In a rapidly changing industrial landscape, complementary process management has become a must-have for companies seeking to become even more competitive in the crowded arena of industrial service providers.
ERP systems in manufacturing have become indispensable tools, offering countless benefits to companies seeking to optimise their departments.
From streamlining operations to improving collaboration between companies within the supply chain, these solutions play a key role in increasing efficiency and profitability.
Laser cutting and sheet metal processing are extremely demanding activities due to the need for precision, production speed and high quality standards. Any error in the production process can lead to significant material and financial losses. In addition, growing customer expectations are putting increasing pressure on companies in this industry. As a result, laser cutting companies must constantly optimise their processes in order to grow and remain competitive.
P.P.H.U. Kali is a family-owned company that has been operating for over 30 years as a metalworking service provider, offering laser cutting, bending, turning, milling, welding and heat sealing using conventional and numerically controlled (CNC) machines.
Due to the volume of production, reaching tens of thousands of components per month, time pressure and material costs, precise management is one of the company’s priorities.
ERP system – the key to effective management of a company in the metal industry
ERP (Enterprise Resource Planning) systems are essential for the effective management of manufacturing companies. They integrate various business processes into a single, coherent platform, enabling better production planning, order fulfilment, inventory management, quality control, and more effective decision-making.
They offer features and functionalities that streamline operations, optimise resource utilisation, and increase the overall efficiency of metal production processes.
Key features of an ERP system for metal companies include:
- Production planning: creating and managing production schedules, allocating resources and optimising workflows to meet production targets and customer demand.
- Inventory management: tracking and managing inventory levels, including raw materials, work in progress and finished goods, to ensure timely availability and minimise stock
- Supply chain management: collaborating with suppliers, managing procurement processes, and ensuring the timely delivery of materials and components to support manufacturing operations.
- Quality control: Implementing quality control measures, conducting inspections and ensuring compliance with regulatory standards to maintain product quality and customer satisfaction.
- Cost estimation and quoting: Generating accurate cost estimates and price quotes for custom manufacturing projects based on material costs, labour, and other factors.
- Cost estimation and task tracking: Tracking costs and expenses associated with each manufacturing project, including labour, materials, overheads and other expenses, in order to monitor project profitability and efficiency.
- Customer relationship management: managing customer information, tracking interactions and maintaining relationships in order to increase customer satisfaction and retention.
- Customer Relationship Management: Managing customer information, tracking interactions and maintaining relationships to increase customer satisfaction and retention.
- Reporting and analytics: Generating reports and analysing key performance indicators to monitor business performance, identify areas for improvement and make data-driven decisions.
Merit ERP is the system whose functionalities precisely met the needs of the Kali family business, which decided to implement it.
Production process planning and automation
The system offers automated processes that optimise subsequent order fulfilment stages. This is particularly important when manufacturing a large number of metal components that often differ only in minor details. Automated processes enable such a scale to be handled and help to maintain order in production.
The Calculation and Quotation modules generate quotes and delivery dates based on order data, which can be presented to customers. The Merit system then automatically creates production orders.
Each order is described by an appropriate recipe, created by planners and containing the sequence of operations to be performed. These orders are accompanied by documentation that can be viewed at any time via a link from the system — for example, on a computer installed in the production hall known as a ‘kiosk’.
Step-by-step production
Manufacturers of metal products often struggle with raw material waste. They want to make the best use of their production materials so that waste does not affect their profitability.
The recipes provided for a given order help employees to perform all the necessary actions in the correct order. Using the kiosk, an employee can register the start of a given operation in the programme. Once complete, they enter the number of items produced and send the order to the next stage of production.
The Małopolska-based company prides itself on using every last scrap of sheet metal. This is possible by combining different orders on the same sheet of metal, among other things. In this case, ERP supports organisation and control through group operations. As part of a registered operation, the system collects items from several orders and retrieves production data on individual items from machine software. The system then directs the individual elements to the appropriate further processing, such as grinding, cutting, bending, welding or drilling.
Cooperation
Sometimes, the company outsources certain processing stages, such as painting, to external contractors. This cooperation is treated as part of the technological process, and the Cooperation module helps manage it and create shipments, as well as analysing the execution of the received elements.
Storage and shipping
Once an order has been completed, the products are sent to the warehouse. There, they are checked and packed before being sent to customers.
Quality and data
The most important thing is to deliver quality. No company can survive long in the market without meeting its customers’ expectations. If a supplier receives complaints from customers about the quality of items, they will bypass you because there are many other options on the market.
In an industry where product quality is crucial, ERP is a system that allows strict control over every stage of production. For example, at the end of the production process, it indicates which orders require the quality testing requested by the customer.
Real-time monitoring of production parameters and access to historical data enables a wide range of analyses, helping you to maintain high-quality standards and swiftly identify issues. Merit enables this by providing extensive analysis in the Qlik module.
Inventory management
Developing a strategy that avoids situations of stock depletion or excess inventory in a manufacturing company is quite difficult. Effective inventory management and raw material demand planning are critical for a smooth production process.
Proper inventory management is essential for the timely completion of projects. Business owners must have a clear picture of the availability of sufficient quantities of raw materials in their inventory. If it turns out that the available inventory is only enough for one day and delivery will take two or more days, this will cause major problems for production.
The laser cutting industry requires precise management of resources such as raw materials, spare parts, and equipment. The implemented system has enabled the company to optimise inventory management and prevent both excess and shortage of materials. This reduces storage costs and avoids production delays.
Machine inspections provide the maintenance department with the necessary information
The Repairs module of the system is used to manage the machine park, which forms the basis of production in every industry.
Technical inspections of machines are planned in the Merit ERP system, which considers the period during which the equipment will be unavailable when planning production and calculating orders. Mechanics record the performance and results of the inspection in the system using kiosks on the production floor.
Customer Service – customer relationship management
Thanks to access to current data in the system, the customer service department can inform customers about the status of an order without contacting other departments. If a complaint arises, it is recorded in the system and an appropriate order is created.
Better communication and cooperation with different departments
Kali uses Merit ERP for production, sales, warehousing, finance, accounting, human resources and payroll. This integration significantly improves communication and cooperation between the company’s different departments.
Virtually all company employees use the same system in different areas but within the same orders: from customer service and designers to planners, technologists, machine operators and warehouse staff, and the back office. Thanks to shared access to up-to-date data, they can collaborate more effectively.
Summary
Implementing the ERP system at P.P.H.U. Kali has brought significant benefits, including increased operational efficiency, precise resource management, process automation, improved quality control, and enhanced communication and collaboration.
With this support, the Nawojowa-based company can meet the growing demands of the laser cutting market, maintain high-quality standards and competitiveness, and continue to grow as it pursues its path to the top.
