ERP for Rubber and Plastic Manufacturing - Software Selection Guide

7/21/2019 ERP for Rubber and Plastic Manufacturing - Software Selection Guide

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RP Software for Rubber and Plastic Manufacturersitical ERP Software Selection Considerations



ERP Software Selection Considerations for Plastic & Rubber Products Manufacturers Page | 2

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Contents

Raw Materials ............................................................................................................................................... 3

Synthetic Raw Materials ............................................................................................................................... 4

Manufacturing Processes .............................................................................................................................. 6

Types of Products .......................................................................................................................................... 8

Industry Compliance ..................................................................................................................................... 8

ERP Software Industry .................................................................................................................................. 8

Conclusion ..................................................................................................................................................... 9





Choosing the right ERP for rubber and plastics manufacturing is critical to the success of your project,but it ’s not easy. With so many variations of ERP systems available on the market today, there are manyways you can make a mistake and wind up going through an expensive implementation only to have todo it all again a few years later when a well selected and implemented system should really lastanywhere from 7-10 years. In this white paper we explore some of the most important factors of

selection to help you make the best choice for your organization.

Raw MaterialsIt may surprise some people to learn that both

plastic and rubber originated from naturally-occurring materials. In fact, gutta-percha, shellac,and the horns of animals were all used as plasticmaterial before the first synthetic plastics wereproduced.

Gutta-percha is derived from the sap of certaintrees, and shellac is made from the secretions ofthe tiny lac insect. Animal horns were also used tomake plastics after the horn was boiled and soakedin an alkaline solution.

Further about 40% of rubber used today is natural rubber harvested as latex from a variety of trees suchas the Pará rubber tree in a process similar to that of tapping trees to make maple syrup. Latex is a milkyfluid which is also found in 10 percent of all flowering plants such as the common dandelion andmilkweed.

The process of cultivating and harvesting naturally-occurringraw materials for plastic and rubber production is notdissimilar to the process of harvesting fruit and vegetables inagricultural and farming industries.

Companies engaged in these early stages of harvestingnatural ingredients for rubber and plastics commonly use ERPsoftware designed for the farming and agricultural industry.

These systems include specialized capabilities to manage

their land and crops; irrigation, fertilization, and care for theirtrees; planting of new trees; and cultivation of the harvest.

Larger producers typically use ERP software from Oracle orSAP while smaller producers will typically use generalmidmarket ERP solutions such as Sage ERP X3, Sage 100 ERP , or Epicor ERP with add-on modules, small modifications, or

Harvesting sap from the gutta-percha tree. Gutta-percha wascommonly used in the production of plastic and rubber.

Secretions from the lac bug were used to createshellac and some plastics for many years.

http://e2benterprise.com/Pages/Rubber-Plastic-ERP.aspx



https://www.oracle.com/applications/enterprise-resource-planning/solutions/index.html



http://www.sap.com/pc/bp/erp.html


http://e2benterprise.com/Pages/SageERPX3.aspx



http://e2benterprise.com/Pages/Sage100ERP.aspx



http://e2benterprise.com/Pages/Epicor.aspx













integration to specialized third party operational systems to handle their unique agriculturalrequirements.

Synthetic Raw Materials

The source for the majority of plastic and rubber products today is petroleum as it may be refined intovarious raw materials through a variety of processes to convert raw crude oil into the basic plastic andrubber materials used by manufacturers today.

The first synthetic plastics were made from cellulose plant material. In 1869, John Wesley Hyatt, anAmerican printer and inventor, found that cellulose nitrate could be used as a substitute for ivory. Themixture could be plasticized with the addition of camphor.

Celluloid, as this new material was called, became the only plastic of commercial importance for 30years. It wasn’t until 1951 when chemists at the Phillips Petroleum Company discovered that plasticcould be made from petroleum creating polypropylene and polyethylene which are used in the vastmajority of plastic products manufactured today.

Synthetic rubber is made by polymerization of petroleum-based products. Gustave Bouchardat createdone form of synthetic rubber in 1879 producing a polymer of isoprene. In 1909, Fritz Hofmann workingwith the Bayer laboratory succeeded in polymerizing methyl isoprene creating the first synthetic rubber.

Transforming petroleum to plastic or rubber takes several steps through a complex process as thepetroleum is transformed at a refinery into multiple products including motor oil, gasoline, and productsused in later in plastic and rubber processing.

A by-product of the refining process creates ethane and propane which can be transformed intoethylene and propylene using high-temperature furnaces. From here, either material is combined withone of many popular catalysts such as titanium chloride, a special catalyst prepared with chromiumoxide and silica, or other types of catalysts. The results of this process are a fluffy, powdered materialresembling laundry detergent used to make plastics.

Catalysts are then combined with additives in a blender and typically fed into an extruder where it ismelted into a raw plastic which then proceeds to a machine that cuts it into small pellets. Pellets areshipped to customers where they are used in various manufacturing processes such as extrusion,injection molding, and blow molding.

The most prevalent synthetic rubbers are styrene-butadiene rubbers (SBR) derived fromcopolymerization (combination of multiple rubber raw materials) typically from styrene and a particulartype of butadiene. The process used to manufacture synthetic rubber and the type and quantity of

Plastic pellets are typically produced in variouscolors which are used by manufacturers for

making finished goods such as containers, parts,bags, and other products for both consumer andindustrial applications.





additives used have a tremendous impact on the physical properties of the finished rubber productincluding its durability and elasticity.

Most companies engaged in the production of plastic resins and rubber use process ERP systems likeSage ERP X3. Process manufacturing systems are vastly different than ERP software designed for

discrete industries. For example, chemical properties of the raw materials and the actual process ofmanufacturing these into the finished product must be carefully controlled or the desired product willnot result from the manufacturing process.

The purity and chemical composition of the raw materials is vital to formulation of the product and theenvironment conditions such as temperature, humidity, and other factors play an equally important rolein the process. As such, systems like Sage ERP X3 are desired as they allow process manufacturers totrack chemical properties of raw materials in inventory and provide quality control functionality to testmaterials. Much of the products manufactured from rubber and plastic products are tracked by lotnumber to identify the specific characteristics of the product traceable down to the characteristics ofthe raw material lots as well as the manufacturing processes utilized in their production.

Further, process manufacturers may add different quantities of raw materials to change the chemicalcomposition of the finished goods they are making. These quantities are dependent on the properties ofother raw materials and additives used in the process. This is very different than simply tracking discreteoperations where raw materials are cut, formed, assembled, or otherwise transformed into commondiscrete products such as furniture or metal shelving.

Process DiscreteOperations Mix, Blend, Chemical Reaction, etc. Assemble, Cut, Bend, Drill, Weld, etc.

Properties Typically liquids and gases Typically solids

Disassembly Typically cannot be returned to theraw materials that created theproduct. You cannot disassemblegrape juice to make grapes.

Typically can be disassembled tocreate the raw material from which itoriginated. You can disassemble a carto get the tires, hood, and other parts

that make up the car itself.

Examples Beverages, chemicals, food, paint andadhesives, lubricants, etc.

Furniture, electronics, vehicles, metalproducts, plastic containers, etc.

Process vs. Discrete Manufacturing












Manufacturing ProcessesExtrusion Molding is the primary process used toform plastics and some rubber productswhereby the material is heated and forcedthrough a die to form it into a shape. This issimilar to the process you used as a child whenyou forced Play-Doh through a hole.

The product is then cooled under fans or inwater where it hardens. The long rods, tubes,sheets, or other shapes of the product are thencut into the desired lengths and/or widths andeither stacked, coiled, or rolled for storage.

In some extrusion processes, plastic fibers are

made by forcing the plastic through very small holes producing fine threads from which plastic fabricscan be made through traditional weaving processes.

Injection Molding is another popularprocess where plastic or rubbercompounds are heated and squirted into amold under great pressure where ithardens fast. When the mold is opened,the part is removed. This process can bemanual or often automated and repeatedto create large quantities of product.Injection molding is common in producinga wide variety of products includingplastic handles, cups, trays, mats, andeven chairs and larger products and parts.

Blow Molding is a process used to form plastic containers such asbottles or bags and flexible rubber tubing and hoses. This is verysimilar to the process of blowing a bubble where the air pressureforces the plastic material outward into a hollow mold formingthe finished product.

Some plastic and rubber products are manufactured using acombination of processes. For example, plastic films and sheetssuch as plastic bags or plastic wrap can be manufactured througha combination of extrusion and blow molding. Sometimes plasticsheeting is rolled through a calendar or rollers similar to the way

Sample part profiles manufactured by extruding softened plastic pellets through dies. This process is common for

products such as plastic moldings.

Injection molding is popular when creating more than one quantity ofa part at the same time or in cases where different parts are made atthe same time – such as making a front and back from the same mold.

Blow molding uses air to force softened plasticresin against the sides of molds to form bottles,

containers, bags, toys, and other common products we use in our everyday lives.





many metal products are rolled to a desired thickness. This process makes the product smooth andoften removes small imperfections.

Some manufacturers fabricate productsfrom plastic and rubber raw materials

similar to the way that metal fabricatorsconvert bar stock to finished products or theway that furniture manufacturers shapewood into finished goods. In these cases,the business can likely utilize a discretemanufacturing ERP system since themanufacturing process requires significantlyless process manufacturing features.

There are specific ERP systems such as DTR Plastics ERP by Aptean or IQMS ERP for Plastics that aredesigned for companies that manufacture products from rubber and plastic raw materials. Thesesystems offer highly specialized features such as tracking byproducts and the number of times that scrapmaterial is reused in the production of new product; scheduling production based on the color of thefinished good being manufactured to reduce the amount of time spent cleaning dies and molds(schedule lighter products before darker products); or tracking of costs and materials used in theproduction of co-products where more than one unique part is produced in a specific manufacturingoperation (such as producing a left part and right part from a single mold).

While ERP software designed specifically for the plastic and rubber industry may be attractive due tomany of their industry-specific features, most of these systems offer very weak financial modules, aredifficult to modify or to integrate to other systems, have limited third party solutions to add-on to thecore product, and are implemented and supported only by the publisher directly leaving companies withfew service options when the publisher has limited implementation and training resources available.

Many companies utilize ERP products such as Syspro, Sage ERP X3, and Epicor ERP which handle themajority of their industry-specific requirements but also offer a stronger financial system, broader toolsfor modification and integration, and are sold through a reseller channel providing them with moreservice options. This makes sense when you think about it rationally.

A software publisher selling to a small niche industry will focus on the common needs of their usercommunity. In the case of publishers that specialize in plastics and rubber – the commonality is their

customer’s manufacturing proce sses, not their financial or technical requirements. Software publishersthat focus on a broader industry tend to focus on the needs of their diverse customers which havegreater needs in financial reporting and accounting as well as technical needs to extend their businesssystems with third party modules and integrated solutions.

Some companies who work with rubber and plastic materials are mixed-mode – meaning that they haveneeds that resemble both process and discrete manufacturing industries. For example, a company thatmakes plastic containers used for food storage will likely have very specific requirements to track













product quality as any material that comes into contact with food products is highly regulated andcontrolled. Further the process of making these products is dependent on temperature and otherfactors that lend themselves to a process manufacturing solution. However, the manufacturing processitself produces discrete finished goods which often have other, upstream manufacturing operations thatare more discrete in nature than process.

Only a handful of ERP systems like Syspro and Sage ERP X3 are available today for midmarket businessesthat need to manage both process and discrete manufacturing operations in a single system.

Types of ProductsRubber and plastic manufacturers make a variety of products that we rely on every day. These includethe tires we put on our cars to the flip-flops we wear to the beach. The process of manufacturing rubberbelts can be vastly different than manufacturing rubber gaskets and the way that companies makeplastic bottles is very different than manufacturing plastic film and sheeting.

Industry ComplianceTo complicate matters further, the end-use of the product also has its own set of unique requirements.For example, manufacturing plastic barrels for the food and beverage industry come with strict FDAregulations while manufacturing similar barrels for transporting chemicals or other products may not beregulated at all. Further, many rubber and plastic parts are used on automobiles which often requirecompanies to comply with quality assurance standards set forth by industry groups such as theAutomotive Industry Action Group (AIAG) and products used on airplanes or in the nuclear industry havealtogether different regulations.

ERP Software IndustryThe ERP software market is still highly fragmenteddespite years of consolidation by industry leaders.Larger companies still rely on tier one solutionsprimarily from Oracle and SAP.

In the midmarket, only a handful of niche ERP

products are still available for rubber and plasticsmanufacturers and most of these have been acquiredby VC-funded companies like Aptean to capitalize onthe installed base of customers with little orinsignificant investment into further research anddevelopment for the products.









Conversely, midmarket stalwarts like Sage, Microsoft, and Epicor invest heavily in their core ERPbusiness applications extending their solutions to new technologies such as HTML 5 while introducingnew applications for social and mobile businesses. Further, these midmarket solutions attract third partyproduct developers who build extended vertical solutions within the product framework or integratetheir solutions to work with the core ERP system. For example, third party add-ons for Sage ERP X3 exist

for manufacturing execution systems (MES) shop floor control, transportation management,preventative maintenance, product lifecycle management, production scheduling, and even a completevertical industry solution specifically designed for the mining, oil, and gas industry.

ConclusionNot all ERP systems are alike and the needs of rubber and plastic manufacturers varies widely dependingon different stages in the supply chain, the nature of the products they make, and specific requirementsand regulations for the intended use of the products by industry. Many companies can utilize discretemanufacturing ERP systems like Epicor ERP or Sage 100 ERP while others that require mixed-mode or

process manufacturing capabilities are best-suited with systems like Sage ERP X3 that are better suitedto their unique needs.

When evaluating ERP for rubber and plastic industries, it is important to consider your unique businessrequirements and to evaluate ERP systems that meet the majority of your critical needs while payingclose attention to secondary needs, strength of the underlying technology and accounting system, andability to integrate or add-on to the product with best-in-class software for extended functionality.

At the end of the day, your success lies in your ability to select an appropriate product but moreimportantly, in your choice of a technology provider who understands your needs and can effectivelyimplement the system. Selecting the right product is only a small part of the equation and manycompanies have failed in their ERP implementations by utilizing a consultant that has little experience intheir industry and limited knowledge of the product.

e2b enterprise represents several ERP business applications including Sage ERP X3, Sage 100 ERP , andEpicor ERP offering plastics and rubber manufacturers a choice of systems that each have their ownstrengths and weaknesses depending on the needs of rubber and plastic products manufacturers. All ofthese ERP systems have a solid accounting and technical foundation supported by a large number ofsoftware consultants and third party application developers to extend the core business application.Learn more about our ERP for rubber and plastics offerings here.













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