So much information, so little time...

Once you have set out on the path towards your own “production planning” nirvana and you have your selected MRP/ERP system in place (hopefully industry specific) and it links seamlessly into your various shop floor data collection devices and chats happily to your accounts system you could be forgiven for thinking that it's going to be plain sailing from here on. However before you can reach your destination there are stormy seas yet to navigate...

During the many years assisting companies with designing, installing, integrating, and implementing production systems (ERP/MRP) I am always surprised at the lack of imagination displayed when it comes to actually using information that is readily available. Companies (in general) tend to replace their existing manual/computerised systems with new ERP/MRP systems that meet an identified aspiration. Furthermore, they have every intention of making use of all its functions once they have replicated their existing systems , and this is where the problems start. The base assumption that their existing way of working is correct is, by its very nature, faulty. The reason a need for a new system had been identified in the first place was because existing systems did not meet current needs. Reproducing the same way of working within a new system simply reproduces the same results; and although this fits nicely within the companies comfort zone it does not help it progress.

Justify your systems...

Each and every method of working needs to be justified both in terms of its information requirement and in terms of its information provision. For example, when re-writing a piece of old programming code that's built up over a period of time I tend to look at the whole requirement (as it is now) and completely rewrite the code from scratch. This is simply because requirements change over time and the existing solution has grown unwieldy and no longer applies. The same can be said for internal systems, people move into and out of jobs (creating/modifying their own systems), customers change their requirements (met by further changes in your systems), sales parameters change, production alterations proliferate, delivery procedure amendments, and.... well you get the picture.

External view...

You can make very effective system improvements utilising in-house expertise but due to the nature of self interest these improvements are usually better identified by an external body. I have seen many companies drowning in a sea of (mainly useless) information of their own creation. Passed from person to person, department to department, built up over a period of time, many companies simply do not see the wood for the trees. When helping companies move to our foundry/cast metal specific production system (www.synchro32.com) we encourage them to take a long look at the way they currently work and their existing information requirements prior to implementing any new system. In many cases this reveals duplication of information, redundant practices, and wasted resource. The introduction of a new system is an ideal point to make changes in all these areas, not because you can't replicate your existing systems (and remain in your comfort zone ); but because you choose not to.

Use your imagination...

Once basic information requirements are covered, enabling you to progress with such activities as estimating, work-in-progress tracking, traceability, scrap & rework, QA & commercial documentation, scheduling & capacity monitoring, you may consider branching out to scrap analysis, resource utilisation, delivery performance and so on, and consider it a job well done. This is now the point at which most companies flounder in a fit of self imposed lack of imagination.

Look at the different types of data being entered into your new “integrated” system. What strikes you? For the main part, all your current systems are compartmentalised – as they were prior to integration. Yes, you have all the mechanics of an integrated system, but are you taking full advantage of the benefits? What about mixing shipping information with costing analysis and producing delivery performance analysis with actual production/customer profitability to produce a new set of delivery performance criteria? What about creating a production/resource costing and profitability prioritisation based upon different costs during the time line of production? Just two examples of many new types of information you can mix and match. As you can see, with just a little imagination taking an overall integrated view can help identify the effectiveness (or weakness) of your current systems and completely change the company metrics you thought where so solid.

With the recent proliferation in surcharges that counter the daily fluctuation in material and energy prices coupled with ever slimmer sales margins; it seems (to me at least) that any advantage you can attain you have an obligation to do so. Being able to identify your most profitable and consistent areas of work is not as easy as it sounds, and once correctly identified often leads to new and interesting changes of direction, and at the very least if it only serves to reinforce your existing business decisions you will have the reassurance that should circumstance change (as it often does) you will be the first to know.

In conclusion...

So in short, examine all your companies' information requirements (closely), approach your company as an outsider would, do not make assumptions, ask new questions, re-think the overall solution, and start with a fresh (blank) piece of paper. You don't have to discard all your existing systems but you do have to justify their existence (and not because “we have always done it like this” ). In a world ever increasingly overloaded with information now is the time to distil what you need and approach your business in a fresh and innovative way. Be clear, be concise, and be creative.

Die Casting Times
July/August 2007

	Team Spirit	Die Casting Times	Read Article	November 2008
	Generic ERP verses Cast Metal Specific ERP	Foundry Tade Journal	Read Article	November 2008
	How personal is your foundry software?	Die Casting Times	Read Article	September 2008
	A question of "Home grown or not?"	Die Casting Times	Read Article	July/August 2008
	Product Innovations	Modern Casting		December 2007
	So much information, so little time...	Die Casting Times	Read Article	July/August 2007
	Achieving the benefits of integrated foundry software - Part One	Die Casting Times	Read Article	April/May 2007
	Achieving the benefits of integrated foundry software - Part Two	Die Casting Times	Read Article	April/May 2007

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