The impact of Process Controls in ERP
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The impact of Process Controls in ERP

You need to control a process if a desired output is expected to be reached time and time again. It is not a thing to be left to chance. It is therefore of importance to the discipline of engineering that mechanisms, architecture and algorithms, produce an expected result. This is the reason why the toothpastes we use, for instance, have the same quality despite not being produced at the same time.

THE PURPOSE OF PROCESS CONTROLS: Consumers desire to trust the quality of the products they use. The only way one can be loyal to a brand is to be sure of knowing what to get by using that brand of product. This is why a manufacturer needs to put things in place that will aid a constant quality in output of items produced. With the use of a good Enterprise Resource Planning (ERP) Software, the manufacturer hopes to achieve the following purposes:

- MASS PRODUCTION: Process controls enable the mass production of a product. Knowing for instance, that two molecules of Hydrogen and a molecule of Oxygen will give water; water can now be mass produced. This is the whole essence of process controls.

The impact of Process Controls in ERP

- AUTOMATION: In an age where a reduction in the cost of production is aimed for, the use of ERP in process control has helped manufacturers improve on efficiency while reducing cost. Instead of having a large staff which translates to more overhead in the production of an item, automation has made it possible for a small staff to oversee production from a central control room.

IMPACT OF PROCESS CONTROLS: The impact made by having process controls in a good ERP include:

- ASSET LONGEVITY: It is capital intensive to buy assets used in producing goods. By using a good ERP, the lifespan of an asset is improved because of the efficiency achieved. Waste is part of the reason why assets do not last as long as they should resulting in a manufacturer needing to source for funds to replace the asset. If an asset is fully utilized, it will maximize its use to the gain of the manufacturer.

- LABOR COST: This is reduced when automation allows a smaller group of staff to use ERP to produce rather than having a large staff to do the same job. A large staff translates to more overhead labor cost which a manufacturer can do without.

Process Controls in ERP

- PRODUCT QUALITY: There will be no reason to redo a work because with process controls in ERP, the job will be gotten right the first time. This reduces time wasted in producing the same quantity of goods as well as increase the lifespan of the asset that would have been put to work again for something that should have been gotten right the first time.

- SATISFYING CUSTOMERS: When customers get the same quality every time they use a product, their confidence level in that product increases leading to a satisfied customer who will want to purchase the same product again.

- REDUCE SUBCONTRACTS: With the knowledge that process controls in ERP improves the effectiveness and efficiency of production, the number of times that a manufacturer will need to subcontract a job will be reduced. This is money retained in the purse of the organization.

Process Controls

- STAFF REDEPLOYMENT: Since a lot of staff is not needed in the production unit, the surplus staff may be redeployed to other departments in the organization that need to improve their staff strength. This saves the organization the time and money required to recruit staff.

- LOWER COST OF PRODUCTION: Process controls in ERP has reduced or eliminated the need to redo a job, it indirectly reduced the cost of producing that item. This lower production cost will reflect in the unit cost of an item. If for instance, the unit price of Product X was $1.40 before process controls in ERP was integrated and improves to $1.25 after the integration of process controls in ERP, the organization has improved its unit cost by $0.15. It is now left for the organization to reflect it in its sales to customers or retain it as additional profit.

Process control has made a huge impact because of quality ERP systems. Organizations that use it have fared better and experienced a reduction in production cost while noticing an improvement in efficiency. The lifespan of organization's assets have also increased. Most importantly, loyal customers are now gotten because they know that they will get the same quality no matter how many times they use a particular product.
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