At a glance
In discrete manufacturing, ERP determines efficiency, adherence to deadlines and competitiveness. With functions such as variant management, integrated order processing and real-time detailed planning, complex products can be controlled without errors and flexibly adapted to customer requirements. This allows you to reduce costs, ensure quality and gain a competitive edge in the market.
Today, discrete manufacturing is under enormous pressure from competition and innovation. Start-ups are entering the market and turning the rules of the game upside down. Customers expect individualized products at low prices. And suppliers from low-wage countries are causing a constant price war. To avoid losing your position to the competition, you need to get your production up to speed – with modern technologies.
At the heart of digitalization is the ERP system, which ideally ensures maximum productivity. But what exactly does ERP software in discrete manufacturing need to do to ensure that all processes run smoothly and highly efficiently? We reveal solutions that will help you leave the competition behind.
What does discrete manufacturing actually mean?
Discrete manufacturing is a production environment in which products are manufactured as countable units (pieces). New products are created from raw materials and materials, but also from supplied components. Typical discrete manufacturers are, for example, industrial companies from the mechanical and plant engineering and automotive sectors.
The opposite of discrete manufacturing is process-oriented manufacturing. Among other things, this involves the production or processing of liquids, gases, mixtures or granulates – for example in the pharmaceutical industry and in oil refineries. Process-oriented products cannot be counted directly and are based on recipes.
Discrete manufacturing is divided into the following subcategories:
Individual production
In custom manufacturing, each product is unique, individually designed and manufactured. Production often extends over a very long period of time and requires a correspondingly time-consuming planning horizon. Example products are complex products such as ships, individual machines or other systems.
Series production
In series production, companies manufacture a large number of identical products. The manufacturers are part of a larger supply chain and must coordinate their own processes precisely with the other companies in the supply chain. Example products include consumer goods such as umbrellas and drills, but also cars and standard machines.
Variant production
In variant production, products are created with the aim of standardization and modularization. Although the resulting partial individualization is attractive to customers, manufacturers have to invest more planning effort with each variant. They have to coordinate more materials, take smaller quantities into account and be able to estimate the demand for different variants. Example products are kitchens, furnishings and valves.
The ERP system as a success factor in discrete manufacturing
As you have seen above, the processes in discrete manufacturing are anything but trivial. To ensure that production nevertheless runs smoothly, you are not only dependent on
The best way to meet these requirements is with an ERP system. As a company-wide data hub, it supports discrete manufacturing in holistically mapping and controlling complex production processes.
Ideally, an ERP solution offers you the following advantages:
- Central management of all production data such as orders, materials and parts lists
- Delivery reliability through on-time planning and control of orders
- High transparency of material stocks and resources thanks to real-time data
- Cost reduction through optimized processes and automated routine activities
- Scaling without proportional increase in personnel
- Support for complex product variants through parts list and routing logic
- Rapid response to market changes through simulations
- Seamless integration of subsystems
- Traceability of batches, components and processes
- Compliance with legal regulations through integrated quality management
However, you can only benefit from these advantages if the ERP system is set up correctly. And in discrete manufacturing, this is not as easy as you might think. This is because both the manufacturing processes themselves and all upstream and downstream process steps must be taken into account – from product creation in the design department through to subsequent cost accounting in the accounting department.
This means that the software used must match the individual requirements of the company, its industry and its manufacturing processes. There is therefore a lot to consider when selecting an ERP solution and determining the functions. In the following, we will show you which solutions will help you get the best out of the system.
Petra Schwinkendorff, Asseco Solutions
An ERP system is far more than just a management tool for discrete manufacturing. Rather, it is the all-important key component for efficiency and competitiveness.
Solution approaches: How discrete manufacturing runs like clockwork
1. variant-specific parts lists and work plans
As already mentioned, many manufacturers offer customized products in discrete manufacturing, which entail an enormous range of variants. Each product can be unique in terms of size, features, material and many other details. This results in highly complex parts lists that are often highly branched.
Configurations in the ERP system must therefore be flexible and error-free at the same time. Even a single incorrect component can have serious consequences, such as delays in production or expensive rework. The ERP solution must therefore be able to map complex configuration rules and manage variants logically.
Our recommendation:
Use configurators in the ERP.
With an internal configurator in the ERP system, customer-specific products can be put together dynamically and based on rules. As soon as the sales department has entered all relevant characteristics, the tool automatically checks them for dependencies and restrictions. It also accesses data from the ERP system and generates the necessary parts lists and work plans quickly and reliably.
2. integrated project & order processing
The high degree of customization in contract manufacturing requires flexible order processing and close integration of sales, design and production. On the one hand, it is necessary to constantly adapt all processes to the respective customer order. On the other hand, companies must be able to adapt to new requirements within a very short time during production.
This is because production often only begins after the customer has placed the order. This means that there is little time during the quotation phase to plan all order details precisely and coordinate them internally. Changes can therefore be made later at any time.
Our recommendation:
Integrate PLM and CAD systems into the ERP.
In view of the complexity described above, production companies usually rely on an end-to-end Project and order processing integrated into the ERP solution. This can be realized by using the system’s internal PLM and CAD–applications (Product Lifecycle Management and Computer-Aided Design systems). These software solutions ensure the efficient management and use of product data across different departments.
By closely linking sales projects and production orders, all project-related activities can be controlled centrally and monitored throughout the entire order process. From the first customer inquiry through to delivery.
3. detailed planning and planning board integration
Today’s customers not only expect individualized products. They also want to receive them as quickly as possible, or at least on time. The fact that the growing number of variants increases the complexity of order processing doesn’t have to worry them – but it does you.
This can be a challenge, especially for order-related production processes, as many planning variables are only known at short notice and can change constantly. The main difficulty lies in keeping throughput times short despite possible disruptions. Tools are therefore required that allow precise and reactive planning and control.
Our recommendation:
Expand the ERP system with APS systems.
APS systems(Advanced Planning and Scheduling) in ERP analyze data from various sources in real time. This enables fine-grained planning at the level of individual machines and workstations.
Production planners can easily visualize capacities and deadlines using Gantt charts and planning boards, allowing them to react to unforeseen events at lightning speed. APS thus creates the basis for proactive production control that shortens your throughput times. Meeting delivery deadlines thus becomes child’s play for you.
4 Automated data maintenance and master data management
The basic prerequisite for promising ERP-supported production is high-quality data that is correct and up-to-date at all times. The
In discrete manufacturing, however, it is not easy to maintain a consistent database in ERP. This is because the data comes from a variety of different systems, including CAD, PLM and MES (Manufacturing Execution System). In addition, master data maintenance is generally very time-consuming and error-prone.
Our recommendation:
Use workflows and MDM systems.
Ideally, you should rely on automated processes for master data maintenance. For example, approval workflows ensure that new or changed master data is only transferred to the ERP system after it has been checked and approved. This significantly minimizes sources of error.
In addition, an MDM system (Master Data Management) is used as a central platform for consolidating and harmonizing master data. Automatic synchronization in all relevant systems ensures that everyone involved is always working with the same database.
5. continuous integration of subsystems
In discrete manufacturing, an ERP system alone is often not enough to fully map all relevant processes. Supplementary software solutions such as PLM, MES and SCM (supply chain management software) are necessary to cover special requirements in production, logistics, customer management and product development.
To avoid data silos and enable automated data exchange, you need to seamlessly integrate these diverse subsystems into the ERP solution. Manual data transfer is of course out of the question: this would be far too time-consuming and error-prone – a no-go in dynamic production environments.
Our recommendation:
Use middleware or suitable APIs.
You can integrate all relevant applications via middleware or programming interfaces – so-called APIs – with the ERP system. This allows you to achieve an automated, bidirectional exchange of data between the ERP solution and subsystems. Manual intervention is not necessary.
If you connect an MES system, for example, real-time data from production is transferred directly to the ERP. Planners and decision-makers can access the information at any time and actively control processes. SCM solutions, on the other hand, ensure a continuous flow of information along the entire value chain.
6. user-friendly user interfaces and mobile design
ERP systems are very powerful in terms of functionality, but are usually also complex to use. Overloaded user interfaces with many different screens and input fields make life difficult for employees.
Particularly in departments outside the office (production, warehouse, sales), where use is usually via small displays on mobile devices, user-friendliness often leaves a lot to be desired. The result: inefficient processes due to incorrect operation and low user acceptance in the operational area.
Our recommendation:
Pay attention to good usability.
Nowadays, a modern ERP system should offer user-friendly user interfaces that are specifically tailored to the requirements of different activities. Universal standard screens are replaced by a simplified, intuitive display. This only displays those fields and functions that are relevant for the respective activity. For an optimal user experience on mobile devices, a sophisticated mobile user experience design is indispensable.
| Function | Benefit |
| Parts lists and work plans for specific variants | Error-free mapping of complex variants and fast implementation of customer orders. |
| Integrated project & order processing | Flexible adaptation to changes and consistent control of projects. |
| Detailed planning and planning board integration | Real-time transparency for capacities and deadlines, reliable adherence to delivery deadlines. |
| Automated data maintenance and master data management | Consistent master data, fewer errors and stable processes. |
| Consistent integration of subsystems | Avoidance of data silos, smooth flow of information across all systems. |
| User-friendly user interfaces and mobile design | Simple operation, greater acceptance and fewer operating errors. |
A few strategic tips at the end
- Design your processes and modules to be as standardized as possible and as individual as necessary.
- Tackle digitalization step by step. Concentrate on the core processes first and only then consider extensions.
- Establish a professional change management system in which you involve and train employees at an early stage.
- Weigh up the pros and cons of cloud and on-premise solutions. Keep an eye on scalability, security and operating costs.
Conclusion: The ERP system as the digital backbone
An integrated ERP solution really comes into its own when it comes to manufacturing complex, multi-variant products. It meets customer-specific configurations with automated processes that ensure flexible processes, uniform production data and punctual delivery dates.
An ERP system for discrete manufacturing is therefore far more than just an administration tool. Rather, it is the all-important key component that provides your company with the efficiency and competitiveness it urgently needs. Always provided that the software is tailored precisely to the requirements of your company.
