{"id":10646,"date":"2023-10-10T07:31:07","date_gmt":"2023-10-10T05:31:07","guid":{"rendered":"https:\/\/eu.syspro.com\/blog\/?p=10646"},"modified":"2023-11-09T08:08:04","modified_gmt":"2023-11-09T06:08:04","slug":"managing-cost-quality-and-traceability-in-fabricated-metals-manufacturing","status":"publish","type":"post","link":"https:\/\/eu.syspro.com\/blog\/erp-for-metal-fabrication\/managing-cost-quality-and-traceability-in-fabricated-metals-manufacturing\/","title":{"rendered":"Managing cost, quality and traceability in fabricated metals manufacturing"},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

The Asia-Pacific region has one of the largest number of fabricated metals<\/a> manufacturers in the world. Cost efficiency, quality management and traceability are major issues for companies in this region. Many governments are also offering incentives for manufacturers to invest in energy-efficient solutions. The question company managers face is what software solution can help them keep machines busy as well as monitor performance and progress in their areas of concern.<\/p>\n

Managing costs<\/h2>\n

With the demand for fabricated metal products growing so much, production runs are increasing as are the costs. Getting costs under control is important for a good return on capital investment and to ensure factory equipment is operating at optimum capacity and profitability.<\/p>\n

The significant cost items are labor, materials and machinery. Because of this management require visibility of activity on the shop floor. For labor and machinery, it is important that the shop floor is running efficiently and close to capacity and that resources are being used effectively.<\/p>\n

Manufacturers are also increasing automation on the shop floor, partly due to a shortage of skilled labor. Modern machinery is commonly fitted with real-time sensors but these are not very useful if there is no way to view and action the data from the sensors. Therefore, companies should have a system to collect and consolidate the data for reporting and analysis.<\/p>\n

Understanding material costing requires information about procurement activities and how long materials linger in inventory before they are used to generate revenue. This requires access to what and how buyers make purchasing decisions, and the current cost of inventory in the warehouse.<\/p>\n

The advantage of an ERP system<\/a> is that all this information is available to anyone with the appropriate access authority. Using standard reports, and increasingly now via embedded analytics, the current state of shop floor productivity can be viewed. Because an ERP system unifies the data about processes across the enterprise, it is simple to:<\/p>\n