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Executive Brief
 Production for Profit
 Drive operational excellence through customer-driven
 innovation in the fabricated metal products industry




How you can benefit from an industry-specific,
next-generation ERP solution:
Increase profits and reduce costs.
Improve productivity to get products to market faster.
Streamline processes throughout your organization.
React quicker to business changes.
Make decisions faster.
Increase the speed of business.                               to get a good sense of the needs of the market, and
                                                              therefore less able to fulfill customers’ changing needs in
Fluctuating raw materials costs and prices, as well as        a timely manner.
increasingly complex supply chains and greater
                                                              You can also optimize production by implementing lean
competition from manufacturers in countries with
                                                              processes. By streamlining processes across your entire
lower-costs, are putting more pressure on fabricated metal
                                                              organization, you can simplify your operational complexity,
products manufacturers than ever before. Despite these
                                                              improve efficiency, and free up your workers to focus on
challenges, you need to maintain the fast pace of
                                                              more critical tasks. Regardless of your mode of
innovation and get your products to market faster, while
                                                              manufacturing (including mixed mode manufacturing, such
still maintaining a healthy profit margin.
                                                              as repetitive- or engineer-to-order on the production floor),
In order to stay competitive in today’s market, you have to   maximizing the utilization of resources is critical to
increase the speed at which you do business. This means       maintaining margins.
streamlining, standardizing, and speeding up your
                                                              By optimizing production, you’ll create a more flexible
planning, forecasting, and production processes. It means
                                                              ordering environment and be able to more quickly meet
collaborating more closely with your customers to more
                                                              your customers’ complex needs for new and changing
quickly meet their demands. It means improving the
                                                              configurations. You’ll also be able to make more accurate
visibility into processes throughout your organization to
                                                              delivery predictions to your customers.
allow faster decision making. It means making the right
investments to improve your overall operational efficiency.
                                                              Adopt customer-centric
Achieving operational excellence allows you to increase
the speed at which you can do business and compete.           product development.
And you can do this by embracing a next-generation            According to an IDC Manufacturing Insights survey, 71% of
enterprise resource planning (ERP) solution that is           manufacturers expect market complexity to increase, and
specifically designed for the fabricated metal                61% expect operational complexity to increase as a result.1
products industry.                                            For fabricated metal products manufacturers, much of this
Important information for senior executives and managers      growing complexity stems from customers demanding a
in your organization who are responsible for making key       wider range of products, increased customization, and
business decisions in the following areas:                    even the production of entire systems (as opposed to just
                                                              single items). This is forcing a more customer-centric
•   Engineering                                               product development process based on project-based
•   Finance                                                   production, where products are engineered-to-order.

•   Operations                                                To quickly adapt to these changes, you need to be
                                                              flexible enough to manage and adjust rapidly to evolving
•   Manufacturing
                                                              customer requirements. Therefore, your solutions should
•   Sales                                                     include product lifecycle management (PLM) functionality
•   Supply chain management                                   that let you easily manage the entire lifecycle of your
                                                              products, and engineering change control systems that
                                                              allow you to quickly evaluate and implement product
Optimize production to                                        design changes.
improve profits.                                              Your solution should support:
The best way to combat the volatility in raw material costs
                                                              •   Collaboration: Increase efficiencies and speed up
and fluctuating metal prices is to implement operational          decision-making by giving your customers direct
improvements in production and productivity. You can do           access to the product-development process.
this by improving your organization’s ability to understand
                                                              •   Configurability: Grow profits by meeting customer
market demands with better planning, forecasting, and
                                                                  demands for an increasing variety of product
scheduling tools. Without access to proper forecasting            configurations and higher levels of customizations.
and demandplanning tools, fabricated metal products
manufacturers are typically too far down the supply chain


2                                                                                                          Executive Brief
•   New product development and introduction (NPDI):
    Consistently meet customer demands by quickly
    developing and introducing new customer products                 "With Infor’s next-generation ERP
    with an end-to-end product lifecycle process.                    solution, we can now confidently quote,
•   Quality management: Reduce time to market by                     make, and deliver our products faster
    ensuring product compliance and improving quality                than any of our competitors, which
    throughout production.                                           counts for a lot. We're confident in our
•   Integration: Tightly integrate your engineering, sales,          speed and quality."
    and production departments to increase the number
    of customer orders you win. Manage the process of
                                                                                              —Chuck Baugh,
    change control across the entire organization.                        Vice President and COO, Overly Door

See inside your business.
Access to relevant information sources across your               among a number of issues that contribute to a slower
business can give you complete visibility into your              pace of business and highlight that manufacturers aren’t
organization’s processes and workflows. With the ability to      as agile and responsive as they need to be. IDC reports
quickly and easily search, discover, aggregate, and              that manufacturers identify these as the top barriers to
analyze data from multiple systems, you can run your             improving operational excellence:
organization more efficiently and make more-informed
decisions faster. To better utilize this level of business       •   Inability to rapidly adapt business processes
intelligence and reporting, your solution should support:            to change

•   Real-time data: Speed up decision-making and                 •   Ineffective or inadequate IT systems
    respond faster to problems, opportunities, and               •   Lack of accurate and timely information
    changing business needs with business information
    available in real time.                                      •   Management of complex manufacturing operations

•   Dashboards: See relevant information specific to your        •   Difficulty in collaborating with suppliers, trading
    needs and role (without being inundated with                     partners, and customers
    information that you don’t need) with purpose-built
                                                                 •   Availability of skilled resources
    dashboards that can be further configured by the user.
                                                                 •   Lack of funds to implement changes
•   Alert and exception management: React faster and
    make decisions anywhere, anytime with contextual             •   Inability to consistently deliver on time
    business intelligence from all of your business
    systems, proactively pushed to your desktop or               •   Inability to accurately predict customer demand
    mobile devices, 24x7.                                        •   Management of complex global supply chains
There needs to be some radical changes in the                    Ineffective or inadequate IT systems is ranked as the
capabilities ERP systems provide to meet today’s                 second-most common barrier to improving operational
decision-making requirements. Improvements in business           excellence. Manufacturers who use ERP solutions typically
visibility and collaboration will help drive companies           utilize systems that focus primarily on financial and
through the challenges of today’s complex manufacturing          back-office functionality. What these generic, transactional
environments to achieve operational excellence.                  ERP systems lack is the ability to properly plan or schedule
                                                                 for a mixed-mode manufacturing company, and manage
Drive operational excellence                                     critical manufacturing areas such as punching, cutting,
with next-generation ERP.                                        bending, stamping, forming, finishing lines, and more. You
                                                                 need more than just a financial system to support these
Achieving operational excellence is the key to increasing        critical operational processes. You need a solution that
the speed of business. According to IDC, however, many           also supports other critical areas of your business, such as
manufacturers experience barriers to attaining such              product lifecycle management, customer order
efficiencies.2 In particular, an inability to rapidly adapt to   management, quality management, and supply chain
business process change is ranked as the top barrier,            management—processes that mirror the unique


Executive Brief                                                                                                             3
requirements of what you need as a manufacturer of                                                     you to automatically and proactively push information to
fabricated metal products. As a result, you may have had                                               key stakeholders in real time, increase decision-making
to undertake heavy software customizations over time in a                                              capabilities, improve operational efficiency, and speed up
costly attempt to meet your specific industry needs.                                                   the rate of business.

IDC Research also shows that manufacturers believe that
their systems are ineffective in providing access to                                                   See results now.
accurate and timely information to support strategic and                                               With an industry-specific, next-generation ERP solution
operational decision-making and don’t offer the                                                        that takes advantage of new technologies, you can:
collaborative features they require. Manufacturers are
therefore looking to their ERP systems—the IT centerpiece                                              •     Increase profitability and reduce costs.
of today’s manufacturing organization—to form the                                                      •     Improve production productivity.
foundation of a decision-making environment in order to
                                                                                                       •     Streamline, accelerate, and standardize
drive operational excellence.
                                                                                                             business processes.
IDC’s essential guidance is that ERP systems need to be                                                •     Respond faster to business changes.
more operational and refocused on optimizing processes
that create competitive advantage for manufacturing                                                    •     Get new products to market faster.
companies. Consequently, manufacturers should place                                                    •     Improve manufacturing schedule compliance.
emphasis on obtaining functionality that supports critical
                                                                                                       •     Improve on-time and complete shipments.
processes. In this case, this means implementing solutions
that are specifically designed for the fabricated metal                                                •     Improve collaboration with customers.
products industry and ERP systems that require near-zero
                                                                                                       •     Improve inventory accuracy and reduce
customization—which should deliver greater speed to                                                          inventory levels.
market and faster time to value. The Aberdeen Group
                                                                                                       1 Pierfrancesco Manenti, In Pursuit of Operational Excellence: Accelerating Business Change Through
reports that top-performing manufacturers are 70% more
                                                                                                       Next-Generation ERP (IDCWP47T), IDC Manufacturing Insights, January 2012, p. 6.
likely to implement ERP solutions that encompass the full
scope of an organization’s processes (including financial                                              2 Pierfrancesco Manenti, p.9.
and operational processes).3 Manufacturers should also
look to modernize IT architectures and leverage what IDC                                               3 Kevin Prouty and Nick Castellina, ERP in Manufacturing 2011: Defining the ERP Strategy, Aberdeen

refers to as the four IT forces: mobility, social technologies,                                        Group, July 2011, p. 2.

big data analytics, and cloud computing.4
                                                                                                       4 Pierfrancesco Manenti, p.14.

ERP systems that incorporate these technologies allow




641 Avenue of the Americas
New York, NY 10011
800-260-2640
infor.com


About Infor.
Infor is the world's third-largest supplier of enterprise applications and services, helping more than 70,000 large and mid-size companies
improve operations and drive growth across numerous industry sectors. To learn more about Infor, please visit www.infor.com.


Copyright© 2012 Infor. All rights reserved. The word and design marks set forth herein are trademarks and/or registered trademarks of Infor and/or related affiliates and subsidiaries. All other
trademarks listed herein are the property of their respective owners. This document is provided for informational purposes only and does not constitute a commitment to you in any way. The
information, products and services described herein are subject to change at any time without notice. www.infor.com.
INF1236412-1246168-EN-US-1012-1

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Executive Brief -Production for profit - Manufacturing Industry ERP

  • 1. Executive Brief Production for Profit Drive operational excellence through customer-driven innovation in the fabricated metal products industry How you can benefit from an industry-specific, next-generation ERP solution: Increase profits and reduce costs. Improve productivity to get products to market faster. Streamline processes throughout your organization. React quicker to business changes. Make decisions faster.
  • 2. Increase the speed of business. to get a good sense of the needs of the market, and therefore less able to fulfill customers’ changing needs in Fluctuating raw materials costs and prices, as well as a timely manner. increasingly complex supply chains and greater You can also optimize production by implementing lean competition from manufacturers in countries with processes. By streamlining processes across your entire lower-costs, are putting more pressure on fabricated metal organization, you can simplify your operational complexity, products manufacturers than ever before. Despite these improve efficiency, and free up your workers to focus on challenges, you need to maintain the fast pace of more critical tasks. Regardless of your mode of innovation and get your products to market faster, while manufacturing (including mixed mode manufacturing, such still maintaining a healthy profit margin. as repetitive- or engineer-to-order on the production floor), In order to stay competitive in today’s market, you have to maximizing the utilization of resources is critical to increase the speed at which you do business. This means maintaining margins. streamlining, standardizing, and speeding up your By optimizing production, you’ll create a more flexible planning, forecasting, and production processes. It means ordering environment and be able to more quickly meet collaborating more closely with your customers to more your customers’ complex needs for new and changing quickly meet their demands. It means improving the configurations. You’ll also be able to make more accurate visibility into processes throughout your organization to delivery predictions to your customers. allow faster decision making. It means making the right investments to improve your overall operational efficiency. Adopt customer-centric Achieving operational excellence allows you to increase the speed at which you can do business and compete. product development. And you can do this by embracing a next-generation According to an IDC Manufacturing Insights survey, 71% of enterprise resource planning (ERP) solution that is manufacturers expect market complexity to increase, and specifically designed for the fabricated metal 61% expect operational complexity to increase as a result.1 products industry. For fabricated metal products manufacturers, much of this Important information for senior executives and managers growing complexity stems from customers demanding a in your organization who are responsible for making key wider range of products, increased customization, and business decisions in the following areas: even the production of entire systems (as opposed to just single items). This is forcing a more customer-centric • Engineering product development process based on project-based • Finance production, where products are engineered-to-order. • Operations To quickly adapt to these changes, you need to be flexible enough to manage and adjust rapidly to evolving • Manufacturing customer requirements. Therefore, your solutions should • Sales include product lifecycle management (PLM) functionality • Supply chain management that let you easily manage the entire lifecycle of your products, and engineering change control systems that allow you to quickly evaluate and implement product Optimize production to design changes. improve profits. Your solution should support: The best way to combat the volatility in raw material costs • Collaboration: Increase efficiencies and speed up and fluctuating metal prices is to implement operational decision-making by giving your customers direct improvements in production and productivity. You can do access to the product-development process. this by improving your organization’s ability to understand • Configurability: Grow profits by meeting customer market demands with better planning, forecasting, and demands for an increasing variety of product scheduling tools. Without access to proper forecasting configurations and higher levels of customizations. and demandplanning tools, fabricated metal products manufacturers are typically too far down the supply chain 2 Executive Brief
  • 3. New product development and introduction (NPDI): Consistently meet customer demands by quickly developing and introducing new customer products "With Infor’s next-generation ERP with an end-to-end product lifecycle process. solution, we can now confidently quote, • Quality management: Reduce time to market by make, and deliver our products faster ensuring product compliance and improving quality than any of our competitors, which throughout production. counts for a lot. We're confident in our • Integration: Tightly integrate your engineering, sales, speed and quality." and production departments to increase the number of customer orders you win. Manage the process of —Chuck Baugh, change control across the entire organization. Vice President and COO, Overly Door See inside your business. Access to relevant information sources across your among a number of issues that contribute to a slower business can give you complete visibility into your pace of business and highlight that manufacturers aren’t organization’s processes and workflows. With the ability to as agile and responsive as they need to be. IDC reports quickly and easily search, discover, aggregate, and that manufacturers identify these as the top barriers to analyze data from multiple systems, you can run your improving operational excellence: organization more efficiently and make more-informed decisions faster. To better utilize this level of business • Inability to rapidly adapt business processes intelligence and reporting, your solution should support: to change • Real-time data: Speed up decision-making and • Ineffective or inadequate IT systems respond faster to problems, opportunities, and • Lack of accurate and timely information changing business needs with business information available in real time. • Management of complex manufacturing operations • Dashboards: See relevant information specific to your • Difficulty in collaborating with suppliers, trading needs and role (without being inundated with partners, and customers information that you don’t need) with purpose-built • Availability of skilled resources dashboards that can be further configured by the user. • Lack of funds to implement changes • Alert and exception management: React faster and make decisions anywhere, anytime with contextual • Inability to consistently deliver on time business intelligence from all of your business systems, proactively pushed to your desktop or • Inability to accurately predict customer demand mobile devices, 24x7. • Management of complex global supply chains There needs to be some radical changes in the Ineffective or inadequate IT systems is ranked as the capabilities ERP systems provide to meet today’s second-most common barrier to improving operational decision-making requirements. Improvements in business excellence. Manufacturers who use ERP solutions typically visibility and collaboration will help drive companies utilize systems that focus primarily on financial and through the challenges of today’s complex manufacturing back-office functionality. What these generic, transactional environments to achieve operational excellence. ERP systems lack is the ability to properly plan or schedule for a mixed-mode manufacturing company, and manage Drive operational excellence critical manufacturing areas such as punching, cutting, with next-generation ERP. bending, stamping, forming, finishing lines, and more. You need more than just a financial system to support these Achieving operational excellence is the key to increasing critical operational processes. You need a solution that the speed of business. According to IDC, however, many also supports other critical areas of your business, such as manufacturers experience barriers to attaining such product lifecycle management, customer order efficiencies.2 In particular, an inability to rapidly adapt to management, quality management, and supply chain business process change is ranked as the top barrier, management—processes that mirror the unique Executive Brief 3
  • 4. requirements of what you need as a manufacturer of you to automatically and proactively push information to fabricated metal products. As a result, you may have had key stakeholders in real time, increase decision-making to undertake heavy software customizations over time in a capabilities, improve operational efficiency, and speed up costly attempt to meet your specific industry needs. the rate of business. IDC Research also shows that manufacturers believe that their systems are ineffective in providing access to See results now. accurate and timely information to support strategic and With an industry-specific, next-generation ERP solution operational decision-making and don’t offer the that takes advantage of new technologies, you can: collaborative features they require. Manufacturers are therefore looking to their ERP systems—the IT centerpiece • Increase profitability and reduce costs. of today’s manufacturing organization—to form the • Improve production productivity. foundation of a decision-making environment in order to • Streamline, accelerate, and standardize drive operational excellence. business processes. IDC’s essential guidance is that ERP systems need to be • Respond faster to business changes. more operational and refocused on optimizing processes that create competitive advantage for manufacturing • Get new products to market faster. companies. Consequently, manufacturers should place • Improve manufacturing schedule compliance. emphasis on obtaining functionality that supports critical • Improve on-time and complete shipments. processes. In this case, this means implementing solutions that are specifically designed for the fabricated metal • Improve collaboration with customers. products industry and ERP systems that require near-zero • Improve inventory accuracy and reduce customization—which should deliver greater speed to inventory levels. market and faster time to value. The Aberdeen Group 1 Pierfrancesco Manenti, In Pursuit of Operational Excellence: Accelerating Business Change Through reports that top-performing manufacturers are 70% more Next-Generation ERP (IDCWP47T), IDC Manufacturing Insights, January 2012, p. 6. likely to implement ERP solutions that encompass the full scope of an organization’s processes (including financial 2 Pierfrancesco Manenti, p.9. and operational processes).3 Manufacturers should also look to modernize IT architectures and leverage what IDC 3 Kevin Prouty and Nick Castellina, ERP in Manufacturing 2011: Defining the ERP Strategy, Aberdeen refers to as the four IT forces: mobility, social technologies, Group, July 2011, p. 2. big data analytics, and cloud computing.4 4 Pierfrancesco Manenti, p.14. ERP systems that incorporate these technologies allow 641 Avenue of the Americas New York, NY 10011 800-260-2640 infor.com About Infor. Infor is the world's third-largest supplier of enterprise applications and services, helping more than 70,000 large and mid-size companies improve operations and drive growth across numerous industry sectors. To learn more about Infor, please visit www.infor.com. Copyright© 2012 Infor. All rights reserved. The word and design marks set forth herein are trademarks and/or registered trademarks of Infor and/or related affiliates and subsidiaries. All other trademarks listed herein are the property of their respective owners. This document is provided for informational purposes only and does not constitute a commitment to you in any way. The information, products and services described herein are subject to change at any time without notice. www.infor.com. INF1236412-1246168-EN-US-1012-1