The manufacturing sector in India is experiencing significant change. As we approach the era of Industry 4.0, digitalization, and a stronger global competition, your factory will continue to require skilled labor and machines - but it will also require a more potent option, which is a strong ERP (Enterprise Resource Planning) software, to compete effectively.
In general, ERP software helps your factory become optimized in its operations and drive overall efficiencies while gaining a real-time view of all aspects of production; however, not all ERPs are created equal. To maximize the benefits of manufacturing ERP software, Indian factories must ensure that the system has the tools specific to their operational challenges.
This discussion focuses on the five must-have ERP features your factory in India needs, and how you can change the game for your manufacturing process by using them.
Real-time production planning and scheduling is a must-have feature found in any production ERP software. Many factories struggle with machine downtime, late orders, and production run changes from varying customer demand. If production scheduling is no longer accurate, it will create a bottleneck in production, resulting in late deliveries and wasted resources.
Benefits of Real-Time Planning:
- Better Use of Machines: Use machines based on the available machines and workload.
- Dynamic Scheduling: Adjust production schedules in real-time based on any demand, material availability or other circumstances.
- Reduced Lead Times: Shortening lead times and getting orders fulfilled faster improve customer satisfaction.
Manufacturing ERP software brings data about production into the fold with inventory module considerations and linked to supply chain modules to assist planners in making educated decisions immediately concerning machine loads and order sequencing. For small factories, manufacturing software for small businesses is designed to provide simple scheduling tools without any of the complexities that accompany larger ERP software systems.
For example, a medium-sized automotive component factory, located in Pune, used production ERP software and tracked machine loads and order sequencing. As a result, they increased delivery on time by 22%.
Effective inventory management is essential for cutting waste, reducing your storage costs, and ensuring continuous production. Manufacturing inventory software will let factories track raw materials, semi-finished, and finished goods in multiple locations.
Key Features of Inventory Modules:
- Stock Level Alerts: Avoid stockouts and overstocking by automating stock level alerts.
- Batch and Lot Tracking: Ensure traceability for quality assurance and compliance.
- Procurement Integration: Automatically replenish your stock using consumption data.
- Live Data: Make sure your warehouse and production teams always have accurate stock information.
Factories can remove manual errors, decrease waste, and utilize storage space efficiently by incorporating inventory management within your manufacturing ERP software. For a smaller business, the manufacturing software for small business will provide lightweight, easy-to-use inventory tools as your business scales.
For example, one textile factory in Surat utilized manufacturing inventory software and reduced their fabric waste by 15% while simplifying procurement workflows.
In India's challenging manufacturing sector, consistent quality is essential. Factories must meet industry standards, ISO certifications, and safety regulations. The integration of quality control modules in ERP systems will ensure that each product meets set specifications and standards.
Benefits of Integrated Quality Control:
- Inspection Checklists: Uniform checks at each stage in production.
- Defect Tracking: Timely defect monitoring and corrective action.
- Audit Trails: Documentation for compliance reporting and certification.
- Supplier Quality Management: Assessment of raw material quality before production.
Production ERP software ensures that quality data is collected in real-time and connected to production and inventory modules. This not only helps minimize defects, but also allows manufacturers to achieve high customer satisfaction.
Example: Pharmaceutical manufacturer based in Hyderabad implemented manufacturing ERP software that had quality control features. The company achieved an 18% reduction in batch failures while maintaining regulatory compliance without the need for excessive manual effort.
Making decisions based on data is no longer optional. Factories create a voluminous amount of operational data on a daily basis—spanning production data to material usage, with each excess minute of data potentially having some value. Manufacturing ERP software can provide all of the analytics and reporting capabilities needed to utilize this data, turning it into actionable intelligence.
Analytics Features to Look For:
- Dashboards Monitoring: Observe KPIs such as production efficiency, machine utilization, and order completion.
- Reports: Create insights for finance, operations, and management teams.
- Predictive Analytics: Predict demand, plan your resources, and flag potential delays.
- Costing: Track costs related to production by product, batch, or department and see where potential savings are.
For smaller factories, the manufacturing software for small business uses simplified dashboards and reports. It reports key performance indicators in a way that does not provide too much detail for the user.
For example: A food processing SME from Maharashtra began using production ERP software with advanced analytic capabilities. They found poorly performing machines, adjusted schedules, and increased productivity by 20%.
An premier ERP system is more than just a production management system; it links all functions of a factory's operation. All the functions of the company communicate with each other through financial, HR, and supply chain modules.
Key Integration Benefits:
- Finance: Accurately monitor production costs including items such as payroll and budgeting.
- Human Resources: Track employee hours to see productivity, attendance, and efficiency.
- Supply Chain: Real-time updates from suppliers and logistics partners guarantee that the organization can account for everything arriving as planned.
- Customer Relationship Management (CRM): Connect production with sales orders and customer demand.
Manufacturing ERP software integrates these modules to break down silos, eliminate manual data entry, and provide a more complete look at what is happening in the operation in the factory. For smaller factories, manufacturing software solutions for small business can be brought in stages, implementing core legislative modules then enlarging systems gradually as the operation grows.
For example, in Chennai a metal parts manufacturer installed production ERP software with a finance, and HR module to make a very simple process possible; therefore, it eliminated the discrepancies between payroll, machine utilization, and production costing on machines, saving the manufacturer about 12 percent in their operations costs to run the factory floor.
Beyond the top five features, some factories benefit from additional ERP capabilities:
- Mobile Access: Supervisors and floor managers will be able to access apps on their Android devices to update data.
- Custom Workflows: Customize workflows specifically to how each factory conducts business.
- Supplier Portal: Our suppliers will be able to view their orders and deliveries in real time.
- Customer Portal: Our customers will be able to track their orders in real time.
These additional modules enhance collaboration, transparency, and efficiency across the manufacturing ecosystem.
Implementing manufacturing ERP software provides measurable benefits:
- Less Downtime: Improved scheduling and maintenance tracking.
- Less Waste: Improved tracking of inventory and materials.
- More Productivity: Enhanced workflows and visibility.
- Less Costs: Better use of resources resulting in less waste associated with operations.
- Compliance: Integration of quality assurance and auditing capabilities.
Even small manufacturers can use manufacturing software for small businesses to achieve similar levels of improvement without a lot of initial capital investment.
Example: A small electronics manufacturer in Bengaluru used manufacturing ERP software and improved machine utilization by 18% and decreased material waste by 10%.
Evaluate Your Requirements: Determine product or process challenges related to production, inventory, human resources, and finance.
Module Specific to Your Industry: Be sure the ERP system offers Industry-specific features that match your style of manufacturing.
Scalability: Select a product that has the ability to grow with your factory.
User-Friendly: A user-friendly interface will help with the acceptance across all teams.
Vendor Support: Look for vendors with experience in the Indian manufacturing environment.
Investing in the right manufacturing ERP software ensures long-term operational efficiency, scalability, and profitability.
For factories located in India, selecting the correct ERP solution is no longer optional; it is required. Given it is the top five features of real-time production planning, inventory management, quality control, analytics, and full integration, to help a factory operate without downtime, to help the factory operate without waste, and to help with decision making.
It doesn't matter if you are a large manufacturer or a smaller manufacturer using small opt shop management software to get the business going - portions and made software (production ERP software, manufacturing inventory software, and the best ERP system for your situation) achieves those goals to an overall leaner, efficient, and competitive factory.
Factories who adopt these ERP functions today will better be able to meet growing market demands, reduce their costs, and grow and scale their businesses in the coming years.