Fast Track Manufacturing has been busy investing in new information technology.
They recently hired an experienced information systems executive and carefully
evaluated the latest packages on the market. They have selected an integrated
ERP system with all the bells and whistles. The conversion plans to the
new software are moving along with lightning speed.
Fast Track ready to take advantage of this cyberspeed technology? Are they
ready to turn on this new capability and fly at Mach 2? They think they
are. But are they?
Track has many veterans in executive and managerial positions. As I listen
to the CEO talk about the "experienced" staff, I glance across the office.
Engineers are adjusting their T-Squares and pulling slide rules from their
belt holsters. Secretaries have bottles of Whiteout and a box of carbon
paper next to their manual typewriters. Accountants are adjusting their
green eye shades and arm bands. Inventory planners are inserting new panels
into the Kardex files. And the corporate pilot is outside wearing his leather
helmet, goggles and hoisting a windsock. Everyone is experienced all right
... experienced and comfortable in 1950's technology. The company is trying
to compete at turn-of-the-century speed with new tools and old mindsets!
Incompetent people? Probably not. Lack of the necessary knowledge to utilize
new technology? Definitely!
this profile is admittedly an exaggeration, the scenario isn't that far
off. Today, many companies are spending big bucks for new, state-of-the-art
ERP software while clinging to their old outdated, but comfortable practices.
And they often spend millions to modify the software to perpetuate these
Software vs. Business Process Compliant?
Y2K compliance has been a major factor for spending six figures for new
ERP software. But the opportunity for improving business performance is
a more effective Supply/Demand process .... resulting in delivering on
time, defect free, innovative customized products in a shorter lead time.
Yet, it's still business-as-usual after the software is installed. While
the tools are new, the business practices for their Supply/Demand process
are the same. Sales, manufacturing, new product launch and financial plans
are not integrated. All are floating on separate islands. Inventory records
and bills of material are still inaccurate. Sales forecasts are not credible.
Hot lists and expediting continue to be the tools of choice. Late shipments,
excess inventory and high costs are the result.
software? We think not! The problem is failure to change the fundamental
business process. They fail to run the business differently and overcome
the root causes of the problems. Boot Hill is crowded with the victims
of this common problem. Your company doesn't have to be the next victim.
Path Out of Your Comfort Zone
companies have a lot of hardworking, loyal and intelligent people. Surviving
depends on wholesale changes -- major paradigm shifts -- in the processes
used to run the business. The challenge is to move people out of their
comfort zones and business-as-usual practices. And to get them to do it
willingly and enthusiastically! In short, make major changes in how they
do their jobs. New tools and old practices will only achieve old results.
Change is an inevitable necessity.
don't resist change. They fear failure.This fear of failure is the major
cause of the business-as-usual mindset.
do we overcome this fear and get people to enthusiastically try something
new and take risks? The answer starts with building confidence by increasing
their understanding of new business process technologies. What do they
need to understand? R. D. Garwood, Inc. has developed a simple evaluation
tool to answer this question.
worked closely with many leading-edge companies and observed their Best
Practices and the principles those practices are based on to improve their
Supply/Demand process. We have drawn on this experience to develop a tool
to help you determine the readiness of your staff for effectively using
ERP software. We have assembled a list of topics, concepts and techniques
that key leaders in your organization need to understand to make the Supply/Demand
process a high-speed performer. The objective is to use this tool to evaluate
your company's level of understanding of these new concepts and tools.
to request your complimentary ERP Readiness Test. We will email it to you