‘Business Improvement’ Posts



“What about reconditioning and overhaul?”

March 19th, 2010 by Streamline Systems LLC

One of the business questions regularly encountered by Industrial equipment manufacturers is whether an ERP system, in our case Microsoft Dynamics AX, is able to handle reconditioning and overhaul.  Many of these businesses exist in the US, and reconditioning is something typically done for equipment with a long life span like power trains, turbines, gears, etc.  Reconditioning and refurbishment have become an increased source of new revenue and an important business concern.

In this scenario, the customer sends in a used piece of equipment and the reconditioning process makes it ‘as good as new’ again through full or partial disassembly with a combination of replacement and repair of different components. Reconditioning operations exist often in conjunction with ‘new build’ but they can also run in separate facilities. Some Reconditioning businesses are Make-to-Stock, where no engineering is required, for example the refilling of ink cartridges, the remanufacturing of engine starters, etc. In this case the remanufacturing or reconditioning is a standard process.

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Product Configuration and Engineering

March 19th, 2010 by Streamline Systems LLC

Product Configuration and Engineering

One of the most common business questions we encounter is whether the ERP system is able to combine product configuration with additional engineering.

We understand the question. Many of our customers sell configurable equipment where customer specific enhancements are common. These enhancements have to do with specific applications that the equipment is used in and can never be part of a configuration. For engineering these enhancements are not a big design challenge. The problem lies in the workflow and whether an ERP system is able to handle this business scenario.

Configurators are primarily designed to produce a BOM and a Route, in addition to things like pricing and configured product descriptions (or even entire manuals). The idea behind the configurator functionality is that the produced BOM and Route are complete, so a sales order can become a production order immediately. But for many of our customers this is simply not how their process works.

Considerations…

If the business frequently requires additional engineering on top of a configured product, three things have to be investigated in the ERP system:

Can the BOM as produced by a configurator be changed? This will normally be the case but doing this will create difficulties for the re-use of existing configurations. If the re-use functionality would copy an existing BOM and route of a previously configured item, we would copy the engineered modifications also.  What should be done instead is to make copy of the configured BOM and add the uniquely engineered part numbers to it. On the BOM a sales order# or project# should be added for later searching. The copy of the configured BOM then becomes the correct ‘Sales-BOM’ with the engineered enhancements.

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ERP Success Story


 

Read about challenges MDC Vacuum Products, LLC faced as they considered upgrading their ERP Systems and how they were able to improve their business with Dynamics AX implemented by Sikich LLP.

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