When it comes to ERP, why pay for more than you need, and why accept second best? Annie Gregory looks at the requirements for today's SMEs
With daily advances in ERP functionality, it is easy to lose sight of what matters. Manufacturing SMEs have neither the time nor the inclination to be turned on by technology. They just want to get on with their jobs using the best, most straightforward, time saving tools.
As analyst ARC's research director Simon Bragg puts it: "Much of the functionality of the all-singing, all-dancing systems is never used. It becomes too complicated for mere mortals to understand."
Fact is, SMEs need ERP developed to meet their business, engineering and production issues. And of late those are polarising: as volume manufacturing decamps to the Far East, so engineer-, assemble- and make-to-order are becoming the mainstays in the UK. As a result, many SMEs are now effectively jobbing shops: teams of skilled engineers who must take on virtually any job with precision, speed and flexibility.
They thus have clear priorities. They often have to bid fast but accurately for unfamiliar work: get it wrong and margins are wiped out before the job even hits the factory floor. Once there, it has to be managed and tracked against other competing jobs to make the most productive use of available resources. The advanced optimisation and planning tools of big systems are very little use to these firms. They need a different focus.
Anglia Circuits Engineering (ACE) of St Ives, Cambridgeshire, is typical. It makes milled and turned components for virtually any industry where high quality finish and accuracy matter. It also handles prototype, small batch and medium production runs.
ACE has been using a Jobshop ERP system from HRS (Huckerby Royall Systems until it joined Planit Holdings) since 1991. Managing director Rock Loveday says he was originally attracted to the system because it focused on exactly his company's kind of work. He says he hates wasting money – but, even more, he hates seeing the same job done twice. So he bought the system so that, from the first enquiry to product delivery, information is entered only once.
Estimating and quoting
Now, as an estimator works through the specification and costing processes for each new job enquiry, Jobshop accumulates the price from standard costings. At the same time, it is also automatically creating the shopfloor routings. Tasks can also be shortened by instant access to records of similar jobs. "We just give it a new number, make any modifications to quantity etc, and rerun it," explains Loveday.
But beyond estimating and quoting, with hundreds of live orders ACE's scheduling is a high priority. And here what matters is that the system can establish the earliest completion date using the routings on the estimate. It can also run 'what-ifs' to assess shopfloor loading using alternative machines. Then if ACE wins the work, it automatically creates all the shopfloor documentation, and a quick load facility launches the job.
"Jobshop checks stores for materials: it they are available it kits the job. If they aren't, it generates the material requirement," explains Loveday. Jobs don't start unless they can be finished and, just as important, they are tracked. "I used to spend half my time looking for jobs. Now we can give people an instant answer."
It's worth noting that no fewer than 10 people in this 35-strong company use the system – reinforcing the point that smaller companies need systems where each user can easily juggle tasks. Also, Jobshop doesn't try to do everything – it interfaces, for example, to common accounts packages like Exchequer, Sage and Opera. It simply gives support where SMEs most need it.
"Since we installed it ... we have increased our workload without having to put in more hours," says Loveday. "That's down to our efficiency plus people using good systems well."