ERP Integration

Understanding ERP and manufacturing system connections:

Why Integrate:

Eliminate Manual Entry:
- Production confirmations
- Material consumption
- Quality results
- Automatic transactions

Real-Time Visibility:
- Accurate inventory
- Work order status
- Production progress
- Cost tracking

Data Consistency:
- Single source of truth
- Reduced errors
- Audit trail
- Compliance support

Major ERP Systems:

SAP:
- Market leader
- S/4HANA (current)
- Strong in large enterprise
- Complex but comprehensive

Oracle:
- Cloud and on-premise
- Strong financials
- JD Edwards heritage
- Enterprise focus

Microsoft Dynamics:
- D365 and Business Central
- Mid-market strength
- Azure integration
- Growing manufacturing

Infor:
- Industry-specific solutions
- CloudSuite Industrial
- Strong in manufacturing
- LN and M3 products

Integration Data Types:

Master Data:
- Items/materials
- Bills of material
- Routings
- Work centers

Transactional Data:

*From ERP to Manufacturing:*
- Work orders/production orders
- Planned quantities
- Due dates
- BOM/routing info

*From Manufacturing to ERP:*
- Production confirmations
- Material consumption
- Labor reporting
- Quality results

Common Standards:

ISA-95:
- Integration framework
- Defines data models
- Activity models
- Standard terminology

B2MML:
- XML schemas for ISA-95
- Manufacturing data exchange
- Vendor-neutral format

Methods for connecting systems:

Point-to-Point:

Direct Connection:
- Custom interface between systems
- Specific to both systems
- Fastest for simple needs
- Becomes complex with multiple systems

Considerations:
- Quick implementation
- Maintenance burden grows
- Limited scalability
- Tight coupling

Middleware/Integration Platform:

Enterprise Service Bus (ESB):
- Central integration layer
- Message routing
- Transformation
- Scalable architecture

Integration Platform as a Service (iPaaS):
- Cloud-based integration
- Pre-built connectors
- MuleSoft, Dell Boomi, Microsoft Azure
- Subscription model

Benefits:
- Decouple systems
- Reusable components
- Central monitoring
- Easier maintenance

API-Based Integration:

RESTful APIs:
- Modern standard
- HTTP-based
- JSON data format
- Widely supported

OData:
- Standard for ERP access
- SAP and Microsoft use
- Query capabilities
- Structured approach

Web Services:
- SOAP/XML based
- Enterprise integration
- Complex but powerful
- Legacy but still common

Data Exchange Patterns:

Real-Time:
- Immediate synchronization
- Event-driven
- Low latency
- Higher complexity

Batch:
- Periodic synchronization
- Scheduled transfers
- Lower complexity
- Acceptable latency

Hybrid:
- Critical data real-time
- Less critical in batches
- Balance of needs
- Common approach

Successfully implementing ERP integration:

Planning Phase:

Scope Definition:
- Which systems to integrate
- What data to exchange
- Timing requirements
- Error handling

Data Mapping:
- Field-level mapping
- Transformation rules
- Master data alignment
- Data quality requirements

Architecture Design:
- Integration pattern selection
- Technology selection
- Security design
- Monitoring approach

Technical Challenges:

Master Data Synchronization:
- Item master alignment
- Work center mapping
- Unit of measure conversion
- Code translation

Transaction Timing:
- Sequence dependencies
- Lock contention
- Retry logic
- Idempotency

Error Handling:
- Validation failures
- System unavailability
- Data conflicts
- Alerting and recovery

Performance:
- Message volumes
- Response times
- Batch processing windows
- System capacity

Testing Strategy:

Unit Testing:
- Individual interface testing
- Data transformation
- Error handling
- Component level

Integration Testing:
- End-to-end flows
- Multi-system scenarios
- Volume testing
- Timing verification

User Acceptance Testing:
- Business scenarios
- Data accuracy
- Process validation
- Sign-off criteria

Go-Live Considerations:

Cutover Planning:
- Data migration
- Parallel operation period
- Rollback procedures
- Support escalation

Monitoring:
- Transaction tracking
- Error monitoring
- Performance metrics
- Alerting

Building expertise in ERP integration:

Technical Roles:

Integration Developer:
Build and maintain interfaces:
- Programming skills
- API development
- Testing
- $70,000-$100,000

Integration Architect:
Design integration solutions:
- Architecture patterns
- Technology selection
- Standards development
- $100,000-$150,000

ERP Consultant:
Implement ERP with integration:
- Functional knowledge
- Configuration
- Integration design
- $90,000-$140,000

Functional Roles:

Business Analyst:
Define integration requirements:
- Process analysis
- Requirements documentation
- UAT coordination
- $65,000-$95,000

Manufacturing Systems Manager:
Oversee integrated systems:
- System strategy
- Vendor management
- Team leadership
- $95,000-$140,000

Skills Required:

Technical:
- ERP functionality understanding
- Integration technologies (APIs, middleware)
- Database concepts
- Programming/scripting

Business:
- Manufacturing processes
- Supply chain concepts
- Financial transactions
- Process analysis

Certifications:

ERP-Specific:
- SAP certifications
- Oracle certifications
- Microsoft certifications

Integration:
- MuleSoft certification
- Dell Boomi certification
- Azure integration

General:
- ISA-95 training
- Project management
- TOGAF (architecture)

Industries:
All manufacturing sectors need ERP integration:
- Discrete manufacturing
- Process manufacturing
- Distribution
- Hybrid operations

ERP integration expertise is valuable wherever business systems meet operations.