Organizations know their business and what they do but are unaware of how enterprise software vendors classify their solutions and how they are sold. This blog will identify the main differences between how vendors categorize their software solutions and offer organizations a starting point as how to begin their software evaluation project.
ERP software for manufacturing is classified by the type of manufacturing that your company does. Namely these are Discrete, Process, Mixed-mode and Project Manufacturing. Software vendors market their solutions to the general industry, type of system and then the specific industry towards a specific vertical. This framework determines how organizations should approach software vendors when evaluating software.
Discrete Manufacturing – This type of manufacturing is described as organizations that fabricate definite or specific items. This is sometimes referrd to as unit production. An easy way to remember this type of manufacturing is that thefinished item created may be disassembled by components and parts, the final product may be produced out of a single or multiple outputs. Typically idustries such as consumer electronics, comercial goods, appliances, automotive, aeorospace and defense , smartphones, toys, machines, tools etc.
Process Manufacturing – This type of manuafcturing is often referred to as formula, batch and or recipe manufacturing. This type of manufacturing combines individual ingredients so that when mixed creates a new product or formulation that cannot be disassembled or separated. Industries that fall into this category are: food and beverage, cosmetics, pharmeceuticals, paints etc.
Mixed Mode Manufacturing – This type of manufacturing refers to the using a combination of discrete and process manufacturing techniques to create the final product. This is a combination of individual components and fomulated components create a single product. Examples of industries that are mixed mode manufacturing are: Steel and aluminum processing, apparel etc.
Project Manufacturing: This is often reffered to ETO or contract manufacturing. This process is defined as manufacturing to engineered to order specifications usuall issued on a contract, low quantity or low frequency orders. This type of manufacturing is often used to create expensive, specialized products, highly customized and high degree of complexity type of goods. Examples of these include: airline carriers, submarines, aircrafts,
In a nutshell, these are how the enterprise software vendors differentiate their enterprise ERP solutions. Knowing these classification types can assist your organization in starting on th right foot to select the appropriate software during your software selection project.
Eval‐Source is a consulting firm that provides enterprise software selection and strategic technology consulting services for organizations to achieve success in their IT initiatives. Our consulting practices include cloud and on-premise software evaluation services, ERP Project Management, Project Recovery, , Corporate training and Technology Management Consulting. Our Tru‐Eval selection system allows organizations to avoid IT failure, receive greater ROI and provide accurate decision support for enterprise software procurement. What sets us apart is our unbiased best in class consulting services that provide our clients with value, direction and success in selection, planning and optimization of their technology systems.