Recently, I attended my 15th conference of the American Production & Inventory Control Society. I was in awe.

Only a short time ago, the ability to obtain basic business information was an issue. Now software systems can provide information on almost anything a reasonable manager could even imagine. There is ERP, supply chain, value chain, TOC, finite scheduling, virtual enterprise, PDM, MES, DSS, EIS. I could go on and on, but I'm sure you get the point.

The software industry has positively responded to the Y2K challenge with robust systems with thousands of options to meet any foreseeable need. At this one show, millions of dollars of software was on display, each product proclaimed to be the solution to meet all challenges of the 21st Century.

If it were only totally true. All to often, when we spent millions of dollars to reengineer our systems for the 21st Century, we did not spend the time and money to improve our people skills, our understanding or our management processes to take advantage of the capabilities of these new systems.

By not addressing these critical factors, we made some assumptions:

• More information must be better.
  
  
• We have good people — they will know how to use information to make better decisions.
  
  
• People will embrace change; we will not need to modify new systems to look exactly like the old.
  
  
• Systems themselves will produce data integrity and value-added processes.
  
  
• We can successfully overlay an integrated formal system onto an informal, undisciplined management process.

It is no small wonder the Wall Street Journal called ERP system implementation projects the "Program of Pain."

Common sense, life experiences and results show these assumptions need to be challenged. When I started in this business, inventory record accuracy was in the mid-40s. It is now in the mid-50s. Industry experts report that more than 50 percent of all systems' projects are over budget and behind schedule. Sixty percent of new ERP systems purchased have yet to have a scheduling module installed. Systems have become an expense, not a catalyst to improve results.

Life experiences show likewise. This author will not turn into Tiger Woods just by buying a new set of golf clubs. Of course, you need golf clubs to play golf. You should buy the best — matched to your swing, physique and budget. But if you only spend money on clubs, you will attain only a portion of the desired results. Yes, you might be able to hit your drive 20 yards further — but into the woods. If you spend part of that money on golf lessons and practicing your swing, you may be able to maximize your score and fully utilize the capability of those new clubs!

Manufacturing managers have a tendency to be like golfers. Buy new clubs/software and get a quick fix. It's hard to look at ourselves in the mirror and admit we haven't maximized our people or optimized our business management processes. And, of course, my golf score has nothing to do with my swing!

What's next? For most companies, the answer to meet the challenges of the new millennium will not be buying more systems to produce more information. It will be to utilize the total capabilities and potential of existing systems and technology. Through training and educating our most important asset — people — companies will create the world-class skills, understanding and management processes required to unlock 75 to 90 percent of the benefits available through our world-class software systems and achieve world-class results.

Mike Jacobi is vice president of Buker, Inc. and can be reached at (847) 855-8554 or [email protected]