Why Utilizing an ERP System Is Important for Injection Molding
Injection molding is used to create a stunning array of products essential to the functioning of the modern world. Although injection molding is very efficient and cost effective for manufacturing large copies of individual parts, setup costs are high, since tools and molds must be custom made to produce the desired product. An Enterprise Resource Planning (ERP) system is critical to maximizing the efficiency and profitability of the process.
Many situations can arise that cause the injection molding process to be unprofitable. A job can be poorly bid, resulting in either lost sales because the bid was too high, or lost profit because the bid was too low. Poor estimation of the amount and cost of manufacturing inputs can increase product costs. Overproduction can result in profit robbing inventory costs. And even if the bid and production goes well, a customer's financial instability and non-payment could result in loss of profit, or even loss of capital.
The purpose of an ERP system is to manage just these types of risk. An ERP system is a software program that integrates internal and external information across the business functions of an entire organization, including accounting, manufacturing, quality and customer relationship management (CRP). Real-time input and data usage are also characteristic of these systems.
In the context of an injection molding manufacturing facility, ERP may be used to facilitate on time delivery, eliminating unnecessary down time, and ensure compliance with industry and government standards. In addition to these considerations, a critical benefit is the ability to track and trace products through the supply chain. This is especially important for medical, safety and military applications. A product failure in the field can be isolated (contained) according to lot number and a replacement or repair can be pushed to all customers affected- allowing the manufacturer to proactively solve problems before they impact a large number of customers.
Lot number tracking also facilitates process improvement. The failure of a particular lot can be traced to a production team or individual, and process improvements and/or additional training can be implemented to minimize future defects. Since a company is only using scarce resources to target actual problems, rather than waste resources in a broader recall, profitability is also improved.
In today's fast-paced, globally based business environment, an ERP system is critical for the competitiveness of many industries. An ERP system enhances communication internally and externally and helps align company efforts to efficiently satisfy customer needs in a profitable manner.
At Crescent Industries, we utilize IQMS the manufacturing ERP software to integrate information across the business in regards to accounting, quality, manufacturing, lot traceability and customer relations. To learn more about Crescent Industries, please call 800-411-3844 or visit our website www.crescentind.com.
