Using your ERP system to improve on time delivery performance

It's a common problem. You deploy an ERP system to improve your on time delivery performance.  Then, you wonder why your delivery metrics haven't improved.

Implementing an ERP system doesn't immediately mean improved business performance. It can help, but the results aren't guaranteed.

This short article will share with you many common errors that people make with their ERP system. Avoiding these can help you to improve your on-time delivery performance.

Set it up right(!)

This should go without saying. Incorrectly configuring your system puts you on the back foot immediately. This is both easy to happen and easy to resolve. Many times a misunderstanding during the implementation is the cause of the errors.

Reversing the errors is usually enough to remedy these types of issue. The tell tale signs you are looking for is the system behaving not as you would expect.

Manage your processes

Now that you have digital processes, an ERP system doesn't excuse you from managing them. I have seen this too many times. The processes can lose a degree of visibility once they move from a whiteboard to a computer. Loss of visibility is a sure fire way to witness standards degrading.

A simple remedy for this is to introduce a process based Sunrise meeting. You can read more about Sunrise meetings in this article.

Commit to using the system

Half using your system won't help you, it will only consume more of your precious resources. Embracing the system and eliminating your workarounds will allow you to focus on the job at hand.

Safely delivering your quality products and services to your customers on-time is job number one!

Ensure your team are competent

Knowing and using the ERP system in the correct way is vital. Learning how to use the system is one thing, using it competently is another. Ensure that your team know how to use the system, don't assume.

Competence with ERP allows you to become efficient, this often comes from practice. This can increase the focus on delivering on time and improved results will follow.

Focus on your on-time start of processes

After the above points are under control, you can focus on on-time starts. On-time starts tend to lead to on-time finishes.

Many businesses only focus on delivery performance when they near the finish line. Buck the trend. Focus on on-time delivery by initiating your processes on-time. Be the cause rather than grumbling about the effects!

Be realistic about your capacity

Overloading resources is a key failure point for on-time delivery performance. Knowing that you have stretched the business means that you can do something about it. Not knowing can lead to disaster.

Configuring your workcentres with an appropriate level of accuracy is essential. Be realistic about your constraints and then improve from there. Release the natural capacity of your business through improvement projects. Reflect this improvement in your ERP system and improve your on-time delivery rates.

Move to exception reporting

Save time and increase effectiveness by moving to exception reporting.

Stop looking at everything and hone in to the few items that need attention. As you move away from chaos, you can focus on the small issues that can become crises if left untouched.

Taking this approach can overhaul your delivery performance.

Embrace PDCA and CCC

Using tried and tested improvement tools can help you to improve further. PDCA stands for Plan, Do, Check and Act. CCC stands for Concern, Cause and Countermeasure.

Used together, you can improve how your ERP system helps you to deliver on time.

To use these tools you need to:

  1. Capture concerns when you experience events that are sub-par.
  2. Determine what the cause of the experience is.
  3. Agree a corrective action to improve the situation.
  4. Undertake the action.
  5. Review the results you got from the action and evaluate the outcome.
  6. Decide how you want to proceed (do something else, try again, tweak your approach).

Apply the above steps toward your on-time delivery concerns. This will link back to your ERP (at some point) and help improve delivery performance.

Deploying an ERP system can improve on time delivery performance, when mastered. If you want to learn more about Fraction ERP then sign up for a free demo using the form below.

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