Until recently, nearly every company had an expectation that the manufacturing ERP system should be sufficient to run the business. However, despite the name: enterprise resource planning (ERP), most ERP systems rarely cover all processes enterprise-wide. The reality is that software vendors build them to focus on core operations. The planning capability is typically limited to high-level budgeting while providing placeholders for business users to populate estimates from external sources. In this context, perhaps a more fitting name would be financial resource and document tracking (FRDT) system. To become genuinely enterprise-wide and provide robust planning capabilities, most systems require additional modules, customization, special reports, and bolt-on sub-systems. This approach might initially seem odd. However, it’s quite reasonable once you consider the rationale for designing them this way.
If your manufacturing business has ever survived a crisis — supply chain disruption, market demand fluctuation, distribution problems, or perhaps even a natural or economic catastrophe — it had an uncommon opportunity to shine through the adversity. More importantly it gives you a chance to learn from the outcomes generated by the organization’s responses to the disaster. We don’t know any that are eager to flush it all away — not just the performance gains, but the opportunity to do even more with the unexpected wisdom.
- July 29, 2020 / by Sean Lashmar
Manufacturers are always eager to balance efficiency, reputation, and the many other factors that affect overall business performance. Everyone agrees that performance improvement in manufacturing operations is one powerful tool companies leverage to achieve their strategic business objectives. Even when there’s a status quo in market conditions, regulatory requirements, and other factors, nearly every manufacturing enterprise is doing something to improve manufacturing performance. When something happens to disrupt circumstances — whether it affects just your business, many companies, or an entire group — there’s no doubt you’ll respond to your company’s best advantage. But will you also use the experience to uncover “the hidden factory,” and discover new ways to create capacity without adding equipment?
- June 10, 2020 / by Sean Lashmar