What is the difference between Standard ERP and Manufacturing ERP?
Enterprise Resource Planning (ERP) is a widely used software across various industries.? By name all ERPs are the same but by virtue, they all are different.
Sounds complicated? Well, it is not!
This blog will put it across in the most simplified and easy to understand manner.
After reading the blog, you can easily make out the types of ERPs and their differences. Also, if you are looking for one, this blog will help you to narrow down your selection.
Stay on the blog till the end to uncover lot of information about ERP.
What is an ERP?
An ERP is a software which streamlines and automates all the processes, procedures, and departmental workflows within an organization.
It does so by integrating various functional areas like finance, sales, supply chain, production etc into a centralized data hub. This centralized data hub ensures consistency of data with real-time updates.
An ERP not only automates and streamlines operational functions of an organization, but it also provides valuable data and analytics for informed decision making.
Types of ERP:
?ERP can be classified based on various parameters:
Custom built - Custom built ERP solutions are customized to cater to specific needs of a business. They are designed from scratch and offer maximum flexibility.
Ready-made - Ready-made solution offers standard features and functionalities and is suitable for a wide domain of businesses. They are lesser in cost and are suitable for small to mid-sized organizations. ?
They can be customized up to some extent as per he needs of business requirement.?
Hybrid- These are solutions having elements of both custom-built and ready-made solutions. These solutions have predefined capabilities and functionalities but can be modified as per the business requirement up to certain extent.?
Cloud-based or on premise –
This classification is based on implementation. Cloud based ERP are getting momentum these days because of so many reasons but there are some positives of on-premises implementation also.
Cloud-based – This implementation comes as a monthly or yearly subscription. Hence, it is much cheaper and can be an ideal solution for small organizations. ?
Besides, subscription facility, it requires no IT infrastructure as the data is maintained at vendor’s server. This further reduces total cost of ownership (TCO).?
Cloud-based ERP enables you to work anytime and from anywhere.?
On-premises - On- premises ERP is installed on the client’s server; hence the client needs considerable IT infrastructure and staffing.? On-premises ERP is beneficial for large sized companies as every module can be customized.
Standard or Manufacturing ERP –
Standard ERP (also known as generic ERP) covers all the functions commonly found in various industries. Modules like finance, sales, HR, CRM etc are present in Standard ERP.? ?
Example- An ERP that can be deployed as it is in Banking, Hospitality, Health care industry without any customization.
These ERPs cost less and are usually easy to implement. Since it contains most common features, it might not be as useful for some industries as expected. ?They offer domain of capabilities generally not required for an industry, and therefore these are bulky ERPs. ?
As the complexity of industry increases, these ERPs can be customized up to certain level, but beyond that these ERPs lack scalability and adaptability. ?
Manufacturing ERP – Manufacturing ERP software covers nuances of manufacturing along with all the capabilities present in standard ERP. Since such ERPs cover manufacturing specific domain of functionalities, they are costlier than standard ERP. ?
They can be integrated with manufacturing equipment and machinery, facilitating automation. With the help of such ERPs, organizations can meet their specific-est challenges, compliance, and industry standards to reduce waste and improve their productivity.
Implementation of manufacturing ERP can yield numerous benefits like increased productivity, reduced cost, better decision-making etc. But implementing such an ERP is a complex process.
Major difference between standard and manufacturing ERP
Here is a comparison between the two:
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Both Standard and manufacturing ERP software can be customized into industry specific ERPs. Hence a banking standard ERP can have banking specific capabilities which are different from an ERP having health care specific capabilities.
Likewise, a manufacturing ERP having semi- conductor manufacturing capabilities or food manufacturing capabilities is industry specific ERP for mentioned industry.
Sub-division of manufacturing ERP:
We can further divide manufacturing ERP into two categories:
Discreet manufacturing – Manufacturing where output is itemized, and raw material is also assembled in itemized fashion.
Raw materials like nut, bolts, wires, steering, pedals etc are assembled in a fashion to produce car is an example of discreet manufacturing.
ERP used in such manufacturing industry is known as discreet manufacturing ERP.
Again, requirement of car manufacturing industry is different from that of an aeroplane manufacturing industry. Hence, ERPs catering to the specific requirements of respective industries are industry specific discreet manufacturing ERPs.
Discreet ERPs have discreet specific capabilities like ECN, routing, designing.?
Process manufacturing - It is a manufacturing process where raw materials, ingredients are mixed based on specific formula or recipe to produce goods.
Example – Médicine, Cement, Paint etc.
ERP software used in such industries are process manufacturing ERP, like BatchMaster ERP.
When such ERP caters to needs of specific process industries, it is called industry specific process manufacturing ERP.? BatchMaster ERP caters to special needs of paint, food, pharma etc industries. Hence, BatchMaster ERP for food is an industry specific process manufacturing ERP.?
Process ERPs have process specific capabilities like recipe/ formula management, nutritional, chemical labelling, various unit of measures etc.?
Major features that a manufacturing ERP must have: ?
A manufacturing ERPsoftware is a digital tool to make your business processes simpler, more structured and streamlined. Following are major features that you must consider in an ERP:
To read in detail about them, please click here.
How BatchMaster ERP fits in the requirement
BatchMaster ERP software is a process manufacturing software for paint, pharma, chemical, food and beverages, and coating industries. It caters to these industries and their sub-industries.
It offers capabilities to sturdily handle intricacies of process manufacturing like:
Formula Management – it offers formula management with formula development based on analysis of chemical/nutritional properties, formula control, security control, version control, formula comparison capabilities and such.?
It enables separate formula and packaging material costing and helps to keep cost under check.
BOM- Manages multi-level Bill-of-Materials, provides multiple packaging and handles filling assembling and Container types of BOM.
Batch Processing: BatchMaster ERP is designed to handle batch processing seamlessly. It allows for precise control over batch sizes, batch sequencing, and batch tracking, ensuring that each batch is produced consistently and efficiently.
UOM – it supports various UOM (Unit of Measures) and its conversions. It is capable enough for calculate volumes, densities, viscosity, etc., seamlessly.
Reports and labelling - It helps to generate various reports like FDA GHS, SDS, and other formats as per the law. ?Also, supports OSHA, EPA, ISO, DOT etc. Offers bidirectional traceability.
Moreover, expiries and shelf-life are typical to process manufacturing and they are handled with perfection by BatchMaster ERP.
These and many such features plus an experience of serving more than 3000+ customers from 30+ years make BatchMaster an ideal choice for process manufacturing businesses.
If you are looking for a process manufacturing ERP for your industry, connect with us on [email protected] to know about BatchMaster ERP in full length. Alternatively, you can visit BatchMaster.