Posted on 03 November 2011.
In the Aerospace and Defence (A&D) industry, it is imperative the whole of the supply chain works as efficiently and effectively as possible. With such a vast difference in order size and production difficulty per customer, all parts of the supply chain must work in harmony with each other and manufacturing software can greatly assist in this area..

Due to the strongly precision engineered products, at any part within the design process, something might need changing, adding or taking out of the design. It is imperative that each section of the supply chain can see this new information as quickly as possible in order to make appropriate changes in their part of the design. Alongside the practicalities of the A&D sector are the licencing and reporting records that must be kept relevant and up to date at all times. If you are found to be without licence or with the wrong licencing for your specifications, you could face heavy fines.
As the A&D market is a very fast moving and competitive one, an Enterprise Resource Planning (ERP) system would be very advantageous. Greatly reducing turnaround time and increasing productivity to reduce waste results in a happier customer. Managing stock levels, shop floor activity, engineering requirements at a basic level and production scheduling it is difficult to see how A&D manufacturers can fully function without one.
Unlike many manufacturing projects, A&D projects can stretch out over many years. To be able to efficiently co-ordinate such a huge project can be very difficult without the help of an ERP system. The built-in project management application not only plans the project but also executes it to ensure that all aspects of the planning process and associated costs are factored in and can work smoothly without the need for human intervention eliminating the risk of human error.
To comply with the terms of the contract between customer and business, cost and scheduling information must be recorded accurately beginning with a work breakdown structure (WBS) of work carried out. With the ability to provide an initial estimate of costs such as materials and labour, the ERP system can then carry these costs throughout the supply chain enabling all departments to work from the same specification.
When choosing your ERP system, make sure that it is able to carry all cost information as well as creating and executing cost allocations so that it can re-use these templates in future similar projects or over multiple departments, locations and projects.
Not only do the management have to keep a control of activities within the company, they must also have a control over external factors such as materials purchased and sub-contracting that may occur for certain projects. These external factors will carry with them a cost that must be factored into the final estimates of cost and scheduling.
The ERP integrated supply chain management maintains customer, supplier and aftercare relationships. EDI and electronic kanban both contribute to enable a tight knit control of the whole chain and play an important part in maintaining success in the A&D industry.
Product Lifestyle Management (PLM) also known as Product Data Management (PDM) enables the user to maintain a continual contact with suppliers which aids in passing along design specifications if any changes need to be made. Many of the ERP systems can have this function.
This advanced system allows for excellent time and cost management therefore allowing suppliers and manufacturers to work with your company in the most effective way. You can work to the best timescale possible and deliver reliable and on-time services to the customer.
To comply with government standards, it is vital that you have records of all costs, parts and quantities in each project you undertake. Being able to find any record with ease is one feature of the ERP systems innovative skills. This means that you will be compliant should the DCAA visit to perform an audit on any of the following: costs, materials, labour, overheads etc.
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