ERP System (Enterprise Resource Planning)

Manufacturing ERP systems typically include several core modules. Production Planning/MRP handles the Master Production Schedule, material requirements explosion, and capacity planning. Inventory Management tracks raw materials, WIP, and finished goods across locations with real-time quantity and valuation. Procurement/Purchasing manages supplier relationships, purchase orders, receiving, and supplier quality. Shop Floor Control tracks work order progress, labor reporting, and actual vs. planned performance. Quality Management manages inspection plans, non-conformances, corrective actions, and compliance documentation. Finance handles accounts payable/receivable, general ledger, cost accounting, and financial reporting. Sales & Distribution manages customer orders, pricing, shipping, and invoicing. The integration between these modules is the key ERP value proposition: a customer order automatically triggers demand in production planning, which generates material requirements in procurement, which creates financial accruals in accounting — all from a single data entry point.

While ERP systems include production scheduling modules, many manufacturers find that ERP scheduling capabilities are insufficient for real-world shop floor complexity. ERP schedulers typically use backward/forward scheduling logic with fixed lead times, producing feasible but not optimized schedules. They lack the visual, interactive scheduling interface that planners need for rapid what-if analysis and real-time adjustment. This is where specialized tools like LinePlanner complement ERP: the ERP handles material planning, costing, and transactional processing, while LinePlanner provides the visual, drag-and-drop scheduling interface with shift-level granularity that planners need for effective daily scheduling. The combination leverages each system's strengths — ERP for data management and integration, LinePlanner for planning intelligence and user experience. Integration between the systems ensures that schedule changes in LinePlanner are reflected in ERP for material planning and capacity reporting.

ERP implementation is one of the most complex and high-stakes projects a manufacturer undertakes, with typical timelines of 12–24 months and costs ranging from hundreds of thousands to millions of dollars. Success factors include: Executive sponsorship — a senior leader who champions the project and resolves cross-functional conflicts. Process-first approach — redesign business processes before configuring the software, not after. Data migration discipline — cleansing and validating master data (BOMs, routings, inventory records) before go-live is critical because garbage in equals garbage out. Change management — investing heavily in training and communication to ensure user adoption. Phased rollout — implementing modules incrementally rather than a big-bang approach reduces risk. Realistic expectations — ERP is an enabler, not a magic solution; it will not fix broken processes, only automate them. Post go-live, plan for a stabilization period of 3–6 months as the organization adapts to new workflows.