Microsoft Dynamics AX in the Manufacturing Industry

Whether you’ve managed a business in the past or currently manage one today, you have most likely heard of Enterprise Resource Planning or ERP. This industry term for the broad set of activities that help an organization control its business entered the manufacturing lexicon in the early 60s. An outgrowth of MRP (Manufacturing Resources Planning), this software facilitates the flow of information to enable data-driven business decisions.

Should you use ERP?

Implementation of ERP software is highly recommended. Its ability to streamline mission-critical components across departmental channels makes this software an optimal choice for managers. However, the perceived stresses surrounding ERP deployment too often prevent those needing to give it a fair shot.

Microsoft attempted to solve these issues with their ERP release, Dynamics AX. The multi-language, multi-currency, industry-specific ERP supports operational and administrative processes for organizations in manufacturing, retail, service industries, and the public sector. With more and more businesses implementing ERP software, it’s essential to determine whether or not deployment worked.

Does it work?

An independent consulting firm, Panorama Consulting, investigated several more prominent ERP Vendors (including Microsoft AX) and found businesses’ overall experience leaned toward the positive side:

• The average implementation time ranged from 13-18 months. Much shorter than previously perceived.
• 58% of businesses considered their implementation of ERP success in 2014
• Almost half of the companies that deployed ERP last year rated their overall experience as either “Satisfied” or “Very Satisfied.” Only 11% rated their experience as unfavorable.

Specifically, customer satisfaction and experience with Microsoft Dynamics AX featured more positive feedback than SAP or Oracle (two of the more common systems). In addition, users experienced the highest percentage of benefits realization and fastest implementation time with Dynamics AX.

Industry experts agree on the indispensability of a sound ERP system in the modern economic scenario. It’s advantageous for businesses trying to improve their financial reporting and overall efficiency. According to the Corporate Communications at Microsoft this year, out of the companies that implemented ERP software:

• 30% Saw an increase in productivity
• 75% Reduced staffing costs
• 44% Reduced IT Costs
• 75% Improved Operations and Visibility
• 25% Witnessed positive ROI

Nowadays, much of the hassle involved in ERP implementation no longer exists. Instead, it provides a solid operational backbone for manufacturers and production managers to improve production volume and meet consumer demands while reducing costs. Moreover, in optimizing your manufacturing operations with ERP, you’ll soon discover the freedom to focus on new business opportunities. As a result, your business’ room for growth vastly expands.

Advanced Planning and Scheduling (APS) Software

Advanced Planning and Scheduling Software have become a must for modern-day manufacturing operations as customer demand for increased product assortment, fast delivery, and downward cost pressures become prevalent. These systems help planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans. In addition, APS Systems can be quickly integrated with an ERP/MRP software to fill the gaps where these systems lack planning and scheduling flexibility, accuracy, and efficiency.

With PlanetTogether APS, you can:

• Create optimized schedules that balance production efficiency and delivery performance
• Maximize throughput on bottleneck resources to increase revenue
• Synchronize supply with demand to reduce inventories
• Provide company-wide visibility to resource capacity
• Enable scenario data-driven decision making

Implementing an Advanced Planning and Scheduling (APS) Software will take your manufacturing operations to the next level of production efficiency by taking advantage of the operational data you already possess in your ERP system. APS is a step in the right direction of efficiency and lean manufacturing production enhancement. Try out a free trial or demo!