Which production management software / ERP is the best for a small manufacture?Practical guide to help you choose the best production planning and production accounting software, and which will protect you from bad investments.
Production management software – this is a phrase you probably typed in Google searching for a solution to your production problems, but soon were surprised to find thousands of search results, each company offering you their great product, so now you are none of wiser and still have a dilemma what’s best for your business.
That’s why here, we are going to help you to choose the best for you production planning tool, calculate work, get rid of paper orders, and last but not least improve efficiency and gain control over processes at the production hall.
This guide will tell you:
- Which production management software or ERP is ideal for you, depending on what you produce and how big your company is (examples of different programs)?
- What’s the difference (also in pricing) between production management software, ERP and MES?
- The biggest traps you should be aware of while choosing production managing software:
PLEASE NOTE: This guide is addressed to MICRO and SMALL PRODUCTION MANUFACTURERS (5-40 people at the production hall), which intend to achieve positive effects quickly, without involving complicated, hundred of thousands dollars pricey system.
This is the summary which sets out the main points of the whole article:
1. Which production management software is the best to choose (graph)?
2. Which production management software is the best to choose (table)?
|The size of your company|
When you offer:
When you offer:
( +50 people)
(up to 10)
Short explanation of basic terms used:
- Accounting and inventory software – probably you’ve already got it, for production it only offers a completion outlook (it shows what consists of which elements).
- Production management software (MES) – apart from production planning we get an access to a production hall, where employees register their work.
- simple (MES) – enables easy production planning, registration of working time at the production hall or calculating efficiency and finally abandoning paper production orders;
- advanced (MES) – advanced production planning (including semi-automatic), extended registration, services, full materials cycle – however less flexible. It is very often integrated with accounting and replaces a full ERP;
- corporate (MES) – it usually requires co-operation with ERP system. Automatic planning is very often connected to machines with artificial intelligence elements.
- ERP system – a wide array from a few hundred, to a few milion dollars; practically speaking the difference between ERP and a good accounting and inventory system is that based on orders ERP plans what and when should be purchased. Please note: it doesn’t reach to a production hall, so it requires an addition of MES or other module.
- RWT system – registration of working time (check ins and check outs). It is usually a component of production management software or you can buy it separately, ex. with the check ins/check outs monitoring system.
- WMS system – for advanced inventory management, usually works together with bar codes and high stock piling.
Why ERP systems are not suitable for small manufactures:
- ERP will not work well if it doesn’t get lots of (even sometimes obvious) information. Hence you will have to spend long hours adjusting this system to your needs;
- You have to run everything perfectly or your stocks will show so great discrepancies, that you will need to prepare separate documentation;
- Forget flexibility – in the ERP everything must be prim and proper, with accompanying document;
- ERP-s usually don’t have a production extended module, so you need to buy an external MES module or the one recommended by the software producer;
- Be prepared for high cost at the start, and multiply the offer you got by two.
Potential traps for small manufacturers:
- Free production management software is usually a cheap marketing gimmick. Only the licences for basic modules are free, and companies make fortune on implementation services, and you get a product without any technical support.
- Production management software integration with the accounting and inventory system – as it happens, due to imprecise technologies systems will not integrate, and you may waste lots if time on detailed technology descriptions.
- Lack of online access – in practice, the smaller a company is, the more SECURE, futuristicaly thinking, data storage in the cloud should be.
Which production management software, ERP do you need?
The idea to have an ERP production system, which is “all in one” solution, in practice doesn’t work so well for small manufacturers as it seems at the first glance. Look at the graph and choose your situation, to find the best solution (the vertical line indicates the number of employees, the horizontal line describes, how complex the average product is).
1. For simple products, produced mostly in-house:
(ex. machining / CNC, plastic / injection molding industry, rubber products, cardboard packaging, simple woodwork and carpentry, printing shops / printing, steel constructions)
Challenges to deal with: better production management, work planning: the employees must know what to do, how and when, real-time production registration – you know what’s completed, how efficiently, in which time frame and at which cost.
Suggested solutions Micro company (<10 people):
- Free Google Docs sheets shared at the production hall;
- Simple, independent production management software (planning and calculating production as well as check in/check out times): getprodio.com (Read more: simple production management software).
Suggested solutions Small company (10-25 people):
- Simple, independent production management software (planning and calculating production as well as check in/check out times): Prodio.pl – optimal package + RFID reader (Read more: simple production management software).
Suggested solutions Average size company (25-50 people):
- If you intend to keep it simple and you don’t need a connection with warehouse and accounting:
- getprodio.com/pl – optimal package + RFID reader (Read more: simple production management software).
- If you wish to have an accounting module and a connection between warehouse and materials used: advanced production management software – simple MES (read more), ex:
- metal industry, plastic ex. Plan de CAMPagne,
- other industries ex. Qcadoo, MES.
2. For more complex products, where there is a need of externally purchased elements/ operations:
(ex. robots production, exhibition stands)
Challenges to deal with: better inventory-purchase procedures, especially if the product consists of tens of elements, often purchased externally.
Suggested solutions a Micro size company (<10 people):
- Extended Google Docs sheet shared with the office staff;
- Using completion module in accounting and inventory software, ex. Sybiekt GT or ERP Optima XL.
- Suggested solutions a Small size company (10-25 people):
- Production addition to accounting and inventory system targeting inventory planning, ex. MRPeasy.
- Suggested solutions an Average size company (25-50 people):
- If you wish to keep your present accounting system: advanced production planning and registration system integrated with Optima / Subiekt, ex. Qcadoo.com (from about 1 400 zł PLN per month + implementation).
- If you wish to implement an accounting system from the beginning: simple integrated system with ERP, or RHO Modus funcionality.
- If you estimate, that your company will grow fast: wit’s worth to consider investing in complex tools offering cloud storage such as ERP-s.
What is what exactly and how it can be used
(production management software – MES, ERP system and so on)
We have to make an exeption here, because there were numerous situations, when a company spent 50 – 200 ths. dollars on ERP system, only to discover later, that it doesn’t reach to a production hall!
1. Accounting and inventory software with additions
Perhaps you already use it in your company. The best known on Polish market is Comarch Optima, which gradually had been more and more expensive, and suddenly became an ERP Optima (it’s an ERP only by name 😉 ) and Insert Subiekt GT, which is a good value for money. Both programs can be recommended, although neither of them is a masterpiece nor is a flop. What’s important they are going to move to a cloud – which might generate future problems.
The basic functions of accounting and inventory software are:
- Sales (which is everything connected with issuing invoices);
- Orders (which means accepting Client’s order and making a product reservation in the warehouse);
- Stock (states, WZ / PZ, also very often orders from providers);
- Completions (based on completed order and product parameters, the stock updates automatically);
- Simple CRM (which funcionality leaves a lot to desire). If you don’t know what CRM is, click here to read a great article prepared by Rafał from informatykawfirmie.pl website.
If you wish to have access to production you buy a simple but separate (or integrated with accounting program) production software.
Simple production additions to accounting software
Example software: Apator Mozart
The price is based on offer presented on the producer’s website: licence from 1 950 zł PLN per working station + implementation
The principles are to expand your accounting and inventory for easy planning of purchase and production to make complex products to fulfill your orders.
- to faciliate production of sophisticated, multi-element products / complex products, where managing the inventory is of a key importance,
- to create work schedules in connection with ordering parts (usulally those schedules are for the manager, not for a production hall).
- Materials planning / products balancing.
- BOM-s (products “tree” – which parts it consists of).
- Inventory and calculation of semi-products / products.
- Advanced cost calculations.
- Work scheduling according toBOM-s.
It’s recommended for:
- the size of a company: practically speaking form 2-3 employees at the production hall up to about 10 people (when number exceed, it might prove uncomfortable to register production),
- industries: complex products, where more important is purchase planning and monitoring of semi-products then production management at the production hall ex. if you produce sophisticated farming machines in a small scale.
2. Production planning software (MES-es)
Acronyms and abbreviations tend to be quite fashionable, so majority of companies which have independent production management system at the production hall boast to be a MES (which stands for a “Manufacturing Execution System”). The role of MES-es is much bigger and includes complete production service, planning and accounting.
For example, even the simplest monthly subscription to Prodio.pl software (197 zł PLN per month) can be called MES: it reaches production, employees cansee working plan and there is a real-time registration of work.
2.1 Simple MES-es – production planning, registration and accounting software dedicated for small manufacturers
The principles are simple – you leave behind your accounting and inventory system, and start to monitor production comfortably an easily with a new production management software. This tool is great if you want to abandon paper production orders and ahave a full control over your production from any place in the world.
The example software: getprodio.com
The prices based on offer from the producer’s website: monthly subscription from 197 zł PLN net per company
- Implementation costs / set up: 0 zł PLN. The Client can set up the software themselves using configuration tool,
- Update costs: 0 zł PLN (it is always updated),
- Equipment needed: simple laptop / computer with Internet access, RFID readers + key-fobs.
To monitor and better organize production at the production hall, your employees know what to do, in which order (they have a schedule at the production hall), and you know lead times and efficiency.
- Creating a production plan, where orders are displayed at the production hall.
- The production employees can register operations (and check ins / check outs).
- Registration of check ins and check outs in production management software.
- Working history display and order’s calculation.
- Managing orders and monitoring progress (not including warehouse).
It’s recommended for:
- industries with simple products: metal working, CNC, injection moulding, elastomers, carpentry, cardboard packaging, printing shops, tooling departments, other simple production and production-support processes (ex.plating process),
- from 2-3 people at the production hall up to about 30 people.
The example software: getprodio.com (click here to get a free trial)
2.2 Advanced MES-es with a possibility of accounting and inventory integration
This narrow group is dedicated to larger companies, which prefer to keep their accounting and inventory system or even a simple ERP (which doesn’t have as interesting production as ex. Comarch CDN XL).
Integration isn’t often as comfortable and lacking daily problems, as in case of unified ERP, but it’s possible to make some great savings. We get a good production management software, without a necessity of buying a whole accounting system.
The example software:
- Online version of production management software Qcadoo MES
- Advanced online version of MES OptiMES
Typical pricing – how much costs advanced production management software:
- For SaaS as paid monthly subscription: from 1 200 zł PLN + about 6 – 10 tys. PLN implementation;
- For offline systems from about 20 do 40 tys. PLN for implementation + 10 – 20% of this amount for annual licence;
- Equipment: it requires a sophisticated network infrastructure.
Advanced calculations of product making, production scheduling with accounting for inventory and integration with accounting.
- Everything, what a simple production management software has PLUS:
- Advanced planning, including machine calendar, employees competencies matrix, Gantt’s graphs, etc.;
- Advanced monitoring, including bottlenecks, downtime, and OEE factor;
- Calculations and offering (including margines and provision / mark-ups on department costs);
- Warehouse management (inventory documentation, disbursement methods and attributes in documentation);
- Integration with accounting and inventory systems.
It is recommended for:
- companies, which would like to have a complete functionality of ERP, but wish to keep their present accounting and inventory software,
- planners, who wish to use advanced planning functions, including automatic scheduling,
- companies aware of the number of data necessary to provide for the system,
- companies, which products are divided into small elements, where each of them needs a separate management.