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December 12 2023

Business Process Integration in Metal Fabrication

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The metal fabrication industry manages intricate production processes and diverse material requirements, and it services customers with high expectations of suppliers. Manufacturers grapple with unique challenges but they can also seize the potential for remarkable improvements through enhanced integration of business processes. The sector is ever more challenging with rising energy, mining plant and equipment costs, workforce shortages and ongoing logistics challenges from almost three years of pandemic disruptions. However, with the right approach and investment, these challenges are not insurmountable. Integrating business processes to elevate the visibility of management information would empower more informed decisions — which are crucial for businesses to thrive. Let us dive deeper into this topic in this blog.

Optimization using ERP and Automation

To confront these challenges head-on, fabricated metals manufacturers should consider implementing a modern enterprise resource planning (ERP) system tailored to their industry’s needs. Generic ERP solutions often need more industry-specific features and functions to support nuanced requirements. ERP systems designed exclusively for manufacturers can streamline processes across the post-pandemic fabrication supply chain. This includes order management, production planning, inventory control, and quality assurance. Such an integrated solution seamlessly coordinates operations and offers real-time visibility into processes, leading to enhanced collaboration, data-driven decision-making, more efficient scheduling, and better shop floor control.

There is an unmistakable shift towards automation in modern metals manufacturing, particularly in operations. This reflects a broader industry trend to optimise efficiency and resource allocation using techniques such as AI video surveillance on the shop floor. As automation takes over repetitive processes, human resources are freed up to focus on managing the more intricate aspects of manufacturing operations. This strategic realignment of human capital enables companies to tap into the full potential of workforces.

MOM – The Operations Bulwark

A pivotal component of this approach is integrating sophisticated systems such as manufacturing operations management (MOM) within an ERP solution. MOM is a cornerstone in providing invaluable support throughout the manufacturing lifecycle, ensuring that precision and consistency are upheld in the most complex manufacturing environments. With MOM’s integration with ERP and its capacity to collect data from the shop floor, manufacturers can achieve consistency and precision that goes beyond what human-centric processes can offer. This integration minimises the margin for error and safeguards the quality and reliability of the product, thereby bolstering overall operational excellence.

Integrating MOM With ERP

Some operational benefits of an ERP system with MOM for fabricated metals manufacturers are:

Advanced scheduling – Advanced scheduling leverages algorithms and optimisation techniques to create optimal schedules, considering machine capabilities, material availability, labour capacity and delivery deadlines. It balances workloads, minimises idle time and enhances productivity.

Streamlining processes – Implementing an ERP system fundamentally centralises and streamlines critical processes across the supply chain from managing the customer order through to delivery and servicing, creating a unified and synchronised operational framework. The newfound efficiency reduces operational redundancies and fosters better decision-making through real-time data access.

Administrative efficiency enhancement – With the adoption of ERP, companies can dramatically reduce administrative overheads by automating tasks such as pipe spool fabrication that were once manual and time-consuming. This boosts efficiency and frees up resources for more strategic and value-added activities.

Visibility informs decision-making – One of the most profound benefits of ERP implementation is its granular insight into production data and key performance indicators. Data-driven insight equips management with the tools for strategic decision-making, driving efficiency and profitability to new heights.

Key Takeaways

In a market characterised by rapid change, manufacturers may not have control over external forces but they can leverage technology to optimise their operations. ERP solutions tailored for manufacturers offer metal fabricators the tools needed to integrate their processes seamlessly, improve the visibility of management information and proactively confront challenges. The path to success in the fabricated metals industry is unequivocal: embrace integration, harness the capabilities of ERP systems designed for manufacturers and use data-driven insights that drive efficiency, profitability, and sustainable growth.

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December 5 2023

Quality Management Drivers and Solutions

k999content Blog erp, fabrication, management, manufacturing, quality, standard 0

Today’s end consumers demand quality, and they are quick to try a competitive product when disappointment hits. For manufacturers, the quest to achieve less variability, more consistency and enhanced customer satisfaction has never been more critical. To consistently produce high-quality products, the key is to improve standards of quality control throughout the manufacturing process, and that requires an effective quality management system with the ability to oversee all activities and tasks that must be accomplished to maintain the desired level of excellence. Such a system helps manufacturers identify potential issues and rectify them before they escalate, leading to improved customer relationships and company growth as well as greater productivity and cost efficiencies.

Quality Driving Factors

Customer retention – Given that it can cost up to five times more to acquire new customers than to retain existing ones, customer retention is a top priority. Ensuring high-quality standards and delivering consistent standards go a long way towards keeping existing customers.
Compliance – For manufacturers, compliance entails complying with the ISO 9001 standard which helps drive quality management practices in metal fabrication. ISO 9001 helps companies improve quality throughout the operation from development and material sourcing right through to product delivery and customer interaction.
Product recalls – A product recall is something manufacturers try to avoid at all costs. Statistics show that 25% of consumers reported being less likely to buy products from a company involved in a recall and 65% of consumers said they would be less likely to recommend a company following a recall.
Continuous improvement – Continuous improvement is a systematic approach to consistently enhance processes, products (such as water tanks), and services over time. It involves making incremental and sustainable changes to achieve higher efficiency, effectiveness, and quality. By fostering a culture of continuous improvement, businesses encourage employees at all levels to identify problems, suggest solutions and implement small-scale changes to optimize operations.

ERP – Implementing Quality Management

One of the most effective ways of getting quality management right is by implementing an ERP solution that provides the data, tools and infrastructure manufacturers need to gather insights, make informed decisions, and continuously refine their operations to achieve higher levels of efficiency, quality, and competitiveness. A good ERP solution is geared towards helping manufacturers set quality criteria against the products they buy and manufacture to ensure any inputs and outputs from their production lines conform to these standards. This is especially important in today’s competitive market where data is one of the top 3 manufacturing technology trends. Businesses can no longer rely on manual processes and tools to manage quality; it is simply too important to leave up to chance. On the question of customer retention, for example, manufacturers need to manage customer complaints as effectively as possible. An ERP system should provide the tools needed to log, collaborate on, escalate, and resolve customer complaints quickly and smoothly. That way, manufacturers and structural steel fabricators can quickly turn the situation around and build up data at the same time. Similarly, an ERP system with recall management capability enables manufacturers to recall products that are serial or lot traceable. With access to real-time information on affected customers, sales orders, Work in Progress jobs, suppliers and purchase orders, manufacturers can quickly ringfence the problem and stop it from spreading. Effective product recall may be a last resort in the realm of quality management, but it is a crucial one.

Closing Statement

Creating a strong quality management process is essential for manufacturing companies. Not only can it help avoid regulatory fines, good quality can also ensure that the firm is meeting customer expectations and drawing repeat business. A fully integrated ERP quality management system helps manufacturers improve quality performance by reducing variability and costs while ultimately improving customer satisfaction. As the saying goes, there is no substitute for quality – and manufacturers need to always abide by this!