Job Shop Management Software: Under-Utilization
Did you now that Lean Management has over a 90% failure rate? Likewise, 45% of features in Job Shop Management Software goes totally unused. In fact, another 19% of a software’s features are rarely used, resulting in a 64% under-utilization ratio.
The under-utilization of business applications is according to a study performed by the Standish Group.
These failure rates, of utilizing and sustaining business processes, reminds me of a conversation I had with a large publishing company CEO.
Specifically, they had purchased high-dollar business management software at a cost of over two hundred thousand dollars. Surprised by the price of that software, I inquired about its features; reasoning that it must certainly cook breakfast at that price!
Upon further inquiry, I discovered they were using only ONE feature in the software. Truly, if they had been a small business, it would be NO surprise at all. However, coming from a large company with a large staff, it was shocking!
Job Shop Management Software: A Vision for Impact
Curious, I further inquired of the CEO, the reason for not fully implementing all the software’s features. He said he had delegated the task of implementation to someone in middle management who had asked for the software. Sadly, they never found the time or energy to get it completed.
Ultimately, I believe, the implementation FAILED, because the manager didn’t know how the company operated at every level, from front to back. I would argue, they didn’t have a VISION for how the software COULD or WOULD impact the company. As a result, failure!
Why Poor Utilization Occurs: Job Shop Management Software
Over years of developing software and working with countless companies, I AFFIRM the findings of the study on the percentage of under-utilized software features. In fact, we’ve seen numbers much higher in software under-utilization.
The #1 reason for poor business management software implementation is, lack of QUALITY time to do the job.
Another important reason, mentioned above, is LACK OF VISION for implementing a robust software. For this reason, we encourage business OWNERS to take the lead role in implementing the management software that will impact their entire company. And, for years to come!
An often-overlooked reason for poor software implementation is FORGETFULNESS. After the client completes training by the software vendor, within one hour the client forgets more than half of their training. Moreover, within twenty-four hours the client forgets more than two thirds of their software training.
Sadly, the most pathetic reason for poor implementation of software features is APATHY ... "Okay, is good enough!"
How to Ensure Full Utilization of Software Features: Good News!
Before developing System100, we also used Job Shop Management Software in a printing company we owned at the time. Due to knowledge acquired by implementing quality control and other control systems, we FULLY implemented 90% of the software’s features. Most importantly, we had found the “secret sauce” for how to implement and how to sustain systems!
The “secret sauce” is a follow-up system called by various names in the continual improvement world of business. For example, Corrective Action System, or (as we call it) the System Buster Locator system, etc. Their purpose is to stop/prevent and correct any non-conformance from recurring.
Moreover, one of the PROMPTS in these systems calls for finding the ROOT CAUSE of the problem. In addition, this follow-up systems prompts updating of an existing system; OR to implement a NEW system to stop the non-conformance.
The Magic Happens Here When Using The "Secret Sauce"
Fully implementing all features in a Job Shop Management Software comes into play, by using a follow-up system like the System Buster Locator.
In other words, the solution for the root cause of a non-conformance may be, UTILIZING A FEATURE contained within their Management Software. GET IT?
To clarify, a company may be experiencing jobs not completed in the time estimated which is waste; thus, a non-conformance. Therefore, the solution to solve the problem may be to implement the Floor Data Collection/Time Tracking feature in the software.
In fact, this is what we did to completely implement our Job Shop Management Software, which paid huge dividends.
Finding Quality Time to Fully Implement Management Software
Having the quality time to implement software, or work on ANY complicated project, is an issue in most small businesses. The reason is, there is little quality time left to work ON their business, with owners bogged down in daily operations. In fact, many small business owners are working 12 to 14 hours a day just to keep up.
THE ANSWER, for owners having quality time to work ON their business is, a written Operations Manual. First, they need to START down-loading out of their head, the information about HOW their business operates. In other words, they must write down the step-by-step process of how their business operates, from opening to closing.
As a result, with a written operations manual, an owner EFFECTUALLY delegates their OWN task. In other words, delegate those many hats they now wear, to others. Thus, they gain the time to work ON their business. Consequently, taking the lead role in FULLY implementing a comprehensive business management, or job shop management software into their business, is now possible.
Did I mention, great systems work!
Philip Beyer, founder/president of Ebiz Products LLC and founder of Beyer Printing Inc. in Nashville Tenn., is a chronic entrepreneur, business systems analyst and consultant. Author of "System Busters: How to Stop Them in Your Business" and recipient of an InterTech Technology Award for the design and development of System100 business process management software. Beyer speaks to business owners across the country on how to bring lean, sustainable order to their businesses. Contact him at (615) 425-2652.