On the one hand, you have the need for making the change to a manufacturing information system that will help you gain a competitive advantage. On the other hand, you're faced with a wealth of anecdotal horror stories about the time and effort it takes to implement such a system. Confusion. Delays. Downtime. Many of the problems that you hear about seem to be common mantras from those companies that have had problems with ERP implementation. By the volume of the protestations, it would appear that ERP implementation is nothing but trouble. However, it must be kept in mind that the old 'squeaky wheel' adage rings most true here. That is to say, those majority of manufacturers that have little or no problems with ERP implementation are usually less vocal in public about their successes, while those that encounter difficulties are the first to complain.
What separates the successes from those less so? In a word: Involvement. ERP implementation is more than a fix and more than a series of processes; rather, implementation is the dedicated system-wide effort of continuous improvement that researchers tell us employ people, education, management, and timing for success. All four of these elements are often seen as hurdles to overcome for implementation, and indeed if there is not a sense of involvement regarding each then implementation can be a grueling and, perhaps, unsuccessful, task. In every sense, though, implementation must be seen as a period of change necessary to make a better company through the benefits found in information flow. Otherwise, what's the point of bringing ERP into the operation in the first place?
With regards to people, real continuous improvement necessitates users getting involved all the way through full integration. Of course, changes can usually be expected to encounter some resistance somewhere. Many workers or managers can be stuck in a certain way of doing things, and new processes bring fears of either additional work or unfamiliarity with techniques or technologies. As well, the cost accounting measures employed by ERP systems seem, to some employees, as involving too much accountability. For example, scrap is more closely monitored in ERP and in-direct labor is better tracked. Still, without a total buy-in of all employees, implementation can be slowed or even halted while those reluctant or unwilling to change are encouraged to join in.
Of course, education will go a great way toward producing a total buy-in to a new ERP system. What seems to many like such an ominous beast can be easily tamed through education of the system. This is where a good, robust ERP software system that is both easy and quick to use will be a tremendous advantage. That is to say, while some ERP software systems are either unwieldy or include sometimes dozens of functions that, while glitzy, are useless, a lean manufacturing approach is helped by a lean ERP software.
Management involvement in ERP implementation is of absolute necessity in giving the project structure and offering a visible means of support for its purpose. Continuous improvement as a means to ERP implementation must be seen by everyone as something that is needed and something that is wanted. Management involvement, of course, means time taken for the effort, and it is here in the notion of time availability that implementation is often stymied by management. Management must dedicate their own time to the implementation product if they expect their own workers to do the same. In other words, total buy-in is just that-a buy-in by shop floor, front office, and management.
Finally, we get to timing. ERP implementation is not to be haphazardly brought into play and thrust into a manufacturing or production system. When to implement is, perhaps, the most important aspect when it comes to notions of success. It is often the case once ERP implementation is begun, things get a little worse before they get better. Realizing this reality will go a long way in maintaining confidence in the project. As well, timing is often a function of process mapping. Mapping is another way of building high levels into the changes that are made, over time, to production processes. In any case, timing the implementation start to coincide with anticipated slower production cycles or seasons is the better way to a successful continuous improvement effort.
http://globalshopsolutions.com/
Dusty Alexander is the President of Global Shop Solutions. Global Shop Solutions is the largest privately held ERP software company in the United States.
Copyright 2008 - Global Shop Solutions. All Rights Reserved Worldwide. Reprint Rights: You may reprint this article as long as you leave all of the links active, do not edit the article in any way, and give the author name credit.
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By Dusty Alexander
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