| Enterprise resource planning: you can dress up the | | | | planning tool work. Simply put: without the cultural |
| concept any way you want: implement a lot of flashy | | | | change you will not change business behavior. |
| flow-charts and throw around a lot of impressive | | | | III. Stakeholders anyone? |
| titles, but at the end of the day effective enterprise | | | | Before you can change performance measures, |
| resource planning (ERP) depends on people. | | | | however, you need to have developed a shared |
| I. Your best resource | | | | vision of the new way of working. It is impossible for |
| Food for thought: if the life-cycle for running a | | | | anyone to hold down a line function and keep up to |
| business centers only around your computer - i.e. you | | | | date with current best practice. It is not only much |
| store the fixed information the company needs to | | | | cheaper but also more effective for you to learn |
| run its business, bills of material, part number data | | | | best practice techniques and then get a strictly |
| (lead times, order quantities, safety stock etc.) and | | | | limited amount of help from consultants to help you |
| add some processes such as sales order processing, | | | | apply the generic ideas to your business in the most |
| inventory control, works orders, purchase orders and | | | | effective way. |
| a bill of material explosion - have you improved the | | | | The change process happens much faster and more |
| business? | | | | reliably if at least the project leader is full time. In |
| More specifically "have you improved customer | | | | addition to a project leader you also need a project |
| service, reduced inventory, stabilised manufacturing, | | | | team to co-ordinate the change process. You should |
| provided everyone with a better quality of | | | | set up task forces to tackle each change area such |
| information with more visibility to do their job and, | | | | as sales and operations planning, master production |
| last but by no means least, have you got your | | | | scheduling, data accuracy (bills of material and |
| money back from the not inconsiderable investment | | | | inventory in particular), performance measures, |
| in hardware, software and everyone's time?" | | | | manufacturing and purchasing. The task force |
| Sure, enterprise resource planning involves integrating | | | | members must become the company experts in best |
| all business management functions, including planning, | | | | practice in their area; some should become internal |
| inventory/materials management, engineering, order | | | | educators. |
| processing, manufacturing, purchasing, accounting and | | | | It is vital that you do not overlook the need to have |
| finance. But ERP also demands talented, creative | | | | in-company experts in both the software and the |
| individuals who can manage these areas of | | | | generic planning principles. Any help from outside |
| responsibility effectively. | | | | consultants must be as coaches not players. You |
| II. It's not rocket science, just common sense (or | | | | should check that any consultants who will actually be |
| maybe its cents) | | | | working with you (not the consultant group or |
| Did some mention quality-control standards for ERP | | | | partner you first speak to) have experience of |
| success? How about these: | | | | successful implementations in a similar type of |
| - Realize that plans must be realistic and achievable | | | | business. |
| (any plan with due dates in the past is neither realistic | | | | To recap: |
| nor achievable) and they should only release orders | | | | - For change to happen in enterprise resource |
| when they have checked that the material is | | | | planning people have to do something different, a |
| available. | | | | change of culture and people will not change until |
| - Recognize that it is in everyone's best interests to | | | | they understand what's in it for them. |
| follow the plan, planning in advance if they don't hit | | | | - To change performance measures in order for |
| their target date. | | | | enterprise resource planning to work, you have first |
| - Orders must only be accepted on the basis of | | | | to develop a shared vision, a new way of working |
| available, planned capacity. | | | | together. |
| Now it's easy to say all this is obvious, which it is. It is | | | | And finally, no-one should be expected to know the |
| harder to admit that you do not do some or all of it | | | | best way to change their way of working, they need |
| as well as you could. Changing hardware and | | | | help and guidance from people who have done it |
| software is not the hardest part. What's difficult is | | | | before. |
| the cultural change needed to make an integrated | | | | |