7 Warning Signs You Need to Heed to Improve Your Manufacturing Processes

Posted by Paul Bywater on Thu, Apr 17, 2014

Examine these seven aspects of your business and take action so you can improve your manufacturing processes before the competition gets ahead of you.

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.

1. 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.

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.

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.

2. 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.

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

3. 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.

Social media means negative feedback is becoming more public. One in five people now post reviews online, while more than one in ten will complain through social media.

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

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.

5. 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.

“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

6. 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.

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

Lech Walesa

7. Your IT manager is approaching retirement

Like 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.

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.

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?

Need some pointers to help you identify whether your business could be doing better with a new ERP system? Download our free eGuide: ERP Project Toolkit: Do you need ERP? A Growing Pains Checklist

ERP Project Toolkit: Do you need ERP? A Growing Pains Checklist

Topics: improve manufacturing process