January 30, 2025
Engineering input is critical when selecting and implementing a new ERP system, particularly in ensuring seamless integration between the ERP and the product data management (PDM) system. A well-integrated ERP facilitates the smooth transition of design data into production, but the challenge lies in fostering cross-departmental collaboration while balancing engineering’s needs with those of the entire organization.
In this article, Guide Technologies Consulting Manager Rick Worley shares insights from his 40-year career on why engineering involvement is essential in ERP decisions and how manufacturers can optimize the process.
The Role of Engineering in ERP Decisions
Engineering teams play a vital role in ERP systems because they manage critical product data, including drawings, bills of materials (BOMs), and manufacturing processes.
"The engineering side of the organization owns a substantial portion of the data within an ERP system," says Worley.
Engineers focus on ERP features that ensure seamless integration with PDM systems like SolidWorks and Autodesk, aiming to automate processes and reduce manual data entry. They also assess the resource requirements for implementation and how the ERP system will impact their workflows.
"[Engineers] understand both sides of the equation," Worley explains. "The intricacies of product development tools and ERP systems. This makes them uniquely qualified to determine what data needs to exist within the ERP solution."
Challenges in Aligning Engineering with Organizational Goals
While engineers bring a structured and detail-oriented perspective to ERP selection, aligning their goals with broader business objectives can be challenging. The ideal ERP solution should differentiate between:
- Engineering-specific data – essential for design and development
- Production-relevant data – necessary for manufacturing and costing
Segmenting this data prevents unnecessary complexity while ensuring that key engineering details—such as product specifications and quality standards—are included for supplier communications and shop floor processes.
One major challenge is identifying which engineering data should be integrated into the ERP and where it should reside within the system. Without a structured approach, critical details can be lost, or the system can become overloaded with unnecessary information.
Essential ERP Features for Engineers
"From an engineering standpoint, the most essential feature of an ERP system is workflow management," says Worley.
The product development cycle follows a structured flow, with specific approval and sign-off processes. An ERP system with robust workflow management tools helps:
- Automate item creation and revision processes
- Ensure smooth engineering change management
- Maintain version control across departments
Additionally, engineering change request (ECR) capabilities are crucial. A well-managed change request and approval process ensures that design updates are correctly implemented across procurement, production, and quality control.
Lessons from Real-World ERP Implementations
Worley shares insights from two aerospace companies that had vastly different ERP implementation experiences:
Success Story:
One aerospace company leveraged engineering input early in the process to determine which data should be integrated between the PDM and ERP systems. This structured approach enabled seamless collaboration and resulted in significant time and cost savings.
Challenges & Lessons Learned:
Another aerospace company struggled due to rigid engineering practices and inconsistent data management within their PDM system. Engineers used different methods to track data, making it difficult to integrate with ERP. Lack of standardization created major implementation roadblocks.
Guide Technologies helped the company establish standardized processes within the PDM system, ultimately enabling a smoother ERP transition and improving data consistency across teams.
Best Practices for Integrating Engineering into ERP
To ensure a successful ERP implementation, manufacturers should:
Encourage Cross-Departmental Collaboration
Align engineering, planning, and production teams to ensure BOM structures match shop floor execution. Fewer work orders mean less administrative work and greater efficiency.
Involve Procurement Early
Engage procurement teams in design discussions to ensure supplier capabilities align with specifications before designs are finalized, reducing rework and cost overruns.
Align Engineering with Manufacturing Realities
Ensure designs are practical by incorporating quality and production team insights. For example:
- Can the current machinery and processes meet design specs?
- Are cost-efficient materials being considered?
Engineering Input is Crucial for ERP Success
While engineering plays a critical role in ERP selection and implementation, a balanced approach is key. An overly engineering-centric ERP may not be practical for other departments.
Guide Technologies consultants help manufacturers bridge the gap between engineering, production, and business operations, ensuring ERP systems are optimized for success across the entire organization.