Order automation is one of the crucial production processes that helps address the overload of massive order volumes and the unnecessary errors in the production process. In this article, let's explore the benefits of order automation in the manufacturing industry.
1.What is order automation? What is the order automation process?
Automating production orders is the process of applying technology to automate activities related to managing, tracking, and fulfilling orders, from the moment the customer places the order until the product is delivered to them. This automation helps increase productivity, minimize errors, and optimize the entire production process.
The main stages in the order automation process
Receiving orders and creating production plans:
- Receiving orders: The system automatically receives orders from various channels such as the website, email, or sales management system.
- Inventory check: The system checks whether the raw materials are sufficient to fulfill the order.
- Production planning: Based on order information and inventory status, the system automatically generates a detailed production plan, including processes, execution time, and necessary resources.
Production management:
- Progress tracking: A system to monitor the progress of each production stage, comparing it with the established plan.
- Device control: The system controls automated production devices such as robots and CNC machines to perform tasks according to the plan.
- Quality management: A system for controlling product quality at different stages, ensuring that the products meet the standards.
Warehouse management:
- Material management: A system that tracks the input of raw materials and the output of finished products, automatically placing orders when inventory levels are low.
- Finished goods warehouse management: A system for managing the storage locations of completed products, ready for delivery.
Delivery:
- Delivery planning: The system plans deliveries based on the customer's address and shipping information.
- Order tracking: The system tracks the shipping process and notifies customers when their order has been delivered.
2. Benefits of order automation
2.1 Enhancing production efficiency
Order automation brings significant benefits in enhancing production efficiency. By minimizing human intervention in repetitive processes, the risk of errors during order processing is significantly reduced. This ensures the quality of the final product and minimizes costs arising from defects.
Automated systems can operate continuously, processing a large volume of orders in a short period, thereby shortening the production cycle, helping businesses quickly meet customer demands, and increasing competitiveness in the market.
2.2 Improving product quality
The production processes are standardized and automated, ensuring that all products are manufactured according to the established quality standards. There is no difference in size, color, or technical specifications between the products. With an automation system, businesses can easily trace the origin of each product, quickly identify the cause of any errors (if any), and implement corrective measures.
For example, in the pharmaceutical manufacturing industry, automating orders helps ensure the accuracy of medication dosages, minimizing risks caused by human errors. Each batch of products undergoes strict quality control and includes complete information about the source of raw materials and the production process.
2.3 Warehouse Management Optimization
Automating order processing brings significant benefits in optimizing warehouse management. Thanks to the integration of Warehouse Management Systems (WMS) with order automation systems, businesses can accurately track the quantity of inventory at any given time. This significantly reduces the situation of stock shortages that disrupt production or disappoint customers. At the same time, automation also helps to detect products nearing their expiration dates and those that have been in inventory for too long, allowing for appropriate adjustments such as increasing stock purchases, reducing production, or implementing promotional programs to clear out excess inventory.
2.4 Cost reduction
Reducing labor costs: By automating repetitive tasks, businesses can reduce the number of employees, increase work productivity, and save on training costs.
Effective resource management: The automation system helps optimize inventory management and production planning, thereby reducing material waste and minimizing errors during the production process.
Optimizing processes: By eliminating unnecessary steps and standardizing procedures, automation helps reduce wasted time and resources.
2.5 Increase flexibility
The automation system allows for quick and accurate updates of order information, including changes in quantity, products, and delivery addresses, helping to avoid errors and ensuring customers receive the correct products as requested.
In addition, the system allows customers to configure products according to their needs, thereby creating unique products that meet the personalized demands of each customer. Thanks to automation, businesses can produce small batches with various configurations, meeting the diverse needs of the market.
3. Technology supporting order automation
- ERP (Enterprise Resource Planning): A system for enterprise resource planning, helping to manage the entire business process, from production planning, financial management to customer management.
- MES (Manufacturing Execution System): A production execution system that helps monitor and control detailed production activities, from material allocation to quality control.
- IoT (Internet of Things): Connecting production devices, sensors, and information systems, helping to collect data and analyze it to optimize processes.
- AI (Artificial Intelligence): Artificial intelligence is applied to analyze data, predict demand, optimize production schedules, and detect potential issues.
- Robot: Perform repetitive tasks that require high precision, helping to increase productivity and minimize errors.
How these technologies work together:
ERP provides the overall plan, MES manages the details, IoT collects data, AI analyzes the data, and robots perform the tasks.
For example: When a new order is created in ERP, MES will create a detailed production plan, IoT will monitor the progress, AI will forecast material requirements, and robots will carry out the production tasks.
4. Factors to consider when implementing automation
4.1 Investment costs
The cost of implementing automation includes two main parts:
- Initial costs: These are one-time expenses at the beginning of the project, including the purchase of equipment (robots, machinery, sensors...), management software, installation costs, employee training, and hiring consultants.
- Operating costs: These are the recurring expenses incurred during the use of the automation system, including maintenance costs, energy consumption, component replacement, and software license renewal.
Investing in automation can bring many long-term benefits to the business. By thoroughly evaluating the above factors and selecting the appropriate solution, businesses can optimize costs and achieve the highest efficiency.
4.2 Choosing the right solution
Choosing the appropriate automation solution is an important decision that directly affects the efficiency of the automation process. To choose the appropriate automation solution, businesses need to follow these steps:
- Identify the needs: Understand the problem that needs to be solved and the goals to be achieved.
- Compare the solutions: Research and compare different solutions in terms of features, costs, and scalability.
- Feasibility assessment: Check whether the solution is compatible with the current system and the capabilities of the business.
- Choosing a supplier: Select a reputable supplier with experience and good support services.
4.3 Employee Training
Equipping employees with the necessary knowledge and skills to operate, maintain, and optimize the automation system will ensure the project's success and bring the highest efficiency.
Some effective training methods:
- Direct training: Organize direct training sessions with expert guidance.
- Online training: Providing online learning materials, instructional videos, and assessment tests.
- Practical training: Allow employees to practice directly on the automation system.
- Continuous training: Organize supplementary training sessions to update employees' knowledge and skills.
4.4 System Integration
System integration is the process of connecting automated systems with existing enterprise systems, such as ERP, MES, CRM, SCM...
Automating and connecting systems helps optimize production processes, reduce time and effort, thereby increasing work productivity. Data is continuously updated and unified between systems, ensuring accuracy and reliability, supporting the decision-making process. Thanks to the comprehensive data aggregation and analysis, leaders can make more accurate and timely business decisions.
5. Conclusion
Automating production orders is not just a trend but also a decisive factor for the success of businesses in the industrial era. 4.0 By applying modern technologies, businesses not only enhance production efficiency and reduce costs but also quickly meet the diverse needs of customers. In the future, automation will continue to develop and become an indispensable part of every modern production line.