The ERP Implementation in Manufacturing Company
Today, ERP implementation has been done by some companies. Technically, ERP functions to integrate various information systems spread across each department (functional unit) in an institution. Many companies in Indonesia have successfully implemented ERP systems for their companies. Therefore, ERP vendors have managed to obtain many enthusiasts covering various levels of the company from mid-sized companies to multinational and transnational companies. There have been many benefits obtained by the company by implementing the ERP products they use. Among them is increasing the value of sales, increasing the prestige of the company so as to increase customer trust in the company, standardize business processes to achieve the desired integration value.
The General Explanation about Manufacturing Company
Actually, there many types of manufacturing or production which are based on companies in Indonesia. You may once ever run a company like this before. Its production activities may be more of a kind of snack product. Of course, many challenges must be faced. The challenges are not only about production operations but also managing human resources, production planning, and much more. It is the same as you who don't have the same business. It is really interesting and fun when we share this matter with fellow business people.
Examples of ERP Applications or Implementations in Manufacturing Companies
Ok, what is the examples of the application of Enterprise Resources Planning to manufacturing companies? This time we discuss chemicals manufacturing companies. I did not mention the name of the company because we were bound by a Non-Disclosure Agreement. But, for example, I can share that is not specific to the business processes that the company has.
The chemical-based industry actually has a unique blend of blending terms. In one process there is usually a mixing activity of several raw materials, in the form of chemicals as well, mixed into 1 product. for example, the mixing usually has a formulation, which is usually termed Bill of Material (or abbreviated as BOM). In each BOM, it usually consists of how much material is needed and how much the value of the material is. I took a simple example of the pesticide.
For example, there is material A with a requirement of 0.8 liters with a value of 1000 Rupiah per liter mixed with 0.2 liters with a value of 5000 Rupiah per liter. Directly, the system will retrieve the data and perform calculations to make 1 liter meaning the cost of the material has been obtained.
The calculation is 0.8 liters multiplied by 1000 Rupiah and 0.2 liters multiplied by 5000 Rupiah. But, for the activities of the production not only material costs are calculated right? It surely must calculate other costs such as the costs of labor, the costs of packaging, the costs of machine depreciation, and many other variable components.
Well, what do you think about that explanation? Is it complicated or not an example of ERP implementation in manufacturing companies? Do you think that it is perfectly difficult and confusing? Actually, it is simple and easy to do. In our opinion, it is complicated because you are now learning about some new things that have just happened.
The General Explanation about Manufacturing Company
Actually, there many types of manufacturing or production which are based on companies in Indonesia. You may once ever run a company like this before. Its production activities may be more of a kind of snack product. Of course, many challenges must be faced. The challenges are not only about production operations but also managing human resources, production planning, and much more. It is the same as you who don't have the same business. It is really interesting and fun when we share this matter with fellow business people.
Examples of ERP Applications or Implementations in Manufacturing Companies
Ok, what is the examples of the application of Enterprise Resources Planning to manufacturing companies? This time we discuss chemicals manufacturing companies. I did not mention the name of the company because we were bound by a Non-Disclosure Agreement. But, for example, I can share that is not specific to the business processes that the company has.
The chemical-based industry actually has a unique blend of blending terms. In one process there is usually a mixing activity of several raw materials, in the form of chemicals as well, mixed into 1 product. for example, the mixing usually has a formulation, which is usually termed Bill of Material (or abbreviated as BOM). In each BOM, it usually consists of how much material is needed and how much the value of the material is. I took a simple example of the pesticide.
For example, there is material A with a requirement of 0.8 liters with a value of 1000 Rupiah per liter mixed with 0.2 liters with a value of 5000 Rupiah per liter. Directly, the system will retrieve the data and perform calculations to make 1 liter meaning the cost of the material has been obtained.
The calculation is 0.8 liters multiplied by 1000 Rupiah and 0.2 liters multiplied by 5000 Rupiah. But, for the activities of the production not only material costs are calculated right? It surely must calculate other costs such as the costs of labor, the costs of packaging, the costs of machine depreciation, and many other variable components.
Well, what do you think about that explanation? Is it complicated or not an example of ERP implementation in manufacturing companies? Do you think that it is perfectly difficult and confusing? Actually, it is simple and easy to do. In our opinion, it is complicated because you are now learning about some new things that have just happened.
