The major area of
concern to many manufacturers is keeping the cost of production down. Over the
last decade there is no lack of management gurus with theories and principles
that is been put out in the internet and that has continued to be refined and
practiced.
Highly influential management guru and author Stephen R. Covey teaches that each of us has a multitude of things that concern us. Covey labels this as Circle of Concern. He divide this into two parts, the other is Circle of Influence - something that you can do something about. (Manage & control) ~ The Seven Habits of Highly Effective People ~
Highly influential management guru and author Stephen R. Covey teaches that each of us has a multitude of things that concern us. Covey labels this as Circle of Concern. He divide this into two parts, the other is Circle of Influence - something that you can do something about. (Manage & control) ~ The Seven Habits of Highly Effective People ~
Market volatility and some internal circumstances may be beyond a manufacturer control. But what is within our control is proper planning. To maximize productivity, every company needs a sound production plan. However, effective planning is a complex process that covers a wide variety of activities to ensure that materials, assembly line/work-centre and working capital resources are available when and where they are needed.
Manufacturing industry challenges
- Increasing
operational costs
- Increasing
material costs
- Inconsistency
in order volume from customers
- Need to
maintain profitable output with fewer headcount
- Increasing
global competition
- Increased
competition from large suppliers moving down market
As the inventory assets (raw material &
finished goods) continued to make up a major chunk of your balance sheet, apart
from your plant and machineries. So the
major area of focus is on production optimization seems to come down
to getting Control of your
manufacturing business by reducing your inventory, keeping it as
low as possible and reducing waste at every step. (Lean Manufacturing Concept) This will
help you get control of your production, and streamlining your production
activities because it has been reported that almost up to 80% of cost in COGS
is incurred during production.
If you fail to plan, you plan to fail
Forecasting production or demand as it is a significant problem for most businesses. (Seasonal businesses also have to match resources to the seasonal peaks.) Production planning should cover the following essentials:
Forecasting production or demand as it is a significant problem for most businesses. (Seasonal businesses also have to match resources to the seasonal peaks.) Production planning should cover the following essentials:
1.
On Demand Forecast
2.
On Sales Order integration.
3.
BOM & Sub-Assemblies
4.
Raw Material & Finished Goods.
5.
Purchasing integration
Production planning is like a
roadmap: It helps you know where you are going and how long it will take you to
get there.
 |
| Sage 300 - Production Planning |
Potential for Returns
For a system that is successfully
implemented and knowledgeably operated, here are some benefits of an effective production plan and
scheduling.
·
Reduced inventory costs by decreasing the need for safety stocks and
excessive work-in-process inventories.
·
Reduced labour costs by eliminating wasted time and improving process
flow.
·
Optimized equipment usage and increased capability.
·
Improved on-time deliveries of products and services.
·
Improved Operational Cash Flow.
Low Total Cost of Ownership
Sage 300 – is one of the most affordable and easy to use manufacturing
software systems available, not just because of its low purchase price, but
because the software is designed to be easy to understand and fast to deployed.
Also any unexpected expenses that can escalate the total cost of owning
software have been eliminated in the design. It is totally scalable: starting
from Standard Editions (up to 10
users) to Advance Editions (up to 20
users) up to Premium Editions. (Up
to 255 > users)
Sage 300 – Manufacturing Systems covers the following area of your manufacturing practice.
The design of Sage 300 ERP is certain to give companies greater value for their investment than any other manufacturing system available.
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About Careware: To learn all about Sage 300 Manufacturing Solution,
contact CAREWARE Manufacturing Account Manager today by calling: Tel: (03
2714 3855) or by emailing to : sales@careware.com.my.
There are multiple licensing options; one is sure to be a perfect fit for your company.
http://www.careware.com.my/sage-300-erp/sage-300-manufacturing/
There are multiple licensing options; one is sure to be a perfect fit for your company.
http://www.careware.com.my/sage-300-erp/sage-300-manufacturing/
