News


Optimising an ERP investment

October 2001 News

If a company only uses its enterprise resource planning (ERP) system as a financial system, it is missing out on the true potential of its investment. "It is time for organisations to begin using the power of the system they have purchased," says Rob Knowles, Sales Manager at Engineering Informatics.

The power of an ERP system is its inherent ability to share data between its applications. Product lifecycle management (PLM) is the management of product data throughout its entire lifecycle - from its creation to its retirement or destruction. PLM thus encompasses critical elements such as lifecycle data management, including document management and all its facets; program management; change and configuration management with workflow automation; and lifecycle collaboration where such terms as 'concurrent engineering' and 'work sharing' are integral. PLM requires the collaboration of many seemingly discrete applications and, by sharing the data they produce, increased efficiency and reduced overheads are guaranteed benefits. "This is where ERP comes in," emphasises Knowles.

Different users will require different 'views' of the data. Finance wants to see costs and expenditure, whilst engineers want to see systems and components. Management tends to be more interested in overviews and roll-ups of the detail. Yet, through the ERP, everyone is looking at the same data.

The ERP gives everyone access to a single source of truth. Not just for viewing and reporting, but also for modifying or updating the data. It is important to remember that, when allocating resources to a project, an holistic approach needs to be taken: one that looks at manpower costs, material costs, time management, process costs and the like. Without an ERP, there is no practical way to assess the implications of change.

There are also functions required for lifecycle management that sit outside the normal functionality of an ERP. These include data and document archiving, scanning subsystems and external document creation systems (office applications and CAD).

Data creation and document archiving are an essential element of PLM as they directly relate to the performance of the ERP. Since the different functions of the ERP use the same data, careful planning of the archive process is required or data moved to secondary storage by one application may degrade the performance of another ERP application. The PLM approach also requires that data created by general office applications, such as word processing, spreadsheets and e-mails, be captured and linked to the relevant objects in the ERP.

"If companies are to make proper use of their ERP investment, formally implementing a PLM strategy is critical. Most ERP systems have all the elements mentioned above, but their activation is not simply a matter of switching them on," says Knowles.

An ERP system requires proper planning. It is also clear that PLM can be a complex combination of many functions of the ERP and that expert assistance is required in its implementation. However, it is also clear that without PLM a large portion of the ERP will remain unused and, more importantly, the considerable benefits of PLM will be negated.

Engineering Informatics specialises in SAP R/3 product data and document management solutions. Concentrating initially on Enterprise Resource Planning (ERP) for the engineering, manufacturing and process industries, the company has broadened its scope to include full enterprise PLM solutions to the general marketplace.

Engineering Informatics

(011) 791 1028





Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Reinstatement opportunity for ECSA registration
News
In 2023 the Engineering Council of South Africa (ECSA) announced a special opportunity for engineers in South Africa to reinstate their registration status if it had been cancelled. This exclusive offer is available until the end of August 2024.

Read more...
100 years of safety leadership
News
DEKRA Industrial and its adult-based education and occupational skills training division, the Institute of Learning (IOL) will showcase a milestone at A-OSH 2025, as the company celebrates DEKRA Global’s 100 years of safety leadership.

Read more...
Drakenstein Municipality aces Schneider Electric’s Sustainability Impact Award
Schneider Electric South Africa News
Drakenstein Municipality in the Western Cape has won a Sustainability Impact Award for Schneider Electric’s Anglophone Africa region, shining the spotlight on its unwavering commitment to sustainable leadership and its forward-thinking approach to ensuring a sustainable future for its coming generations.

Read more...
LH Marthinusen launches new industrial fan manufacturing and services factory
News
LH Marthinusen has launched its new industrial fan manufacturing and services factory in Ekurhuleni. THis is a major milestone for South African energy infrastructure growth.

Read more...
Comtest calibration user group seminar
Comtest News
Comtest invites metrology and calibration professionals to a focused technical seminar series aimed at demystifying some of the most common hurdles in inter-laboratory comparisons.

Read more...
Functional safety explained
News
The SAIMC supports Pepperl+Fuchs, a National Member, in a free four-part online seminar series focused on Functional Safety.

Read more...
The future of manufacturing in Africa
News
The future and development of African manufacturing will be discussed extensively at the upcoming Manufacturing Indaba conference, to be hosted on 15 to 16 July 2025 at Johannesburg’s Sandton Convention Centre.

Read more...
Hot topics at IFAT Africa and analytica Lab Africa 2025
News
Burning issues such as climate-smart infrastructure, sustainability in waste and water management, the circular economy and Extended Producer Responsibility will come under discussion at the three-day conference and forum presented by analytica Lab Africa and IFAT Africa at Gallagher Convention Centre in Midrand, Johannesburg from 8 to 10 July 2025.

Read more...
RS South Africa showcases industrial solutions at MTE Phalaborwa
News
RS South Africa recently showcased its latest industrial and electronic solutions at the Mining and Technical Exhibition in Phalaborwa in Limpopo.

Read more...
Specialised Exhibitions appoints Joshua Low as commercial director for Africa
News
Specialised Exhibitions has appointed Joshua Low as commercial director for Africa. This strategic addition to the leadership team comes as Specialised Exhibitions embarks on an ambitious phase of growth across the African continent.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved