Simple principals for the Real-Time Enterprise

5/17/2009 by Jack Burnett

The Real-Time Enterprise has become a key initiative for manufacturing organizations in today's fast past and global environment.  The concepts and metrics for what a "Real-Time Enterprise" looks like are in the early stages of development.  As we build business systems it is important to establish guiding principles that help us through the process so we do not miss any long-term benefits by making short term decisions.  Here are four simple principals to considered when designing an information system:

  • Capture data once at the point of creation. Waste of effort is created with any duplicate entry and waste is created when information is not available in real time. The typical argument for not implementing real-time data collection is that it will slow production but the challenge is to build the data collection seamlessly into the process.
  • Create a single, linked information repository. A typical production oriented company includes sales/marketing (CRM), core financials (MRP/ERP), operational (QA, Logistics, etc.), and web (portal/eCommerce) systems. It is critical that thought is put forward so all information systems are appropriately linked and presented as a single version of the truth. When appropriate links do not exist, islands of data are created, comprehensive reporting is limited, additional effort is required to mine data, and decisions are delayed, and/or errors in judgment can result from missing or incorrect information.
  • Deliver information when needed and in the correct format. Waste occurs when an employee does not have the information needed to make a decision or that information is not presented in a way that enables them to gain insight. When building information systems assume that reporting and data presentation is not going to be in a single format. The system design should allow a user to easily access information whether they are using an operation report, are using a mobile devise, or accessing over the web.
  • Decisions about information systems need to be made for the entire system not a single business unit or function. The typical attitude from an individual user might be that if it increases my work load I do not want it. Leadership has to weight the value of the increase in the data manage requirements for a single area verse the benefit of the entire organization. In many cases it can require five times more effort to delay correct management of information. For example, instead of scanning each part as it completes a process the operator might write the results on a piece of paper. The paper is then take by manager to data entry. Data entry personnel type the information in. Initially there would have been no more time required to scan verse write the information down. Now we have delayed availability of information across the organization, created multiple chances for data errors, and increase amount to time required to collect.

One of the key benefits of following a Lean methodology is that you learn to identify waste in an operation.  Going down the path to be a Real-Time enterprise is similar.  By nature a system that is real-time will have the waste in processes, data capture, and information usage squeezed out.  The principals presented above can start you down the right path.

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