Enterprise Resource Planning (ERP) - myOpenFactory
New standard for inter-company production logistics
"ERP – myOpenFactory" covers both internal and external business operations. It mainly consists of the introduction of an IT standard for all manufacturers and suppliers in the production chain. The aim of this is to prevent the need for repeating the time-consuming process of recording product data and to ensure full transparency in the supply chain for everyone involved and with all production data.
Computer-controlled assembly
The success of mechanical and plant engineering companies in Baden-Württemberg is partly based on cooperation in the development and manufacture of complex products. However, data exchange within production and supply networks often proved to be difficult in the past.
The telephone, fax and letter post remain important means of communication in the mechanical and plant engineering sector to this day because the additional recording of data in IT systems is very time consuming and ties up staff.
Software systems for resource planning (ERP systems) often originate from the era before the Internet with its technical networking possibilities.
The market for ERP software (approx. 120 program suppliers with over 200 specific ERP program solutions in Germany) is extremely varied. Nowadays, many different IT programs are used to process a typical customer order within a company. This results in a number of internal interfaces and media fragmentation within the company. This problem multiplies even further in a global production network.
Shipping department with moving forklift truck
The automotive industry has already forced ERP program manufacturers to implement networking and develop standards because order processing in the automotive industry is often based on a linear supply chain with clearly defined dependent relationships. Complex intertwined networks are the norm in the mechanical and plant engineering sector. Main contractors, many small and medium-sized companies and multiple suppliers are involved in the production chain. This makes it more difficult to introduce a standard.
The Federal Ministry of Education and Research is promoting the "myOpen-Factory" project. It has developed a standard for information exchange to be included in all ERP programs so that the software is attractive and helpful for small and medium-sized companies in particular. The main challenges consisted of "concentrating on the essentials" and in getting the ERP program suppliers on the German market to sit down together and proceed with standardization jointly despite their status as competitors.
Pilot implementations are currently being run in various mechanical and plant engineering companies. The initial feedback from manufacturers regarding the ERP programs which contain this new standard have been positive. Use of an integrated order processing system, i.e. avoiding existing media fragmentation, has been found to create savings of 45 percent of the process costs on average (survey of 80 mechanical engineering companies on order processing).
The complete transparency which myOpenFactory provides on the progress of an order both to the company itself and to suppliers improves adherence with deadlines, which is especially important in the mechanical and plant engineering sector. In addition, it has a positive effect on all common management targets such as inventory and cost reduction and ensuring more uniform utilization of capacity. Overall, this makes a significant contribution to ensuring that Germany remains a competitive location for business.
myOpenFactory eG will be founded in the near future. This is an association which will be responsible for developing and maintaining the standard. In addition, a limited company has already been founded in order to further develop the software for small companies (Web-Cockpit).