Archive for Cincom ERP Resource Center
NEWS RELEASE: Specialty Vehicle Manufacturers Have Issues with ERP: Cincom Report
When it comes to ERP systems, specialty vehicle manufacturers have apparently chosen unwisely. None of those surveyed said their ERP systems exceeded their expectations. Most (50%) classified themselves as having an ERP system that “sometimes inhibits their ability.” While 40% report that their ERP systems provide “valuable information but also require frequent workarounds and customized data extracts.”
None of the transportation and specialty vehicle manufacturers surveyed said their ERP systems exceeded their expectations.
This is according to a 2009 research report by software maker Cincom Systems (http://www.cincom.com/erp) based on a national survey to sales and IT executives that sheds light on how these transportation and specialty vehicle manufacturing organizations are managing their businesses for increased efficiency and effectiveness.
“Clearly there is tremendous opportunity for those specialty vehicle manufacturers willing to invest in new technology to leapfrog their competition and realize a significant market advantage,” says Lou Washington, co-author of the report.
REPORTING VARIES
Only 30% of respondents initially integrate their accounting, finance and sales systems first. Fifty percent of transportation and specialty vehicle manufacturers have no project-management integration with accounting, finance or customer management systems. This creates a large gap between rapidly advancing manufacturers that are creating profit and loss statements per project and those that lack insight into the profitability by project on an ongoing basis.
50% of transportation and specialty vehicle manufacturers have no project-management integration with accounting, finance or customer management systems.
“Given these disparities, this segment is probably looking at a shakeout in the near future,” says Washington. “The recovery will bring the strong more opportunity faster and leave the weak in a weaker position than they occupy now.”
For a copy of Cincom’s “2009 Transportation and Specialty Vehicle Industry Survey Report,” visit http://www.cincom.com/vehicle.
ABOUT CINCOM SYSTEMS
For over 40 years, Cincom’s problem-solving software, services and people have helped thousands of companies all over the world grow and manage their businesses. For more information about Cincom’s products and services, contact Cincom at 1-800-2CINCOM (USA only), send an e-mail to info@cincom.com or visit the company’s website at www.cincom.com.
RELATED LINKS:
Cincom Systems website
http://www.cincom.com
Cincom Acquire™ manufacturing website
http://www.cincomacquire.com
Cincom Enterprise manufacturing website
http://www.cincomerp.com
2009 Transportation and Specialty Vehicle Industry Survey Report
http://www.cincom.com/vehicle
NEWS RELEASE: Commercial HVAC Manufacturers Have Issues with ERP
When it comes to ERP systems, not all commercial HVAC/R manufacturers have chosen wisely. While 18% say their ERP systems exceed their expectations, 36% say it impairs their ability to react to market changes or to implement new business initiatives, and another 36% report that their ERP systems provide valuable information but also require frequent workarounds and customized data extracts.
When asked “What is the state of your current Enterprise Resource Planning (ERP) system?” 36% of HVAC/R manufacturers say it impairs their ability to react to market changes or to implement new business initiatives.
This is according to a 2009 research report by software maker Cincom Systems (http://www.cincom.com/erp) based on a national survey to sales and IT executives that sheds light on how these commercial HVAC/R (heating, ventilation, air conditioning and refrigeration) manufacturing organizations are managing their businesses for increased efficiency and effectiveness.
“HVAC is unique to other manufacturers,” says Lou Washington, co-author of the report. “The ability to react to changes in demand and changes in regulations as well as other dynamics make responsive ERP a requirement. Products for high-demand geographies have widely divergent characteristics. Products for India vary greatly from products designed for China and Western Europe, Brazil or Russia. Where that demand will occur over time is a real wild card when it comes to production planning.”
Mixed Mode Is Mostly Manual
Many commercial HVAC/R manufacturers manufacture products in a mixed mode, employing different production strategies for different product lines. Yet commercial HVAC/R manufacturers are not as advanced in managing these processes as their counterparts. Of those surveyed, 36% rely on a combination of manual processes and separate systems to manage mixed-mode manufacturing processes. This is 10% more than the composite benchmark of comparable industries. Manual mixed-mode processes often result in overtime and expediting as process workarounds.
When asked “How do you manage your mixed-mode processes?” 36% of HVAC/R manufacturers said they rely on a combination of manual processes and separate systems to manage mixed-mode manufacturing processes. This is 10% more than the composite benchmark of comparable industries.
Of the HVAC/R manufacturers surveyed, 18% have implemented an automated and integrated system to manage their mixed-mode manufacturing processes. That’s 5% below the composite benchmark.
“This market is becoming more and more sophisticated and complex,” continues Washington. “Green initiatives, ever-changing architectural elements in new construction and the increased preference for updating existing structures have placed a huge flexibility requirement on HVAC manufacturers. This is reflected in an increased need for nimble mixed-mode capability.”
For a copy of Cincom’s “2009 HVAC/R Equipment Industry Survey Report,” visit http://www.cincom.com/hvac.
About Cincom Systems
For over 40 years, Cincom’s problem-solving software, services and people have helped thousands of companies all over the world grow and manage their businesses. For more information about Cincom’s products and services, contact Cincom at 1-800-2CINCOM (USA only), send an e-mail to info@cincom.com or visit the company’s website at www.cincom.com.
Related Links:
Cincom Systems website
http://www.cincom.com
Cincom Acquire™ manufacturing website
http://www.cincomacquire.com
Cincom Enterprise manufacturing website
http://www.cincomerp.com
2009 HVAC/R Industry Survey Report
http://www.cincom.com/hvac
NEWS RELEASE: Nearly Half of Electrical-Equipment Manufacturers Use “Gut Feel” for Project Tracking: Cincom Report
CINCINNATI ― Nearly 50% of electrical-equipment manufacturers use manual tracking and “gut feel” to track project reporting, including project cost and profit. That’s 14% more when compared to a composite benchmark of comparable industries.
When asked “How is profit performance, cost and/or project reporting tracked, managed and communicated?” nearly 50% of electrical-equipment manufacturers said they used manual tracking and “gut feel.”
This is according to a 2009 research report by software maker Cincom Systems (http://www.cincomerp.com) based on a national survey to sales and IT executives that sheds light on how these electrical-equipment manufacturing organizations are managing their businesses for increased efficiency and effectiveness.
One of the reasons for the large lack of formal project tracking may be the lack of project-management integration. A full 50% of electrical-equipment manufacturers have no project-management integration with accounting, finance or customer-management systems. This creates a large gap between rapidly advancing manufacturers that are creating profit and loss statements per project and those that lack insight into the profitability by project on an ongoing basis.
“Without integrated project management, the company is blind to projects hemorrhaging quietly in their respective silos and equally unaware when projects are running ahead of schedule and under budget,” said Lou Washington, co-author of the report. “The end result is the same: assets mismanaged and resources wasted.”
ERP SYSTEMS CREATE FREQUENT WORKAROUNDS
Most electrical-equipment manufacturers surveyed report that their ERP systems provide valuable information. However, 86% of those surveyed stated their ERP systems also require frequent workarounds and customized data extracts. Slightly less than 50% of the composite benchmark had similar problems.
When asked “What is the state of your current Enterprise Resource Planning (ERP) system??” 86% of electrical-equipment manufacturers stated their ERP systems require frequent workarounds and customized data extracts.
“Manufacturers with hybrid sales channels should consider a project-based approach to defining processes with ERP,” said Washington. “Traditional ERP lacks the flexibility and responsiveness needed to support hybrid sales channels and project-management-based businesses.”
For a copy of Cincom’s “2009 Electrical Equipment Industry Survey Report,” visit http://www.cincom.com/electric.
ABOUT CINCOM SYSTEMS
For over 40 years, Cincom’s problem-solving software, services and people have helped thousands of companies all over the world grow and manage their businesses. For more information about Cincom’s products and services, contact Cincom at 1-800-2CINCOM (USA only), send an e-mail to info@cincom.com or visit the company’s website at www.cincom.com.
RELATED LINKS:
Cincom Systems website
http://www.cincom.com
Cincom Acquire™ manufacturing website
http://www.cincomacquire.com
Cincom Enterprise manufacturing website
http://www.cincomerp.com
2009 Electrical Equipment Industry Survey Report
http://www.cincom.com/electric
Media Contact:
Donna Hedge Burns
Corporate Public Relations
Cincom Systems
dburns@cincom.com
513-612-2305
NEWS RELEASE: A&D Firms Struggle with Inventory Accuracy
Aberdeen report offers insights into best-in-class ERP in A&D sector
CINCINNATI – Despite almost half of aerospace and defense (A&D) manufacturers citing cost reduction as a key business driver, the industry as a whole lags behind best-in-class standards for inventory level reduction and inventory accuracy, according to a recent research study completed by Aberdeen and Cincom Systems.
According to the jointly published report, “ERP in Aerospace and Defense” (www.cincom.com/aberdeen), A&D firms are most concerned with cost reduction and customer satisfaction (38%). Yet, A&D firms admit improvement is needed in controlling schedules and managing inventory—two factors that are absolutely critical to reducing cost and improving customer satisfaction.
In the report, Aberdeen offers insight into what most concerns A&D firms regarding ERP implementations and how to improve them.
Download this report to learn:
- The top strategic actions planned by A&D firms
- The performance of the A&D industry compared to similar industries
- The top key internal capabilities being evaluated for implementation
- The four initial steps toward improving ERP implementations and reaching best-in-class performance
To download “ERP in Aerospace and Defense,” visit www.cincom.com/aberdeen.
About Cincom
RELATED LINKS:
Cincom Systems web site
http://www.cincom.com
Cincom Enterprise manufacturing web site
http://www.cincomerp.com
Aberdeen ERP in Aerospace and Defense report
http://www.cincom.com/aberdeen
Media Contact:
Donna Hedge Burns
Corporate Public Relations
Cincom Systems
dburns@cincom.com
513-612-2305
Cincom Report: Industrial Manufacturers Excel at Real-Time Project Management Reporting Compared to Peers
BUT LARGE GAP STILL EXISTS
CINCINNATI – September 3, 2009 – Only 30% of industrial and plant equipment manufacturers have a system that provides for assignment of indirect costs and real-time reporting. Yet, this is 12% higher when compared to a composite benchmark of comparable industries.
This is according to a 2009 research report by software maker Cincom Systems (www.cincom.com/acquire) based on a national survey to sales and IT executives that sheds light on how these industrial and plant equipment manufacturing organizations are managing their businesses for increased efficiency and effectiveness.
Lack of Lean Project Management …
“Not having integrated project management to guide lean manufacturing is a lot like trying to steer a ship across the Atlantic without a compass,” says Lou Washington, co-author of the report. Yet, only 10% of those surveyed use integrated project management with lean manufacturing. This egregious gap could be filled by the other 90% implementing some form of real-time reporting with their project-management process.
… Leads to Lack of Profit and Loss Knowledge
“Rapidly growing industrial and plant equipment manufacturers that create profit and loss statements per project outperform those that are not gaining insight into project costs,” says Washington. However, few appear to be creating profit and loss (P&L) statements given that just under one-third (30%) of industrial and plant equipment manufacturers have no project-management integration with accounting, finance or customer management systems. And 70% don’t have any form of project-management integration in place at all.
What should industrial and plant equipment manufacturers do to improve their bottom line? “Industrial and plant equipment manufacturers need to integrate their project-management and financial systems to better track P&L of projects,” says Washington. “By better managing costs and profits, they can improve their ability to offer high-quality products at lower prices.”
For a copy of Cincom’s “2009 Industrial and Plant Equipment Industry Survey Report,” visit www.cincom.com/I&Pebook.
OR VISIT
About Cincom Systems
For 40 years, Cincom’s problem-solving software, services and people have helped thousands of companies all over the world grow and manage their businesses. For more information about Cincom’s products and services, contact Cincom at 1-800-2CINCOM (USA only), send an e-mail to info@cincom.com or visit the company’s website at www.cincom.com.
RELATED LINKS:
Cincom Systems website
www.cincom.com
Cincom Acquire™ manufacturing website
www.cincomacquire.com
2009 Industrial and Plant Equipment Industry Survey Report
www.cincom.com/I&Pebook
Media Contact:
Donna Hedge Burns
Corporate Public Relations
Cincom Systems
dburns@cincom.com
513-612-2305
