We have for the last eight years implemented technology, mainly Enterprise Resource Planning (ERP) and related systems. Often we found the implementations challenging and enlightening. However, sometimes the implementations turned into an incredibly frustrating exercise, especially when we found that by just implementing technology we did not improve the company’s performance. And, to be honest, sometimes the company’s performance degraded significantly after implementing new technology.

Dr. Eli Goldratt asked the question:” What is information” as the majority of the time we increased the amount of information available. However in implementing technology, we often did not even come close to Dr. Goldratt’s definition of information…… Information is “the answer to the question asked”. In “the haystack syndrome” published in 1990 Dr. Goldratt provides and interesting list of definitions of information and data:

INFORMATION: An answer to the question asked

ERRONEOUS INFORMATION: A wrong answer to the question asked

DATA: A string of characters that describes something about our reality.

Before the ERP systems started to rule the information age, there were some very profound principles mapped out by Dr. Goldratt in “The Haystack Syndrome”. We believe they are still as valid today, as they were then. Alan Barnard explains “the types of company information requirements”, in a clear and concise manner, as follows:

 There are three types of information required to make good decisions:

1. Planning & Scheduling

- Where is the Constraint or Capacity Constrained Resources and how can we exploit their limited capacity?

- What order fulfillment strategy should be followed based on Customer Tolerance Time and Supplier Lead Time?

- What should be the size of Time, Stock and Capacity Buffers to Protect Sales against existing level of Murphy (based on variability in supply & demand)?

- What Orders must be placed today onto the suppliers and factory to meet current Sales & Replenishment orders, prioritized by buffer status

2. Execution & Control

- Can we “automate” the order fulfillment process (Make-To-Order, Assemble-To-Order, and Make-To-Stock)?

- How can we Monitor Time, Stock and Capacity Buffer Status, Trend and Cause

- What Orders already in the System must be expedited based on Time or Stock Buffer Status?

3. Analysis & What if’s

- How can we quantify existing level & variability of Capability (Lead Time)?

- How can we quantify existing & predicted level & variability of Demand?

- How can we quantify existing level of Murphy?

- How do we Identify potential areas of improvement or need for protection?

- How can we validate the expected outcome of changes?

Note: © Goldratt Group and Alan Barnard

In our opinion this information should be made a visible ,split up for the supply and demand chain.

For anyone working in, or involved with technology the books “The Haystack syndrome” from Dr. Goldratt and “Necessary but Not Sufficient” from Eli Goldratt, Eli Schragenheim and Carol Ptak are must reads. We have developed a structured approach(ValueERP, ValueCRM, ValuePORTAL) to get maximum value out of your ERP, CRM and PORTAL investments. We also have experience with program management, to ensure that your requirements are delivered by the ERP service provider or Integrator.

If you want to know more, or would like to order the books, please

Contact us.