Generic ERPs provide a false sense of security to modern injection molders. They hide the faulty manufacturing processes. The accounting based methodology never provides solutions to a process based manufacturing. Yet, users continue to demand systems that are unable to highlight any flaws in the manufacturing and instead provide them a quick escape. Cycle counting and back flush generate a faulty trail of events that inspite of getting recorded continuously, can only lead to the wrong solutions. And, after failing repeatedly, users give up and continue with the old habits.
BOM based RM deductions
A BOM is only a formula for building a FG/WIP. All the ERP systems use it as a standard tool for back flushing the raw material inventory. They use piece count to back flush raw materials. But is this what is really happening on the production floor of an injection molder? Where did the entire process of mixing and allocation disappear? Can you really deduct 0.0005 grams from an inventory pool of 1.5 Milliion POUNDS? Can you tell when and who threw the wrong resin into the barrel? If not, how can this problem be fixed?
FIFO
How does a generic ERP system really perform first in first out? Do you really label everything with a date and then use it based upon the date? When you have 500 gaylords with 20 old barrels, how do you decided which one your material handler will be pulling out? Is he really doing it? And if so, can you find out when he did not do it? Which gaylords or barrels were really affected and by how much? And how do you enforce the adjustment?
Shipping
How does a generic ERP system really perform first in first out? Do you label each FG piece with a date? Are you absolutely sure that every FG was inspected? If it was not inspected, how do you stop the shippers from packing it off to the customers ?
Do you know who inspected which FG? Are you sure that your count is correct? What if it is not? How do you correct it?
