Process & Discrete Manufacturing & ERP - An Overview of Needs

By Victor Viser, Ph.D.

It is axiomatic that all enterprise resource planning (ERP) systems are not created equal. Some are quite industry specific, while others might be application specific. Some might have very narrow capabilities, while others might be designed for generic purposes across a broad array of industries-everything from thermoform plastic pressing to the greens-keeping of sporting facilities. Furthermore, with decades of maturity behind the concept, ERP has moved beyond just being a means to facilitate discrete manufacturing, but now is used to optimize process manufacturing and various hybrid systems that blend discrete with process.

Therefore, questions invariably arise when trying to determine the ERP system best suited for the type of manufacturing operation that needs it. Normally, the functional capabilities of a discrete-oriented ERP application are inherently different than those of either a generic or process-oriented ERP application. Knowing the differences in the two can often make the difference between positive returns on the software system investment and the creation of significant risk and taxing overhead costs because of it. For example, do you know the specific data modeling characteristics of the ERP software package you are considering, and do they interface well with your needs? What are the necessary enabling technologies involved?

Discrete manufacturers are those that execute processes involving single-stage assembly, multi-stage assembly, and/or packaging. An ERP application that facilitates these processes is usually based upon a multi-level BOM and a set of routing instructions for the operator(s) to follow. The more complex the BOM, the more attention must be given to planning/ scheduling. Indeed, in a multi-stage assembly job, a work order must take all necessities for the job into account and be defined, planned, and executed for each stage.

In addition, discrete inventory management must create outputs as well as anticipate the transfer of the shop floor output to inventory-particularly if various stage assemblies are drawn from inventory later for assembly into even larger assemblies. This cyclical assembly/inventory/assembly technique can go to as many stages as desired (and/or needed) by the company and the nature of the product itself. The result can be the expenditure of a great deal of time and labor on BOM and routing management as well as inventory management.

Process manufacturing, of course, has different resource planning needs. It's usually the case that an ERP system designed specifically for discrete will not run properly with process-though a system specifically designed for process can significantly simply and improve each step of the process manufacturing operation. For example, in contrast to the material and machine engineering needs of metal fabrication, process applications in industries such as pharmaceuticals must follow recipes, blending, cooking, continuous flow, and/or other formulae specifications that involve batch and batch reaction variables. To this end, it often a process-oriented ERP application that best employs formula specification that can most accurately manage the process and provide the accountability for all finished outputs.

Victor Viser, Ph.D., is a corporate and political communications consultant, web content producer, and photographer.

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