The heavy duty equipment industry is just coming out of a recession. Industry-wide, volume was at 300,000 units in 2006 with the market contracting to 78,000 units in 2009. The projected industry volume is 200,000 units in 2012 and 260,000 units in 2013.
During the last five years the top competitors in the industry have made significant investments in ERP software; with three of the four major competitors having migrated to SAP.
ERP and Change Management
Companies in this sector are looking to Ultra’s team of ERP consultants for our range of industry experience. They seek out our services because they are are moving towards lean manufacturing processes and need improved information tools
To remain competitive our clients must find ways to eliminate waste in their organization. They want to transform their processes to be more agile and deliver product more quickly
The Need for ERP in Heavy Duty
These factors are strong indications to a manufacturing company that a change is needed:
- Flexibility of the existing system. The ERP system is not capable of handling the new methods to schedule production, identify waste, refinements in product costing and provide meaningful management reports.
- Paper based system. To compensate for their existing systems inadequacies many employees rely on reporting activity using paper and that can lead to errors, inefficiencies and delays. Many processes are manual and redundant, contributing to inefficiencies in productivity and communication.
- The lack of access to information. A lot of data that it is being maintained in spreadsheets and database programs. Because the data is not controlled, user-generated reports often conflict with each other. Management has little confidence that the information they receive accurately reflects operations. Also, data that is captured in their current ERP system requires the assistance of IT to write the reports. The use of multiple systems complicates reporting, reducing key data visibility and compromising data integrity.
Challenge to Opportunity
Companies must reduce costs to remain competitive in the market.
Companies employ Ultra to lead kaizen projects to eliminate wastes in inventory, material movement and production scheduling. They are looking to go through an ERP selection to locate a new system to support these initiatives.
There is a need to educate employees in methods of lean manufacturing and implementing industry best manufacturing practices. The goal is to drive business process improvements that will allow companies to remain competitive and place them in a position to capture more market share.