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.
Back in the late 80s, I was an Operations Manager at a job shop manufacturer. I was responsible for all aspects of the business group I ran (except sales) and had seven supervisors reporting to me. The data I used to measure how we were doing was our on-time delivery; because that was the data Senior Management used to judge me. I'm proud to say my group consistently outperformed the two other business groups in the company.
When I talk to Visual South customers about using their ERP system to guide them to manufacturing process improvements that could be made, I always ask who is responsible for the variance in estimated vs. actual costs in a completed work order. In some cases, I get a quick answer with a name. That speaks volumes to me because it means they are proactive in looking at cost data. Companies who do this become comfortable with the accuracy of the data. This doesn’t mean they like all the data; but that’s the point. If there is an unacceptable variance, they find out what caused it. Perhaps the standard was wrong (in either direction). Perhaps the execution was flawed or exceeded expectations. The important thing is they know about it, and can do something about it.
I created the image used in the header of this blog about a year and a half ago for another project I was working on. Since then, it's also become the main image the Visual South website's homepage. I like the image because it tells the story of who we are as a company, and how we work with our customers to help them become more efficient. You've seen the image, now let me tell the story in words.
I’m not a golfer. How do I know this? Because I tried to be. Practice, regular play, lessons – I tried it all. What I heard over and over again as a professional tried to correct my version of a golf swing was this: The swing I’m teaching you is going to feel funny at first.
During implementation, ERP training primarily focuses on how the company will utilize the software to perform its daily functions, as well as processes necessary to replace the current system. Key users and team members work with their implementation partner to develop a plan and define the training requirements for the new ERP solution.
Post-implementation ERP training is just as important as the initial training to achieve continued success. Every company needs an ever-evolving plan for continuous improvement. Ongoing ERP training should be a significant part of that plan!
