Effective Success with Enterprise Resource Planning_10 docx

TASKS TO BE COMPLETED IN MONTH 3 Complete Task Yes No 3-1. Series of business meetings conducted for steering committee. ______ ______ 3-2. Series of business meetings conducted by project team people for all other persons involved with the slice. ______ ______ 3-3. Enthusiasm, teamwork, and a sense of ownership becoming visible throughout all groups involved in the slice. ______ ______ 3-4. Inventory record accuracy, including scheduled receipts and allocations, at 95 percent or better for all slice items. ______ ______ 3-5. All slice bills of material at least 98 per- cent accurate, properly structured, and sufficiently complete for ERP. ______ ______ 3-6. All item data for slice products and com- ponents, plus any necessary work center data, complete and verified for reason- ableness. ______ ______ TASKS TO BE COMPLETED IN MONTH 4 Complete Task Yes No 4-1. Executive steering committee authoriza- tion to implement master scheduling (MS) and Material Requirements Plan- ning (MRP) on the slice products and components. ______ ______ 4-2. Master scheduling and MRP operating properly. ______ ______ 300 ERP: M I H Complete Task Yes No 4-3. Plant schedules, and kanban where ap- propriate, in place and operating prop- erly for the slice items. ______ ______ 4-4. Feedback links (anticipated delay report- ing) in place for both plant and purchas- ing. ______ ______ TASKS TO BE COMPLETED IN MONTH 5 Complete Task Yes No 5-1. Suppliers cut over to supplier scheduling as practical. ______ ______ 5-2. Performance measurements in place and being reviewed carefully by the steering committee and project team. ______ ______ 5-3. Audit/assessment II completed; next Quick Slice or other improvement initia- tive now underway. ______ ______ Quick-Slice ERP—Implementation 301 [...]... operational fabric of the company 5 Lean Manufacturing/Just-in-Time processes initiated and successfully completed within the company and with suppliers 318 ERP: M I H Complete Task Yes TE AM FL Y 6 Discontent with the status quo and dedication to continuing improvement adopted as a way of life within the company No Chapter 16 The Strategic Future (Phase III) SEE THE FUTURE... can see the future or do you want to really know? Well, relax We are not going to tell your fortune or your future However, we are going to tell you that, with the tools provided by Enterprise Resource Planning, particularly in combination with Enterprise Software, you can now create a dramatically changed future for your company This is phase III on the Proven Path (Figure 16-1) and represents the... message is clear Companies should not rest on their laurels after reaching Class A with ERP Don’t be content with the status quo It’s more important than ever to go after those additional productivity tools, those “better mousetraps,” those better and more humane ways of working with people Many of these projects can be funded with the cash freed up by the ERP-generated inventory reductions alone Look upon... such great capability to link dis- The Strategic Future (Phase III) 325 parate operations and companies with real time connections However, without the knowledge and time offered via ERP, the high speed of the Internet can simply raise expectations with limited ability to satisfy those expectations With no control or knowledge of the supply chain, the Internet is like using a high-speed race car to deliver... steering committee EDUCATION Failure to establish an airtight ongoing education program is a major threat to the long-term successful operation of ERP Ongoing education is essential because: New people enter the company Plus, current employees move into different jobs within the company, with different and perhaps expanded responsibilities Failure Operating ERP 313 to educate these new job incumbents spells... have endpoints, phase III is the ongoing effort to not only keep ERP alive but to capitalize on the full potential that now exists in the company The capabilities that you can create with ERP, particularly when coupled with Enterprise Software, are so dramatic that failure to move to a new corporate strategy may be failure indeed For the first time, the supply chain can now be a key factor in creating... Total Quality, Enterprise Resource Planning, Design for Manufacturability, CAD/CAM, Activity Based Costing, and all the others—is sufficient They’re all essential “How are we doing?” is one necessary question to ask routinely Another is: “How can we do it better?” Don’t neglect this second question The truly excellent companies 316 ERP: M I H seem to share a creative discontent with the status... web page will cure supply chain inefficiencies However, with ERP and perhaps ES, using the Internet as a business to business (B2B) connection makes real sense B2B can make the supply chain transparent without having to re-wire the connections The great breakthrough of the Internet is the ability to connect companies and pass massive amounts of data without point-topoint, electronic data interchange (EDI)... close to 100 percent Financial Measurements At least once a year, the ERP operating committee should take a check on “how we’re doing” financially with the ERP Actual results in dollars should be compared to the benefits projected in the cost justification Just as with the operational measurements, a hard-nosed and straightforward approach should be used here: Is the company getting at least the benefits expected?... There are few companies today who even have any idea how good they could be In general, the excellent companies are populated with individuals no smarter or harder working than elsewhere They merely got there first, then stayed there (at Class A), and then got better and better With Class A ERP, a company can operate at an excellent level of performance—far better than before, probably better than it . your future. However, we are going to tell you that, with the tools provided by Enterprise Resource Planning, particu- larly in combination with Enterprise Software, you can now create a dramatically. Manufacturing/Just-in-Time proces- ses initiated and successfully completed within the company and with suppliers. ______ ______ Operating ERP 317 Q & A WITH THE A UTHORS T OM : Mike, you’ve seen. long-term successful operation of ERP. Ongoing ed- ucation is essential because: New people enter the company. Plus, current employees move into different jobs within the com- pany, with different