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Major factors identified in the insufficient planning and control category included non-existent, poor or inappropriate measurement procedures;

objectives set too low or high; problems ignored or not anticipated; inadequate reporting; key performance indicators (KPIs) not set, or performance inadequately measured; and acceptance of a degree of failure as routine and therefore built into future plans.

Andy Makeham suggests that we need first to forget the more glamorous IT topics like CRM and Integration and concentrate on the 'boring' bits of ERP. Get the basics of planning and control right by, for example, measuring and monitoring three key KPIs: Bill of Material (BOM) Accuracy, Inventory Accuracy and Routing Accuracy.

More time and effort is wasted in KPI areas by having to chase and find lost parts and assemblies than any others. In many companies, inventory record accuracy can be as low as 50%. Efficient and highly productive companies usually have KPI accuracies approaching 95, which result in savings not only in stock, but also on the disruption and costs of 'firefighters', rectification, and premium rate transport costs.

For example, Primary Designs, a key supplier of Formula 1 exhaust systems, has reduced stocks of high value raw materials by 30%, and boosted production efficiency using basic core values and a JobBOSS computerised production control system. The Thame-based company has a turnover of £1 million but, despite its size, is passionate about being World-Class through customer service and technical excellence.

www.k3btg.com www.lenamanufacturing.com