The Sirens’ Song of Enterprise Software
By Mark Edmondson
“Get Lean With Oracle Flow Manufacturing.
Oracle helps companies by eliminating waste
throughout the enterprise.”
“i2 Lean Supply Management
is designed to efficiently manage the execution
of inbound material replenishments.”
“PeopleSoft EnterpriseOne Manufacturing
enables a lean machine:
be a demand-driven manufacturer.”
In Greek mythology, Sirens were part woman part bird. They lived on a rocky island in the middle of the sea and sang melodies so beautiful that sailors passing by couldn't resist them. Following the Sirens’ song, sailors would steer their ships towards them or jump in the water to get closer. Either way, it always ended in disaster on the rocks.
During the past couple of years, the Sirens of enterprise software have been busy writing mythical melodies to lure wayward companies astray during their lean odyssey. Not surprisingly, the result is a chorus of claims about how they hasten the lean transformation of many companies.
But just as Odysseus ordered his men to put beeswax in their ears so they couldn't hear the music as they sailed by, your role as your company’s steadfast captain is to navigate a safe and bountiful course during the lean odyssey. A big rock to avoid is myths about lean “features” from the Sirens of enterprise software. For example, are you considering i2’s “Supply and Demand” solution to implement a pull-based lean logistics process? One of our clients discovered that its “Lean Supply Management” feature did little more than provide the ability to print “Kanban cards”.
And what music has the Oracle of software written for lean odysseys? Their “Flow Manufacturing” solution enables you “to move to a just-in-time (JIT) manufacturing model by confirming raw-materials delivery prior to releasing a manufacturing order.” I’m not making this up. Let’s give them credit for creative mythology about flow.
Unfortunately, many fall victim to the Sirens’ song of enterprise software.
Their briefings are so brilliant and their brochures are so beautiful! Let’s dispel the myths and expose the facts. Most enterprise resource planning (ERP), manufacturing execution system (MES), and supply chain software solutions are oversold, and risk grounding your lean odyssey on an expensive rock. Indeed, have you seen a world-class lean enterprise where daily production is managed by software? We haven’t and we’ve visited hundreds of companies.
Which enterprise software solutions do we recommend?
Our typical answer to clients: Whatever software solutions you already have. Why? It’s typically the least expensive option, and to-date, none of the vendors’ wares uniquely enhance a lean implementation. Our approach for “tailoring” software for a client usually involves turning off functionality that unnecessarily adds waste to a process.
How are the market leaders leveraging technology?
By realizing that the best course for navigating a successful lean odyssey is through committed leadership, empowered people, and eliminating waste from processes. Technology has its role, but don’t sway off course with its Sirens’ song of myths.
Mr. Edmondson is President of LEAN Affiliates, a network of leading Lean Enterprise Transformation consultants across North America. His perspective is drawn from working with over 50 companies as a business process consultant, consulting principal, ERP and supply chain solutions executive, global alliance executive, and enterprise change agent. He earned an MS and BS in Management and Industrial Engineering from Stanford University and a BA in Management and Economics from Claremont McKenna College. He also achieved certification by the American Production and Inventory Control Society (APICS CPIM).
“The Chaos Report” published by the Standish Group shows a staggering 31% of ERP projects are canceled before they are completed. Further results indicate that over 50% of projects cost more than 190% of their original estimates. |
