The power of an ERP solution is highly dependent on the knowledge of the company using it. One company can use the software really well, while another company, well, not so much. We often use the analogy of an airplane; the airplane is built to fly, but it only works if there is a pilot sitting in it that knows what he is doing. Is your company flying the plane, or figuring out how to open the cockpit door?
The term big data may mean different things to different people and organizations.
Google’s dictionary defines big data as “extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.”
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.
In 1789, Benjamin Franklin wrote, “In this world nothing can be said to be certain, except death and taxes.” I think he got it mostly right. He should have said: “In this world nothing can be said to be certain, except death, taxes, and the need for custom reports from your ERP system.” In Ben’s defense, computers and ERP systems weren’t invented yet, so he did the best he could...
In the job shop machine industry there is a funny answer to the question, “What do you make?” The response is, “Chips. We make metal chips. The faster we make them, the better we are doing.” (Metal chips are made with a metal cutting tool removing the material you don’t want. The tools are used on equipment like a lathe or a mill. Want to know how they work? Read this.)
It seems that “manufacturing data analytics” is the popular buzz term in every facility these days. Management concludes they must collect and analyze as much data as possible to identify trends and opportunities within the manufacturing process. Every sample of data should somehow equate to an ability to gain a competitive advantage. And yet the most common result is analysis paralysis.
I hope everyone had a nice summer. Now that all the kids are back in school, maybe you should think about going “back to school” as well. Let me explain.
My guess is the headline above didn't tell you anything you don't already know. There is a difference though between knowing and doing. You don't need me going into detail of the benefits of flossing your teeth or eating right, so I'm going to focus on the benefits of documenting your ERP system procedures. I promise you two things: This won't be a finger wag if your procedures aren't documented. Also, I will reveal an easy way to document your procedures. The third point isn't a promise, but it is a goal. I'll try to make this interesting, so keep reading.
It seems like managers involved in the manufacturing production process never have enough reports or data. It’s not uncommon for our consultants at Visual South to get requests that begin with, “It would be great if I could get a report that…” Truth be told, the requests usually make a lot of sense. So, we develop the report and our customers start using it.
