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3 Budget-Smart Ways to Automate Processes in a Small Manufacturing Business

There are cost-effective ways for small manufacturers to embrace automation and reap its benefits.

Mr Peasy Budget Smart Automation Tools

While large corporations may have the resources to invest heavily in automation, small manufacturing businesses often postpone it in the face of budgetary constraints. However, automation isn’t exclusively for the big players. The good news is that there are cost-effective ways for small manufacturers to embrace automation and reap its benefits. In this article, we'll explore three such approaches.

1. Implement Cloud-based MRP Software

MRP or Manufacturing ERP systems like MRPeasy are essential tools for small and medium-sized businesses looking to automate and streamline their processes. Since they are cloud-based, they require no upfront investment in hardware and infrastructure, making them a cost-effective option and a smart first step towards automation.

One of the primary ways MRP software automates processes is through production planning. It uses inventory levels, available capacity, current orders, and other data to assist in master production schedule creation and to automatically create optimized production schedules. This ensures that resources are utilized efficiently, with minimal idle time and production bottlenecks. In addition, MRP software can be used to quickly and accurately estimate the production time and costs for incoming orders. This way, you can promptly respond to customer requests and ensure that your products are delivered within the promised timeframes.

MRP software also automates inventory tracking and planning processes. For example, users can see exactly what they have in stock, forecast material requirements with just a few clicks, receive low stock alerts, and raise pre-filled purchase orders when material replenishment is needed. This prevents both stockouts and overstock situations, minimizing stoppages and freeing up cash otherwise tied up in unused inventory. In addition, proper MRP systems support barcode scanning, which drastically reduces data entry time in the stockroom.

Order tracking is automated within an MRP system by continuously updating the status of orders throughout the production process. It records when orders are received, when materials are allocated, and when production starts and is completed. Through real-time updates and alerts, it provides instant visibility into order progress, helping businesses track and manage orders efficiently, reduce delays, and ensure timely deliveries to customers.

Automated reporting and analytics in MRP software offer real-time insights into your manufacturing performance. With dozens of automated reports available, management is empowered to make informed decisions, identify areas for improvement, and drive overall operational excellence.

These are just a few of the aspects of manufacturing planning and operations management that cloud-based MRP software can automate. For more information about MRP software, please visit

2. Embrace Low-Cost Automation Machinery

Automation machinery doesn't have to break the bank. Small manufacturing businesses can continue their automation journey by implementing low-cost tools that can make a significant impact on efficiency. One of the simplest and most affordable options is the use of conveyor belts. These belts can facilitate the smooth movement of materials and products, reducing the need for manual transportation. Moreover, conveyor belts can be integrated with sensors for automated sorting, minimizing errors and improving accuracy.

Beyond conveyor belts, there are several other low-cost automation tools that can be considered. For example, automated packaging machines can automate the packaging process, reducing the need for manual labor and increasing packaging consistency. Automated sorting systems can categorize and sort items based on predefined criteria. By automating the sorting process, manufacturers can achieve faster throughput and reduce the risk of human error.

3. Gradually Implement More Expensive Automation Systems

While MRP software and low-cost tools provide an excellent starting point, small manufacturing businesses can also gradually implement more advanced and potentially expensive automation systems as their budget allows. For example, instead of completely replacing existing machinery, consider adding automation components like robotic arms to enhance their capabilities.

Another option is the use of automated guided vehicles (AGVs) that can autonomously transport materials within the facility. These machines can be programmed to follow specific routes and interact with machinery for seamless material handling.

Collaborative robots or cobots are another automation tool designed to work alongside human employees, increasing efficiency and safety. They can be programmed for various tasks and require minimal technical expertise to operate.

In addition, implementing IIoT (Industrial Internet of Things) sensors can provide valuable data insights for predictive maintenance, process optimization, and inventory management. Over time, this data-driven approach can lead to significant cost savings.

In conclusion, automation is within reach for small manufacturing businesses, even with budgetary constraints. By embracing MRP/ERP software, low-cost automation tools, and gradually implementing more advanced systems as budgets expand, small manufacturers can improve their efficiency, reduce operational costs, and remain competitive in the market.

For more information, visit

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