runs smoothly. One thing you may not have realised is how it can also help you to reduce waste in your manufacturing business. Anyone who owns a business knows that wasted anything soon translates to wasted money, something none of us wants or can afford.

Here is how ERP can help you to reduce waste:

Management of machinery

Any time your machinery is moving, this creates wear and tear on the parts. The more it is used, the more likely parts will need to be replaced. A poorly designed production process can waste time, as well as causing stress and the potential for resource inefficiencies. ERP can be used to create a streamlined process, cutting your task time and making the best use of your equipment. It can also help manage machine maintenance.

Prevent transport waste 

When parts of your overall product or components are being moved waste can occur at any time. With the right ERP system, you can identify and target key points of production and logistics so that materials and goods are not moved unnecessarily or placed in a strategic position to minimise unnecessary movement. You can also keep track of all transport machinery, scheduling use to maximise value.

Ensure productive workflow 

Any time you or a member of your team is waiting for something could be an inefficient use of time. You may wait for information, sign-off, materials, or for other parts of a process to be completed. With ERP software, you can plan more efficiently, reducing time lag by giving your team access to key details and information. The right ERP system will help you to streamline decisions and sign-offs with automation and coordination between departments.

Eliminate overproduction 

Overproduction can be a major cause of waste in manufacturing. If you produce more than is required, or earlier than it's needed, this can cause real problems. Of course, you can't predict the future - but the right ERP solution can help you to manage your supply chain, providing you with the control and oversight to ensure your production is at the right level, ensuring you keep up with demand.

Minimising defects and maintaining quality

Defective products on your production line waste time, resources and materials. They can also cause a negative customer experience which is always bad for business. A good ERP system will allow you to put stringent quality control measures in place so that you can identify and rectify any deviations in the quality of your products, as soon as they occur. You can then prevent this ruining any further production, making the necessary changes to put things right.

Help to reduce inventory waste

Inventory waste can occur when forecasting has been incorrect, or your production, planning or distribution have been ineffective. Holding inventory of parts or materials, or perhaps entire products can add to waste in transport, as well as an additional risk if it goods spoils or becomes obsolete. As well as this, it takes up valuable warehouse space.

An ERP system can help you to reduce inventory inefficiencies, as it allows you to order components when required and produce and ship in good time, rather than keeping items waiting around. It can work well for you whether you mass-produce batch items or manufacture to order products.

For more information on how WinMan ERP software can help your manufacturing business reduce waste, contact us today.

>> Download our eGuide on 'How to Tell You Need a New ERP System' 

Topics: Manufacturing, ERP Software, Business Management Software, Production Management, Cloud ERP

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