Visual South works with manufacturers who use work orders, so this article focuses on job shops and discreet manufacturers. In this type of environment, production’s job is to deliver a certain quantity of a certain product. There is a defined start and a defined finish. Maybe production has made it before, maybe they haven’t. They may make it again, they may not.
ERP production planning can mean many things to many people; so, let me start out by explaining what it means to me; and therefore, what I’ll be writing about. ERP production planning is the coordination of people, machine capacity, and raw materials all coming together, so you can make what you make when you need to. “…when you need to” is based on a customer demand or an internal demand (sub-assembly, forecast, etc.). The need for better production planning is usually a major driver for the search and purchase of an ERP system.
I have been to a lot of companies and worked with a lot of people over the years, and I've come to the realization that we all use the tools we know to deal with issues we face. If you ask an assassin to fix a problem, someone is going to die. If you ask a programmer to fix a problem, a new program will be created.
For a while now, I’ve been hearing the term “digital transformation”; but I never really thought about it. Usually, when I hear the same term over and over, I can figure out its meaning by the context in how it’s used. That was not the case here. I never asked the person using the term because I didn’t want to look stupid. Of course, pretending you know something when you don’t is the ultimate in stupidly, so I Googled it. Here is the definition according to i-SCOOP's website:
I’m a fan of a “can-do” attitude. Having a positive attitude helps you overcome obstacles and get through anything life throws at you. If a new ERP implementation in a manufacturing industry is something life will be throwing at your organization, a can-do attitude is the right attitude for the implementation team to have.
I have a certain passion for helping companies manage their capacity by scheduling properly. In this blog post, I’m going to discuss a common thought process companies go through to finally get to the point of using ERP to schedule their shop floor: They need to hire a Scheduler. Put someone in charge and have them get the company to the promised land of scheduling properly. It sounds reasonable, but in my experience, it’s a misguided strategy. Let me explain why.
When I was a Plant Manager at a rotary die manufacturer in 1994, I bought an ERP system. The biggest problem I was trying to solve was scheduling the shop floor. We were in an industry that demanded 2-4 day lead times. Everything we did was custom; each work order had around 20 operations. It was rare for me to get a question about our ability to produce a die, because we had all the right type of fabricating equipment to produce a die. The real question was if we could produce it in the lead time the customer provided. In other words, did we have enough open capacity to do what the customer wanted us to do?
If you had to travel from New York City to San Francisco, what’s faster, a jet or a car?
♩♫ Jeopardy music ♫♩
Right now you’re thinking, “The obvious answer is “jet”. But if that’s the right answer, this wouldn’t be a riddle.”
If you use work orders to produce goods and aren’t getting manufacturing analytics out of your ERP system, you have an important resource that’s untapped. The good news is this can be fixed. The other good news is fixing it will lead to a smoother operating production floor with a more predictable output. There is no “easy” button, but there is a proven method you can follow to mine manufacturing analytics. Companies that use this method find managing production is easier, because they have data. They know what to fix, and just as importantly, what to leave alone. Data leads to focus, which leads to better results. It’s not magic, but it does work.
