Read more on "6 Reasons Why New Manufacturing Systems Fail!" »
Intimidated by the idea of implementing a new manufacturing system? Make sure you’re prepared so you don’t make the following mistakes!
1. A faulty inventory item numbering scheme
Consider a company that has two sources for chips. Even though each supplier has its own part number for the item, the company didn’t map out its own part numbering scheme properly. As a result, the item appears to be out of stock even though there are still chips on hand from the other supplier. There’s a right and a wrong way to set up inventory control when you have more than one supplier. If the program you’re using doesn’t have multiple supplier capabilities, you won’t be able to properly set up Inventory Control to reflect this. Make sure the system you are considering maintains a cross-reference between your internal part number and each supplier’s part number.
2. Insufficient control of content for bills of material
Every bill of material (BOM) needs to be entered correctly from the start, based on specifications received from engineering. Even if the BOM has all of the right components in theory, sometimes in practice quantities aren’t exactly what they need to be and then people on the shop floor start to personalize as they assemble. It’s critical that engineering and manufacturing communicate effectively over the correct structure of BOMs and that only qualified people are keeping BOMs up-to-date. Regardless of the size of your manufacturing operation, a robust security system will restrict unqualified people from using certain critical functions of the software.
3. Inaccurate inventory on hand
One of the benefits of an integrated solution is that you eliminate redundancies in your system. One of the drawbacks is that errors can be compounded. If your inventory on hand is miscounted from the start, the error will repeat itself throughout your system. And the last thing you want is to be forced to close down for several days to do a physical inventory in order to identify discrepancies and reset your on-hand quantities. Manufacturing systems that offer “net-change” physical inventory functions will make it easy to correct stock counts without having to halt production activities.
4. Lack of agreement between engineering and manufacturing
Before implementing any system, it is absolutely essential that you reach an agreement between engineering and manufacturing on your goals and how you’re going to get there. It doesn’t matter how sophisticated your software is if you don’t have appropriate buy-in from these two departments. Work with your consultant to develop a thorough implementation plan. Make sure everyone in engineering, manufacturing, and management signs off on the plan before you begin installing software.
5. Unrealistic expectations of what the system will be able to accomplish
Know exactly what you want to accomplish with your new system. You wouldn’t buy a Chevrolet to travel 200 m.p.h., nor would it make sense to pay a lot of money for a Lamborghini just to keep it in the driveway. Buying functionality you won’t ever need is just a waste of money. Make a careful list of the functionality you really need, adding a few of those “would be nice” items. Award major points to manufacturing systems that have a built-in growth path, especially if you can test-drive advanced functions using your own familiar data.
6. Failure to determine the company’s needs in accounting, manufacturing, engineering and data collection
It is vital that you spend time thoroughly evaluating your company’s needs before choosing and installing any system. Get a complete review of the requirements in accounting, manufacturing, engineering and data collection. This is a mandatory step in the process – and one that cannot be skipped. Doing your homework in the planning stages will pay off ten-fold when it’s time to connect all the pieces. Ask your reseller if consultation and training is available directly from the software supplier. Daunted by the idea of starting the selection process? Sage has provided a great guide on How to Choose a Manufacturing System, so before you start your selection process, make sure you’ve read the guide.
Communication is a key factor in human-centric Business Process Management
Tasks must be assigned to process participants, who receive their tasks by email or via a BPM interface in order to complete them. But very often it’s impossible to know prior to running a process who will receive the message. An intelligent BPM suite must provide options to dynamically send messages based on live process data. There are various levels of functionality that should be taken into consideration:
• Routing messages by role or organizational group.
• Ad hoc recipient selection during process execution
• Building recipient lists based on live process data
• Queuing tasks by rule (e.g. broadcast or load-balanced queues)
• Sending messages over different channels (email, SharePoint, SMS, Social Media)
Using an iBPMS (Intelligent BPM Suite), the above options can be quickly defined by developers in a wizard-based GUI, enabling rapid change where necessary, without the developer ever having to enter a single name. This functionality is achieved when the iBPMS is tightly integrated with your organization’s Active Directory.
With Flexible BPM Communication processes become more agile, unpredictable scenarios, can be used in more diverse, and are able to handle frequent organizational changes.
Learn how Sequence IBPMS (Intelligent Business Process Management Suite) can empower organizations to create smart workflows that enhance business productivity, and generate a greater ROI from SharePoint, register for the next webinar.
Read more on "Microsoft Dynamics GP 2013 Year End: Part 2 – Receivables Management Year-End Close" »
TGO Consulting will be creating a series of blog posts related to 2013 Year-End Closing. We hope you find the information and tips in this series useful and it helps your Year-End process run effortlessly!
Below is the schedule of past and upcoming blog posts:
November 28, 2013: Part 2 – Receivables Management
December 4, 2013: Part 3 – Payables Management
December 5, 2013: Part 4 – Fixed Assets
December 11, 2013: Part 5 – Analytical Accounting
December 12, 2013: Part 6 – General Ledger
The order of these modules listed in the schedule above is the same order that the modules should be closed – and listed at the top of the GL year-end KnowledgeBase #888003). Please note that year-end procedures for Payroll are independent from other modules and are always performed at the end of each calendar year.
Receivables Management Year-End Close:
When should the close be done?
- The Calendar Year end close should be done at the end of the calendar year prior to posting any transactions in the next calendar year
- The Fiscal Year end close should be done at the end of the fiscal year prior to posting any transactions in the next fiscal year
What does the year end close process do and/or affect?
- The Calendar Year end close clears the Calendar Year-to-Date Finance Charges and moves them to the Last Year Calendar field in Customer Finance Charge Summary (Cards – Sales – Summary – Finance Charges)
- The Fiscal Year end close transfers all amounts other than the Calendar YTD Finance Charge amount to the Last Year column in Customer Summary using the Amounts Since Last Closed View (Cards – Sales – Summary)
What steps should I take to close the year?
- Post all transactions for the current year
- Follow the rest of the steps outlined in KB 857444: “Year-end closing procedures for Receivables Management in Microsoft Dynamics GP”
There are two KBs around closing Payables Management (KB875169) and Receivables Management (KB857444) – instructions on both say to ‘Close the tax year by going to MDGP | Routines | Company | Tax Year-End Close.‘ You will only have to do this once, usually after both PM/RM are closed out. These are listed in both sections because some users may not use both the PM and RM modules.
What are some of the key points to remember?
- Make restorable backups when recommended in KB 857444
- Receivables Management is not completely date sensitive
- As there are some date sensitive features the best option to close the year on time
What are some of the related KnowledgeBase articles that can be referenced?
- KB 857444 : “Year-end closing procedures for Receivables Management in Microsoft Dynamics GP”
- KB 851140 : “Information about performing the year-end closing procedure in Receivables Management in Microsoft Dynamics GP after December 31”
- KB 856865: “Removing outdated statement runs from the Reprint Statements Window”
Stay tuned for Part 3 of the Microsoft Dynamics GP 2013 Year End Series. Payables Management Year-End Closing scheduled to be posted on Wednesday, December 4, 2013.