SaaS ERP

Do you live or work in or near Toledo, Ohio? Do you like to dance? Even if you don't like to dance, have you wanted to learn how to tango? Or does your wife want you to learn to tango, and you know you'd better say "Yes" or you're sleeping on the couch till you answer correctly? The web site you want to browse to is that of the Toledo Tango Club. Really, you do want to do this!

The economy is in shambles right now … you know that, I know that and the company pet probably even knows it.  Let’s face it there are solutions to change the system but they are out of our control.  The only option we really have is the choice of sitting back and crying over it or standing tall and trying to find the best possible way to still live our lives and pinch our pennies while we do it. 

Of course companies are feeling the pressure to continue expanding and becoming more efficient but also they are faced with the harsh reality that they just can not afford the tools necessary to do so.

Well I suppose we can focus on the subject at hand, enterprises which are purchasing ERP software.  Now that’s a great big chunk of money!  Answer me this – why would an organization purchase an entire system and spend thousands (some spend millions) on a system which they do not even know whether it will work the way they want it to or whether it will become a big waste of money.

SaaS helps to reduce the large-up front expenses associated with software purchases by offering less costly monthly pricing and reducing the investment on server hardware.  Any way to save a small amount of software is a great option.  One other option some vendors offer is like renting to own … kind of.  Talk with the vendor which you are working with to see if they will allow you to utilize their system as SaaS until the funds are available to purchase the entire system.  This is a great option because your organization will become familiar with the software that is available and can be making lists of all the items within the system which need to be updated once the system is purchased.

Also, a good option to investigate when purchasing an ERP system is making the commitment to the software provider and then purchasing the software one module at a time as the funds become available.  Obviously this may not be a feasible option if the organization is struggling significantly but if you are optimistic like every other American is trying to be, you’re hoping the economy is going to increase significantly and you will be able to purchase it in the very near future.

One of the more important features of thin-client scheduling software is the ability to access the system from anywhere. At one time, and as still exists in some manufacturing facilities, some scheduling systems were in a central location within a facility. The schedule could be posted as a series of documents stapled to a cork bulletin board near a timeclock. A more modern "system" could include a whiteboard with rows and columns taped onto it, the whole schedule drawn with a dry-erase marker in different colors. And schedulers who believe they're really using their computer to its fullest potential might have a spreadsheet on a network drive, with everyone having access to that spreadsheet when they need to see it.

Real scheduling software systems are decidedly more flexible than this. A thin-client Scheduling software system will be web-based, able to run on a web browser on any computer regardless of the type of computer it is. The software will be located on a central server. If it's run as Software as a Service (Saas), it'll be located on a server owned by a third party and will still operate the same way at a lower cost.

What this means is that managers, schedulers, factory floor personnel and administrators can all access the same software from anywhere. This also includes accessing the software from other locations, possibly if the company has more than one facility of if someone is at a conference or other business trip. Different log-ons for the various levels means security where it's needed, not exposing people to areas of the software they don't need to be in. And through it all, it's paperless while still being able to be printed as the need arises.

Flexibility. Security. Paperless. Lower overall cost. That's probably just what your business needs.

With Software as a Service (Saas), Production Reporting is still not only a required feature of the software, it's also likely a large part of what you're trying to accomplish with the software. Many manufacturing managers begin looking at software packages as a method for keeping track of what's going on within their facility. This could be raw materials inventory, tool and equipment tracking, scheduling of machinery and other resources, scrap and defect tracking, OEE, or any number of other possibilities.

Fortunately there are a number of reporting features a software developer can add to the software you use or subscribe to as a service. Simplest to develop are long lists of transactions, inventory lists, costs and the like. But as these get larger you may want to consider graphing and charting as a way to get a better handle on what the information means. At that point, trend charting can make things easier to see via pareto charts and 3D display methods.

Picking, shipping and inventory lists can also be generated using actual barcode fonts. If the barcode on the physical item isn't any good, the barcode on the list can be used for the scan instead of the damaged barcode. New barcode labels can also be printed using these same barcode fonts to replace any that have been damaged during movement.

All of this can be accomplished through software located on a third-party server and subscribed to from your facility or other locations. All you need is the printer and correct paper and label types to print what you need. This makes using the software a little less expensive in the short-term, and still provide you with the information you're looking for.

Production scheduling software is becoming quite important to a large number of manufacturing firms. Factory floor supervisors, production managers, and IT departments alike are finding out Production Scheduling isn't something to be taken for granted. You can develop manual systems all you'd like, including managing the schedule as a written board on the wall as in the "old days". You can show off your spreadsheets all day long. Or, if one of your IT folks actually has the programming bug, you can convince them to develop a little something in that database application that came with your office suite. You know, that application you've looked at on occasion but never used ... except for the template for a database to keep track of which video you've loaned to which one of your buddies ...

Here's something to consider: Yours is a professional manufacturing facility. You have professional crews working on the floor creating some of the best products out there. Your office staff, your managers, you pay them good money because they're worth it, they're professionals as well, and you'd rather they not take the good knowledge about their jobs somewhere else.

So why are you skimping on the schedule? Why would you prefer to not automate your scheduling system just to save a few bucks? Is it worth it? If you take a good look at it, it's probably not worth it at all.

Even smaller and medium-sized manufacturing facilities could benefit from automated scheduling systems. This author used to do R&D in a facility that designed and manufactured programmable, fully-configurable fire alarm panels, along with the strobes and horns used as annunciators. (The heat, smoke, sprinkler and other sensors were supplied by a specialty manufacturer.) Here we were, developing and manufacturing panels which utilized some high-end embedded computers we were writing the software for ourselves ... and the schedule for the production of those panels was being done on a spreadsheet that was constantly ... and I mean constantly ... being reworked by two people to accomodate current sales. These two people probably made a combined $70k annually.

If the company were to have spent half that amount once on a decent automated software package, those two individuals would have certainly had time to take care of other things. If the Production Scheduling software had had artificial intelligence to refine the schedule as efficiently as possible, maybe the plant would have made better profits, and would not have ultimately been sold to an international conglomerate and the plant closed.

If that kind of cost is still too high for you up-front, Production Scheduling software is also available via a "Software-as-a-service" model (Saas). With this model, the software is located on a server hosted by the software's developers. You can still get the same kind of service, including the option of having the software custom-tailored for your facility's needs, while paying a monthly fee for its usage instead of a full development fee.

You'd really rather have a professional system for all those professionals you have working for you? I thought you would.

While some Saas ERP systems have a "canned" nature to them, they can certainly be configured for your company's purposes while still offering lower up-front costs that still reflect the Saas model. ERP systems can be fairly complex but your facility's need may be outside the scop of what's available. Finding a lower cost ERP system while still having it customized is likely an ideal solution for your issues.

In looking at a new ERP software system it's important to know if you can use a canned system or if you're going to need something that's custom-tailored. Your staff might need to assemble an RFI or Request For Information. This document should outline exactly what you want the software to accomplish. RFIs can be simple, being only a couple pages for a warehousing operation, or rather complex particularly if you need a system for the entire enterprise. How complex this document is, is entirely dependent on what you need the software for.

Discussing this document with the software developers is key to determining whether or not a canned system will work for you or if you need something that's custom-tailored. At this point you'll also be able to determine the level of customization, if necessary.

Saas ERP software can certainly still be as flexible as you need to be, complete with the customization your system needs. Researching exactly what you're trying to accomplish is as important as the results you're looking for.

I’ve found a couple of companies that are worth taking a look at if you’re interested in SaaS ERP that can be configured.  SaaS by it’s very nature lends itself more to a canned architecture.  The ERP vendor generally creates a single core system and then sets forth to sell as many copies of the system as is possible.  Quickbooks and Salesforce.com are some really good examples of companies that offer a canned SaaS solution.

 

While these systems are very good choices for small uncomplicated businesses they often hit a functionality wall when the company needs some specific function that would make their business more profitable or could potentially reduce employee keying and workload.  As an example a canned financials solution would most likely have a very nice user interface but could be lacking if you tried to connect it to a tailored estimating system instead of it’s internal order entry tools.

 

The industry is beginning to grow some agile SaaS ERP vendors.  These are companies like ShopFloorReporting com and Tuppas Software.  These companies provide a browser based platform that also has an agile capability of framework built into it.  The systems are rigid in that there are base modules.  But it it’s dynamic in that the interfaces can be tailored.  These companies are worth taking a look at if you’re considering an new SaaS ERP solution.

There are a lot of ways to create cost benefit within your scheduling system.  One common area that many companies consider when looking at acquiring a scheduling solution is an ability to improve the efficiency of the lines in the plant.  Well designed solutions allow the schedule to be sequenced and optimize the schedule so that the change over times between scheduled jobs is reduced, or so that increases in transition efficiency are achieved due to improved decision making in regard to change over.  This can provide a nice ROI.

 

There are many very specific scheduling constraints that vary from one company to another that can improve the ability of a company to compete in its’ market.  Examples of these types of scheduling constraints include JIT (just in time) delivers to remote locations.  JIT can create finished goods inventory reductions in many companies that allow the team to create inventory reductions thereby increasing there cash on hand.  Other examples include logistics and routing.  There are businesses that are able to improve cash flow by arranging deliveries and reducing shipment expense.  It can certainly pay to choose a solutions provider that is progressive and has the experience and the tools to accomplish these types of systems. 

 

Another source of ROI is the improved coordination with delivery schedules and capacity to promise machine utilization.  A well designed scheduling solution will offer its’ users intelligence on what can actually be achieved in relationship to customer requests.  Good systems will provide reports for use by customer service allowing “what if analysis” into current and anticipated demand.  I have also looked at systems that can show the scheduling department and customer service reps that there is available capacity to promise.  This type of information is great information that can be used to report machine availability to potential customers.  There is also benefit in additional customer satisfaction.  An increased capability to communicate accurate delivery schedules can go a long way in terms of customer satisfaction.

 

I recommend looking at companies like Tuppas software or ShopfloorReporting.com.  These companies are very agile and they build good solutions that provide strong benefit very affordably.