Recently, several ERP software vendors have made a major effort to address the challenges of engineer-to-order companies like moldmakers.

These ERP providers have taken the approach that even if every mold you make is different, you can still benefit from the implementation of systematic procedures and common components while enabling information to flow flexibly and instantaneously through all functions and areas of the company.

ERP software designed for moldmakers typically begins with the critical quoting process. The most versatile systems offer several approaches, the simplest of which is simply estimating with a rolled up summary of large buckets of time or dollars. A more detailed approach may be provided based on router steps or a bill of materials (BOM) copied from previous jobs or estimates or creating each line from scratch. Some ERP systems can also interface to spreadsheet-based estimating tools.

Engineering
Integrating engineering with manufacturing and purchasing is a key requirement for moldmakers. ERP systems designed for moldmaking should link popular 2-D and 3-D CAD packages with production orders. The most advanced software provides revision-level control and gives the engineer access to existing part information through the ERP system, eliminating the need to create a new record for an existing item. Any users, even without a CAD workstation, can view the drawing and overlay changes or comments without affecting the original version.

Moldmakers purchase most materials for a specific job, so it is important that the ERP system avoid the constraints of an inventory-based system that requires all item transactions be checked into inventory before use. An ERP system designed for moldmaking should provide multiple ways to create a P.O. Ideally, it should be possible to enter orders manually or use dependent demand planning (DDP) to create suggested purchases on a time-phased basis.

Production Scheduling
A key advantage of ERP designed specially for moldmakers is that it can automatically schedule your production to take into account constraints—such as capacity, materials, tooling and labor pool—to determine the best possible schedule. The software lets you schedule in simulation mode, with or without material constraints, to see the effect of various scenarios before committing to the production plan.

Another benefit of ERP is that it ties together financial accounting with all other operations of the business. As a result, financial reports are continuously updated to provide current information. Project management information also moves seamlessly into financial accounting, eliminating the need for time-consuming, consolidating entries, and making it possible for management to obtain a real-time picture of business performance.

User-defined thresholds can be used to determine whether or not revenue can be recognized. If the percentage complete falls within the defined threshold, the allowable dollar value is automatically posted to the appropriate revenue accounts.

True Job Costing
With long leadtimes, manufacturers of highly engineered or complex products demand true job costing in order to recognize revenue throughout the lifecycle of a project.
Software supporting a moldmaker should collect actual costs throughout the entire production process. Moldmaking businesses need immediate and complete visibility of the project plan. They need to be able to tell—at any point in the job—if the project is on target to make a profit.

What’s more, ERP systems designed for moldmaking are not your typical item-based applications. Moldmakers need the ability to buy, sell and ship items that are not pre-defined to an item master. They also need to be able to collect actual material costs at the time the purchase order receipt is vouchered. And they need a flexible interface that will allow them to view job costs individually or collectively rolled up into a parent project.