7 tips for a successful ERP & MES implementation in the cable industry

The implementation of an ERP (Enterprise Resource Planning) and MES (Manufacturing Execution System) is a crucial step in the digital transformation. However, without a well thought-out strategy, high costs, inefficient processes and a lack of acceptance can result. Especially in the cable industry, with its specific requirements for managing cable lengths, metal inventories and batch traceability, a structured and strategically planned introduction is essential. These seven tips will help you avoid pitfalls and get the maximum benefit from your digitalization.

1. Set clear goals

Before a new ERP system & MES is introduced, the company's objectives must be clearly defined. Typical optimization goals in the cable industry are

• Improved production planning through precise capacity planning
• Optimized warehouse management through length-based inventory management
• Complete traceability of the raw materials and production batches used
• Reduction of waste and downtimes

A detailed requirements analysis is the key to successful implementation. Both technical and economic effects should be carefully evaluated in order to achieve sustainable optimization.

2. Choosing the right system

Standard ERP systems often do not cover the complex needs of the cable industry. Special challenges such as the management of cable lengths, metal invoicing according to LME rates or length-based inventory management require an industry-specific solution. A system such as ADVARIS Cable Solution, with its ERP & MES, already offers all the industry-specific functions required out-of-the-box, such as

• Automatic planning of drum sizes and cable lengths
• Real-time traceability of production and material flows
• Optimized production planning with consideration of machine capacities and changeover times

3. Involving employees at an early stage

A new system is only as good as the people who use it. Successful introductions rely on early training and acceptance management. Proven concepts include

• Interactive workshops for needs assessment
• Clear definition of the roles and responsibilities of project managers, process owners and key users
• Setting up a suitable project organization with corresponding capacity planning and responsibilities
• Early training for different user groups
• Project marketing and support from top management

4. Ensure data quality

Incorrect or inconsistent master data can significantly impair an ERP system & MES. A data quality check should therefore be carried out before implementation:

• Clean up duplicates and outdated entries
• Standardization of material and article designations
• Digitize and systematically record knowledge from the minds of employees
• Establish clear data maintenance processes

High master data quality is a prerequisite for automated processes and precise production planning.

5. Seamlessly integrate interfaces

ERP system & MES must harmonize with existing IT systems. Numerous interfaces are required, especially in the cable industry:

• Machine control systems (SCADA) for monitoring production data
• Financial software (e.g. SAP, Microsoft Dynamics) for seamless integration into the accounting system
• Automated transport and warehouse management systems

A well thought-out integration strategy avoids media disruptions - i.e. interruptions in the digital flow of information between different systems or departments - and enables seamless data exchange.

6. Implementation strategies

The introduction can either take place gradually or as a “big bang”. Both approaches offer specific advantages and disadvantages that need to be carefully weighed up based on the individual company structure, available resources and risk appetite.

Step-by-step implementation with pilot projects

Advantages:

• Lower risk, as problems can be identified and rectified at an early stage.
• Better allocation of resources as the transition is spread over a longer period of time.
• Greater acceptance by employees as they can gradually get used to the new system.

Disadvantages:

• Longer project duration and therefore potentially higher overall costs.
• Increased effort for temporary interfaces between the old and new system.
• Parallel system landscapes can increase complexity and maintenance costs.

Implementation as a big bang

The new system is fully implemented in a single step at a fixed point in time.

Advantages:

• Shorter project duration so that the benefits of the new system can be utilized more quickly.
• No parallel legacy systems, which minimizes the administrative effort.
• A clear cut enables a consistent changeover without long transition phases.

Disadvantages:

• Higher risk, as problems during go-live can directly affect business processes or production.
• High resource requirements during the changeover phase, particularly for training and support.
• Employees have to adapt quickly to the new way of working, which can make acceptance more difficult.

Regardless of the strategy chosen, it is crucial to create a detailed project plan with clearly defined milestones and a thorough test phase. A contingency plan should also be in place to prepare for unforeseen challenges. The decision for an implementation strategy should be tailored to the individual company goals, the IT infrastructure and the available resources.

7. Continuous improvement

An ERP system & MES is not a static product, but is constantly evolving to meet the changing requirements of the industry. ADVARIS provides regular updates to help companies optimize their processes and benefit from new features and current industry best practices.

Companies should review and strategically evaluate such updates and innovations.

In addition to the technical updates of the software systems, it is also crucial to train your own employees in new functionalities in order to be able to use them optimally. In addition, continuous performance reports make it possible to identify potential for improvement in business processes and further increase efficiency.

Conclusion

With a well thought-out strategy and an industry-specific system such as ADVARIS, companies in the cable industry can increase their efficiency, reduce costs and secure their competitiveness in the long term. Take advantage of the benefits of digitalization and make your production fit for the future.

Let's optimize your production processes together!