At a glance
A modern ERP system strengthens competitiveness in mechanical and plant engineering. It bundles all relevant data and ensures transparent, efficient processes. Design, production and service work together in a much more coordinated manner. This shortens throughput times, changes can be implemented more quickly and costs remain more controllable. Important functions include growing parts lists, concurrent calculation, document management, CAD/PLM integration and project and service management.
As in many other sectors, there is growing concern in the German mechanical and plant engineering industry that competitive pressure is threatening the existence of the industry. Sluggish orders, low capacity utilization and rising insolvencies have clearly dampened the mood. This makes it all the more important for machine and plant manufacturers to master their daily challenges with confidence and continuously expand their own competitive advantages. This can only be achieved by using forward-looking technologies and
Mastering the challenges of the industry: quite simply with an ERP system
Mechanical and plant engineering is a branch of industry that demands versatility, speed and flexibility. Customers come to the companies with immensely high demands and expect the
The best way to get to grips with these problems is with an ERP system. The software not only controls the entire product creation process. It also gives the company the flexibility it needs to manufacture machines faster, more transparently and more cost-effectively – and thus beat the competition.
1st challenge: High time pressure
Customers are increasingly demanding shorter delivery times from suppliers in order to be able to react quickly to market changes. This applies, for example, to the manufacture of machines and systems used in production facilities. If lead times were too long, this would result in production downtime and economic disadvantages for the customer.
If machine and plant manufacturers are unable to meet the tight schedules of their clients, they have to live with the consequences: they lose projects to providers with faster processes.
The solution via ERP:
The ERP system controls company processes at a central location and independently collects data from all involved parties. This central digital data storage in the ERP system leads to a constant flow of information that machine and plant manufacturers can use to optimize processes and production.
Current data collections enable, for example, the automation, monitoring and optimization of material flows and logistical processes.
Only those who have an overview of their processes can react and de-escalate at an early stage. It may then be possible to postpone some orders, outsource parts of production or bring additional employees into the production hall on a temporary basis.
2nd challenge: Short-term change requests
Machine and plant manufacturers must always expect their customers to approach them with change requests. Sometimes products have to be adapted again even after they have already been manufactured, loaded or delivered. This practice is fueled by rapidly changing market and legal requirements, among other things.
Successful companies naturally respond quickly and competently to their customers’ change requests. However, this only works if all internal processes are well coordinated . Requests should therefore be logged immediately and forwarded to the relevant departments.
However, those who use physical order files quickly lose track of things. Colleagues constantly need the file, blocking access for other employees. As a result, the documentation statuses diverge, which has a negative impact on the entire course of the project.
The requirement is therefore to store an electronic order folder in a central location that everyone can access. Complete documentation of product creation is extremely important, especially for downstream value-added areas. This is the only way to ensure optimum customer service and effective after-sales management later on.
The solution via ERP:
By storing all business data centrally, the ERP system enables precise planning of individual customer requirements. The optimal control of resources such as materials, personnel and machine capacities ensures effective processing of order-related individual production.
Ideally, an ERP system for mechanical and plant engineering should also have an integrated document management for electronic order folders. This makes it possible to immediately record changes during the project in a central document and retrieve them at any time. The smooth process also improves your service and strengthens customer loyalty.
3. challenge: design during production
In a modern manufacturing environment, production starts even before the machine or system has been fully developed. This approach serves to accelerate the project. As a consequence, the relevance of internal communication along the value chain increases. Conflicts and delays are unavoidable if the individual areas do not constantly coordinate with each other.
An uncomplicated exchange of information between departments is essential for smooth cross-departmental communication. This must be
The solution via ERP:
Since a smart ERP system allows all processes in mechanical and plant engineering to be controlled seamlessly, cross-divisional communication is much easier – both internally and externally. With the appropriate access authorization, employees no longer have to use time-consuming communication channels, which increases productivity and accelerates project progress.
Customer communication is also improved: the manufacturer passes on important information such as the delivery status or installation dates to the customer at the touch of a button without delay.
The benefits for machine and plant manufacturers are so extensive that investing in an ERP solution is almost always worthwhile for companies.
4th challenge: Increasing cost pressure and volatile markets
Global competition in mechanical and plant engineering is becoming fiercer. Suppliers from the Far East in particular are catching up: they supply machines that meet current requirements and
European companies are therefore forced to optimize their production processes, reduce material costs and implement individual customer requirements cost-effectively. Otherwise, their competitiveness is in serious jeopardy.
The solution via ERP:
An intelligent ERP system seamlessly maps all processes – from project planning to production and logistics – and thus enables simple cross-divisional cost calculations. Detailed variance analyses based on preliminary, interim and final costings are particularly helpful. They allow
An ERP system should have these functions
The benefits for machine and plant manufacturers are so extensive that investing in an ERP solution is almost always worthwhile for companies. But what exactly should you look for when selecting an industry solution? A combination of the following ERP features is often relevant:
- Growing parts lists
Project changes and production-accompanying designs are the order of the day in mechanical and plant engineering. This is why you need software that can successively expand and modify parts lists. - Ongoing calculation
Precisely calculating variable production orders requires a regular comparison of the original quotation planning with the actual data. The system should therefore support the automatic adjustment of the original calculation. - Integrated production data acquisition
On-the-fly costing is only efficient if it draws the necessary information from the ERP database. Reported processing times are then recorded via the ERP software and automatically assigned to individual orders. - Integrated document management
By using electronic order folders instead of analog ones, all processing over time is transferred directly to a central document. This means that everyone involved is always up to date. - PLM/CAD integration
With CAD in the ERP system, employees have access to up-to-date design data. This facilitates collaboration, improves traceability and ensures efficient planning and implementation. - Project management tool
Project management functions in ERP make it easier to plan, monitor and control projects. They provide transparency regarding tasks, deadlines and resources and promote smooth collaboration within the team. - Service management tool
For optimum customer care, the ERP system provides functions with which you can manage the entire service process.
More about the functions: The optimal ERP for mechanical and plant engineering
Conclusion: More competitive advantage with an ERP system
The outlook for Europe as an industrial location may have been rosier in the past, but – as crude as it may sound – every company is the architect of its own fortune. You can view the enormous challenges of the industry as insurmountable hurdles. Or you can look for solutions that allow you to stand up to the competition on your own initiative.
There is no doubt that digitalization is also an important building block for more growth and competitiveness in mechanical and plant engineering. The ERP system is at the heart of this: it increases responsiveness, reduces costs and improves the overall customer experience. This increases customer satisfaction, promotes long-term business relationships and gives you the all-important competitive edge.
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