The modern manufacturing business is challenging. Multiple factors, such as the increasing cost of raw material prices, continuing load-shedding, challenges managing shop-floor processes, and a weak economy all contribute to the uncertainty of running the business. Business owners know that digital technologies have already led to manufacturing process improvement, resulting in increased efficiency and better overall business performance.
Technology solutions such as ERP are at the core of digital transformation. Modern Manufacturing Operations Management (MOM) systems are specifically designed to help small to medium manufacturers enhance their efficiency by providing a real-time view of all the processes in the plant. A MOM system does not replace an ERP system—it is a distinct but connected entity and is most effective when integrated with a manufacturer’s ERP system, as this provides the company with holistic, consolidated records of all business transactions.
Efficiency Crucial for Success
To gain a competitive advantage, manufacturers must be agile enough to respond to market demands at all levels of production without increasing costs or waste and sacrificing their efficiency. However, streamlining manufacturing processes requires efficient production planning, scheduling, inventory management, quality assurance and planned or predictive maintenance. To achieve this, effective MOM systems have become a critical factor in determining the success of factories.
Modern MOM systems are specifically designed to help small to medium manufacturers enhance their efficiency by providing a real-time view of all the processes in the factory. MOM is a highly efficient tool in the manufacturing arsenal for fine-tuning shop floor production processes and, when used correctly, can dramatically improve operations management, and provide highly granular data to the ERP system, which can be used to inform data-led management decisions.
By improving visibility of the factory floor through employee and machine tracking, manufacturers can become more competitive by introducing accurate planning, reducing lead times and loss by removing inefficiencies in their set-ups. MOM also allows manufacturers to identify slow processes and maximize the up time of their machines and employees. What this ultimately leads to is help in delivering finished goods to customers faster, while controlling labor and machine costs, identifying and eliminating bottlenecks and downtime, and eliminating waste.
MOM can radically improve production schedules, assist with planned downtime for scheduled maintenance, and provide a real-time view of job status in the production cycle. This in turn drives increased efficiency and lower costs. MOM also provides effective monitoring, which is a crucial part of ensuring adherence to the relevant regulations that manufacturers are subject to. This helps reduce the likelihood of fines or regulatory sanctions because of non-compliance.
Technological Advancements Optimize Manufacturing Process Improvement
A MOM system collects production information by integrating easily with equipment, controllers, and ERP systems. It monitors the entire manufacturing process from raw materials to finished goods, connecting everything from machines to equipment, people, and devices without the need for manual inputs. This results in business-wide, real-time visibility and control. The integration of advanced technologies including IoT, AI and data analytics provides highly advanced tools for tracking important factory floor metrics such as labor and equipment usage and performance.
For peak efficiency, manufacturing resources need to be deployed without wasting resources. With the fully automated collection of data, MOM helps drive lean manufacturing and continuous improvement programs. MOM provides a single source of data that enables 360-degree visibility across the business. This real-time data can inform quicker and more accurate decisions about work in progress, inventory, and advanced planning, along with capacity analysis. It also facilitates data sharing across the business, which encourages collaboration and focused decision-making for the benefit of the business as a whole.
The value of real-time visibility is crucial when it comes to manufacturing realities like stop/start and downtime, job assignments, operation status, machine status, parts and components counts, and performance issues. MOM provides managers with metrics that map overall equipment effectiveness and overall labor effectiveness. MOM will also help manufacturers optimize their automated and robotic processes for maximum gains at minimal cost.
Use Agility to Gain an Advantage
MOM has a hand in determining the effectiveness of processes across all aspects of operations management—from inventory management to production, quality control and maintenance. Without this planning and monitoring, manufacturers run the risk of production being delayed or halted for reasons ranging from inadequate inventory to quality issues and unnecessary wastage.
MOM enables organizations to analyze and generate accurate schedules that take resources and constraints into account. In this way, manufacturers can ensure that they have products ready for customers on time in the most cost-effective way while also reducing production costs.
Manufacturers can achieve the improved bottom line they are looking for in tandem with increased productivity. They also reap the benefits of more responsible energy, resource, and human resource use. Profit margins are already stretched thin in this industry, and an increase in manufacturing profit improvement can mean the difference between continuing to operate or shutting down the operation.
To discover more about MOM, click here to view this SYSPRO webinar on Increasing Productivity and Reducing Costs with MOM. PositiveVision is a proud reseller of SYSPRO ERP solutions to manufacturing and distribution companies. To learn more about SYSPRO ERP features, click here or contact us today to arrange your complimentary consultation with one of our product experts.