Transition from ERP to Subsystems

Companies use ERP software in order to better monitor their processes, to identify the failing points and to produce solutions. Through these programs, they want to grow by reorganizing their processes.

What are the Benefits of ERP?

Ensuring that the company can create legal declarations and documents by managing accounting processes,
Managing financial processes and monitoring the inflow and outflow of money,
Managing sales processes, creating better customer relations and increasing the number of products sold,
By managing Supply Chain processes; creating effective inventory tracking, improving warehousing activities, providing raw material input at lower cost, reducing the cost of sales,
To increase personnel productivity through effective training, performance and career management by managing Human Resources processes,
Reducing the amount of returns by managing After Sales Service processes,
To realize the most efficient production with minimum resources and capacity by managing the human, machine and money process The processes that will make the most money in the shortest term with improvement are the production processes

In our next article, we will discuss how we can increase resource and capacity efficiency in production through measurement systems

The processes that will make the most money in the shortest term with improvement are the production processes. Because when we look at processes other than production, you always need to create additional resources to make more money.

For example, let's think about how you can increase the money you earn by improving sales processes. The only way to do this is to make more sales.

To increase sales, you need to

Find more customers.
Hire more or more qualified agents.
Find new markets.
Increase the number of products you launch.
Launching a larger quantity of products with discounts or promotions.

As you can see, no improvement is possible in the current conditions. To earn 2 units more, you always need 1 unit of investment. In other words, additional resources are required. The situation is no different in procurement processes. In order to make money from procurement, that is, to reduce the cost of procurement, measures such as increasing the number of suppliers and increasing the amount of purchases can only improve the money input. However, you can make more money without taking any extra money out of your pocket. All you need to do is to reduce your losses in production.

With improvement, the processes that will make the most money in the shortest term are the production processes. The quickest way to improve is to identify your production losses. There are various methods to identify your production losses. Whether you apply these methods with your own resources or outsourced support determines your improvement costs. If you can implement improvement activities using only your own staff, you can do it at very low costs. The point is that you can do smart projects with a few additional staff. If you cannot do this, you can get support from companies that do this work, perhaps you will use new software programs.

So what are these methods that will reduce inefficiency in production and save money?

SMED (Single Minute Exchange of Die)
Autonomous Maintenance
5S
Kaizen
OEE
JIT (Just In Time)
Process Management
Sampling
Production Data Collection Systems

If you implement even a few of these methods, you can reduce your production losses by up to 30%. If you have trained personnel, you can carry out the projects yourself. Otherwise, you should seek professional support.