A Guide To The Manufacturing ERP Process & How It Works

Manufacturing ERP (Enterprise Resource Planning) is a powerful tool that enables manufacturers to streamline their production processes and improve efficiency. 

By integrating the various areas of production, from procurement to distribution, an ERP system can help manufacturers save time and money while increasing customer satisfaction.

With the right ERP software in place, manufacturers can manage all aspects of their operations with greater accuracy and productivity. In this guide, we’ll explore how an effective manufacturing ERP process works, the 8 phases of a manufacturing ERP process, and why it’s essential for modern manufacturers.

We’ll also look at some tips for getting started with your own manufacturing ERP system. So let’s get started!

Why manufacturing needs enterprise resource planning (ERP)

Manufacturing business success depends heavily on the efficient use of its resources. 

In order to remain competitive, manufacturers must be able to quickly and accurately respond to changing demands for their products and services. An effective ERP system can provide a comprehensive view of all operations, helping companies make more informed decisions that improve overall productivity.

The key benefits of an ERP system include faster delivery time, more accurate pricing and fewer manual errors. It also helps to reduce inventory costs by streamlining production processes and providing better visibility into the supply chain

This then leads to improved customer service, as well as greater cost savings in the long run.

7 signs you need a manufacturing ERP solution

You might need manufacturing enterprise resource planning software if:

  • Your inventory management is not up to date
  • You’re manually tracking customer orders and shipments
  • Information is not being shared across departments in a timely manner
  • Your supply chain management could be improved

A manufacturing ERP system eliminates inefficient manual processes and helps you to automate core business operations. By streamlining your production process, it can reduce overhead costs and help you become more competitive in the market. 

What is the manufacturing module in ERP?

Now for a closer look at the manufacturing module in ERP. 

This module is designed to help manage all of the operations related to production, from procuring raw materials to shipping finished products. But what specific features does it offer?

The manufacturing module typically includes modules for inventory management, order management, production planning, scheduling and control, quality control, product lifecycle management, materials requirements planning (MRP), and computer-integrated manufacturing (CIM).

All of these processes help ensure that the end product meets customer specifications in an efficient and cost-effective manner, whether you’re a small manufacturing business or a multi-company enterprise.

For example, Manu Online’s Manufacturing ERP Solution boasts a number of features and modules, including:

  • Customizability: Configure the system to meet your exact requirements.
  • Traceability: Keep an eye on what’s going on. Trace your items, materials, batches, expiry dates, and much more.
  • MRP in Real-time: Never again are critical components “forgotten” and remembered only when it is time to ship to the customer.
  • Inventory Control: Reduce inventory costs, speed up throughput, and increase profit. Full visibility on your products and materials.
  • Integrations: Use native applications already available in Manu Online or connect others through our modern Open API.

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Which process is supported by the manufacturing component of an ERP?

The ERP features above support a number of core processes for manufacturers. These include:

  • Inventory and Warehouse Management – Track and manage stock levels, locations, pricing, returns/refunds, and availability.
  • Order Fulfillment – Manage orders from customers, including the selection of products from inventory to meet customer needs.
  • Production Planning – Plan and execute the production process, from sourcing to shipping.
  • Materials Requirements Planning (MRP) – Calculate the materials needed for production using historical data and customer orders.
  • Quality Control – Ensure that products meet defined standards and requirements before release to customers.

What is the 8-phase manufacturing ERP process?

The 8-phase manufacturing business ERP process is a comprehensive guide to the various stages involved in implementing an ERP system in a manufacturing business. 

The process is designed to help businesses streamline their operations, improve productivity, and reduce costs while ensuring that all departments and workflows are integrated into a single system.

Here are the 8 phases involved in the manufacturing ERP process:

  • Evaluation

The first phase involves evaluating the manufacturing business’s current processes and identifying areas that need improvement. This involves conducting a comprehensive analysis of the manufacturing operations, including the supply chain, inventory management, production planning, and financials.

  • Planning

In the planning phase, the manufacturing business works with an ERP implementation partner to develop a customized plan that addresses the specific needs of the organization. This involves identifying the required modules, customizations, and integrations that will be required to meet the organization’s needs.

  • Prototyping

During the prototyping phase, the ERP implementation partner works with the manufacturing business to develop a detailed plan for the implementation of the ERP. This involves learning the ERP system’s features and mapping it to the organization’s unique requirements.

  • Configuration

In the configuration phase, the ERP system is configured to meet the specific needs of the manufacturing business. This involves configuring the ERP system’s modules, workflows, and dashboards to ensure that they align with the organization’s needs.Possible integrations would need to be made to other corporate systems.

  • Development

During the development phase, customizations and integrations are developed and tested. This may include writing custom code, integrating third-party applications, and developing custom workflows to meet the organization’s requirements.

  • Testing

In the testing phase, the ERP system is tested extensively to ensure that it meets the manufacturing business’s requirements. This involves testing the ERP system’s functionality, performance, and usability to identify any issues.

  • Deployment

During the deployment phase, the ERP system is installed and configured on the manufacturing business’s servers. This involves migrating data from legacy systems to the new ERP system and setting up user accounts and access levels.

  • Post-deployment support

In the final phase, the ERP implementation partner provides ongoing support to the manufacturing business to ensure that the ERP system is functioning correctly. This may include providing training to users, monitoring system performance and addressing any issues that arise.

What would be an example of a manufacturing ERP software?

Manufacturing ERP systems like Manu Online are great examples of manufacturing ERP software.

Offering features like real-time MRP in addition to inventory control, integrations and API, customizability, traceability, and more, Manu Online is an ideal solution for managing manufacturing processes from start to finish.

One example of manufacturing ERP technology in action is our work with biological manufacturing company, Ziath. By implementing our ERP solution, Ziath was able to reduce manufacturing costs, speed up throughput, and increase profit.

“We went from 250k and 5 staff to 2.5mil GBP and 30 staff using Manu ERP for the past 10 years. We had a look at other ERP solutions but the amount of customisation, the cost per year running and set up was quite large. 

Plus, some of the others weren’t as focused hardcore on manufacturing so for us they weren’t what we needed. Manu’s cost was good.”

Neil Benn – Managing Director, Ziath

Next steps

In summary, ERP solutions require planning and implementation. 

The 8-phase manufacturing business ERP process involves evaluating the business’s current processes, planning and blueprinting a customized solution, configuring and developing the system, testing it extensively, deploying it on the business’s servers, and providing ongoing post-deployment support. 

By following this process, manufacturing businesses can streamline their operations, increase productivity, and reduce costs through better integration of their workflows and data.

To learn more about how your business can benefit from an ERP system, contact the experts at Manu Online. We’ll help you find the right solution for your business, ensuring a smooth transition that will maximize efficiency and cost savings.

Grab a free trial today to get started!

Manufacturing process ERP: FAQs

Is SAP an ERP system?

Yes, SAP is a suite of enterprise resource planning applications designed to help businesses manage various processes in their operations. However, SAP is not designed specifically with manufacturers in mind, like Manu Online. If you’re looking for an outstanding manufacturing ERP system, Manu Online is the perfect choice.

What does ERP stand for in the manufacturing industry?

ERP stands for Enterprise Resource Planning and is the umbrella term used to describe a suite of business applications that help manufacturers manage their operations. The core modules of an ERP management system are inventory management, order fulfillment, production planning, scheduling and control, quality control, product lifecycle management, and materials requirements planning (MRP).

Do ERP systems work directly with manufacturing machines?

Yes, ERP systems can be integrated with various manufacturing machines to provide real-time data and visibility into the production process. This helps manufacturers make more informed decisions regarding their operations, leading to improved efficiency and cost savings.