What is ERP (and Why it’s Profitable to Find Out)
ERP systems are a great tool, especially for the complex manufacturing environment of a cut-to-size stone company. But as in any piece of equipment, you have to make sure it’s the right tool for the job and that you are an educated buyer.
Click image to enlargeMake sure you are happy with the product as shown in the demo. DO NOT let the salesman tell you “oh, we can fix that,” or “we’ll take care of that during the implementation,” or “the system can definitely be configured do that for you.” Unless it’s a custom feature that the software company will develop for you in the future, ask them to demonstrate specific features for you. Don’t make the mistake of not asking them prove what they’re promising is possible.
Look for a scope-of-work document from your vendor. Does this document identify everything that you want the system to do? Does it identify the costs, the users, installation, responsibility and other details for data migration, training and future support? These are all items that your vendor should discuss with you and document for you.
Be dedicated to making the project a success. Assign a project manager to the project who’ll understand your requirements for the system. People generally don’t like change until they see for themselves how and why a proposed change represents an improvement. People are also generally resistant because they already have a lot of work to do and we seem to be asking them to do more work by asking them to learn a new system.
And the truth is that it is more work, but only for a short time while learning a new system. Management needs to understand that employees must be given the time and atmosphere to learn a new system well.
In the end, the company benefits because when systems are better organized, employees are more productive and happier, there is capacity for growth without sacrificing quality which results in the company being more profitable.
Alan Barr is an industrial engineer with 25 years of experience in the custom precast and dimensional-stone industry. Alan founded THR Cast Stone & GFRC, which for 20 years specialized in the duplication and replication of historic stonework for building façade restoration in New York, Chicago and Philadelphia. He currently resides in Vermont, where he worked in the dimensional-stone industry for Vermont Stone Art. He is now managing partner at PerfectJob ERP Systems.
