A medium-sized company that had a very good reputation as a supplier of important components for high-volume manufacturers (OEMs) had introduced a new enterprise resource planning (ERP) system. There were considerable problems with the implementation, which ultimately even caused a 2-week delivery failure. In this situation, the current interim manager - then still in a temporary permanent position - was hired as a troubleshooter to get the ERP system up and running as quickly as possible. He was also tasked with aligning the supplier's key processes with Industry 4.0.
Involved in the introduction of a new ERP system after complete failure
The parent company had specified the ERP system from the head office. Important issues such as the availability of local language consultants, access to local programmers to implement the necessary software adaptations or the availability of the latest advanced software tools were not addressed. Over the course of the project, changing consultants from different countries, some without German language skills, repeatedly tried to prepare the introduction of the software.
After a good year, the top management ordered a hard "go live". This led to major difficulties. In the first two weeks, not a single product left the company. In their distress, the employees worked through many processes manually. After just a few days, the backlog of orders had grown enormously.
Information structures examined in detail and project team formed
There were large gaps in all areas of the ERP system. Customers could no longer rely on the information. The company was unable to map order planning, inventory management, production planning and other processes. Other important elements of an IT system, such as business intelligence, turnover, sales or profit and loss calculations, were not possible at all.
In order to resolve the muddled situation, the interim manager's first step was to gain an overview of the interrelationships. He recorded what was working and at which interfaces the information structure was stuck. In many places, he delved into the details to identify where the existing system was functionally or logically incorrect and which processes should actually be implemented.
Not least, he focused his attention on which of the people involved were defending the existing structure and who he could expect to tackle weak points openly and cooperatively. Finally, the interim manager formed a project team made up of specialists from the individual departments. It turned out to be expedient to involve the people working with the system in particular. At the same time, the interim manager succeeded in finding German-speaking consultants and engaging them for the duration of the project.
ERP system successfully made operational within a short period of time
Without correctly recording the stocks of raw materials, consumables and supplies or finished goods, including planned receipts and issues, order planning is virtually impossible. The interim manager therefore prioritized the inventory management work in the ERP system.
First, he initiated an interim inventory to smooth out the stocks. He then worked through individual orders in detail together with the project team and the consultants. In this way, he identified system errors, which were immediately rectified and checked for the effectiveness of the corrections using the next orders. After just 2 weeks, the system was working stably. The company was able to deliver again and was able to rebuild lost trust with its customers.
Validating the processes in the ERP system was a major challenge for many areas of the company. It was important to ensure the functionality of the individual processes step by step, carefully and in a focused manner, despite high time pressure. The sales organization and top management were particularly challenged during this time to communicate real possible delivery dates to customers.
Introduction of Industry 4.0 elements such as production-supporting software
Only with the stable ERP system was the interim manager able to introduce further elements of an Industry 4.0 culture. These included Kanban, VMI, detailed planning and business information. Further projects were based on an in-depth analysis by those affected, a critical analysis of all data structures by all departments involved and comprehensive test phases for which copies of the current system data were used. This enabled the interim manager to introduce additional elements of production-supporting software that accompanied important assembly processes on screen.
Schedule agreed for the secure introduction of future IT enhancements
In order to avoid similar difficulties in the future as with the introduction of the ERP system, the supplier now has a schedule for IT enhancements with the following steps:
- Involving stakeholders in the software selection
- Analyzing the data and interfaces of the existing system
- Clarifying whether program adaptations are possible
- Collaborating with local language consultants/local proximity to consultants
- Working with the entire project team
- If necessary, involving the works council in good time.
