1. Background of small household appliances industry
The home appliance industry is one of the most competitive and most internationally integrated industries. Its overall characteristics are highly concentrated industry, large-scale specialized production, intensive new technologies, rapid product updates, and highly market-oriented product sales. In this market environment, the production of household appliances is mainly characterized by small batches, multiple varieties, small production and large assembly.
After more than 20 years of development, the home appliance manufacturing industry has become mature. The restructuring and integration within the industry has become more active, sales channels have changed dramatically, and competition has become increasingly fierce; market competition has shifted from being price-based to being new technology-based; and the integration of domestic and foreign companies will be further accelerated. Under the influence of the general trend, home appliance manufacturers are urged to develop new home appliance products with all their efforts, and the development of intelligent control technology and information technology has also provided new opportunities for the home appliance industry.

2. Characteristics of the small household appliance industry:
■ Difficulty in numbering management Material numbers are not easy to manage, and manual numbering is prone to omissions, duplications, and errors.
■ Products are upgraded quickly and have short life cycles, engineering changes are frequent, and product design change management is difficult.
■The product market changes rapidly and product sales are highly seasonal, making sales forecasting difficult.
■High planning management requirements: Since household appliances have short order delivery times, materials often need to be prepared according to forecasts; key components have long delivery times, so materials need to be prepared in advance based on market forecasts. The product production cycle is short, and very high coordination and cooperation requirements are placed on production planning, material planning, etc.
■With a large number of product orders, it is difficult to clearly grasp the procurement and production progress related to the orders, which can easily cause delays in delivery progress.
■ Procurement management risks: The key components of large household appliances are expensive and in short supply in the market. These key components occupy a large amount of the company's working capital. However, the technology of key components is updated quickly, and the risk of price reduction is high, so they can easily become obsolete materials.
■ Strict control of raw materials The home appliance industry has a lot of raw materials, a large volume of procurement and outsourcing business, and a large number of suppliers. It is necessary to control procurement prices and reasonably evaluate suppliers.
■ Product cost accounting is difficult. There are many types of home appliances with small batches, and rework and warranty are frequent. Cost accounting is time-consuming and laborious, and it is difficult to calculate costs accurately.
■There are many types of sales business. The promotion methods and pricing policies are complicated. Customer credit period and credit limit control are implemented.
■Strict after-sales service management Home appliances are widely used in people’s daily lives. The state has mandatory service requirements for home appliances. Terminal products have after-sales maintenance management needs. It is necessary to record and manage the serial number of the product, maintenance records, and track the original production status based on the serial number.
By successfully implementing the ERP system for the small home appliance manufacturing industry, small home appliance manufacturers can solve the following problems:
1. Reduce inventory. Includes inventory of raw materials, work in progress, and finished goods. Such as reducing inventory capital utilization by 15%-40%, increasing inventory capital turnover by 50%-200%, and reducing inventory counting errors to control them within 1%-2%;
2. Rationally utilizing resources, shortening production cycles, and improving productivity. Such as reducing assembly area by 10%-30%, reducing overtime hours by 10%-50%, reducing shortage parts by 60%-80%, and increasing productivity by 5%-15%;
3. Deliver on time and improve customer service quality. Generally, the on-time delivery fulfillment rate can reach over 90%, close to 100%;
4. Reduce costs. Such as reducing procurement costs and reducing overtime pay. Due to the shortened production cycle and reduced inventory, costs can be reduced by 7%-12% and profits can be increased by 5%-10%.
5. Reduce errors or delays in financial revenue and expenditure, and reduce economic losses.
The above are the problems that can be solved in the production process by implementing the ERP system in the small household appliance manufacturing industry. There is another improvement:
1. Enterprise leaders and managers at all levels can grasp the operating conditions of market sales, production and finance at any time, continuously improve business decisions, and enhance the company's adaptability and competitive position;
2. The quality and mental outlook of the company's employees have changed significantly, the team spirit has been promoted, and a large number of compound talents who understand management and production and are good at applying computer technology have emerged;
3. Managers are freed from affairs and are committed to substantive management work to achieve standardized management;
4. The standardized management formed by the production and manufacturing module has played a certain role in product quality.

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