Why Manufacturing Requires Specialized Management Tools

David Altemir, President of Dallas-based manufacturing consultancy Altemir Consulting writes about what manufacturers need and where they could find it.

The following article was written by Dallas-based independent manufacturing consultant David Altemir, President of Altemir Consulting.

Our system-agnostic manufacturing consulting practice helps manufacturers of all sizes to select, implement, and operate ERP systems.  MRPeasy continues to provide the highest bang per buck for small manufacturers interested in gaining better control of their operations and positioning themselves for future growth.

This article outlines some areas where MRPeasy differentiates itself from competing ERP solutions. 

Manufacturing requires specialized management tools

Many manufacturers that began their business operations only using spreadsheets, inventory tracking software, or QuickBooks now understand that these approaches represent only partial solutions.  While you could perhaps use inventory software or QuickBooks to effectively run a retail or service business, a manufacturing business has special requirements for accurately managing inventory and costs.  

Sales, purchasing, inventory, and manufacturing must all be transacted in the same system for raw materials and finished goods inventory to be correctly tracked.  The phenomena of converting raw materials A and B into finished good C only exists in manufacturing.  The correct selection of operations management software is therefore essential.  

MRPeasy satisfies these basic requirements to enable a comprehensive and effective operating management solution.

Ease of use

Of the dozens of ERP solutions we have seen that include tenured enterprise systems such as SAP, Epicor, Infor, and NetSuite, none of them have as simple, modern, and attractive user interface as MRPeasy.  The pages of this cloud-based system are intuitive, clear, and easy to navigate.  Training and implementation of MRPeasy is usually possible in under 30 days thanks to its effective user interface design and feature layout.

Data and transactions are easy to find using MRPeasy’s data grid filters, which are standardized broadly across the system.  Jumping from transactions to master data and then back again can usually be done in one click. 

The shop floor interface is simple and clean, making it easy for production workers to log their labor hours and report progress.  What’s more is that all MRPeasy pages and functionality display rather nicely on tablets and smartphones making remote work a delight. 

Actual costing

A feature that differentiates MRPeasy from many of its direct competitors is that it is an actual costing system, as opposed to a standard costing system.  Inventories of an item can be tracked, traced, and absorbed at different unit costs.  

This is important for correctly costing commodities that are susceptible to market price fluctuations and inflation.  

It is also an essential ERP function for many manufacturers where product costs vary or are not reliably known.  This applies to start-ups or new product introductions where unit costs may not yet be fully understood.  It also broadly applies to make-to-order or engineer-to-order manufacturers where custom or non-standard one-off products are prevalent.

Material traceability

A byproduct of actual costing is that raw materials are directly tied (i.e., “booked”) to parent products.  This provides a path for actual material costs to flow, but it also plays an important role for quality assurance.  What’s more is that this capability exists naturally in MRPeasy right out of the box.  

In MRPeasy, purchased and manufactured items are linked together so that threads of traceability can be established that begin with purchased raw materials and end with products shipped to specific customers.  This is important for many manufacturers, particularly those in food, chemical, aerospace, or medical device industries where regulatory requirements may apply. 

Material requirements planning

MRPeasy supports the two basic approaches to material planning: discrete and order point.  This is the core of MRP functionality that allows the computer to accurately tell buyers what needs to be purchased, how much, and when. 

The Requirements page provides “discrete” purchasing requirements for just-in-time (JIT) material management.  Alternatively, the Critical on Hand page provides “order point” purchasing requirements for those materials where standard stock on hand is desired and reorder points have been defined.

Both user interfaces allow buyers to convert purchase requirements into purchase orders in one click.  The ability to group multiple items on a single purchase order is also appreciated.

Accounting integration

The accounting integration between MRPeasy and QuickBooks, as well as Xero, has become quite good over the years.  Additionally, the inclusion of a native accounting module within MRPeasy is also beneficial for quick reporting and validating the transfer of data to external accounting systems. 

Accounting system integrations can be tailored as needed and the capability to properly track unit costs and profitability at the manufacturing and customer order levels is well supported.

Multiple shipments, receipts, and invoices

Businesses where partial vendor or customer shipments can exist are well supported by MRPeasy.  The capability exists to create and track multiple shipments, deliveries, and invoices for both customers and vendors.  This also means that there are mechanisms in MRPeasy to support initial deposits, third-party freight, and progress billing.

Conclusion

Manufacturers that reached a level where they have attained, or plan to attain, significant order traffic or operating complexity must consider integrating their sales, purchasing, inventory, and manufacturing within a single operating system.  MRPeasy provides a cost-effective solution that is simple to implement and maintain while still providing all the key features important to modern manufacturers seeking new operating efficiencies and competitive advantages.

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