I’m a big believer in measuring what you want to improve. Measuring gives you data and you’ll see trends (good or bad) emerge. Figure out what is causing the good trends and keep doing that. Maybe you can even find ways to make the good trends better. Figure out what is causing the bad trends and find ways to stop doing that; or at least, minimize it.
The Visual South Professional Services team has been guiding and assisting Infor ERP implementation since 1994. One critical part in the implementation process is managing and converting data from your current system(s) to your new ERP application. Those activities happen throughout the ERP implementation project, not just at the beginning. This article explains how you can properly execute this activity in six clear steps.
A KPI (key performance indicator) is a measurement of value that can be quantitative or qualitative in nature. Manufacturing companies typically use and track KPIs to determine how a particular area of operations is performing. KPIs are ideally presented in dashboard format, giving decision makers the ability to quickly answer the questions like, “How are we are doing?” and “What is causing performance issues?” Think of KPIs as a company or department’s scoreboard for how the team is playing the game.
Managing a shop floor is no easy task. Your employees make mistakes, equipment breaks, rush orders slip in, jobs ship late, and days are long. On top of that, there is the constant demand to reduce costs and increase quality. It’s a real pressure cooker.
A modern ERP system is an amazing thing to behold. A materials manager can look at a screen and know what to buy, and when. This can be achieved with confidence, without a spreadsheet and without a meeting. Someone in order entry can check on a realistic promise date for a product that hasn’t begun to be built yet. Again, there’s no spreadsheet and no meeting needed to accomplish this.
I work with companies that are in all stages of their ERP journey. Some companies are looking to purchase and implement their first ERP system; they are typically trying to understand what ERP can do, how to evaluate vendors, and dreaming of the “to be” state they are trying to attain. On the other end of the spectrum are companies that have been running ERP for 25 years and longer. These clients are always trying to improve what they have and make themselves a better company. Whether your company is at the same stage as the former, the latter, or is somewhere in between, there is one fundamental truth you need to keep in mind: an ERP system is only as good as the data that is put in it. Let’s get a little background on the types of data an ERP needs before we get in to the importance of the data itself.
For a discrete manufacturer, work orders are the lifeblood of production. The work order authorizes the development of a product—it provides the production team with a method to create the product to meet the specifications for the demand it is fulfilling.
With the continuous evolution of modern ERP software solutions, there is a growing number of manufacturing data collection and analysis options available to you. In this article, we’ll discuss a few manufacturing data points that provide a good overall view of your performance and how they fit together.
I have been to a lot of companies and worked with a lot of people over the years, and I've come to the realization that we all use the tools we know to deal with issues we face. If you ask an assassin to fix a problem, someone is going to die. If you ask a programmer to fix a problem, a new program will be created.
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.
