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An Accountant’s Guide to Choosing the Right Manufacturing System Presented by Terry Merrill, Director Strategic Partnerships. What do you want to Accomplish?. Ask your customer “So, what do you want to accomplish by implementing a computerized manufacturing control system?”
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An Accountant’s Guide to Choosingthe Right Manufacturing SystemPresented by Terry Merrill, Director Strategic Partnerships
What do you want to Accomplish? Ask your customer “So, what do you want to accomplish by implementing a computerized manufacturing control system?” Don’t settle for sweeping generalities such as “control my inventory” or “computerize my bills of material” or “get a bar coding system.” The most help you can provide to your client is to help them compile a very specific list of objectives – ones that can be accomplished in the context of the resources available to the client. Determine what they make, how they make it and what the pain is now. Visit the factory floor!
Types of Manufacturers Assembler Generally takes a number of pre-assembled units and joins them together to meet the needs of a specific customer. Make to stock manufacturer Procures and stocks raw materials which are used to build subassemblies and top-level assembled items. These items are kept on hand to fulfill sales orders for standard products. Make to order manufacturer Procures and stocks raw materials which are used, in combination with other products, to build sub-assemblies and top-level assembled items needed to fulfill a specific sales order. Custom manufacturer Procures and stocks raw materials and sub-assemblies which are used in a customer-driven configuration.
Types of Manufacturers Job shop Generally makes one-off products following a customer specification for which no standard bill of material exists. Raw materials are often provided by the customer. Rarely does any original design, engineering, or procurement. Process manufacturer Performs some discreet process on a specific raw material such as cutting, bending, folding, forming, mixing, grading. Rarely does any original design, engineering, or procurement. Subassemblies are rarely identifiable.
Identifying Specific Objectives Such as: · Reduce my inventory holding costs by at least 10-20% · Organize my bills of material · Identify and eliminate obsolete raw materials · Establish multiple sources for critical components · Plan my production 3 to 6 months ahead · Coordinate production with Sales · Avoid late raw material deliveries · Avoid purchasing material before I need it · Know which vendors perform best · Build only as needed · Avoid critical item shortages · Ease the burden of performing an annual physical inventory · Include manufacturing activity in my company financial statements
Getting the Information You Need Focus On Internet Searches Account System Integration General Ledger Inventory Control Sales Order Entry Accounts Payable Multiple Costing Options Multi-currency Capabilities Multi-tax Capabilities Multiple Locations Multi-level Bills Of Material
More Key Features to Look For Revision Control Physical Inventory Cycle Counting Simple Planning Tools Master Production Scheduling (MPS) Forecasting Material Requirements Planning (MRP I) Manufacturing Resource Planning (MRP II) Shop Floor Control Finite Capacity Planning Bin Tracking Serial/Lot Tracking Not everything on the list will be appropriate for your client
The Project Timeline The Short List Product Demonstrations Line of Responsibility The Final Decision Product Warranties Licensing Considerations Budget Timing Implementation Ongoing consulting Project Management
Total Cost of Ownership User Licenses Named User Licensing Concurrent User Licensing Installation Assistance Implementation Support Accounting Integration Manufacturing Integration On-site Consulting
Total Cost of Ownership On-line Consulting Training Training As Due Diligence Technical Support Telephone Support Email Support Incident Support Software Maintenance
Infrastructure Deployment Options Hardware Software Database Engines Managed Hosting Software As A Service
In Summary What Most Manufacturers Must Have · Management commitment · Realistic implementation plan · Integration with general ledger · Physical inventory · Multi-level bills of material · Multiple costing options with cost roll-up · Simple stock check · Concurrent user licensing · Industrial-strength database engine · Serial/Lot Tracking (if food, pharmaceutical, or otherwise mandated)
In Summary Would Be Nice to add to a Manufacturing System · Multiple locations · BOM revision control · Physical inventory cycle counting · Integration with distribution inventory · Integration with sales order entry · Integration with accounts payable · Master production scheduling · Material requirement planning · Forecasting based on historical invoices · Multiple currency purchasing · Purchase tax support · Bin Tracking · Shop floor control
In Summary Dream On · Manufacturing Resource Planning (MRP II) · Finite Capacity Planning
Learn more! Get the FREE Book: “An Accountant's Guide to Choosing the Right Manufacturing Software” at: www.misysinc.com/cpaguide
For more information contact: • Terry MerrillDirector Strategic PartnershipsManufacturing Information Systems, Inc.(802) 332-8029terry.merrill@misysinc.com