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People sometimes have a way of explaining something very well, in only a few words.  One of the masters of this art was Yogi Berra, the baseball legend, and some-times philosopher.  He once said, 'the future ain't what it used to be.'  He is correct, at least as far as Business Management Systems (ERP) go."  So says, Mike Roman, Business Capabilities Architect and founder of Manufacturing Practices, Inc.  Mike has been working with business systems since the mid-1960s and he has witnessed a few changes during the intervening years.

“Reorder Point cards and Scheduling boards became computerized mrp and shop floor scheduling systems, which became MRPII systems, which became ERP Systems and which are quickly, quietly and relatively inexpensively becoming E3 Systems.  Soon, companies that use only an ERP System will be left in the dust wondering what happened”, states Mike.  To compete tomorrow, companies have to take ERP to the next level.  That level is to use business analytics proactively to respond to different business events.

Assume you are a manufacturer and track customer returns.  Assume that customer “XYZ” has made two product returns in one quarter.  From experience, you know that customers that make three product returns in one quarter go to another company for their products.  Using business analytics, your system tells you to send the following email to customer “XYZ”:

Dear Customer:

It has come to my attention that your company is having problems with our products.  This is of great concern to me because your business and satisfaction is very importance to the company and me personally.  If you have further problems before I can address this issue, please contact me directly on my private number: 555-555-5555.  I want you to continue as a valued customer.  I will answer your call personally.  Otherwise I will contact you within the next three business days so together, we can resolve this issue.

Sincerely,

John Smith

President and CEO

Best Whatever Products, Inc.

That is the next level in ERP and some companies are already there.  The first step though is to have an efficient ERP System in place.  However, not all companies have an effective ERP System.  According to research by the Standish Groups, less that 20% of companies implement an effective ERP System.  That is where Manufacturing Practices, Inc. can help.

“Implementing an ERP System is the worst thing you can do to a company, my mentor, George Plossl, once told me. Nevertheless, if you do it right, the rewards are immeasurable.  Don’t worry, Mike, we are going to do it right.  George said and George and the company did.  George educated the company, we implemented our integrated business management tool, leaned our processes, quit the Physical Inventory and replaced it with Cycle Counting in less than 9 months”, said Mike.  “George launched my career in Business Management System Implementations.”

“Most of my work in the past 7 years has been working with companies that had problems with their ERP implementation and needed help fixing it”, says Mike.  “They bought a system that would work for their company but the company had problems getting the teams to address the business concerns effectively.   Once everyone understood their roles, we were able to build the business system to move them from good to great.  The education helped of course, but so did management’s refocused efforts to address the real business issues.  Giving teams the education, tools, and authority to make decisions was the real secret”, says Mike. 

“Today, progressive companies are using decision analytics to look at business events in their ERP systems to help them create a competitive advantage.  An effective ERP System can move ‘good companies’ to ‘great companies’, while Decision Analytics can move ‘great companies’ to ‘Market Place Leading Companies.’” 

 

Manufacturing Practices, Inc. can help in these activities.  To begin a dialogue, contact us. Call us at 770-772-6894, Skype: michael.a..roman, or email: operations@manufacturingpractices.com. We look forward to earning your business.