Operational Excellence and Shifting to ERP Systems

Considering that ERP projects are highly sizable investments, it is possible to say that success expectation is also as big as the investment. We had an interview with Ahmet Savaş Göktürk from Login Software with the title of operational excellence for satisfying the expectations.

d​The current period creates a more demanding structure with the changing competitive environment. What do you think about this? 

We clearly see that many companies desire to act in accordance with “simple and quick production” principles in these days when the importance of information increases day by day in order to make our world better and our lives more meaningful. 

Actually, if we understand and apply the true principles we can compete with everyone and even come to the fore. 

Could you tell us your ideas about the issue of ‘Operational excellence’ that plays an active role in the success of ERP projects?

When we analyze Operational Excellence, we can see the importance of the following;

  • Organization of the working area
  • Just in time production
  • Operational competence
  • Product development
  • Supply chain management
  • Management and organization 

Analyzing these main factors and their sub-factors properly and creating “Operational Excellence Culture” in the company give great opportunity for the ERP projects to be successful. 

Is it possible to foresee to what extent these things play roles in the success of ERP projects? 

ERP projects are technologies that transform the data into information that enables adaptation, application, management, and reporting of these processes at the company over the software in some way. That is, if these main factors and their sub-factors are not present at the company or they do not work, ERP project will not achieve the expected level either.

Well, what are the sub-factors of the main factors you have mentioned?

The sub-factors of the above mentioned main factors are;

For organization of the working area:

  • Availability of Standard Operations Procedures in the field (SOP: Standard Operations Procedure)
  • Content Efficiency of standard operations procedures (Content, Timing, Sequencing, Outcome)
  • Competence/culture of doing business according to the standards and problem solving
  • Generalizing the standards into other fields (mold change, planned maintenance, etc.)
  • Awareness and consciousness level about 5S
  • Presence of 3E rule within the system (Easy to find, take and put it back)
  • And so on…

For just in time production:

  • Knowledge level of essentials of simple production,
  • Suitability of the layout to the flow,
  • Presence of task analysis, line balancing, and method studies,
  • Awareness of distribution of operator and sampler’s duties, presence of U cell structure,
  • Concept of takt time and flexible production management,
  • Application level of draw system in production processes,
  • And so on…

For operational competence:

  • Being in written form of the whole process work flows (period / quality handbook)
  • Concept of total quality phenomenon and perception of the quality as the first priority
  • Quality is generated during process approach (quality is under the responsibility of production)
  • Quality assurance and process control trainings
  • Availability of mistake proofing mechanisms (poka or yoke)
  • And so on…

For product development:

  • Customer-centered product development
  • Marketing strategies creating demand
  • Modular product and postponement strategy
  • Product and process optimization
  • Efficient cost/benefit analysis
  • And so on…

For supply chain management

  • Competence of integrated demand estimation/planning
  • Analytical approach during demand estimation process
  • Level of real time gathering and use of data from the market with advanced level software
  • Sharing the production planning data with critical suppliers
  • Tracking the product lifecycle curve (PLM: Product Lifecycle Management)
  • Effective coordination between departments (sales – production – supply)
  • Competence of effective production planning / scheduling

For management and organization:

  • Determination of strategic goals
  • Availability of the effective strategic plan for strategic goals
  • Participation of the middle/upper level management to the strategic planning process
  • Analytical approach during strategic planning decision making process
  • Department based goal/action plans
  • Support of the management
  • Investing in human being
  • And so on…

Could you briefly tell us of the advantages a company may gain about operational excellence when the mentioned main and sub-factors are provided?

Actually, when we analyze all these main and sub-factors, we see that we will adapt a thought system which compels people to think into our company. We will notice that we need to examine and review methods of our present life fluency with a fresh and new vision.

Moreover, we will create an efficient communication platform by adapting these processes to our company and transferring to the ERP system to take place. We will increase the quality of decision-making and create a team that explores new solutions. Thus, continuation of the investments without pausing will be provided by transforming the data that gives companies the opportunity to develop and improve constantly into information.

And from now on, orders will be ranged according to the following categories;

  1. Urgent,
  2. Very urgent,
  3. Extremely urgent,
  4. Do it immediately!