Machine Design Magazine Profiles Manufacturing ERP for ETOs
The October issue of Machine Design profiles Engineer-to-Order
ERP Solutions in an article by leading manufacturing journalist
Thomas R. Cutler (www.trcutlerinc.com). Roger Meloy of Encompix
Inc., (www.encompix.com) an Engineer to Order (ETO) Enterprise
Resource Planning (ERP) software maker based in Cincinnati,
said, "Ask most design engineers what an ERP system means to
them and you are likely to hear 'nothing' or 'more work,'" One
reason for the perception: Most ERP systems are not integrated
with CAD. That's because traditional ERP systems were developed
for repetitive, make-to-stock manufacturers where there is a
clear demarcation between design and production.
In this environment design engineers create a product in CAD.
After testing and prototyping, the item goes to engineers who
tailor it for mass production and create a bill of materials
(BOM). The BOM is based solely on how an item is to be
manufactured, not on its design, all of which takes place in ERP
software. The design engineer throughout the process has little
or no interaction with the ERP system. Once a design is frozen
there is little interaction between the design and production
departments.
In ETO firms the role of design engineer is very different. Such
companies build products specifically for individual customers.
Design and manufacturing departments work together more closely.
In many cases product design continues through production
(design in process), incorporating several engineering changes
along the way. These changes may be driven by the customer or by
the manufacturer, necessitating a seamless flow of data between
engineering and production.
Integrated CAD-ERP software lets ETO companies pass data both
ways and handle engineering changes in both systems. Without it,
designers are constantly re-keying data from CAD to ERP
software, which wastes valuable engineering time or requires
additional staff.
ETOs, unlike repetitive manufacturers purchase items only one
time for a particular job. Typically the engineer will specify
the item and its manufacturer, bypassing the ERP system
altogether. Makers of ERP systems that collaborate with Product
Life Cycle (PLM) vendors can address these needs. Information
about ETOs can be found at the ETO Institute
(www.etoinstitute.org).
Encompix www.encompix.com Roger Meloy 513-733-0066
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