For many manufacturing organizations, a business process improvement, or BPI project can seem somewhat daunting. While investing in a BPI project can incite feelings like fear-induced paralysis, it does so because of its importance to every company, no matter the size or structure. It is the driver of business performance.
At Ultra, our first step in the BPI process is to identify the areas of each respective company that will yield the largest impact on performance improvements.
In our experience, these areas usually consist of one to three main categories. They are the leverage points for improving business results. This phase of the engagement gets underway even before the ERP selection process.
BPI Project: In the Field
As an example, Ultra Consultants recently teamed up with a North American-based food manufacturer. After thorough evaluation, our team identified two areas that would benefit most from a BPI initiative: inventory management and demand-driven production scheduling.
During the evolution from current state to future state mapping, we confirmed the changes to the production scheduling method and dynamic control of inventory replenishment would be the main focus of our endeavors.
In regards to production scheduling method, we decided a change from a “push and promote” method to a “position and pull” approach was necessary. In other words, we agreed the company would benefit from a production philosophy based on actual demand with less reliance on forecasted demand.
We also determined that inventory (both raw materials and finished goods) would benefit from a dynamic buffer replenishment calculation based on actual demand and production lead time by SKU with a factor for variability. The penetration of these buffers by production orders and customer orders drives the purchase of raw materials and the production schedule.
Our team made sure to keep these BPI areas a priority throughout every stage of ERP software selection and implementation to make sure that improved business performance results are achieved.
BPI Project Next Steps
To move your organization toward an effective BPI project, download this informative white paper entitled: “A Roadmap to Business Performance Improvement.” The timely information lays out a step-by-step guide to drive BPI initiatives at a manufacturing or distribution company.
For further information on launching an effective BPI project at your organization, contact the Ultra team.