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Developed ‘ERP Systems’ Lead to ‘Business Growth’!
Lean CIThe choice between ERP software systems can be derived from different ‘economic‘ and ‘ease of implementation‘ factors. The easiest and least costly option for ERP development is to install ERP software ‘as designed‘ within ‘user-configurable‘ parameters. The resulting database information can be a ‘gold mine’, though the software can be limited by ‘generic‘ data types. Another approach would be to develop ‘custom ERP software‘ to store specific data information. This focus is more costly, though this ‘developed‘ ERP software can deliver better efficiency results. The choice between the two ERP options is a combination of ‘capital improvement budgets‘ and ‘time required‘ for system implementation. Still, before a choice is made, a thought should be given to the amount of ‘clarity‘ which will be delivered from the ERP System and the resulting business decisions that can be derived from the ‘process data‘.
Many large organizations have the resources required to consider custom developed ERP system software. Though, small to midsize companies may have an advantage and a choice from a ‘wide-array‘ of ERP software systems on the market. (Luckily, the number of ERP software options from entrepreneurial developers is ‘robust‘!) Again, there are factors to consider. The advantage of a smaller less robust ERP software system is that it can be less costly, more easily installed and deliver 80% of desired data metrics. Plus, another advantage of a ‘smaller ERP system‘ is that the ‘faster‘ to ‘business self-sufficiency‘ likely increases the chance of business survival. Large ERP systems require ‘economic means‘ and ‘time‘ for investigation, development, integration, and training. Another factor is that the ‘required‘ data may be a ‘moving‘ target. As business develops and products change, ERP systems may need to adjust to deliver new data metrics. ‘Smaller’ ERP Systems may also have the advantage of ‘metric adjustment‘ as well.
The main ‘Lean‘ benefit of a well-defined ERP System is that the system needs to deliver ‘clarity‘ of ‘Key Performance Indicators‘. This clarity is a result of ‘mined‘ data which can deliver efficiency and quality insights. Though, it is important to know ‘What‘ data to acquire, ‘How‘ that data is ‘Interpreted‘ and then ‘Implemented‘ into your ‘business strategy‘. ERP System data is essential to deliver ‘expected’ customer ‘delight‘. (Why else would someone purchase your product?). ERP system development is the ‘hidden‘ Lean essential to a well-run ‘Lean‘ organization.
Normally, the focus of ‘Lean‘ is on the ‘Human Factor‘ side of organizational efficiency. This important ‘Human Factor View‘ of Lean is supported by the ‘Less-Visible’ ‘ERP System‘ backbone which allows ‘semi-automation‘ and retrieval of vital ‘process data‘. Lean ERP systems directly affect an organizations ‘Competitive Advantage‘. Efficient ‘business system data‘ is the ‘deliverable‘ of a well-developed ERP System and the main focus of BPI (Business Process Improvement) which leads to the ‘Holy Grail‘ of business: ‘Business Growth‘!
Todd Adams
OBR Optimization Engineering: Lean Six Sigma CI, ERP Software Development, Quality Systems Enhancement, Business Process Improvement, CI Project Work. www.OBREngineering.com; POC: Todd Adams, Todd.Adams@OBREngineering.com; (424) 241-0290.
As the Famous Sales Guru Grant Cardone says, 10X your OBSESSION!
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Kanban ‘Use’ for ‘Business Growth’!
Lean CIThe main benefit of this JIT Kanban system focuses on aligning part inventory levels with the ‘Rate of Demand’ set by the customer which is translated into the ‘Heartbeat of Production’ and accompanying inventory ‘Part Levels’.
The second ‘Kanban’ approach involves an ‘Upper-Level’ operations view of the ‘Flow of Work’ which utilizes a ‘Kanban Board’ to visualize ‘Stages of Work’. ‘Service’ and ‘Knowledge’ (software development) work is often optimized with this type of Kanban system. (Also known as SCRUM Development using the ‘Agile’ production philosophy).
In this ‘Kanban’ system, a ‘Master Controller’ addresses ‘Production Issues’ at each stage of product development. This ‘Operations View’ optimizes ‘Work Flow’ with available ‘Work Capacity’ and allows the ‘Master Controller’ to ‘Spot Bottlenecks’ and adjust as required. The ‘Master Controller’ acts as the ‘Point-Man’ to optimize production of the ‘Development Team’. The ‘Customer’ is represented by a ‘Product Owner’ who represents ‘Stakeholders’ and the ‘Voice of the Customer’. A ‘Kanban Board’ allows a ‘Visual’ to schedule and deliver ‘Stages of Work‘ required for efficient product development.
Each of these Lean ‘Kanban’ approaches to ‘Optimization’ focuses on the efficient delivery of parts and products from Kanban systems which delivers ‘PRODUCTION CAPACITY‘ and ‘BUSINESS GROWTH’!
Todd Adams
OBR Optimization Engineering: Lean Six Sigma CI, ERP Software Development, Quality Systems Enhancement, Business Process Improvement, CI Project Work. www.OBREngineering.com; POC: Todd Adams, Todd.Adams@OBREngineering.com; (424) 241-0290.
As the Famous Sales Guru Grant Cardone says, 10X your OBSESSION!
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Why Use OEE? Does OEE Lead to Business Growth? (Yes!)
Lean CIThe OEE component ‘Availability’ is defined as the percentage of scheduled time that an operation is available to operate. This is a measurement of ‘Uptime’ and excludes the effects of ‘Quality’, ‘Performance’ and scheduled ‘Down Time’. ‘Performance’ (also known as ‘Production’) measures the ‘Speed’ of a work center as a percentage of the WC’s ‘Designed Speed’. Performance excludes the effects of ‘Quality’ and ‘Availability’. Performance can be calculated as (‘Parts Produced’ * ‘Ideal Cycle Time’/ ‘Operating Time’). The ‘Quality’ portion of OEE represents as a percentage of ‘Total Units Started’. This ‘Quality Yield’ excludes the effects of ‘Availability’ and ‘Performance’. As a calculation, ‘Quality’ = (‘Units Produced – ‘Defective Units)/ (‘Units Produced’).
What factors ‘Contribute’ to the three OEE areas of Availability, Performance, and Quality? For Availability, it is the ‘Planned Down Time’ and ‘Equipment Breakdown Time’. For Performance, the factors affecting OEE are ‘Minor Stops’and ‘Speed Loss’. Quality is affected by ‘Production Rejects’ and ‘Rejects on Start-up’. An increased OEE score can be obtained from specific ‘Counter-Measures’ to reduce to ‘Effects’ of these factors.
‘Special Circumstances’ can make the OEE less ‘Valuable’ as a ‘Performance Metric’. One circumstance could be a variable cost in operation of the equipment. Another might be a significantly stringent ‘Quality’ metric which could skew the OEE score. (i.e. A system where the Quality cost of error is significantly more a factor of effectiveness than either ‘Performance’ or ‘Availability’).
Still, with these exceptions, the OEE metric as a Key Performance Indicator can deliver a better performance which leads to greater capacity. The innovation of products to fill that ‘Capacity Void’ leads to sector ‘Domination’ and BUSINESS GROWTH!
Todd Adams
OBR Optimization Engineering: Lean Six Sigma CI, ERP Software Development, Quality Systems Enhancement, Business Process Improvement, CI Project Work. www.OBREngineering.com; POC: Todd Adams, Todd.Adams@OBREngineering.com; (424) 241-0290.
As the Famous Sales Guru Grant Cardone says, 10X your OBSESSION!
View Article on LinkedIn!