Eight Must-Have ERP Features for Aerospace and ... - Plex Systems

Eight Must-Have ERP Features for
Aerospace and Defense Manufacturers
At a Glance:
• Manufacturers need ERP systems that track processes for complex, globally
sourced programs while supporting regulatory compliance.
• These systems must include eight key features that help with compliance,
program management, complex costing, supply chain management
and more.
• Plex Cloud ERP has all the features needed by aerospace and defense
suppliers plus additional benefits associated with a cloud delivery model.
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Eight Must-Have ERP Features for Aerospace
and Defense Manufacturers
Aerospace and defense (A&D) manufacturers face an array of challenges.
They manage the manufacturing sector’s most complex programs, relying upon
extensive supply chains that reach around the globe. With cyclical demands and
tight time-to-market expectations, manufacturing planning is both an art and
a science. The industry’s highly engineered products require close integration
between engineering and manufacturing operations.
On top of these challenges, the A&D industry is one of the most highly regulated
manufacturing industries. There is no single A&D organization that regulates
compliance with multiple regulations and adherence to standards, as there are
in other industries. The burden for compliance falls heavily on the shoulders of
the OEMs and their supply chains.
Must-Have Solution Features
Manufacturers rely on software solutions to meet these unique challenges
while achieving high degrees of efficiency, productivity and accuracy.
Today’s leading manufacturing technology solutions go beyond the historical
ERP strengths of finance and accounting. They help organizations easily meet
operational and business challenges with features that support virtually every
manufacturing function. Today’s systems accurately track manufacturing
processes for complex, globally sourced programs, while supporting
regulatory compliance.
They include the following eight features and capabilities:
1. Support for Regulatory Compliance
One of the broadest-reaching aerospace regulations is AS9100. While
manufacturers have worked to meet AS9100 requirements for decades, the
introduction of Revision C has further expanded documentation and traceability
requirements. To help maintain AS9100 compliance and avoid increased audit
frequency, manufacturers’ systems must include strong traceability capabilities,
document controls and record storage.
Systems must also support compliance with the Truth in Negotiations Act (TINA)
by showing that their program bids and prices are based on the best information
available at the time of negotiations. Their systems must capture and maintain
detailed pricing and cost data.
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If they are governed by defense contracts, manufacturers also have to meet the
requirements of the Defense Contract Audit Agency (DCAA). Their systems must
track data required for DCAA’s detailed audits of accounting and manufacturing
processes. Their systems must include fully traceable accounting procedures
that demonstrate to the DCAA that they are able to fulfill contract goals.
Finally, defense manufacturers that export outside the United States must also
meet the requirements of the International Traffic in Arms Regulations (ITAR).
The intent of ITAR is to prevent U.S. manufacturers from providing companies
outside the United States access to defense program information. To comply
with ITAR, manufacturers must maintain thorough records of all communications
across their supply chain networks while restricting access to only approved
individuals who meet the ITAR definition. This includes detailed part numbers,
bills of material, process routers, supplier data, quote histories, RFQ responses,
and more.
EaglePicher Technologies Defense & Space Power, a provider of ETO satellite
missile and telescope batteries for the defense industry, uses a fully integrated
cloud ERP with versatility and state-of-the-art features to easily process custom
orders, perform accounting functions, and execute ETO program management.
After implementing the Plex Cloud ERP system, the division eliminated
redundant manual activities and streamlined its ETO program tracking, ordering,
billing, and other processing functions.
2. Program Management
Most A&D manufacturers need support for Work Breakdown Structures (WBSs).
Their systems must help users develop, monitor and update WBSs so detailed
budgets and earned value amounts (EVAs) can be captured, and estimate-tocomplete
and actual costs can be recorded.
To ensure that program managers have total control of their programs, systems
should include MRP functions with complete real-time visibility into purchasing,
manufacturing, shipping, invoicing and workflow data. The systems must also
include document and revision controls that track engineering change requests
(ECRs) and require approvals whenever edits are made. This document control
system should link to quality functions for an additional layer of efficiency.
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A&D manufacturers also need configuration management functionalities that
synchronize information such as BOMs, routings and engineering specifications
between engineering and manufacturing. Their systems must document
engineering changes during each phase of a new or enhanced program — from
as-designed, as-planned and as-built configurations.
For A&D manufacturers that serve customers in an engineer-to-order (ETO)
environment, their systems must also support custom, automated proposals;
billing; progress payments; and other related requirements.
“Systems must track project costs and inventory all the way through the WBS.”
3. Costing
Managing the complexity of many contract types and structures is a unique
challenge for A&D manufacturers. Their ERP systems must capture cost
elements at every stage of a program’s lifecycle in order to track and execute
progress payments, manage project costing, automate billings, and track
long-term budget-to-actual revenues.
Manufacturing systems must track costs and inventory on a project basis all
the way through the WBS. Costing functionalities should support quote-toorder,
contract management, engineer-to-order, and flexible revenue recognition
scenarios.
ERP systems like Plex include project costing that allows users to quickly and
accurately track final costs through BOMs, routings, cost histories, purchased
quotes and other sources. They support advanced standard costing, cost
setups, inventory valuations, job costing and part cost structures.
4. Quality and Traceability
Manufacturers should be able to create, edit and view on-screen Failure Mode
& Effects Analyses (FMEAs), control plans and inspection instructions.
It should be easy to view component and assembly data, and to track defects
and failures on the shop floor. Best-in-class systems track and maintain unique
identifiers for each part, including when the part was manufactured, by whom,
where and how. These records help companies meet traceability reporting
mandates.
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All A&D systems must include comprehensive Statistical Process Control
(SPC) functions that collect inspection data, conduct in-process SPCs,
and automatically link with part specification, control plan and gage
control functions.
Not only do robust quality and traceability functions help manufacturers
achieve first time quality, they make it more efficient to determine corrective
and preventive actions, fix non-conformances, and respond to audits.
Weber Metals achieved complete production visibility and dramatically
reduced processing times for quote entries, shop reschedules and more after
implementing Plex Cloud ERP.
The aerospace forger trimmed quote processing times by 80 percent, cut down
rescheduling time from 18 hours to under an hour per job, and replaced 40
man-hours per week of complex job and materials management with a
completely automated process.
5. Single, Integrated System
Today’s A&D manufacturers need an integrated system that combines the
capabilities of ERP with all other functions needed to manage their business
from the top floor to the shop floor, including manufacturing execution system
(MES), quality management, customer relationship management (CRM),
shop-floor integration, and much more.
Today’s leading systems enable A&D manufacturers to manage BOMs,
purchasing, receiving, inventory, scheduling, shipping, EDI, subcontracting,
financials, document control, and human resources.
Integrated all-in-one manufacturing systems provide “a single version
of the truth,” streamlining operations and easing audit processes.
6. Plant-Floor Visibility
Manufacturers’ systems must provide real-time visibility across the entire A&D
enterprise. They must easily track data and activities involving people, materials,
machines, processes and suppliers.
As an example, the system should let workers automatically track production,
KPIs and business intelligence. By capturing data as it happens, manufacturers
get a clear view into all processes.
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7. Supply Chain Management
It’s critical that A&D manufacturers are able to communicate with suppliers
in real time using Internet-based supplier portals. Suppliers can use portals
to easily access and report statuses, certification levels, problem histories,
quality performance reports and more. They can produce scorecards to track
performance against a set of key measurables including quality, delivery and
cost. Scorecards should be integrated with problem controls, purchasing,
shipping/receiving and other functions.
Portals allow manufacturers to share data with suppliers using a single solution,
replacing manual methods that are time-consuming and potentially inaccurate.
The goal is real-time communication across the supply chain to improve
visibility, performance and operational excellence.
Phoenix Logistics is one of the many A&D manufacturers that have experienced
the benefits of implementing an ERP system that enables a completely
paperless environment.
Not only did the manufacturer save time, improve accuracy and eliminate
duplicate data entry, it no longer incurs the cost of printing, handling and storing
over 20,000 pages of documents once generated each month, saving more than
$53,000 per year.
8. Paperless Environment
With AS9100 Rev. C’s tightened requirements for documentation of processes,
approvals and other information, tracking data manually is inefficient, costly and
nearly impossible. Any ERP system used by A&D manufacturers today must
maintain documentation electronically, supporting a paperless environment.
In addition, electronic documentation streamlines the audit process.
Manufacturers can easily and conveniently gather and display all of the
information needed by their auditors, all with just a few mouse clicks.
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Plex Cloud ERP Provides All Eight Must Haves
A flexible, Internet-based solution, such as Plex Cloud ERP, brings
manufacturers in the A&D industry all eight of the features they must have
to efficiently and effectively meet their unique challenges.
Alone among the leading ERP solutions for aerospace and defense, Plex brings
manufacturers all of the features and capabilities they need plus the cost and
efficiency benefits of the cloud delivery model.
About Plex
Plex powers modern manufacturing with the first ERP cloud built specifically for the plant floor.
Manufacturers that use Plex run smarter, leaner, more efficiently and are always ready for what’s
next. Today, more than 350 companies run their operations on the Plex Manufacturing Cloud.
From cam shafts to craft beers, from high-performance diesel engines to aircraft parts, the
Plex Manufacturing Cloud helps companies automate the shop floor and inform the top floor.
Visit plex.com to learn more.
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