Infor LX & BPCS: What are your production orders telling you?
Measure what you want to improve.
Six simple words, but put together they convey a powerful concept that can transform manufacturing companies. It’s a basic concept that’s hard to argue with: Collect data, see where the data leads you, and make changes that have a positive impact on the data. Repeat often.
If your company is manufacturing a product, you’re more than likely creating manufacturing variances. These variances tell managers where the company is not performing to the standards that were created and agreed to by those responsible in the Engineering, Finance, or Production Departments. There is almost a 100% chance you are creating either favorable or unfavorable manufacturing variances and, quite frankly, none of the variances will ever be favorable because the company is either over-costing or under-costing the production parts.
The data is all there within your ERP system… or at least it should be… provided that you are not tracking production information outside of your ERP system in a spreadsheet.
Analyzing your production orders can help you track down:
- Missing labor entries
- Incorrect labor standards
- Incorrect time estimates for routing steps
- Inaccurate or non-existent material issues
- Work order structures that are not accurate
- And more
Not sure where to start? Crossroads RMC’s supply chain and manufacturing audit can help identify problem areas in Purchasing, Customer Service, Billing, Inventory, Costing, Bills of Materials and Routings, Material Requirements Planning and Shop Floor Control, and more.
Request a Supply Chain & Manufacturing Audit, or Contact me today to learn more - 800.762.2077