WIM Industries: From MRP to ERP (Page 408)

1.Why did WIM feel the need to implement an ERP system?

• ERP is a type of software for manufacturing and distribution used for scheduling and keeping inventory records and financial data. There are a few reasons why WIM decided to implement and ERP system. The first reason for making this change was to scale up the company’s operations. By installing this software throughout the company WIM is now able to take the company to the next level. 

• By using the software throughout it opens the door for computerized inventory management, schedules production processes, manages the costs, and in turn generates the information the engineers need to get the company to maximize their profits. Before this system was introduced the company was running on materials resource planning (MRP). This process is very old and out data and not efficient at all. MRP was not able to integrate with many different divisions within the company because it was not running the current and most up to date systems. 

• MRP system had the manufacturing modules, but it couldn’t manage huge data. Overall productivity of the manufacturing process was falling, employees were disengaged and customers did not return. And that is why WIM feel the need to implement an ERP system to save the future of the company.

2.What goals were the ERP system used to achieve at WIM? Critically analyse how these goals helped WIM to overcome obstacles they had faced earlier.

• When the ERP system was introduced to replace the MRP system there was many obstacles. The first obstacle was to find a way for the system to integrate within the entire company. With the old MRP system this was not able to do so with all the divisions. Many divisions were not able to integrate well. When the ERP system came in this opened many doors for whole network integration and worked amazing. Second goal WIM wanted to achieve was to utilize the extra inventory being used and sent out. With the ERP when items were used the system sent a email alert to notify the user that they need to reorder a new batch to replace what had just been used. ERP made this very easy for the employees and also improved the process to reorder needed parts when used. Last goal was to account for all information and make sure the information gets logged in the system correctly. WIM was able to measure out performance much more efficiently with the new ERP which in turn made the business decisions more clear. 

• WIM’s goal is to increase in the visibility and sharing of all reports on manufacturing; improved coordination across functional departments to increase efficiency; better management of procurement and inventory processes; the facilitation of day-to-day management; and the 24x7 availability of financial information of the entire firm. Management also demanded standardization of data formats across the company, and greater accuracy, along with remote access and improved security. All of these have been achieved by adopting the ERP system.

3.How has Epicor’s ERP system helped WIM to make its production process more efficient?

• ERP at WIM has changed the way the firm functions. The role of ERP in managing manufacturing processes now extends from procurement all the way to consumption. Holistic information on material, machinery, and labor, such as the cost structure of all raw materials, can now be accurately assessed. WIM is able to utilize its resources to reap maximum profits. ERP has also integrated different departments at WIM, resulting in increased efficiency in operations at the firm which cannot be done in the past.

• Since Epicor got involved with WIM to help improve their process the ERP system has been amazing this system takes all the information and simplifies it for the employee. Epicors first step was to put together a team that would help take this company to the next level and help them improve their process in all directions. By setting up a schedule production process this made the company more efficient and was able to get majority of the work done on time and out the door faster. 

4.How did WIM manage the change from a local MRP system to Epicor’s ERP system?

Epicor thought making this change might be hard in the beginning so they had WIM develop a set of objectives to get the company and the employees on board with the new system. All the employees knew that making the change was not going to be an easy task but by making objectives this made it all possible. The objectives included an increase in the ability to review all the reports on manufacturing from all the departments. Before the ERP system they were not able to see all reports in the same manor the new system provides. Management also introduced a standard for the reports so that all departments knew how to read each other’s without delay.