In this article we look at the specific benefits of a good document management system in the manufacturing industry. We look at the different functions in a typical manufacturing business. We also look at the kinds of documents generated by these functions. Finally, we look at how a manufacturing business could benefit from using a good document management system.
Documents Generated
Many traditional paper documents would be generated in a manufacturing business as in the examples listed below: Statutory documents such as licenses, records and reports Transactional documents such as purchase and sales invoices, shipping documents and cash vouchers Production related documents such as operations manuals, specification sheets, production and maintenance schedules, machine production reports, material handling documents, store bin cards and gate passes Management reports where the recipient prefer printed paper documents to computer screen views Business documents such as correspondence, contracts, brochures and reference materials
However, in a modern system, the majority of documents would be generated as computer documents, and remain as such. Different kinds of databases like financial accounts, inventory records and different kinds of analyses are examples. The core functions outlined in the previous section would each produce a continuing flow of voluminous documents.
In addition to providing management information, document management systems also do the following: Ensure that only authorized persons are able to access sensitive documents Minimize the danger of damage and loss of important documents Preserve the documents as long as needed by statute or for management purposes
Manufacturing
We could consider manufacturing management as partly Product Lifecycle and partly Supply Chain. However, in this article on manufacturing, we look in a little more detail at this function.
Manufacturing documents include Bill of Materials, and documents related to Scheduling, Workflow Management, Quality Control and Cost Management.
Machines are loaded with work, workers are allocated to machines and their production is recorded. Machine idle times and the reasons for the idleness are also recorded. Maintenance schedules, breakdown maintenance, consumption of materials and wastage also give rise to different kinds of documents.
A good document management system would make it easy to create or generate the documents needed for controlling the manufacturing workflow efficient and accurate. It would do this by making updated reference information immediately available and by automating the tasks where possible.
Supply Chain Management
Suppliers lists for different requirements, materials and components specifications and contact details are some of the basic reference materials that need to be available to supply chain managers. These would be supplemented with supplier performance reports obtained from other customers of specific suppliers and also those created in-house based on past experience with each supplier.
Procurement documentation such as Requests for Proposals or Quotations, Proposals and Quotations received from prospective suppliers, Offer Comparison Reports comparing the different proposals and quotations and Reports of proceedings for awarding the supply contracts would typically constitute the next group of SCM documents.
Contracts with suppliers, correspondence and minutes of discussions with them, agreed supply delivery schedules synchronized with production schedules and shipment performance would constitute the basic documents for evaluating supplier performance.
Supplier invoices and inspection reports, supplier performance reviews and payments to suppliers would be the key documents relating to actual supplies.
Other documents would include material composition reports needed for regulatory compliance.
It would be noticed that SCM requires a high degree of collaborative working between supplier personnel and company personnel. A good document management system would: Enhance the quality of interactions, Facilitate the access to, and flow of, relevant documents, and Speed up cost comparisons, negotiations, supplies and complaint resolutions.
It would make working with suppliers even across widely separated geographic locations almost as easy as working with a local supplier.
Customer Relationship Management
Customer relationship typically starts after marketing to the customer is over. The customer is quite likely to need a considerable amount of support for using the product in the best possible manner.
It is the experience of being able to use the product in this way and derive all the benefits offered by it that underlie customer delight and continuing business, from the same customer or from others referred by the existing customer.
The support would typically take the forms of: Training in using the product, particularly for complex products Support for troubleshooting any problems while using the product
A document management system allows you to provide resources that can easily be accessed by the customer. A comprehensive and easy to use User Manual is an excellent training resource. Another example is the FAQ section that is developed on the basis of actual customer queries and support issues.
Enterprise Resource Planning
ERP is an attempt to integrate all the systems into a single database. This might or might not be achieved in practice.
Financials such as General Ledger, Accounts Payable and Receivable, Fixed Assets and Cash are an important component of ERP systems.
HR records like time and attendance tickets, payroll, training programs and benefit computations form another key component.
Business Benefits of a Good Document Management System
A good document management system would facilitate business decisions and processes by retrieving relevant information speedily and presenting it in a manner that aids decision-making or the business process. Well-informed decisions are more likely to be sound decisions leading to successful outcomes.
Speedier and more appropriate actions lead to better business results in the forms of higher profitability and continued growth. A good document management system is thus not a luxury but an essential business requirement that pays for itself in a very short time.
About Author: Ademero, Inc. develops document management software. Visit their web site devoted to document management at www.ademero.com. Browse the resources section which includes the largest collection of posts from real users reviewing all of the most popular document management systems available.
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