The manufacturing world is full of jargon and acronyms, and the term “job shop” gets thrown around a lot and is often misunderstood.
This article defines some of the characteristics of job shops and identifies some of their unique challenges for ERP software.
1. Make to order supply chain strategy
2. Limited finished goods inventory; inventory mainly held in raw material form
3. Products made to each customer’s unique design and demand pattern
4. Small batch production runs (as compared to repetitive manufacturers)
5. Complex routings with long production lead times due to high product variability
6. Relatively simple Bills of Material, often just a single raw material
7. Functionally-organized plants (e.g. Milling separate from Grinding separate from Machining) with moves and queues between each step in manufacturing process
8. Flexible, multipurpose equipment with low capacity utilization
9. Complex scheduling requirementsRead More