| System
Label Epilogue
This
Epilogue was written in October, 2003, after a telephone
interview with Maurice Buckley, MD of System Label.
It's purpose is to review progress since the original
Case Study, which was produced in the first quarter
of 2002.
What
has happened since implementation?
In
the last 12-18 months System Label's business has
been buoyant even with many of the organisation's
large Irish clients downsizing.
This
buoyancy in the Irish organisation can, in part, be
attributed to the ability to easily and seamlessly
transfer workload between the Irish and German plants,
an initiative developed as part of System Label's
eBusiness project.
Although
the project is not yet complete, it is "90% there"
and the phase to fully automate the processing of
transactions between plants should be completed by
the end of 2003.
Measures
of Success
Although
there is no way to directly attribute any cost reductions
or increased efficiencies to the new systems in place,
Maurice Buckley, MD of System Label, believes that
there have been benefits. "The ability to transfer
orders back and forth has now become very straightforward
and even the transfer of small orders is now very
worthwhile", commented Buckley. In addition to
this, it also gives the production floor better visibility
on imminent jobs and therefore the ability to plan
production to make best use of available capacity.
Although
revenue generated by System Label's Irish clients
has dropped slightly in the past 12 to 18 months,
some of the work won by its German sister plant (largely
from German motor manufacturers) has increased. The
new order transfer system allowed work to be easily
shared between plants making best use of capacity
and geographic location of required materials.
Using
this as a measure would seem to suggest that the new
systems put in place, whilst not delivering quantifiable
results, have solved earlier process and production
capacity issues.
Changes
in views/perception/understanding of business and
issues
Following
a detailed review of the internal processes and systems
with GenBase, the consultants brought in to run the
project, System Label had a very good understanding
of what was required in its eBusiness system. As a
result there have been few surprises to date and all
the requirements that were defined at the outset of
the project have been met.
One
thing the development of the new system has shown
are the ways in which bespoke systems can often have
trouble communicating with each other (often like
trying to fit a square peg in a round hole). The process
of identifying and then resolving those communication
issues has given System Label a better understanding
of the systems being used in both Germany and Ireland.
Changes
in work practices/business model
According
to Buckley, there have been no changes made to the
System Label business model, "We wanted the system
to work for us and not us to work for the system.
Buying a computer system to change work processes
or practices is madness. It should be the processes
in place that drive the need for new systems to run
them more efficiently!"
Ongoing
issues/problems to resolve
The
implementation of the project discussed earlier in
this case study - only one phase of a much larger
project - has been more problematic that was first
thought. The ongoing identification of process tweaks
coupled with issues in having systems communicate
with each other (each of the two sites uses different
computer systems in addition to differing processes)
has meant that implementation of the fully automated
order transfer system has taken six months longer
than expected to complete. To fully test the system
after each of these changes is made is a time consuming
task in itself.
Unlike
a single site implementation, the issues associated
with implementing a system over two sites have to
be considered. Working with two different systems,
languages, cultures and ways of doing things can make
delays inevitable! In this instance it is vital to
have a system champion on each site - someone that
is excited about the project and has the power and
seniority to make it happen.
Although
the implementation has taken much longer than expected,
Buckley is happy that the system they end up with
will be the system that will add maximum value to
System Label now and in the future.
Relevant
technology/business developments since implementation.
Developments
in the company coupled with an integration requirement
with the new systems being developed drove System
Label to implement new book-keeping systems. Unfortunately,
due to differences in tax legislation between Ireland
and Germany, two systems had to be purchased. This
again caused a delay in development of the order transfer
system as work had to be undertaken in installing
and integrating the new systems with those already
in place.
Additionally, an upgrade of MS Access (the database
software being used by System Label) was purchased
to provide complex order processing and supply functionality.
Any
future planned developments.
Most
pressingly, System Label wants to get the first (and
current) phase of its eBusiness project completed
by the end of the year.
Following
on from this, within the next 12 months, the organisation
plans to integrate a recently acquired UK-based plant
into the order transfer system thus offering even
more shared capacity. Given the learnings taken from
the current project, this is likely to be a far more
manageable and straightforward task for Buckley and
the team.
System
Label had also planned to develop Internet access
to its databases for customers (to check stock levels
or progress of orders in production for example) but,
according to Buckley, the demand from clients for
such services has decreased in the past 12-18 months.
If a demand for such services is identified they may
well consider implementing this functionality.
Researched
and written by Scott McInnes, Freedom Marketing.
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