The hardware and machinery industry is a labor-intensive industry with relatively low entry barriers and high production dispersion. In addition, my country’s production enterprises have long been at the bottom of the value chain of the international division of labor and survive by OEM and ODM. The competition is very fierce and homogeneous. With increasingly serious changes, the hardware machinery industry needs to seek a way out of market segments and products to develop. The hardware machinery industry solutions take production management as the core to ensure the timeliness and quality of products from R&D to production, from production to delivery, so as to truly improve customer satisfaction.
The main characteristics of production are: Discrete as the mainstay, process as the auxiliary, and assembly as the focal point;
The production method is based on order-to-order production, with order-based design, order-to-order configuration, order-to-order assembly, and inventory production as supplementary;
The management of raw materials is simple, but there are many specifications of semi-finished products, products in process and finished products, complicated coding, and difficult management of many processes;
The general production process is to cut or shape raw materials to become blanks, then cut (turning, milling, boring, and grinding), semi-finished products are assembled, and finally assembled into finished products for shipment;
The production process often involves outsourcing processing, such as electroplating, heat treatment, etc.;
The price of raw materials fluctuates greatly, resulting in complicated price management for purchase and sales;
It is difficult to manage leftovers. There are a lot of leftovers in the production process (stamping and cutting) of products, and some of the leftovers can be recycled;
The processing route of product parts is long, and the management of work-in-progress is complicated;
The process route changes diversified, and the equipment and process utensils required for the production process are frequently switched;
The technological process is mainly equipment processing, and the capacity of the equipment determines the capacity of the production line;
The timeliness of data on the workshop site severely restricts the accuracy of production scheduling. Due to the large number of finished product specifications, numerous parts and materials, complex processing technology, many uncertain factors affecting the production process, and slow information feedback;
During the production process, there are often management needs of multiple units, such as: support, KG;
Market requirements for small batches and multiple varieties make it difficult to realize production management of assembly lines and workshop operations;
Requires serial number management, which is used to track product warranty periods and maintenance records.
Inventory account does not match
The management of raw materials in the machinery industry is simple, but the inventory information changes caused by material picking are very frequent. Moreover, due to factors such as the shape and characteristics of the raw materials, it is often impossible to send materials according to actual needs. And often there are multiple unit management needs. For example, when a certain type of steel is put into storage, the unit is “kilogram”, but the unit of production requisition is “m”.
The price of raw materials fluctuates greatly, resulting in complicated price management for purchasing and sales
The cost of raw materials (such as steel) occupies more than 80% of the product cost structure of the machinery industry, but the price of raw materials has been fluctuating, so it is necessary to strictly control the price of raw materials in procurement.
Long processing route and complicated management of work-in-process
The process of the machinery industry is relatively complex, and there are a large number of parts or products in process no matter in the workshop or the process production line. How much is the number of work-in-progress, which process is carried out, which process (how long) it takes to complete… This information is difficult to obtain in time and accurately.
There are outsourcing processes such as electroplating and heat treatment, but it is not easy to manage
The machinery industry, for example, has some special processes, or when it receives a large number of orders, it often outsources processing.
The product structure is complex, and manual BOM processing is troublesome and error-prone
The product structure of the machinery industry is complex, and the BOM is processed manually, which is time-consuming and laborious. There are also phenomena of slow feedback and inconsistent data in various departments. This may cause confusion in the production order and affect delivery and other problems.
Fangtian Software Solutions
Develop a reasonable procurement plan based on BOM, warehouse inventory, order estimates, and past raw material procurement cycles and quantities.
Purchasing plans and production plans can be automatically generated based on BOM. Each process and operation flow are linked together. The documents of various processes can be transferred at any time, which avoids duplication of entry and simplifies the work of operators.
Multi-unit management realizes conversion between different units of the same raw material. For the boards of the same specification and the same material (that is, the raw materials of the same product code), the generated scraps are all used to establish the same scraps basic data.
Barcode real-time monitoring and tracking of work-in-progress, the system can query the production line and progress of the work-in-progress in real time, as well as the estimated completion time of the work-in-progress to guarantee the delivery date.
Provide material substitution function. When new and old materials are changed, the old materials are used up before purchasing new materials, which can effectively use inventory and better solve the problem of material backlog.
Link to this article：The ERP used in the machinery manufacturing industry, Fangtian Machinery ERP management software system
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