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About ERP Systems

What Worries Manufacturing Executives

Michael Roman - Tuesday, October 28, 2014

Companies worry about shop floor throughput but change shop schedules before completing them.  Companies do not properly define specifications for suppliers but worry about supplier quality.  Companies miss customer shipment dates because they misunderstand shop floor loading concepts. 

All of these are disturbing events.  However, something more disturbing is happening in the majority of small and mid-sized manufacturing that is correctable with minimal disruption and chaos.  This “disturbing thing” costs companies millions of dollars annually.  This “disturbing thing” is the misunderstanding of the proper use of an ERP system. 

This misunderstanding, leads to the major issue that causes companies to fail in the ERP implementation process.  Research published by firms like KPMG, the Standish Group, and others shows that 61% of companies fail in properly facing the challenges of the work before them.  Moreover, the results are costly. 

ERP Implementations commonly fail to deliver the anticipated benefits and requested services; these projects have huge cost over runs; projects fail to meet implementation schedules, and worst of all, some companies abandon the ERP project altogether.  It takes little effort to prepare properly for the ERP system implementation.

The most important effort to thwart this problem is the commitment and leadership from the C-Level team to create necessary expectations for the company.  This means that the leadership of the company has to understand ERP, develop the implementation criteria and commitment to provide hands-on oversight of the ERP system deployment with the user community.

Education about what ERP is and what it will do both for and to an organization is necessary at both executive and user levels.  It creates a common understanding of what is necessary when companies use an ERP system. 

Something else many companies miss is the benefits and understanding of the application of Lean Thinking.  Such a philosophy assists organizations in creating processes that are clean, efficient, and self-sustaining.

The last activity to aid an implementation is a proper project management activity.  This keeps the project on track. 

Failure to follow these simple tasks costs manufacturers more in money, productivity, throughput, customer satisfaction, and worker morale than all other problems manufacturing executives spend their time in daily worries and battles.

Manufacturing Practices, Inc. is a Management Consulting firm that works with small and mid-sized manufacturing organizations.  ERP Systems that C-Level teams use confidently to make important business decisions is the product that Manufacturing Practices delivers to these organizations.   

Our proprietary processes give organizations a common understanding of ERP System capabilities.  Our proprietary processes educate C-Level and users teams independently to understand what ERP Systems will do both to and for an organization.  Our proprietary processes create users that understand why ERP data needs to be timely, accurate, and complete.  Our proprietary processes make ERP Systems key to organizations’ success.   

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