This simple test will tell you just how ready your company is to adopt new process manufacturing ERP software.

1.  Does your company currently use formulas?

• Yes. Go to question 2.
• No. Stop. Most process manufacturing companies rely on formulas to track their material requirements. These are normally referred to as batch or process manufacturing systems. If you answered “no” to this question, you probably aren’t in the market for process manufacturing ERP software; instead, a job shop or a discrete package may be what you need. More information is available job shop solutions by calling our office.

2.  Does your company currently have some kind of manufacturing software in place?

• Yes. Go to question 3.
• No. Stop. You face a serious competitive threat from other companies that are reaping the benefits of manufacturing systems. Download the kit at the end of this post to get started on an implementation plan today.

3. Has your company experienced huge growth or significantly altered its lines of business in the last three years?

• Yes. Stop. Growth or other significant business changes could mean that you’re outgrowing your current systems. If your growth path is projected to continue, you need to consider new more specialized business software right away to ensure that your current system does not become obsolete.
• No. Go to question 4.

 4.  Does your system provide fully automated lot traceability and tracking through all material levels and suppliers?

• Yes. Go to question 5.
• No. Stop. Your ability to respond to a product recall from up or down the supply chain is at risk. This is both a safety and government compliance issue that can’t be ignored. You may have other issues in meeting reporting requirements to support HACCP and the Bioterrorism Act.

5. Can your system track costs based on materials consumed by product with varying yields?

• Yes. Go to question 6.
• No. Stop. Understanding product costs and profitability is at the core of effective business management. You should begin planning to implement a system that can support this critical need.

 6. Do you know the location and quantity of material in your plant or warehouse at any stage of production in real time?

• Yes. Go to question 7.
• No. Stop. The inability to accurately locate materials at any stage of production can contribute to costly inefficiency through wasted time and effort and possibly missed production. If this is an issue in your operation, you should be evaluating systems that can help you to address it.

7. Can you accurately identify the quantity and timing for materials you need to purchase or make to meet actual or projected demand? In other words, does your system support MRP?

• Yes. Go to question 8.
• No. Stop. Buying or making too much of something will at best, tie up valuable working capital, and could lead to costly inventory write-offs. Buying or making too little leads to down time and lost revenue. Getting control in this area often provides instant ROI for the cost of a new system.

8. Does your manufacturing software integrate seamlessly with your accounting software programs?

• Yes.  Go to question 9.
• No. Go to question 11.

9. Is your manufacturing software more than three years old?

• Yes. Go to question 10.
• No. Stop. If your integrated system was chosen carefully within the last three years, it should be working just fine. Before proceeding with a new purchase decision, discuss your situation with the consultant who helped you implement your current system to see if any updates are available.

 10. Is there a satisfactory upgrade available from your current software supplier?

• Yes. Stop.  Contact your software vendor to find out more about upgrading your system right away.
• No. Stop. You need to find a new supplier with a more serious commitment to ongoing product development. Now is a good time to take a look at the products available in today’s market.

11. Is your accounting software more than three years old?

• Yes.  Go to question 12.
• No. Stop.  Without complete integration of your manufacturing and financial systems, you won’t get the full benefits of computerization. To avoid unnecessary frustration and lack of data availability, be sure to consider only those packages that can demonstrate full integration.

12. Is your manufacturing software an in-house package invented or developed by your internal programming / IT staff?

• Yes. Stop.  Your system was probably developed years ago. Upgrading your system now will eliminate the ongoing cost to maintain customized software. As custom systems age, maintenance gets more complicated and often more expensive. But be prepared for a little extra effort, because your IT group may oppose a packaged solution that wasn’t developed internally.
• No. Stop. Your old accounting system and non-integrated manufacturing package are begging to be retired. The benefits of harnessing new technology can pay big dividends. The earlier you get started on an upgrade and conversion plan, the sooner you’ll see results.

If you answered yes to more than 4 of these questions, it is likely that you are ready to consider implementing process manufacturing ERP software. Download our free Process Manufacturing Success Kit today to get started on the road to a smoother operation!