An MES Implementation can be a high-risk project, but there are steps you can take to minimize risk and improve success.
By David Oeters, Corporate Communications with CIMx Software
Companies may not talk about it, but there are MES and manufacturing software implementations that fail. There is risk with any major software implementation. ERP and PLM implementations will sometimes fail (even more than MES), and while there is no magic formula for implementation success, you’re not helpless against trouble. There’s no magic 12-step process for every project, but there are warning signs savvy manufacturers can use to avoid trouble, and steps you can take to help protect your company.
5 Reasons MES Implementations Fail
Implementation projects fail for a number of reasons, including:
- Culture: An MES implementation is as much a cultural project as a technological one. If the software wasn’t selected with the shop floor’s needs in mind, or the project goal isn’t clear from the beginning, failure is likely. Operators need to use the software for the project to be a success. A smart platform can be introduced in stages that operators readily accept, eliminating the resistance and culture shock common in “Big Bang” implementations that try to implement every piece of functionality at once.
Expense: As project complexity increases, costs skyrocket. Changing requirements also lead to massive cost overruns. Annoying and unforeseen delays and service charges from the software supplier can also derail a project. At some point, most companies will cancel the implementation rather than continuing to bleed expenses.
- Out-of-Scope System Work: Many companies try to sell “master” systems fulfilling a number of functions. An ERP is not an MES or PLM. Inevitably an integrated, single source solution causes more problems than it solves since it results in a lowest common denominator solution, as the supplier tries to cram functionality into their system. Many times, it leads to a system that is difficult to use.
- Customization: Many companies initially believe custom software is the only solution for their shop floor. The truth is few companies have the resources for the initial development, or the capability necessary to maintain the system as production needs change. Building that perfect system will take a long time, and you need to accept high risk and frustration. It’s better to use a supplier that offers custom features on a smart platform that can be implemented at a low cost and ensure a sustainable system.
- Supplier Promises: Some suppliers make exorbitant promises during the sales process promises that are extremely difficult to fulfill. As the list of broken promises and scope modifications grow, some companies decide to cancel the project out of frustration. There are ways to limit scope creep, limit cost add-ons and manage in-house modification flow.
This is not a comprehensive list, but it does touch on many of the core reasons a manufacturer will choose to cancel a project. Canceling a project is a passive, but final, failure, and is many times the best decision for the long-term growth of the business.
A worse failure is an “active failure” where the project is implemented and does not achieve the improvements expected nor provides a positive ROI. Companies with an active failure continue to lose money year after year, clinging to a software system that bleeds profit and productivity with minimal, if any, benefit.
Protecting Yourself from Implementation Failure
Never fear, there are steps you can take to position your company for success when implementing a new MES or digital manufacturing system. Consider this:
Phased Implementation: Rather than trying to install and implement everything at once ( “Big Bang” style), a phased implementation gives the manufacturer more control over the project. Risk can be minimized by selecting and using the features and functionality the company wants, dictating the pace of change and complexity.
- Aligning IT and OT: An MES is as much an OT (Operations Technology) project as IT (Information Technology). A project has a much greater chance of success if IT and OT are aligned from the beginning, selecting a project that meets the needs of both core users.
- Trust: Many times an MES buyer will make a software decision based on grandiose promises from a supplier, rather than embracing their intuition and finding a partner company they trust.
- Focus on Core Requirements: Many MES projects start with an initial need, and then additional requirements are added to the project. Each addition increases the schedule, cost and risk. Focus on solving the real problems in Phase 1, and the savings can pay for additional items in phase 2. A supplier that cannot provide a phased implementation has a solution without the necessary flexibility to be sustainable in your environment.
Managing Software Projects
For most failed software projects, it’s impossible to identify a single reason for the failure. It’s a combination that leads to the painful decision to accept failure rather than continuing to work with an active failure that will limit your profitability far into the future. Most times, this is the right decision to make. Trying to twist and contort the shop floor or the software just to make it work isn’t a good way to optimize production.
No one likes to admit or accept failure. It leaves a bitter taste in your mouth and can be devastating to a business. By following a few simple tips and staying on top of your project, you can avoid the problems that lead to failure.
Want to learn more, or see why and how CIMx guarantees major project milestones? Contact us today for a shop floor analysis or project estimate to see how we can best help you.