Author: Paul Henriques in: Implementations
The fourth Industrial Revolution has seen the implementation of hundreds of technologies across countless shops, turning them into “Smart Factories” where everything has been integrated with new technology and process controls. The inter-connection of information systems with physical processes has led to boosts in productivity and competition across markets.
One of the key components of a smart factory is a full-featured ERP system. This is the central brain that leads to smarter decisions due to access to smarter data. Some of the key benefits include:
One of our clients recorded data for their cost centers before and 6 months after the ERP implementation, including the following:
Checking their data from before and after the implementation saw the following results:
| Time and Labor Required |
Time Improvements |
Cost Reduction |
| Process received purchase orders |
15% |
33% |
| Manage MRP and issue purchase orders |
64% |
53% |
| Gather production data |
60% |
25% |
| Review production data |
30% |
10% |
| Changes From |
Time Improvements |
Cost Reduction |
| Monitoring-related productivity gains |
0% |
3% |
| Gather production data |
64% |
53% |
| Review production data |
60% |
25% |
| Capacity planning time |
15% |
10% |
| Staff commitment and decreased absenteeism |
10% |
0% |
| Changes From |
Time Improvements |
Cost Reduction |
| Decreased preventive maintenance due to monitoring |
12% |
7% |
| Decreased energy consumption |
0% |
12% |
| Less downtime |
27% |
15% |
| Less PPM rework and scrap |
15% |
21% |
| Improved machine availability |
4% |
1% |
The firm in the above case study, after their ERP implementation, saw net real gains of over 18% when combining the fiscal totals for the measured KPIs.
While these benefits vary from one implementation to the next, most shops will see similar gains, especially when pairing their ERP with other Industry 4.0 technologies, such as: Shop monitors, bar code scanners, optical character recognition, vision systems, and others.
For more information about how OnRamp ERP software can add value to your business fill in the contact form below. A member of our support team will contact you within 1 business day to discuss any questions you have.
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Our efforts began as an internal project of Mancor Industries when we identified the need for a more cohesive ERP system to manage the complexity of multiple plants, multiple products, multiple customers and multiple functions.
Read MoreHas your business outgrown a patchwork of disconnected systems? This checklist helps you assess readiness, identify gaps, and prepare for a smooth transition.
