Bridging the Gap between Administration and Production

The following article is written and submitted to DAU, by former board member in DAU Johnny Krogh Sørensen. He has formulated his observation, from many years of expertise and brings a unique viewpoint to the discussion. The insights and perspectives shared in this article are those of the author, who is not affiliated with DAU

ERP systems, such as SAP, are essential for managing core business functions, including planning, procurement, financial control, order execution, and deliveries. These systems rely on structured data and quantitative metrics, such as pricing and inventory levels. Conversely, production processes encompass a complex interplay of people, machines, and materials—elements that are inherently variable and prone to unexpected disruptions.

How to Bridge the Gaps?

Successfully integrating ERP systems with production environments requires a structured and hierarchical approach, where each step builds upon the previous one. This logical sequence ensures a seamless transition from ERP-driven administration to real-time production execution. The following key steps outline this approach:

1. Production Modelling: Establish a solid foundation by developing and configuring a production model within the ERP system. This includes master data, recipes, and resource aligned to operational transactions.
2. User-Centric Interfaces: Once the foundation is in place, ensure operators can effectively interact with the system through intuitive, user-friendly interfaces that minimize training requirements.
3. Advanced Scanning Technologies: With a structured model and interfaces in place, integrate scanning tools to enhance data accuracy, automate workflows, and minimize manual input errors.
4. Customized ERP Functionalities: Adapt the ERP system to production-specific needs by developing tailored ABAP functionalities that enhance flexibility and responsiveness.
5. Performance Data Analytics: After establishing a robust data flow, deploy tools to collect, visualize, and analyse production data, enabling data-driven decision-making and continuous improvement.
6. Operational Execution Systems: Finally, implement rule-based, dedicated execution systems to manage real-time operational challenges and exceptions beyond ERP capabilities.

This structured sequence ensures that bridging mechanisms are introduced logically, reinforcing each preceding step to create a cohesive integration between ERP and production.

AI in Production?

A further step could be to introduce Artificial Intelligence (AI)  to closed the missing gaps between ERP systems and production. However, many organizations struggle to find an effective implementation path. While AI webinars and theoretical discussions are abundant, clear, actionable steps for integration often remain to be questioned.

To leverage AI effectively, organizations should:

• Identify specific pain points, such as exception handling, predictive maintenance, and resource optimization.
• Begin with small-scale pilot projects that are manageable and tied to measurable outcomes.
• Collaborate with AI experts to identify opportunities, build AI production models, and scale successful solutions gradually.

Conclusion

Bridging the gap between ERP systems and production requires a balanced approach that integrates structured ERP capabilities with tailored production solutions. By focusing on practical, incremental value adding improvements organizations can achieve:

• Streamlined operations
• Reduced errors
• Increased productivity

Success lies in aligning ERP systems with the complexities of production, embracing technology strategically, and ensuring implementation efforts are realistic and value driven. In the future, AI may enhance decision-making, improve exception management, anticipate issues, and provide actionable insights—making it an indispensable tool for modern production processes.