Robinson Consulting Group
What really happens on the factory floor
In actual fact, production does not go according to schedule and production
schedules do change frequently. First line management has known this for
years. All of them have "unofficial schedules" that most times do not match
the "official" ERP schedule.
Where is the real opportunity?
The real focus should be on achieving operational reliability. When
operational reliability is achieved, products flow smoothly from one
operation to another in a value stream. With continuously flowing products
there is little need to perform ERP transactional processing as products
flow from one process to the next. With operational reliability, ERP
systems are greatly simplified, lead time is reduced, meaningful quality
feedback is possible, and throughput improvements are easy to achieve.
Is ERP not working for you?
Over the past 10 years thousands of companies have spent billions of
dollars installing and implementing complex Enterprise Resource Planning
systems in their manufacturing operations. Almost none of those
implementations have actually achieved their business goals. The reason
that ERP fails is that ERP makes two invalid assumptions:
|ERP assumes that production will go according to schedule|
|ERP assumes that production schedules will not change within |
|their regeneration cycles|