Integrating Your ERP
Why should you integrate an ERP System into your business? Big question eh. If you already launched headlong into the project or you are considering the leap, here are a few things to think about.
Before I get started let me give you a little background. I spent over 20 years of my career in the automotive parts manufacturing business. My customers (Japanese transplants or as they are now known as the New Domestics) taught me patience and introduced insights that were eye-opening. One would think that the Japanese mindset would be to automate everything and have all data electronic. While this is true often it is not true in all situations.
How does this relate to your ERP System? Companies like Toyota realize that tracking the gigabits of data is only useful if it is distilled into a usable form to drive daily decisions. As you begin to see data and reports from your ERP System you will get excited and want more. Well, more is not always better. I challenge you to stop and think about what kind of data you “need” to make good business decisions. Is it necessary to see hourly reports on every employee’s productivity? Start with the basic measurements and build the use of information produced by your system. Understand the transactions sets and how they interrelate. Once you understand the basics dig deeper.
Another key thing to remember is how your employees react to you tracking all activity and part completions. Are you the next “Big Brother”? Share “why” you are implementing an ERP System not just what they need to do. Get your employees involved and let them be part of your process. If they help plan the battle they won’t battle the plan.
Once use of the system begins it is important to get data back in the hands of the people imputing the data. This way they begin to realize the importance and usefulness of their efforts to use the system. The easier a system is to use the more it will get used. It is imperative that the human element is included in your ERP launch. The ultimate success of your system is dependent on a great ERP Software and effective use of the system.
I worked for a billion-dollar part supplier with a top 3 ERP system. The software was expensive, powerful and very complex. It had the capability of reporting anything your heart desired but, very little data ever made it into the daily decision-making. Why? It was difficult to learn that most people stopped trying. In many ERP implementations, the system gets blamed for the failed launch, not the people involved. Plan your launch, involve your team at all levels and ask for help along the way. Implementing an ERP Software is not just an install of Excel where once installed anyone can understand how it works. Your system will continually change and evolve like any process you run on your manufacturing floor. Be patient and always remember to ask yourself, why do I need this data and how will it help me improve my inventory accuracy, my efficiency and or my bottom line?
Our Realtrac system went live about a year ago. We manage our entire business through the system and I don’t know how we lived without it. I reviewed virtually every ERP system before deciding on Realtrac. Key things I looked for were ease of use and progressive development of the software going forward. Realtrac has features no other ERP software has. My favorite is the ability to add documents to any job, quote P.O. or RFQ without leaving the system. You just drag and drop a file to the screen you select and it becomes attached. All other systems require a data structure in the background to make document retrieval possible. No difficult data directory structure to manage, with Realtrac the document is visible on the screen and only one click away. More exciting features are in process which will continue to make Realtrac easy to use and more powerful than ever.
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