ERP Implementation Manufacturing and Distribution
Hours away from head office, the plant is bustling with high production quotas and the addition of temporary workers for the busy season. Earlier, the plant manager heard rumblings of a new IT system heading their way but with no details and unrelenting daily priorities, it doesn’t seem urgent. Besides, if this new system was truly critical, wouldn’t the VP of Operations be talking about the project?
Managing an ERP implementation within a busy plant presents different challenges than in an office setting. Typically, manufacturing divisions reward standardized procedures and ways of working. So when routine and predictable processes begin to shift due to an ERP implementation, it can be difficult for Supervisors and employees to adapt.
The good news is that many of these challenges can be shaped into opportunities with the understanding of plant dynamics and the right change management approach. Let’s take a deeper dive:
1. Manufacturing and Warehouse: Workforce
Challenges:
To meet business needs, there may be an ebb and flow of temporary employees.
With the focus on production targets, Supervisors and employees may need to be scheduled to participate in project meetings and trainings. In unionized environments, there’s even less flexibility. Changes in processes and time for training may need to be proactively discussed and negotiated.
Some employees may be anxious about the greater use of technology especially if it’s used infrequently today.
Opportunities:
Define what’s changing and who is impacted. As with any stakeholder group, it’s important to first dig into the changes and assess any employee impacts. Too often, project teams simply classify an ERP implementation as a back-end system and underestimate the impacts on everyday employee tasks and ways of working.
The risk is especially high if customer impacts, such as a planned delay in distribution, are not identified and proactively shared with customers and the Sales and Customer Service teams.
Prioritize training efforts on the End Users who will need to use the ERP system and new processes on Day 1. If there’s a lot of employee turnover, consider how you’ll prepare Supervisors and highly skilled users to onboard new employees.
While there are still workers who are only comfortable with a flip phone, more tech savvy employees are working on the plant floor. Take the time to segment your End Users and tailor the training approach accordingly. For example, some employees may need a technology 101 session, while others can confidently move directly into using the system.
2. Workplace
Challenges:
As big manufacturing and distribution centers are often located away from city centers (and company leadership teams), their needs throughout an ERP implementation can be easily overlooked. Plants often have their own ingrained ways of working and processes that differ from one location to another.
There’s usually less reliance on technology with limited connectivity, computers and access to email and restrictions on mobile use on the shop floor.
Opportunities:
With the support of plant leadership, set up a change network early to extend change and communications efforts within the plant. Include influencers who can connect with a wide range of employees, including those who may be anxious about new technology.
Create understanding and urgency for the ERP implementation. This could include preparing plant managers to lead through the change, Q&A sessions with Supervisors and in-person updates from senior leaders.
ERP systems are highly integrated. Teams will need to work cohesively across departments and across plants. Build this expectation into discussions with leaders and project talking points. Look for opportunities to showcase and reward teams working together.
Understand the infrastructure available for technology when building out communications and training to manage employee expectations.
3. Culture
Challenges:
Many manufacturing and distribution plants operate with a directive/ hierarchical leadership style with little opportunity for collaboration and discussion.
The ability to deal quickly with one urgent priority after another is often valued at a plant. This firefighting culture is at odds with the sustained focus and patience required for a successful ERP implementation.
Opportunities:
Leverage the top-down style of most plants and cascade communication starting with plant managers.
Organizational change management often requires collaborative, supporting, delegating leadership style. Enable plant leaders and Supervisors to discuss the changes with their teams with supporting materials such as talking points and FAQs.
Leverage the change network to gauge employees’ questions and concerns.
Find opportunities to support and recognize leaders and employees who are prioritizing the project and championing new behaviors.
Finally, prepare leaders to be patient with themselves and their team members as processes and systems change.
Implementing an ERP system in your manufacturing or warehouse facility? Tap into our diverse change management consulting team for practical strategies and support, connect with us today.