Manufacturers are still inclined to use spreadsheets as a way of controlling their processes. This seems harmless at first but juggling spreadsheets can soon start holding businesses back – so here are warning signs you should look out for.

In many manufacturing businesses, performance tracking and metric recordings are often started on spreadsheets - a seemingly quick and easy way to keep a record of day-to-day processes and financials. As these manufacturers expand, however, the number of spreadsheets increases and data can soon become untenable. Manufacturing businesses should take the time to identify whether or not their spreadsheets are preventing them from excelling. Our quick fire guide enables manufacturers to assess themselves across the following issues and processes.

Rekeying data

Is rekeying data through copy and pasting taking up too much time? Have you noticed occurrences of human errors in your data? These seemingly small mistakes quickly build extra operational costs and delays into your business that prevent you growing as a manufacturer.

Data duplication and incorrect sums

How many records are moved and lost, duplicated, recreated or escape between your spreadsheets? The fact spreadsheets are easily created, amended and moved may seem like a strength, but using spreadsheets for your manufacturing business simultaneously runs the following risks.

• Wasted time and money through tracing incorrect, missing or duplicate records
• Incorrect files might be updated and missed because duplicates can be created without being re-integrated
• Security issues can be raised from ‘escaped’ files

Incorrect calculations can also occur within a spreadsheet if the data used isn’t based on real-time information. This can damage expected budget or ROI.

Insecure data

Careful management of a spreadsheet is essential to prevent discrepancies and errors creeping in. In theory, this requires one user taking ownership of the file and managing all interactions. Sharing data also becomes risky and difficult, as it requires sharing valuable and sometimes confidential information between individuals.

Data recovery and archiving

Despite the importance of having access to data, only 35% of SMBs have a comprehensive disaster recovery plan in place.

Spreadsheets are undoubtedly powerful tools for analysing and reporting data. However, as noted before, if they are being used to store or share data too, the data duplications may cause problems further down the line. Spreadsheet efficiency is also significantly reduced with the more data stored. Although information can be archived, manually removed from spreadsheets, or split into new files, doing so fragments your company data. For the greatest benefits, data needs to be retained in one place so that deep analysis can be performed to recognise greater value.

How to achieve a full picture

When you can only see your business one spreadsheet at a time, getting a full picture isn’t possible. This means you really can miss the elephant in the room – a big issue that needs resolving or an opportunity to be taken. For manufacturing businesses that are being held back by spreadsheets, integrated ERP/MRP systems can be the perfect solution.

Integrated ERP/MRP systems offer the following benefits:

• Rapid productivity gains by automating time-consuming tasks and administration across the business.
• Data consolidated to a single source to support accurate reporting and effective decision-making.
• Real-time visibility of information to prevent mistakes or delays and seize cost-saving opportunities.

Takeaways:

• Assess your spreadsheets: is your data disparate, outdated or duplicated? Be aware that bad data from spreadsheets will negatively impact your costs, lead times and your ability to optimise your manufacturing business.
• For more efficient processes, data for your manufacturing business should be stored in a centralised location that is accessible to staff and mapped to your business processes.
• An integrated ERP/MRP system should free you to focus on high-value work and decision making, to make rapid productivity gains.

Move beyond spreadsheets and grow your business thanks to ERP Software, download: Manufacturers: Why You Need ERP Software and How It Could Transform Your Business now.