To implement an ERP system in production
A couple of weeks ago I went to one factory. They want to implement ERP. Held a presentation, all watched. The management asked to prepare a consolidated document, which outlines what is needed to implement the system.
I made the document. It turned out very entertaining, it is a pity to throw it away, so I decided to share it with everyone.
First, a little about the foundation.
So, what do you need to implement an ERP system in the company? Well, firstly the toilets should be clean. The condition of the toilets is the state of the company as a whole. You will laugh, but it is. If the toilets are dirty, then you first need to solve the system problems in the company, and then you can also take on ERP.
Before implementing the system (as well as before solving any problem), it is necessary to determine the course of the decision. That is how you will do it. We were always taught in the school by our good old math teacher. The approach should be systematic, not chaotic.
')
What techniques will you use to manage production? Do not know? Well then you implement the system and get the same thing as now, only in the program. No difference, but the costs incurred.
The method of production is still primary. It is better to have a technique, but not to have software, than to have software, but not to have a control technique.
If you know what management techniques will solve your problems in production, then you can already look for software for them.
You can not choose software, which laid down clearly unacceptable methods. If the production is custom, and you are offered the old and unkind "volume-scheduling planning," then carry on for a couple of years and spit. And as a result, Excel will help you. Million times already proven, a million. Do not suffer. I personally observed situations when all products and their structure are stored in the ERP system, and planning occurs ... in Excel.
One of the key and most common mistakes. For some reason, it is believed that the implementation of the ERP system is a project of the IT department. In reality, this has nothing to do with IT. And if it has, then the most insignificant. IT department may be responsible for setting up the system, for the distribution of access. Essentially everything. No IT data should be entered into the system. And even more so responsible for implementation. If the project is responsible for the IT-director or even the pretentious vice-president of IT, the whole project is failed. There will be nothing.
This is a project of the company's management and it should have an appropriate status. And this project should be managed either by the CEO or the deputy.
The complexity of this project is comparable to the construction of a new plant and the attention to it from management should be appropriate.
Managing a project doesn’t mean picking things up every day. This means controlling the course of events and not letting the project slip. Provide him with the necessary administrative support.
You need to create a project team. At a minimum, it should include:
- project Manager
- Production Director
- director of logistics
- head of design department
- A representative from a consulting company, of course.
But it is not necessary to inflate the group much, otherwise you will get Krylov's fable about the swan, cancer and pike. Man 5 is quite.
At the stage of preparation for operation, the group should meet (it is possible and remotely, of course, to gather on Skype) once a week (two) for 30 minutes or an hour and sum up the work done and plan for the next week. After the start of industrial operation, the frequency of gathering the group should increase to once a day, and then the frequency should gradually decrease as the temperature of the situation decreases.
If the project management for the implementation of ERP is also used modern project management techniques, then it probably will be good.
Production, designers and logisticians bear the main burden during implementation. In reality, it is the production manager who must initiate the implementation of such a system, since it is he who is the resultant link of the whole process at the plant and, as a result, he has the most problems.
And here is the most subtle point. If the production manager is not interested in implementation, then nothing will come of it. As if the leadership did not want this.
If the production manager does not have the motivation to change something drastically, then he will not. If it doesn’t matter how well the production works or it doesn’t work well, then there’s almost no chance. His salary does not change, he is not fired, etc. Question: why do something?
It's simple. If production works (hmm, does it work) in a mess, and he personally doesn’t suffer and feel danger to himself, then this situation is even better for him. Because it is indispensable!
This is the main problem that you first need to solve, and then proceed to the project. Either it needs to be changed, or take him a deputy with his authority. If you take a deputy, then the current head will poison the situation even more and sabotage the project in every possible way, because he will think that he is being pushed over. This mood one way or another will spread to the staff in smoking rooms, in private conversations. Well, not for me to tell you how. So decide ...
At them, at the stage of preparing the system for operation, a very high load will lie and they should have resources. At least one person must devote an entire working day to the project. Because he will have a huge amount of work on the creation of trees of products. Something, of course, can be transferred from old systems, but as practice shows, the quality of this data is rarely decent. And so many things will need to do with your hands. And the designer should do it.
They must work in conjunction with the production. At the stage of preparation for the operation of the logistics should not be high loads. The procurement schedule, of course, must be fully synchronized with the production schedule and this process must be checked and debugged before starting.
The management should ensure their timely entry into the system. Should be completely excluded situations of the indispensability of employees. There should not be such that a person goes on vacation, and there is no one to replace him and therefore no one enters the data into the system. This will instantly crash the entire system. I have seen such situations, so I am writing. It is necessary to pay attention to this and save the company from such situations.
The production manager (the one who will lead the project) and his deputy must undergo a course of training in the methods of production management that you intend to implement. It makes no sense to introduce management techniques, not understanding how they work and what result they will lead to.
This may be a wall, about which everything will be broken. I talked with the former gene. director of "Izhmash", he drank it in due time.
And before embarking on a project for the improvement of production (well, why bother, then ERP-systems are being implemented precisely for this. Another conversation, how it all turns out ...), this issue should also be solved.
If workers receive bonuses from the development of their site , then this is how gangrene will destroy the enterprise. I do not exaggerate.
Such motivation leads to:
Let's tell on a simple example. Suppose your production consists of three sections. We will not complicate, it does not matter. The first section cuts the pipe into pieces. On the "cut off" let it take a minute. The second section drills holes in the cut off pig. The number of holes varies from order to order. For each hole is also a minute. Holes from 4 to 8, let's say. So the performance of the second section is 6 times lower than the first (well, approximately). In the third section, this farm is supposed to be polished. And it takes 12 minutes. This means that the performance of the third section is two times lower than the second section.
This is a completely normal situation for most industries, when productivity decreases as the process moves to the final stage.
So here. If people at the sites are motivated to work out their plots, then this means that they will try to work out the maximum. It is understandable.
That is, the first section will try to work to the maximum. Where it leads? Well, of course, to the growth of the pile of blanks before the second section, since its performance is much lower.
But this is not the worst trouble yet, because before the second section all the blanks are the same and you don’t have to think about which process to process first, which one in the second, etc. The second section will also work to the maximum and this, in turn, will lead to an increase in the heap already before the third section. But here all the blanks are already different (because of the number of holes)!
And now attention is the question: how in the third section of the unfortunate guy to understand what kind of workpiece should be processed? Which first came? Of course not. He simply will not be able to make the right choice and therefore will process the first available one. And the right one is somewhere in the middle. Order will be guaranteed expired. Then the client will call when the delivery is already overdue, will collect a commission headed by the foreman and they will go to look for the desired workpiece. This I do not fantasize, I saw it with my own eyes, and more than once. I think that is the case everywhere .
And what to do? - you ask.
Well, firstly to change the motivation system. It should be not from the development of the site, but from the development of the plant . Feel the difference? It’s one thing when your people are motivated to grow unfinished, and it’s quite another when they are motivated to produce .
Well, of course, the load on all areas should correspond to the performance of the bottleneck.
In short, something like this.
Look like that's it. I have not forgotten anything?
I made the document. It turned out very entertaining, it is a pity to throw it away, so I decided to share it with everyone.
First, a little about the foundation.
So, what do you need to implement an ERP system in the company? Well, firstly the toilets should be clean. The condition of the toilets is the state of the company as a whole. You will laugh, but it is. If the toilets are dirty, then you first need to solve the system problems in the company, and then you can also take on ERP.
Before implementing the system (as well as before solving any problem), it is necessary to determine the course of the decision. That is how you will do it. We were always taught in the school by our good old math teacher. The approach should be systematic, not chaotic.
')
What techniques will you use to manage production? Do not know? Well then you implement the system and get the same thing as now, only in the program. No difference, but the costs incurred.
The method of production is still primary. It is better to have a technique, but not to have software, than to have software, but not to have a control technique.
If you know what management techniques will solve your problems in production, then you can already look for software for them.
You can not choose software, which laid down clearly unacceptable methods. If the production is custom, and you are offered the old and unkind "volume-scheduling planning," then carry on for a couple of years and spit. And as a result, Excel will help you. Million times already proven, a million. Do not suffer. I personally observed situations when all products and their structure are stored in the ERP system, and planning occurs ... in Excel.
Project status
One of the key and most common mistakes. For some reason, it is believed that the implementation of the ERP system is a project of the IT department. In reality, this has nothing to do with IT. And if it has, then the most insignificant. IT department may be responsible for setting up the system, for the distribution of access. Essentially everything. No IT data should be entered into the system. And even more so responsible for implementation. If the project is responsible for the IT-director or even the pretentious vice-president of IT, the whole project is failed. There will be nothing.
This is a project of the company's management and it should have an appropriate status. And this project should be managed either by the CEO or the deputy.
The complexity of this project is comparable to the construction of a new plant and the attention to it from management should be appropriate.
Managing a project doesn’t mean picking things up every day. This means controlling the course of events and not letting the project slip. Provide him with the necessary administrative support.
You need to create a project team. At a minimum, it should include:
- project Manager
- Production Director
- director of logistics
- head of design department
- A representative from a consulting company, of course.
But it is not necessary to inflate the group much, otherwise you will get Krylov's fable about the swan, cancer and pike. Man 5 is quite.
At the stage of preparation for operation, the group should meet (it is possible and remotely, of course, to gather on Skype) once a week (two) for 30 minutes or an hour and sum up the work done and plan for the next week. After the start of industrial operation, the frequency of gathering the group should increase to once a day, and then the frequency should gradually decrease as the temperature of the situation decreases.
If the project management for the implementation of ERP is also used modern project management techniques, then it probably will be good.
Production
Production, designers and logisticians bear the main burden during implementation. In reality, it is the production manager who must initiate the implementation of such a system, since it is he who is the resultant link of the whole process at the plant and, as a result, he has the most problems.
And here is the most subtle point. If the production manager is not interested in implementation, then nothing will come of it. As if the leadership did not want this.
If the production manager does not have the motivation to change something drastically, then he will not. If it doesn’t matter how well the production works or it doesn’t work well, then there’s almost no chance. His salary does not change, he is not fired, etc. Question: why do something?
It's simple. If production works (hmm, does it work) in a mess, and he personally doesn’t suffer and feel danger to himself, then this situation is even better for him. Because it is indispensable!
This is the main problem that you first need to solve, and then proceed to the project. Either it needs to be changed, or take him a deputy with his authority. If you take a deputy, then the current head will poison the situation even more and sabotage the project in every possible way, because he will think that he is being pushed over. This mood one way or another will spread to the staff in smoking rooms, in private conversations. Well, not for me to tell you how. So decide ...
Constructor
At them, at the stage of preparing the system for operation, a very high load will lie and they should have resources. At least one person must devote an entire working day to the project. Because he will have a huge amount of work on the creation of trees of products. Something, of course, can be transferred from old systems, but as practice shows, the quality of this data is rarely decent. And so many things will need to do with your hands. And the designer should do it.
Purchases
They must work in conjunction with the production. At the stage of preparation for the operation of the logistics should not be high loads. The procurement schedule, of course, must be fully synchronized with the production schedule and this process must be checked and debugged before starting.
Primary data
The management should ensure their timely entry into the system. Should be completely excluded situations of the indispensability of employees. There should not be such that a person goes on vacation, and there is no one to replace him and therefore no one enters the data into the system. This will instantly crash the entire system. I have seen such situations, so I am writing. It is necessary to pay attention to this and save the company from such situations.
Training
The production manager (the one who will lead the project) and his deputy must undergo a course of training in the methods of production management that you intend to implement. It makes no sense to introduce management techniques, not understanding how they work and what result they will lead to.
Motivation of workers in workshops
This may be a wall, about which everything will be broken. I talked with the former gene. director of "Izhmash", he drank it in due time.
And before embarking on a project for the improvement of production (well, why bother, then ERP-systems are being implemented precisely for this. Another conversation, how it all turns out ...), this issue should also be solved.
If workers receive bonuses from the development of their site , then this is how gangrene will destroy the enterprise. I do not exaggerate.
Such motivation leads to:
- growth in work in progress
- increase production time
- extremely high percentage of overdue orders (up to 50%)
Let's tell on a simple example. Suppose your production consists of three sections. We will not complicate, it does not matter. The first section cuts the pipe into pieces. On the "cut off" let it take a minute. The second section drills holes in the cut off pig. The number of holes varies from order to order. For each hole is also a minute. Holes from 4 to 8, let's say. So the performance of the second section is 6 times lower than the first (well, approximately). In the third section, this farm is supposed to be polished. And it takes 12 minutes. This means that the performance of the third section is two times lower than the second section.
This is a completely normal situation for most industries, when productivity decreases as the process moves to the final stage.
So here. If people at the sites are motivated to work out their plots, then this means that they will try to work out the maximum. It is understandable.
That is, the first section will try to work to the maximum. Where it leads? Well, of course, to the growth of the pile of blanks before the second section, since its performance is much lower.
But this is not the worst trouble yet, because before the second section all the blanks are the same and you don’t have to think about which process to process first, which one in the second, etc. The second section will also work to the maximum and this, in turn, will lead to an increase in the heap already before the third section. But here all the blanks are already different (because of the number of holes)!
And now attention is the question: how in the third section of the unfortunate guy to understand what kind of workpiece should be processed? Which first came? Of course not. He simply will not be able to make the right choice and therefore will process the first available one. And the right one is somewhere in the middle. Order will be guaranteed expired. Then the client will call when the delivery is already overdue, will collect a commission headed by the foreman and they will go to look for the desired workpiece. This I do not fantasize, I saw it with my own eyes, and more than once. I think that is the case everywhere .
And what to do? - you ask.
Well, firstly to change the motivation system. It should be not from the development of the site, but from the development of the plant . Feel the difference? It’s one thing when your people are motivated to grow unfinished, and it’s quite another when they are motivated to produce .
Well, of course, the load on all areas should correspond to the performance of the bottleneck.
In short, something like this.
Look like that's it. I have not forgotten anything?
Source: https://habr.com/ru/post/209196/
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