The “SMART” Way to Deﬁne and Sustain Success
Just-in-time techniques and computer-integrated manufacturing technologies revolutionized the manufacturing industry in the 1990s.
But to ensure structural changes and articulate and implement them has been in the At Wang Laboratories. Inc. based in Lowell, Massachusetts developed the Experimental Process Improvement Challenge (EPIC) method. A just-in-time work cell approach that enabled both reduced lead times, improved quality and increased worker morale. Based on the EPIC experience, factories were restructured worldwide. The results in production were so impressive that these methods have now gained a foothold in many areas of operational organisations. Unfortunately, it has to be said today that digitization requires more than ever smart methods across the enterprise to respond flexibly to ever faster market changes. Digitalization in particular requires independent work teams capable of independently solving and implementing complex tasks. And, if necessary, even bring about a paradigm shift. This means a stronger dovetailing of processes and a holistic knowledge and understanding of work processes by the work teams. These lean teams act like sole proprietors, who also have to know their business as a whole. In order to control EPIC-driven organizations, a management control system with finely tuned performance indicators is needed to ensure sustained success.
Why a new approach
After EPIC was implemented in many companies, managers realized that their previous ERP systems did not provide the necessary performance indicators to enable this information for fine-grained control to make critical business decisions.
Their frustration with the CSF critical success factors and the monthly operating report of the budget manifested itself in their sporadic review of the CSF and financial reports.
It is precisely in this situation that it is important to adjust the key figures in the ERP system and, if necessary, to implement one or the other key figure.
Especially here a targeted and precise procedure is needed to avoid the costs of overriding.
You are welcome to contact us if you are looking for a partner at your side who has already successfully implemented this challenge.