Critical Factors in the Implementation of an APS system

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Critical Factors in the Implementation of an APS system

Implementing an APS is a complex project, made of different phases that require specific resources and competencies to be executed with quality. So it's necessary to consider the main critical success factors when implementing an APS system, which we'll present below.Key UserFirst, it's necessary to distinguish a transactional system from an analytical one. While in the former operation and results are simple and predictable, in a specialist, analytical system such as an APS the operation requires significantly more cognitive and analytical effort — so that a well-chosen key user can make all the difference between merely operating the software at a basic level and a much more proactive model of scenario simulation and indicator-based decision making.In general, when defining the key user it's important to consider:

  • Companies often make the wrong decision of choosing as key user the person with the most experience and knowledge in the PPCP area, but in practice that professional already has many other responsibilities and won't have the focus or time needed to operationalize the system. These people must be involved in the project and are fundamental to defining business rules, but they're not necessarily the ideal key user for the tool;
  • An important factor to highlight is the professional's technological predisposition and computational dexterity. Although prior knowledge in software development isn't required, prior experience operationalizing and implementing other software, in addition to well-developed logical reasoning, is favorable for the ideal profile of an APS software user;
  • Finally, it's important to recognize some broader competencies that can be very useful for good use of the solution. Negotiation and communication ability, for example, is particularly important, given all the interfaces involved in PPCP decisions, such as production, sales, supply and IT areas.

Data QualityThe expression “shit in, shit out” didn't become famous by chance. There's no use denying it: the quality of input data is fundamental for the proper use of an APS tool. Even more so in a common reality of many companies in which production routings, when they exist, were created solely to serve the costing system.That said, it's also important to point out that no company has all the data that will be needed for a robust APS implementation. Even though many think they have complete and reliable data, when the first simulation shows bottlenecks at an unimportant resource, for example, the need to improve the master data becomes obvious. Beyond basic data, some information that would never be needed before a scheduling system — like a setup matrix from/to — will rarely be available before the project starts. And that's not necessarily a problem; the biggest mistake is trying to anticipate and be completely ready before starting the project, because experience shows that either the project will take a long time to start or will never get off the ground. In practice, an implementation project must build in the space needed for the main data collection and master-data reviews to happen during the implementation, in a prioritized and guided way.In that sense, instead of trying to leave everything ready before starting the project, the focus should be on ensuring a robust data acquisition and update process. How can we ensure open production orders won't be forgotten in the past? How will the purchasing team update the actual material availability dates when suppliers are late? How often will performance indices and process times be reviewed? These are the questions the manager should worry about to ensure data reliability.Team EngagementImplementing APS can significantly transform a company, but for that to happen the company's different areas must effectively participate in the implementation. What doesn't work is a top-down decision by leadership to implement the system and the execution being done in isolation by IT or PPCP only, for example.From the start of the first diagnostic and specification phases, you need to seek commitment and participation from different areas of the company. The engineering team needs to be present because it will be a key ally in preparing the data needed to improve master data. Sales must participate because the delivery-date promise and order-tracking processes can be significantly impacted by using a finite-capacity software. The supply area plays an important role in ensuring follow-up with suppliers and updating actual material supply dates. IT needs to be present since it has broad influence over the configuration and scope the system can have in the company's integrated management process. Even the maintenance team should be involved to explore the advantages of integrating corrective maintenance and quick rescheduling or properly provisioned preventive maintenance processes.IT with AutonomyIt's not necessarily a rule, but experience shows that when a company has good autonomy to perform integrations, configurations and modifications on its systems, the implementation project flows more naturally and can be more finely integrated with the processes. Preferably, the company's internal IT has autonomy and is very active in regards to production needs, but in many cases a trusted vendor can also meet the project's needs very well.The integration between ERP and APS doesn't necessarily have to be complicated, but with more flexibility you can sometimes seize application opportunities that the traditional integration model wouldn't cover — though this may require greater effort from the IT team.Software and consultancy choiceFinally, a factor often underestimated is the importance of choosing the right software and the best implementation consultancy. Looking for shortcuts in the technology choice — either because there's a more basic system that could be acquired with no budget approval, or because one of the options is from an existing supplier — is one of the reasons companies experience many frustrations and delays in evolving their management system. Before deciding to acquire any tool, make sure the chosen one is enough to model all current PPCP needs and, even more importantly, that it's complete and flexible enough to address the future improvement opportunities that will arise after the company takes its first steps.In the same vein, choosing the consultancy company to support the software implementation is also fundamental to project success. Look for a company with recognized professionals and success cases, preferably in the same segment as your business. An innovative profile and technology mastery are also fundamental, and can make the difference between a basic stabilized project and a technologically up-to-date solution in constant evolution.[noptin-form id=2822]

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