ManufIT.com

My passion is to help manufacturing companies make good decisions about manufacturing systems and have those systems provide good value the the company.  I like to refer to it sometimes as “I try to keep people from doing stupid stuff.”  Well today I was too late.

I met with a smaller company today that I have been watching from afar for a while.  They have spent WAY TOO MUCH money on a simple application that they want to help them run manufacturing better.  This application has some functionality that exists in an old FileMaker Pro database application and the task was to bring forward that functionality and add to it.

The developer they hired to write the new application chose Oracle (the free express version) because that is what they knew.  Now the company is between a rock and a hard place because the developer is not done, they are way over budget, the application is not tested yet, and there is more scope they would really like to complete!!!

I was too late!  Tune in next post for what I would have done differently…

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.

At least once a month I have a customer say something like “That is like paying you to do a quote.” Or, “I am not going to pay you to do a quote.” 

MES solutions are among the toughest Manufacturing IT projects out there.  They touch IT, Operations, Automation and Engineering, Quality, ERP, and most of all PEOPLE!  So, approaching a MES project without a plan, some specifications, a few requirements, or at least something written down, is sure disaster.

Here is my house analogy:

You want a new custom home, or at least you think you are ready to embark on the journey.  You are not sure what it is going to cost, but you think you know what you want.  You show up to talk with the builder with no prints, no specs, knowing nothing about the types of cabinets, fixtures, carpet, or appliances that you want, and you want the builder to tell you how much it is going to cost.  You sit down with the builder and start saying things like “we want 3 bedrooms and 3 full-bathrooms.”  Image the builder’s position….do you want granite counters?  Walk-in showers?  Closets the size of small bedrooms?  How is he supposed to help you if you have not defined your requirements?

In the house analogy, this is where the designer and/or architect come into play.  You could also use a builder that does “Design-Build.”  In either case, you typically define what it is you want so that you can get what you want from the final result.  Also, this allows you to go get “apples-to-apples” quotes from multiple builders.

As for MES, most manufacturers don’t know where to start in defining their MES requirements.  And, many vendors are eager to get started on something, so they will start building something for the manufacturer without designing the entire solution.  In our house analogy, this is what I call the Tree House analogy.  If you don’t plan it out up front, your house will start looking like a tree house all thrown together.

Final Suggestions:

• Define your MES Requirements up front - if you don’t know how to do this, call me.
• With your definition in hand, seek input from a few builders.
• Start Small, but with a final design in mind.

We are often asked to help justify Manufacturing Execution Systems (MES) solutions in order to get capital approval to move forward.  This is a monumental task because MES systems are very difficult to justify on hard savings.

One of the reasons MES solutions are hard to justify is they help you with many “soft” improvements.  Deming said “You cannot improve what you cannot see.”  MES solutions help you see what you need to improve, and help you systematize your improvements.  What is that worth?

Here are some practical items you can focus on for your justification:

1. What manual data collection can be eliminated?  What does that cost in real labor?  Not only in the people collecting the data, but those the scrub it, chart it, report it, and debate its accuracy. (Reduces Cost)

2. What “oops” problems could be eliminated with more synergy in the manufacturing process?  Wrong labels on parts or containers, shipping product that had questionable parts/processes, quality spills, adding value to known bad product? (Reduces Cost)

3.  Could you increase velocity or agility if you could manage complexity and proliferation of your products?  Would you still have to hire extra expediters?  Would you have to build the new line?  Would you be able to take on more work? (Increases Revenue)

4.  Could you provide better visibility into your operations for your customers?  What would better customer service do for your relationship with your existing customers?  Would they give you more work? (Increases Revenue)

5.  Have you had a quality spill you can quantify?  What did it cost?  What if you could eliminate or reduce the cost of the next one? (Reduces Cost)

As I write this, I think this post could be turned into a multi-part series…  Feel free to contact me if you need more ideas for justification.

I recently used Elance to make updates to my blog site.  It was a great experience.

There are lots of talented developers in the world just looking for a chance to impress clients and make a decent living at it.  On their site,  you can search for talent that meets your project needs.

Then, once the keyword searches find the companies (they call them providers) that can fulfill your needs, you can then search by Feedback, Reviews, and Hourly Rate.  I personally looked for those with 95% or better Feedback, at least 5 reviews, and an hourly rate up to $20/hour.

I used Candid Software for my first project and was extremely pleased with their work.  Someone once said (I think it was in The World is Flat by Thomas Friedman) “Work will get done where work gets done best.”  I believe Elance has figured this out and has a great way of getting work done.