Choosing ERP Software for Your Manufacturing Mode: Discrete vs. Process

Understanding Manufacturing Modes

According to the National Association of Manufacturing, around 12.5 million people in the U.S. work for the 250,000 manufacturing companies, making up approximately 8.5% of the total workforce. Although the manufacturing industry is often generalized as “folks who build stuff,” it’s crucial to recognize that different manufacturing styles exist, each with unique technical and software needs. This differentiation is essential when evaluating, selecting, and implementing an ERP (Enterprise Resource Planning) system, as no single platform suits all manufacturing modes.

In this blog, we’ll delve into two primary manufacturing modes—Discrete Manufacturing and Process Manufacturing—and explore their specific requirements and sub-groups.

Discrete Manufacturing Explained

Discrete manufacturing involves creating distinct products from separate parts. An example of this is an automobile manufacturer, where vehicles are assembled from various components. Unlike process manufacturing, discrete products can be disassembled. For instance, a car can be taken apart, and its parts can be re-inventoried.

• Commercial HVAC Systems
• Furniture
• Computer Hardware
• Kitchen Appliances
• Industrial Machinery & Equipment

• Make to Stock: Producing items that are stored in inventory or shipped directly to customers.
• Configure to Order: Custom manufacturing based on specific customer requests.
• Engineer to Order: Designing new products based on engineering specifications.

Process Manufacturing Explained

Process manufacturing differs significantly from discrete manufacturing. It involves mixing ingredients (often in liquid or gas form) based on formulas or recipes. Unlike discrete products, process manufacturing products cannot be reversed once produced. For example, mixing paint involves combining various color components into a final product that cannot be undone.

• Chemical and Coatings
• Pharmaceuticals
• Nutraceuticals
• Food and Beverage

• Make to Stock: Producing products like detergent or food items for inventory.
• Configure to Order: Customizing products such as personalized face washes or organic seed blends.
• Engineer to Order: Developing unique formulations with scientific or chemical expertise.

Why Manufacturing Mode Matters

A 2024 Gartner study reveals that while 50% of manufacturers plan to increase their technology spending, many struggle to identify the right ERP system for their needs. Over half of manufacturers experience regret after purchasing new software, often due to a mismatch between their requirements and the software’s capabilities.

WM Synergy, with over 25 years of experience, helps companies select, purchase, and implement ERP software tailored to their specific needs. ERP systems cover various business functions, from accounting and finance to inventory and manufacturing.

• Discrete Manufacturing: Look for ERP systems with robust Bill of Materials (BOM) management and assembly line support.
• Process Manufacturing: Seek ERP systems with formula management and quality control features.

WM Synergy’s Manufacturing Mode Cheat Sheet

• Your production involves assembling distinct components into a final product.
• You can disassemble your finished goods.
• Your process follows a linear assembly sequence.

• You use recipes or formulas in production.
• Your manufacturing process cannot be reversed.
• You produce batches or intermediates rather than individual subassemblies.

Understanding your manufacturing mode will guide you in selecting the right ERP system. For instance, a process manufacturer of pool liner coatings needs an ERP system focused on formula management and integrated Quality Management Systems (QMS).

WM Synergy has been guiding manufacturers in selecting and implementing innovative software solutions for over 35 years. Click here to speak with one of our expert consultants and discover how to choose the perfect ERP software for your business.