Connectivity To Plant Floor Information: Systems Integrators

Connectivity to plant floor information
ERP systems connect to real–time data and transaction data in a variety of ways. These
systems are typically configured by systems integrators, who bring unique knowledge on
process, equipment, and vendor solutions.
Direct integration—ERP systems connectivity (communications to plant floor equipment)

as part of their product offering. This requires the vendors to offer specific support for the
plant floor equipment that their customers operate. ERP vendors must be expert in their own
products, and connectivity to other vendor products, including competitors.
Database integration—ERP systems connect to plant floor data sources through staging
tables in a database. Plant floor systems deposit the necessary information into the database.
The ERP system reads the information in the table. The benefit of staging is that ERP
vendors do not need to master the complexities of equipment integration. Connectivity
becomes the responsibility of the systems integrator.
Enterprise appliance transaction modules (EATM)—These devices communicate directly

with plant floor equipment and with the ERP system via methods supported by the ERP
system. EATM can employ a staging table, Web Services, or system–specific program
interfaces (APIs). The benefit of an EATM is that it offers an off–the–shelf solution.
Custom–integration solutions—Many system integrators offer custom solutions. These

systems tend to have the highest level of initial integration cost, and can have a higher long
term maintenance and reliability costs. Long term costs can be minimized through careful
system testing and thorough documentation. Custom–integrated solutions typically run on
workstation or server class computers.
Standard protocols—Communications drivers are available for plant floor equipment and
separate products have the ability to log data to staging tables. Standards exist within the
industry to support interoperability between software products, the most widely known being
OPC[12]
[edit] Implementation
ERP's scope usually implies significant changes to staff work practices.[13] Generally, three
types of services are available to help implement such changes—consulting, customization,
and support.[13] Implementation time depends on business size, number of modules,
customization, the scope of process changes, and the readiness of the customer to take
ownership for the project. Modular ERP systems and can be implemented in stages. The
typical project for a large enterprise consumes about 14 months and requires around 150
consultants.[14] Small projects can require months; multinational and other large
implementations can take years.[citation needed] Customization can substantially increase
implementation times.[14]
Implementing ERP software can overwhelm inexperienced technicians. As a result, hiring

professionally trained consultants to implement these systems is common.[citation needed]
Consulting firms typically provide three areas of professional services: consulting,
customization, and support. The client organization can also employ independent program
management, business analysis, change management, and UAT specialists to ensure their
business requirements remain a priority during implementation.[citation needed]
[edit] Process preparation
Implementing ERP typically requires changing existing business processes.[15] Poor

understanding of needed process changes prior to starting implementation is a main reason
for project failure.[16] It is therefore crucial that organizations thoroughly analyze business
processes before implementation. This analysis can identify opportunities for process
modernization. It also enables an assessment of the alignment of current processes with those
provided by the ERP system. Research indicates that the risk of business process mismatch is
decreased by:
• linking current processes to the organization's strategy;

• analyzing the effectiveness of each process;
• understanding exising automated solutions.[17][18]
ERP implementation is considerably more difficult (and politically charged) in decentralized

organizations, because they often have different processes, business rules, data semantics,
authorization hierarchies and decision centers.[19] This may require migrating some business
units before others, delaying implementation to work through the necessary changes for each
unit, possibly reducing integration (e.g. linking via Master data management) or customizing
the system to meet specific needs.[citation needed]
A potential disadvantage is that adopting "standard" processes can lead to a loss of

competitive advantage. While this has happened, losses in one area often offset by gains in
other areas, increasing overall competitive advantage.[20][21]
[edit] Configuration
Configuring an ERP system is largely a matter of balancing the way the customer wants the
system to work with the way it was designed to work. ERP systems typically build many
changeable parameters that modify system operation. For example, an organization can select
the type of inventory accounting—FIFO or LIFO—to employ, whether to recognize revenue
by geographical unit, product line, or distribution channel and whether to pay for shipping
costs when a customer returns a purchase.[citation needed]
[edit] Customization
When the system doesn't offer a particular feature, the customer can rewrite part of the code,
or interface to an existing system. Both options add time and cost to the implementation
process and can dilute system benefits. Customization inhibits seamless communication
between suppliers and customers who use the same ERP system uncustomized.[citation needed]
Key differences between customization and configuration include:
• Customization is always optional, whereas the software must always be configured

before use (e.g., setting up cost/profit center structures, organisational trees, purchase
approval rules, etc.)
• The software was designed to handle various configurations, and behaves predictably
any allowed configuration.
• The effect of configuration changes on system behavior and performance is
predictable and is the responsibility of the ERP vendor. The effect of customization is
less predictable, is the customer's responsibility and increases testing activities.
• Configuration changes survive upgrades to new software versions. Some
customizations (e.g. code that uses pre–defined "hooks" that are called before/after
displaying data screens) survive upgrades, though they require retesting. Other
customizations (e.g. those involving changes to fundamental data structures) are
overwritten during upgrades and must be reimplemented.
Customization can be expensive and complicated, and can delay implementation.

Nevertheless, customization offers the potential to obtain competitive advantage vis a vis
companies using only standard features.
[edit] Extensions
ERP systems can be extended with third–party software. ERP vendors typically provide
access to data and functionality through published interfaces. Extensions offer features such
as:[citation needed]
• archiving, reporting and republishing;

• capturing transactional data, e.g. using scanners, tills or RFID
• access to specialized data/capabilities, such as syndicated marketing data and
associated trend analytics.
[edit] Data migration
Data migration is the process of moving/copying and restructuring data from an existing
system to the ERP system. Migration is critical to implementation success and requires
significant planning. Unfortunately, since migration is one of the final activities before the
production phase, it often receives insufficient attention. The following steps can structure
migration planning:[22]
• Identify the data to be migrated

• Determine migration timing
• Generate the data templates
• Freeze the toolset
• Decide on migration-related setups
• Define data archiving policies and procedures
[edit] Consultants
Many organizations do not have sufficient internal skills to implement ERP. Typically, an
outside consulting team is responsible for the ERP implementation including selecting the
vendor, planning, training, configuring/customizing, testing, implementation, delivery.[citation
needed]
Examples of other services include writing process triggers and custom workflows;
specialist advice to improve how the ERP is used in the business; system optimization;
custom reports; complex data extracts or implementing Business Intelligence.[citation needed]
Unlike most single–purpose applications, ERP packages typically include source code and a
vendor–supported development environment for customizing and extending the delivered
code.[citation needed]
[edit] Comparison to special–purpose applications

[edit] Advantages
The fundamental advantage of ERP is that integrating the myriad processes by which
businesses operate saves time and expense. Decisions can be made more quickly and with
fewer errors. Data becomes visible across the organization. Tasks that benefit from this
integration include:[citation needed]
• Sales forecasting, which allows inventory optimization

• Order tracking, from acceptance through fulfillment
• Revenue tracking, from invoice through cash receipt
• Matching purchase orders (what was ordered), inventory receipts (what arrived), and
costing (what the vendor invoiced)
ERP systems centralize business data, bringing the following benefits:
• They eliminate the need to synchronize changes between multiple systems—

consolidation of finance, marketing and sales, human resource, and manufacturing
applications
• They enable standard product naming/coding.
• They provide a comprehensive enterprise view (no "islands of information"). They
make real–time information available to management anywhere, anytime to make
proper decisions.
• They protect sensitive data by consolidating multiple security systems into a single
structure.[23]
[edit] Disadvantages
• Customization is problematic.
• Re–engineering business processes to fit the ERP system may damage
competitiveness and/or divert focus from other critical activities
• ERP can cost more than less integrated and/or less comprehensive solutions.
• High switching costs increase vendor negotiating power vis a vis support,
maintenance and upgrade expenses.
• Overcoming resistance to sharing sensitive information between departments can
divert management attention.
• Integration of truly independent businesses can create unnecessary dependencies.
• Extensive training requirements take resources from daily operations.

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Connectivity to plant floor information

Direct integration—ERP systems connectivity (communications to plant floor equipment)

Enterprise appliance transaction modules (EATM)—These devices communicate directly

Custom–integration solutions—Many system integrators offer custom solutions. These

Implementing ERP software can overwhelm inexperienced technicians. As a result, hiring

[edit] Process preparation

Implementing ERP typically requires changing existing business processes.[15] Poor

• linking current processes to the organization's strategy;

ERP implementation is considerably more difficult (and politically charged) in decentralized

A potential disadvantage is that adopting "standard" processes can lead to a loss of

Key differences between customization and configuration include:

• Customization is always optional, whereas the software must always be configured

Customization can be expensive and complicated, and can delay implementation.

• archiving, reporting and republishing;

[edit] Data migration

• Identify the data to be migrated

[edit] Comparison to special–purpose applications

• Sales forecasting, which allows inventory optimization

ERP systems centralize business data, bringing the following benefits:

• They eliminate the need to synchronize changes between multiple systems—

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