The hardware industry considers dispersion as the primary and the flow as the secondary. The manufacturing procedure mainly covers metal processing and assembly of parts. The hardware machining mainly includes foundry of rough material, pressing and mechanical processing. The processing procedure includes such processes as foundry, forging, hot surface treatment, division of raw materials, iron line bending, lathing, milling, planning, abrading or moulding of plate.
The hardware products have various types and models. The hardware products sold in the material market fall into ten-odd types and cover hundreds of products, including lock type, pulled handle type, door and window type, house ornament type, water warm type, architecture ornament type, tool type, restroom type and kitchen type.
Diversified manufacturing modes
Most manufacturing uses the multi-type, small-batch manufacturing mode, including order design, order production, order processing and make-to-stock product according to the market prediction.
Multiple UoMs are involved in the warehouse management.
Complex processing techniques
The processing routes are unsure. One part or product may have multiple processing processes. The manufacturing procedure may require many different devices and clamps.
Many parts to be processed
Many materials are required. In the workshop the relevant person needs to fill in many picking lists, like process management, and fill in many process-transfer forms.
Difficult quality management
The hardware industry mainly uses the dispersion mode for processing. The quality of product and manufacturing efficiency largely depend on the technical level of workers. Its automatic degree is at the unit level, for example, CNC machine tool and flexible manufacturing systems.
Complex WIP management
The manufacturing periods vary with the product parts. The product processing routing is complex.
Many outsourcing parts
The parts of product mainly combine two modes: self-manufacturing and outsourcing. Generally, the electroplating and spray-painting use the outsourcing mode.
Complex manufacturing plan
The structure of product and the processing technique are complex and the manufacturing periods of different parts are different. The processing routes are variable.
Difficult cost accounting
The manufacturing process and the processing technique are complex, so it is difficult to make cost accounting. Also, it is difficult to make the proportion of electroplating and spray-painting materials and the statistics of working hour. In the cost accounting, it is difficult to calculate the material consumption, human resource cost and operation cost. The scrap ratio is unstable, so it is difficult to count the scraps and calculate the scrap cost.
Product Data Management
K/3 provides the centralized management and separate maintenance function for basic information like materials, routing, work center, resources and teams, adaptive to diversified products.
K/3 provides a complete PDM management interface, realizes the seamless joint of PDM system and ERP system and meets the different ERP management demands of enterprises. The basic materials realize the uniform management of figure, code and attachment filing. The trinity of figure, table and code is realized, meeting the hardware enterprises demands of providing complete product information.
K/3 system provides a complete set of master data solution. It can help the enterprise to integrate master data, define master data uniformly, establish a complete right system for data (to ensure the completeness, timeliness and security of data) and meet different service requirements of managers in the enterprise.
The plan management system of Hardware Solution suits to the plan of manufacturing based on the sales and fast response to the market demands and the plan combining the manufacturing based on the prediction. It breaks down the market demands into executable PO, MO and outsourcing MO through an efficient and complete plan system. It ensures the execution of market demands by treating the material supply balance as the primary and the manufacturing capability balance as the secondary. It saves the product delivery period and ensures the high-efficiency operation of sales, production, outsourcing and purchase.
The processing of components in the hardware industry needs many processes and may have outsourcing or temporary product line change demands. The K/3 operation management system can control and master the information of product line. It can collect, record and sort out information of raw materials, semi-finished goods, finished product, machine, work hour and cost and trace and control the manufacturing work in process, including realtime monitor and trace of WIP. It provides partial transfer and outsourcing function and records the input, completion, back to fix and poor effect of the operations for statistics and analysis. It can generate the relevant management control report to feed it back to the manufacturing plan person and spot control person, so that they can master the manufacturing schedule and improve the management level and work efficiency further.
For the situation of outsourcing services of hardware enterprises increasing gradually, it can help these enterprises make overall outsourcing management involving manufacturer selection, request for quotation, progress control, management of processing expenses payable, outsourced material, returned finished products, and cost management.
The material order policy settings in the hardware industry solution falls into: Period Order Quantity (POQ), batch to batch, fixed batch and Reorder Point (ROP). These order policies suit to different purchase or manufacturing batch at the MPS/MRP operation. It helps the enterprise resolve problems as follows: difficulty in identifying the source of purchase, inaccurate purchase and incorrect purchase delivery period.
This scheme provides multiple UoMs management for the multiple UoMs demands of the hardware industry. In this way the inventory can use block, piece and KG as unit and the purchase can take KG as unit.
With the cost concept of "object oriented expense", this solution provides costing methods like the varietal method, batch process, process costing and category costing in the traditional actual cost system.
Use different standards for the allocation of multiple kinds of materials in the hardware industry and allocation of multiple kinds of expenses. Hardware Solution provides multiple self-defined material and expense allocation standards, resolving the inaccurate allocation problems of material expense and manufacturing expense. The automatic collection of direct material expense, labour and manufacturing expense lowers the workload of cost accounting persons and improves the timeliness and correctness of accounting.
To facilitate scrap cost analysis of hardware products, it offers cost accumulation and costing for repairable and unrepairable scraps, and provides the Scrap Loss Details and Scrap Loss Summary to analyze scrap losses.