The software industry is wrong
The software industry gives you the false impression that you can use only the software pieces you need to run your manufacturing company. Most companies offer module pricing and a grab bag of isolated planning tools and shortage reports. Solutions and tools are targeted to the individual user at the expense of the overall organization.
Using pieces leads to planning silos
Using a piecemeal approach to manufacturing inevitably leads to planning silos. Isolated planning tools can work for one individual or department but have an adverse affect on the company as a whole.
We have seen the classic silo scenario play out in many companies over the years. A planner comes up with their isolated production plan. Purchasing agents utilize a variety of their own planning tools with their own rationale for their quantities and dates. The sales department needs to quote shipment dates and order progress, so they develop their own procedures. Production workers tend to sequester and horde materials and often fall back on job linking to manage their jobs workflow. Accountants implement costing procedures that often conflict with operations. The end result are multiple planning silos that are very hard, if not impossible, to coordinate.
Silos lead to increased employee count and overhead
No amount of training or custom programming can make up for the inherent flaws of isolated planning methods. We have seen company after company throw employees and money at their planning silos to try to improve their business.
There is an easier way
We see a lot of talented people making heroic efforts to improve their various planning silos in their companies. There is a strong resistance to change and people do not want to give up their silos. This is understandable, because each individual is pretty happy with their part of the equation. The path forward is to commit to the DBA demand driven system that provides a proven solution that works across all departments.
DBA unifies your organization with the goal of increasing throughput
All activities in every department in your company will be focused on the common goal of reducing time to shipment and increasing throughput and cash flow.
- Time to Shipment Targets are agreed upon by your entire company
- Selling products you manufacture auto-calculates your line item requirement dates that drive MRP
- MRP generates Jobs and POs in response to firm demand, eliminating the “bull whip” effect
- Job Release ensures you have materials to start production and auto-adjusts your schedule
- Priority based activities ensures you meet your requirement dates and ship on time
- Late Supply and Picking Manager screens improve customer service and communications
- Inventory and WIP is auto-adjusting and does not require month end procedures or counts