7 Warning Signs You Need to Heed to Improve Your Manufacturing ProcessesExamine these seven aspects of your business and take action so you can improve your manufacturing processes before the competition gets ahead of you.

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So all’s ticking along smoothly with your business . . . Or is it? Take some time to examine seven key aspects that need to be addressed if you are to keep moving forward.

Your technology is starting to show its age

Your business is changing the way it works

Your business is enjoying rapid growth

There’s increasing frustration from users

of your software

Customer complaints are on the up

Your IT manager is approaching retirement

Your current software supplier is switching

their focus away from firms like yours

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01. Your technology is starting to show its age ERP has played a key role in improving manufacturing processes for over three decades and it’s come a long way in that time. But many businesses are still making do with the software they bought a long time ago when demands and technology were different.

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The financial crisis of 2008 deferred many businesses from replacing ageing systems. This disruption to the natural buying cycle means many manufacturers are today running truly dated ERP systems. Operators are having to ‘make do and mend’ or find shortcuts to bypass system gaps.

Half of ERP users are using a release at least two versions behind the current release, meaning their applications are at least four years old. Four years is a long time in technology.

01. Your technology is starting to show its age ERP has played a key role in improving manufacturing processes for over three decades and it’s come a long way in that time. But many businesses are still making do with the software they bought a long time ago when demands and technology were different.

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02. Your business is enjoying rapid growth Bulging order books bring frantic activity, where increasing inefficiency is masked by rising output. Business might be profitable, but nowhere near as profitable as it could be.

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Manufacturing output in the UK is forecast to grow by 0.1% in 2013, 3% in 2014 and 2.4% in 2015.

2013

0.1%

3%2.4%

2014 2015

02. Your business is enjoying rapid growth Bulging order books bring frantic activity, where increasing inefficiency is masked by rising output. Business might be profitable, but nowhere near as profitable as it could be.

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03. Customer complaints are on the up Today’s customer is more demanding than ever. Add to that the challenge of working with manufacturing processes designed for the last decade, or even the last century, and it’s no surprise if your customer satisfaction levels are falling.

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Social media means negative feedback is becoming more public.

One in five people now post reviews online.

More than one in ten will complain through social media.

03. Customer complaints are on the up Today’s customer is more demanding than ever. Add to that the challenge of working with manufacturing processes designed for the last decade, or even the last century, and it’s no surprise if your customer satisfaction levels are falling.

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04. Your current software supplier is switching their focus away from firms like yours

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Every ERP vendor has its sweet spot in the market, perhaps firms of a particular size or industry. If your firm has moved outside this spot, or your supplier has changed their focus, your future manufacturing needs could best be met by someone else.

04. Your current software supplier is switching their focus away from firms like yours

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05. Your business is changing the way it works You’re moving into new markets. You’re expanding your product range. You’re selling to different customers or buying from new suppliers. You’re adapting to newer technologies, to changing consumer tastes, to updated regulations.

You need to be continually evaluating your business and looking for ways to improve your manufacturing processes in today’s marketplace.

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We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction.Bill Gates

05. Your business is changing the way it works You’re moving into new markets. You’re expanding your product range. You’re selling to different customers or buying from new suppliers. You’re adapting to newer technologies, to changing consumer tastes, to updated regulations.

You need to be continually evaluating your business and looking for ways to improve your manufacturing processes in today’s marketplace.

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06. There’s increasing frustration from users of your software

The people who operate your ERP system can often spot opportunities to improve your manufacturing processes but are held back by increasingly antiquated functionality. Failure to move forward risks losing their goodwill as well as endangering profits.

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It’s hardly possible to build anything if frustration, bitterness and a mood of helplessness prevail. Lech Walesa

06. There’s increasing frustration from users of your software

The people who operate your ERP system can often spot opportunities to improve your manufacturing processes but are held back by increasingly antiquated functionality. Failure to move forward risks losing their goodwill as well as endangering profits.

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07. Your IT manager is approaching retirementLike ERP systems, IT managers can’t go on for ever. Because they are an integral element in your manufacturing processes, careful planning is needed to ensure the change minimises disruption. At the same time, this change also presents an opportunity for improvement.

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Retirement of baby boomers in the next few years will create a workforce shortage.

75% of firms believe these shortages will impact on their ability to expand or improve productivity.

07. Your IT manager is approaching retirementLike ERP systems, IT managers can’t go on for ever. Because they are an integral element in your manufacturing processes, careful planning is needed to ensure the change minimises disruption. At the same time, this change also presents an opportunity for improvement.

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Things to consider:

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Things to consider:

The typical lifespan of an ERP system was five to seven years but 2008’s downturn disrupted the natural replacement cycle.

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Things to consider:

The typical lifespan of an ERP system was five to seven years but 2008’s downturn disrupted the natural replacement cycle.

Half of ERP users are using a release at least two versions behind the current release.

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Things to consider:

The typical lifespan of an ERP system was five to seven years but 2008’s downturn disrupted the natural replacement cycle.

Half of ERP users are using a release at least two versions behind the current release.

Manufacturing output in the UK is forecast to grow.

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Things to consider:

The typical lifespan of an ERP system was five to seven years but 2008’s downturn disrupted the natural replacement cycle.

Half of ERP users are using a release at least two versions behind the current release.

Manufacturing output in the UK is forecast to grow.

When did you last re-evaluate the ERP system’s value to your business, both for current and future growth?

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Part

01

50 Shades of ERP Growing Pains

E R Paynes

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50 Shades of ERP - Growing Pains

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