Ever wondered why your manufacturing facility struggles to keep up with demand, even when you have plenty of resources and capacity? Understanding Infor ERP’s logic might provide the answer.
Why Manufacturers Struggle?
In many manufacturing plants, why production lags demand, despite having available resources, is a mystery. This is often due to inefficiencies in optimizing workflows. Simply put, bottlenecks are normal due to the nature of human and manufacturing environments. Inefficient Processes arise when specific workflows or procedures are less than optimum, leading to production delays. Bottlenecks and resource allocation problems often prevent smooth production.
Infor ERP Makes a Difference
Infor ERP tackles these issues head-on. At the heart of Infor ERP’s Manufacturing approach is a measurement called ‘Throughput’.” As defined in Dr. Eliyahu Goldratt’s landmark novel, ‘The Goal’, the rate at which a system generates profit and is measured as:
Throughput = Selling Value of Shipments − (Commissions + Cost of Materials + Cost of Outside Services)
When throughput increases and operating expenses remain the same, the value of the enhanced production output becomes Profit. Thus, the capability to fill backlogs, support increased sales and deliver on time, increases production throughput which positively translates into a Profit increase.
What Makes Infor ERP Special for Manufacturers: The Ability to Identify Bottlenecks and Proactively Adjust Capacity
It’s common to have enough overall capacity yet still not be able to schedule all jobs when you want, because the capacity on certain resources is not available exactly when you need it. This problem is compounded because of a fluctuating product mix, the bottleneck is continually moving. To counter, Infor focuses on the ‘severity of contention’. Contention occurs when the resource required is already being consumed at a higher priority job resulting in jobs being scheduled differently than it would be if it were the only job in the plant.
Infor uses predictive analytics to anticipate disruptions before they become issues and optimize processes. It also relies on real-time data for immediate adjustments, ensuring your production keeps flowing smoothly. It simulates different “what if” scenarios, like “What if this machine runs over the weekend?” Therefore you see potential outcomes before making decisions.
By harnessing these sophisticated methodologies, Infor enhances the operational efficacy of manufacturing facilities and accurately aligns production output with market demands. For manufacturers looking to refine their production processes and elevate their output quality, exploring Infor’s approach to throughput and capacity management can be a transformative step.
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