Warehouse and production personnel spend too much time interpreting clumsy management information reports rather than using them to support hour-to-hour performance

In an effort to match inventory as closely as possible to demand, manufacturing and warehousing environments contend with a constant juggling act. There is little room for error. Even quite small miscalculations can result in serious consequences and either under, or over-supply. With tight production deadlines, operational management information and KPIs ought to provide managers with a key source of performance information that is predictive rather than reactive.

Unfortunately, readily visible and 'easy to get KPIs' are sadly lacking in many production and distribution environments. Knowing how much has been produced in the last hour is of very little use unless it can be understood in terms of its contribution to daily service levels. Looking at this information in real time as it relates to individuals, teams or business areas can also assist in directing management attention to the places that need it most, and as quickly as possible.

Operational managers should be constantly looking out for early signs of potential issues before they snowball and risk undermining overall service levels. Emerging issues in areas such as operational bottlenecks and stock accuracy need to be understood quickly and be supported with sufficient relevant information to help identify options for remedial action quickly. Solutions need to be put in place rapidly and with a minimum of debate and discussion.

Having spent several years in manufacturing, I'm only too familiar with the sight of management teams spending a large proportion of their time trying to work out what a spreadsheet or report is telling them five hours after the event that required corrective action.

Many software vendors try to persuade organisations that what they really need is a complex data warehouse and reporting solution that is rich in functionality and with a cost to match. It's always mystified me as to why organisations try to implement the most complex reporting solution they can find. Wouldn't it be better to establish an intelligent, yet simple, MI solution that provides real time information to suit the specific environment, workload and resources available? In addition, it would act as an early warning system to highlight potential issues before they become real problems.

Looked at another way - overly complex solutions are often the result of simple thinking. If we spent more time on some complex thinking to help us understand what the real business challenge is, then maybe the solutions could be much simpler than we realise.