Automation software implementation done right is a competitive advantage

Editor’s Note: The following column by Ray Haggar, vice president of operations, Beumer Corporation, is part of Modern’s Other Voices column. The series features ideas, opinions and insights from end-users, analysts, systems integrators and OEMs. Click here to learn about submitting a column for consideration.

———

Automation has become a benchmark in supply chain management and execution, with systems optimization receiving considerably more attention as eCommerce and omni-channel distribution continue to take the industry by storm.

WMS, WES and WCS are watchwords in a world where same-day delivery and down-to-a-minute order changes are everyday expectations. Conveyors have become commonplace along the supply chain, but an integrated software system to control and optimize conveyor operations is key. And designing it correctly is critical.

Software implementation done right is a competitive edge because effective implementation leads to greater customer satisfaction. Poorly conceived and implemented systems can hurt more than the status quo. So, what are the steps to ensure that your software implementation will help you achieve your goals?

● Pre-project benchmarking and risk analysis
● Solid project methodology and management
● Training
● Measuring hard data, as well as the softer items

Pre-project benchmarking and risk analysis
A clear vision of the end is a requirement for success, and benchmarking your existing operations will have you ready to measure changes after implementation. It’s important to map out your formal and informal processes, including the parts of your distribution process not connected to your present systems.

As you analyze your existing distribution processes, consider them in the context of your organization’s objectives. Review your internal and external circumstances and design your systems in anticipation of where your operation is going in the future. Don’t be afraid to use industry experts to review trends, define state-of-the-art solutions and recommend best practices.

During benchmarking, consider the technical, commercial and stakeholder risks of the project. If your implementation is going to be completed on time and on budget, you need to conduct a thorough analysis on the front end to assess what could prevent that from happening—things that might affect the budget, scheduling and quality of the project.

For example, there may a technology risk because you’re introducing something new that has never been done. All stakeholders—operations, IT, finance—need to be on board. If not, it can derail the project. Examine potential risks early in the project and work on ways to mitigate them.

Another risk example is workforce consideration. Do you have the workforce to maintain the system once it is implemented? Does your current staff have the skill sets? Is your workforce consistent—at least your core staff or supervisors?

Solid project methodology and management
Once benchmarks are determined, it’s time to select your project manager and methodology. The PM needs to be a strong leader and a good communicator who understands the needs of your business and who can work with all areas of your organization. My experience shows that the operations group should lead the team because it is the operations group that must live with and measure the results of the project. However, all parts of your business from IT and engineering to finance and legal should be represented on the project team, including a noticeable display of executive commitment. And finally, make sure that your software provider has a skilled project manager with experience in your industry.

Next, having a solid project methodology process such as Stage-Gate is key to a successful implementation. From sales to system design and fabrication, it is important to evaluate every stage of a project before moving on to the next. This series of stages and gates uses checklists and signoffs on drawings, functional specs and timing to improve communication and collaboration during implementation.

A methodical project management process and the development of a detailed functional description will help your project committee define expectations of the software implementation and how your operations, IT and maintenance teams will work with the system. This functional specification will define the deliverables. It also will assist in outlining what is included and, perhaps more importantly, what is not included in the project’s scope.

Workforce training
You can build the perfect integrated system, but a lack of training on its use will limit or prevent its effectiveness. Therefore, training needs must be considered as part of the project plan. The results expected from a carefully designed process, whose implementation is managed well, can be delayed or reduced by inadequately or poorly planned training.

The most compelling example of this comes from a customer that built two new facilities—one in the Southeast and one in the Southwest. The centers were identical in equipment and software, but production at the Southwest facility was through the roof while productivity at the Southeast facility fell well below expectations. The only difference was in the training, management and buy-in of the two staffs.

A clear vision of what you want to achieve should be communicated from the beginning, making sure that everyone in your organization—from the director of IT to the warehouse manager, understands the goals of the project.

Hard and soft measurements
Our customers talk a great deal about productivity and improving throughputs and efficiencies, but many of them don’t have the best ways of measuring data. What are the specific items that you wish to measure? Productivity? Accuracy? Throughput? Determine what they are and plan at the start of your project how you intend to measure them.

It is natural to set targets for metrics that directly correlate to your day-to-day operations, such as reducing the number of “touches” or “labor productivity,” but you should also target broader revenue or profit goals. Consider measuring how often orders are shipped completely and accurately, or perhaps the reduction in an order’s cycle time as well as your reduced labor costs.

Remember that your measurements must be tied to how you incentivize or evaluate your workforce. People tend to react based on what you measure; therefore, there may be unintended consequences. For example, you may measure on financial and profitability metrics that hurt customer satisfaction.

Determine how you intend to measure your results as you design your software solution. This is one of the most overlooked points when implementing changes to your distribution processes. Without taking the steps to identify how you will measure your results, you will be unable to measure your success or to make the adjustments necessary as circumstances change.

Ensuring project success
Applying strong project management principles and focusing on performance measurement as an integral part of the design will help you avoid making software changes in lieu of fixing broken distribution processes. Remember that a project that comes in on time and on budget is not successful if it does not deliver on its promised goals.

Ensure the success of your project, and perhaps your business, by taking a tough look at how you operate today, putting in place the tools you need to measure your success, and applying the discipline to stay focused on why you began the project in the first place.