Application Portfolio Optimisation for Manufacturing SMEs

Industry-specific guidance for manufacturing businesses looking to rationalise their ERP, MES, QMS, and operational technology applications for maximum efficiency.

The Manufacturing Application Landscape

Typical Application Categories

Manufacturing SMEs typically operate across several technology layers, each with its own set of applications:

Enterprise Layer:

• ERP (Enterprise Resource Planning)
• CRM (Customer Relationship Management)
• HRM (Human Resource Management)
• Financial management and accounting
• Business intelligence and reporting

Operations Layer:

• MES (Manufacturing Execution System)
• SCADA (Supervisory Control and Data Acquisition)
• QMS (Quality Management System)
• Supply chain management
• Inventory and warehouse management

Engineering Layer:

• CAD/CAM design software
• PLM (Product Lifecycle Management)
• BOM (Bill of Materials) management
• Simulation and analysis tools
• Document management

Shop Floor Layer:

• PLC programming tools
• Machine monitoring software
• Preventive maintenance systems
• Worker scheduling and tracking
• Safety management systems

Common Portfolio Problems in Manufacturing

• ERP doesn't integrate with shop floor systems
• Multiple spreadsheet-based processes running parallel to official systems
• Quality data captured in separate, disconnected tools
• Maintenance records split across multiple platforms
• Production planning done partially in ERP, partially in spreadsheets
• Legacy custom applications built by former IT staff

Assessment Framework for Manufacturing

Critical Process Mapping

Before assessing individual applications, map your core manufacturing processes:

Order-to-Delivery:

1. Customer order received
2. Production planning and scheduling
3. Material procurement
4. Manufacturing execution
5. Quality inspection
6. Shipping and delivery
7. Invoicing and payment

Application Coverage Analysis: For each process step, identify:

• Which applications support this step?
• Are there manual handoffs between applications?
• Where does data get re-entered?
• What information falls through the cracks?

Manufacturing-Specific Assessment Criteria

Add these to your standard assessment:

• Shop floor connectivity: Can the application communicate with machines and PLCs?
• Real-time capability: Does the application support real-time data from production?
• Traceability: Does the application support lot tracking and genealogy?
• Regulatory compliance: Does it meet industry-specific regulations (ISO 9001, FDA, etc.)?
• Scalability: Can it handle increasing production volumes and complexity?

Common Optimisation Scenarios

Scenario 1: ERP Consolidation

Situation: Multiple ERPs across locations or business units. Solution: Consolidate to a single ERP platform with consistent processes. Benefits: Unified data, standardised processes, volume licensing savings. Considerations: Multi-site rollout complexity, change management, customisation consolidation.

Scenario 2: MES Implementation

Situation: Production tracking done via spreadsheets and manual logs. Solution: Implement MES integrated with ERP. Benefits: Real-time production visibility, automated data collection, OEE improvement. Considerations: Machine connectivity requirements, operator training, process standardisation.

Scenario 3: Quality System Integration

Situation: QMS operates separately from production and ERP systems. Solution: Integrate QMS with MES and ERP for closed-loop quality. Benefits: Faster quality issue detection, automated nonconformance routing, regulatory compliance. Considerations: Data model alignment, inspection point configuration, reporting migration.

Scenario 4: Maintenance System Modernisation

Situation: Maintenance managed through paper-based work orders or basic spreadsheets. Solution: Implement CMMS integrated with production and ERP. Benefits: Reduced unplanned downtime, better spare parts management, maintenance cost visibility. Considerations: Asset hierarchy setup, PM schedule migration, technician adoption.

Industry 4.0 and Portfolio Strategy

Emerging Technologies to Consider

• IoT Platforms: Connect machines and sensors for real-time data
• AI/ML Analytics: Predictive maintenance, quality prediction, demand forecasting
• Digital Twins: Virtual replicas of production lines for simulation
• AR/VR: Training, remote assistance, and maintenance guidance
• Edge Computing: Real-time processing at the machine level

Integration with Portfolio Strategy

• Assess existing applications' ability to support Industry 4.0
• Identify gaps where new technologies are needed
• Prioritise investments that build on existing infrastructure
• Choose platforms with open APIs and integration capability
• Balance innovation with foundation optimisation

Manufacturing APR Roadmap

Quarter 1: Assessment

• Inventory all applications across enterprise, operations, and shop floor
• Map applications to manufacturing processes
• Assess integration maturity between systems
• Identify top 5 pain points and data gaps
• Calculate total portfolio spending

Quarter 2: Strategy

• Apply TIME classification to all applications
• Define target architecture for integrated manufacturing
• Prioritise consolidation and modernisation projects
• Build business cases for top 3 initiatives
• Plan phased implementation

Quarter 3-4: Execution

• Execute quick wins (license cleanup, retirement of unused tools)
• Begin priority migration or integration projects
• Standardise data formats and exchange protocols
• Train users on consolidated systems
• Measure and report progress

A well-optimised application portfolio is the foundation for manufacturing excellence. By eliminating redundancy, integrating systems, and building toward Industry 4.0, manufacturing SMEs can achieve significant efficiency gains and competitive advantage.