ManufIT.com

It was announced this week…

http://www.mbtmag.com/article/CA6570888.html?nid=3436&rid=1258896918

SAP to buy Visiprise.  Those of us in the business knew it was coming at some point, and it happened.  What will be really interesting is to see what this does to the relationships SAP has with other key players in the industry like Camstar, Apriso, Wonderware, Rockwell, etc.  All of these companies have some type of technical or strategic relationship with SAP so they can all say they can “connect to SAP with their MES solutions.”

So now what?  It was hard to argue with a customer that says something like “I spent $XXM on SAP to run my business and if I can leverage that investment to help me run my operations better, that is what I am going to do.”  In the mid to long term, it is going to be very hard to convince a company to use a different MES solution other than Visiprise if they are an SAP user.

I have often wondered who is going to “win” in the MES space - ERP or the Automation vendors.  This move would appear to be a swing in the direction of ERP winning the battle for MES.  I have been silent on posts for a while, but this will provide some good thoughts in the upcoming weeks.

I am constantly reminded that with risky projects, new ventures, or unknown territory that it is smart to start small and build on successes - especially when there are technical challenges.

With MES projects, there are so many factors.  I walked into our conference room yesterday and saw our guys working on a quote for a customer.  The list of risks they were talking over filled on whole white board.

We keep getting taught this lesson, but we need to start small, get something working very solidly, and then move on from there.  This approach lessons the risk for our customers and our team.

There is no substitute for good requirements, good specifications, and a good selection process in any IT project.  Especially those projects that are complex and touch so many people and disciplines, like MES projects.

I often liken MES projects to building a house.  It isn’t enough to go to a custom builder and give them requirements like this:

• 5 bedrooms
• 4 full baths
• 3 car garage
• 5,500 square feet
• Oh, and we want this to be our dream home.

NO, NO, NO!  We all know that a builder would laugh you out of his office and say, “Come back with some architectural blueprints, some specifications, and a budget.”  Even if the builder was a Design Build firm, you would expect the clock to start then, and to pay for the design of your new home!

However, so many times I see companies trying to do the same thing with MES projects.  Requirements go something like this:

• OEE
• Tracking and Genealogy
• Reporting (including drill-down and ad-hoc reports)
• Schedule dispatch
• Label printing
• NO, NO, NO!  There is no way the customer is going to get what they want.  There is no way they are going to get an apples-to-apples comparison from different vendors.

In coming posts, I will explore how manufacturing companies can do a better job of laying out requirements.  Who knows, maybe we will even post some templates!

I read all the time that the “surveys show that ERP systems are the key to improved corporate performance.”

I have a slightly different opinion.

While I believe that standardizing, condensing, purging and streamlining can enhance business performance; I don’t think implementing an ERP system is the cause of all of these changes - and therefore improvements.  I think companies that chose to replace their legacy system with a modern ERP solution, are improving their business in many ways besides focusing on the ERP implementation.  Lets look at some other possible factors:

1. Companies that put in new ERP systems are probably already making money.  Most struggling companies don’t say “lets put in a new ERP, that is our key to turning this thing around.”

2. Companies that put in a new ERP system are improving many parts of their business and the support of a modern, consolidated solution helps in those improvements.

3.   This is just a hunch, but most people in leadership that choose to implement a new ERP system have done it before.  It happens, but I’ll bet it is rare to have the legacy leadership choose to move away from the legacy systems.  More often, there is a change in leadership, ownership, etc. that leads to these changes.

I believe modern systems can definitely have positive affects on the business.  However, I think the positive performance of these companies due to many factors.

There is a debate brewing about wether ERP or the large automation/software vendors like Rockwell, GE Fanuc, Siemens, and Wonderware are going to “win” in the MES space.

I would be curious to hear what everyone thinks about this?