Does the following situation sound familiar? A production order is released even though the bill of materials has not yet been finalized. As a result, the production department works with an outdated set of drawings. It is not until the quality inspection that it becomes apparent that a component change was not taken into account.
The end result: Not only does the production department have to rework or remanufacture the part, but a machine is also unexpectedly shut down, downstream orders are delayed, and on-time delivery is jeopardized. Ultimately, the issue escalates all the way to senior management —due to the threat of contractual penalties. A classic case of a process breakdown with far-reaching consequences.
You can only systematically prevent such disruptions by ensuring a high level of process reliability in manufacturing. Find out how to achieve this with an ERP system in the following article.
What does process reliability actually mean—and what doesn’t it mean?
What is process reliability?
Process reliability describes a company’s ability to manage processes in a stable, transparent, and reproducible manner. Processes do not occur randomly but follow clearly defined rules. Because they are based on reliable, versioned data, deviations can be detected early on—even before they trigger an uncontrollable chain reaction.
What is process reliability not?
Process reliability does not mean that errors will never occur. In real-world operations, there will always be deviations—such as those caused by delivery problems or capacity bottlenecks. The goal, therefore, is not to completely prevent errors, but to address them in a timely manner.
What are the typical causes of a lack of process reliability in small and medium-sized businesses?
In practice, a lack of process reliability is rarely caused by individual errors. As a rule, therefore, it cannot be attributed to individual failure. Rather, it is the result of structural weaknesses within processes. The five most common causes of inadequate process reliability are:
1. Gaps in information between departments
Often, departments do not share information with one another in a central location but instead use various digital and analog channels. However, this is anything but conducive to smooth processes. Manual data transfer via email, Excel spreadsheets, or verbal communication, in particular, leads to data inconsistencies and conflicting information. Decisions are then not based on a shared data set, which makes traceability difficult and increases the likelihood of errors.
2. Lack of version control for bills of materials and work orders
Changes to bills of materials or work instructions are often not clearly documented. As a result, no one knows which version is currently in effect. Consequently, departments work with different specifications, making subsequent adjustments necessary.
3. Lacking Transparency in Capacity and Priority Planning
Sometimes, capacity and priorities must be reallocated on short notice—often without a complete picture of the downstream effects. If planning isn’t consistently transparent, projects can run into trouble: bottlenecks and delays arise, making it difficult to meet deadlines.
4. Reactive Rather Than Proactive Management
Many companies do not take action until serious disruptions have already occurred. There is a lack of mechanisms to flag risks early on or trigger escalation procedures before deadlines are at risk.
5. Lack of Process Monitoring
In many companies, there is no ongoing monitoring of order status and critical deviations. Without clear process KPIs and a functioning early-warning system, problems remain hidden for a long time—until it’s too late.
Why Do Isolated Measures Fall Short When Process Disruptions Occur?
It is not uncommon for companies to initially respond to disruptions with isolated measures. In the short term, such isolated process optimizations may sometimes lead to improvements, but they usually do not result in sustainable stability. The following real-world examples illustrate the problem:
| Measures | Problems in Practice |
| Standalone solutions, such as individual analysis or monitoring tools | Improvements remain limited to specific areas, while process and media discontinuities persist. |
| Lean approaches without digital support | Without a digital database, lean approaches cannot fully meet the requirements for speed, transparency, and complexity. |
| Manual Check | As complexity increases, manual checks become too error-prone, slow, and costly. |
So you cannot achieve process reliability by simply tweaking individual parameters. Instead, you should ensure that all people and machines involved work together seamlessly. To do this, you first and foremost need a consistent database.
But how do you achieve this consistency? It’s simple: with an ERP system.
How does an ERP system ensure process reliability?
The key point is that an ERP system does not function as an isolated tool, but rather as a cross-functional platform . The software solution links data and processes across the entire company, creating a cohesive flow of information. Specifically, ERP offers:
1. A centralized, consistent database without media breaks
In an ERP solution, all data is stored in a central location —without redundancies or conflicting versions. Customer master data, for example, exists only once in the system and is not stored in parallel in Excel, the CRM, and the accounting software. Since there are no media breaks or parallel data sets, the ERP system provides a reliable foundation for stable processes in production.
2. Seamless processes without switching systems
The ERP system seamlessly maps all processes —from order approval to delivery. It also automatically forwards information, ensuring consistent data transfer. This enhances process continuity and reduces sources of error.
3. Transparency Across Departments
In an ERP system, the status of orders, production progress, or variances is visible in near real time. All departments—whether sales, manufacturing, purchasing, or quality assurance—access a shared database and can see what their colleagues are currently doing or planning. This makes it possible to make decisions based on a consistent set of information and minimize time-consuming follow-up questions.
4. Process Monitoring and Early Warning Mechanisms in ERP
With an ERP system, you don’t have to wait until it’s too late to identify critical deviations. The software includes features that monitor all relevant processes around the clock and identify potential risks early on. For example, if initial delays occur, you’ll receive a notification so you can take proactive action.
5. Workflow and escalation logic for critical tasks
To ensure process reliability, it is extremely important that workflows never come to a standstill. Based on automated workflows and rules, escalation logic in the ERP system therefore ensures that problems are brought to light. This happens, for example, when processes do not complete within a defined time frame.
6. Integrated Quality Assurance and Traceability
Quality management applications integrated into the ERP system enable the automatic creation of inspection orders as well as complete documentation of batches and serial numbers. Inspections and approvals are directly embedded in the process and occur seamlessly during goods receipt, during production, and before goods are shipped. This complete traceability increases transparency and, as a result, enhances safety when dealing with nonconformities.
How can process reliability be measured?
So now you know which software solution is best for achieving process reliability in manufacturing. But how do you know how well your company is actually performing in this important area? Are the stability and controllability of your processes measurable? And if so, how?
While process reliability cannot be calculated using a formula, it can be reliably measured through the interplay of several key performance indicators (KPIs). It is important to select the right KPIs for this purpose.
The 5 most important process KPIs are:
| KPI | What is being measured? | Why is this relevant? |
| On-Time Delivery (OTD) | Percentage of orders delivered on time | A direct indicator of stable processes and reliable delivery commitments |
| Lead time | Time from Order Receipt to Completion | Demonstrates efficiency and highlights delays and process disruptions |
| Rework Rate | Percentage of parts or orders requiring rework | Indication of quality issues and errors in upstream processes |
| Plan-Actual Variance | Difference between planned and actual implementation | Highlights the lack of control and transparency |
| Process failure rate | Frequency of interruptions or deviations in the process | Shows how often processes need to be actively stabilized |
Patrick Mathis, Asseco Solutions
KPIs highlight weaknesses in workflows and reveal just how stable and manageable your processes actually are.
High process reliability is generally demonstrated by:
- Minimal fluctuations in turnaround times
- Consistent on-time delivery
- a low rework rate
- few unplanned procedures
Low process reliability, on the other hand, is indicated by:
- highly variable turnaround times
- frequent changes to the plan
- Many escalations and manual interventions
- a high process failure rate
You can then draw direct conclusions about predictability based on the level of process reliability. The higher the process reliability, the faster and more reliably you can respond to customer requests. This, in turn, has a positive impact on your competitiveness.
Process Reliability with ERP:
Case Study: BayWa r.e. Solar Energy Systems
As BayWa r.e. Solar Energy Systems GmbH has experienced strong growth, process complexity has increased over time. While many processes used to rely on manual approvals, email exchanges, and media breaks, the company’s expansion necessitated an end-to-end process mapping.
The implementation was carried out using the APplus ERP system:
- Digitized end-to-end processes across all departments
- Automated workflows for approvals and handovers
- Digital interfaces between sales, logistics, warehousing, and accounting
The result:
- improved order processing
- greater transparency and predictability
- Scalable, stable processes
Conclusion: Process reliability determines your future viability
Improving process reliability is not a one-time project, but rather an ongoing management principle. It is not a matter of resolving isolated disruptions with individual measures. Rather, processes must be designed in such a way that they remain stable throughout.
Stable processes are so important because they bring reliability to your planning. This not only allows you to reduce costs but also to respond flexibly to changes. It’s an ideal foundation for keeping pace with the competition today.
Process reliability is made possible in the first place by the use of an ERP system. With this software, you lay the groundwork for a unified database and, as a result, for seamless cross-departmental processes.
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