Chapter 10: Management Systems
Management systems are those events and processes that are in place solely for the sustainability or control of repeatable processes. Management systems normally are exercised in various time frames (daily, weekly, monthly, etc.). Metrics in themselves do not drive change; it is the management system alongside the metrics which does that. High-performance companies, in every case, with no exceptions, have robust management systems. Some of the management system events found in high performance or Class A ERP performance are:
Monthly sales and operations planning (S&OP) process
Weekly or monthly project review
Weekly demand review
Weekly (metric) performance review
Weekly clear-to-build process
Daily schedule review or walk-around
Daily documentation updates and reviews
Figure 10.1 illustrates the relationship between two of the management systems and master scheduling. S&OP, covered in Chapter 8, is shown, as is project management.
In the monthly management system called S&OP, there is a focus on overall accountability and follow-up. It is in this space that management defines the priorities and makes sure these objectives are accomplished. The S&OP process, covered in detail in Chapter 8, is a major element of policy decision making and risk management. Project management is also a nonnegotiable component of continuous improvement manufacturing. That would leave little to add here were it not for the need to tie this all together. It is communicating the idea of a management system that really gets people in the organization to understand what management is trying to accomplish by it.
Figure 10.1: Monthly Management...