Garp ERP

An earlier blog outlined the differences between “regular” order-based manufacturing and project manufacturing. As a reminder, order-based manufacturing is oriented around, well, orders (e.g., jobs orders, production schedules). Project-based manufacturing incorporates a number of “orders” as well (including work orders, purchase orders and other activities), and they are used as control and reporting points.

Product Lifecycle Management (PLM) is the process of tracking and managing a product through its entire lifecycle from the first idea through development, production, sale, use, and ultimate disposal. First developed in the 1960s in the automotive industry as a tool for reducing product development lead time, PLM is now standard practice in most durable goods industries—especially automotive, aerospace and defense, and electronics.

Innovation is what provides longevity to a manufacturing company—products do not last forever. And product cycles are shrinking, making it more important than ever to look for new ideas and new approaches wherever they can be found. Most companies realize that the best source of innovative ideas may well be right inside their existing organization. However, the traditional corporate environment might unintentionally discourage innovation.

Every company must invest in equipment and technology to increase output, improve efficiency, and grow the business. Prudent management will only make investments that will pay off. Investments that return benefit to the company that exceeds the cost. It is customary, therefore, to view each and every potential investment through a cost-benefit analysis prior to committing to the project.