Hey, everybody, Matt Thompson here with the Estes Group and going to run you through just the Cliff Notes version of what peak methodology is, how we approach it and why it’s good for projects.
So what is our approach to Peak Methodology?
It’s made up of really a best practice model that consists of three different things, number one being our methodology itself which is a five-stage methodology made up of prepare, educate, architect, validate and stabilize. It’s a hybrid methodology that brings in some traditional waterfall, breaks into some agile methodologies where we sprint things out and then we go back into that traditional waterfall for the validate and stabilize.
We also incorporate that in with a lot of fact finding and understanding that rolls into your statement of work, and we couple all of that experience that comes at you from not only years of experiences of our own folks and our own team and Estes Group itself, but also thousands and thousands of projects that are backed by Epicore and our certification that we have with them.
So how do we break that down?
Prepare, we want to establish that project scope. We want to really get the understanding of our schedule and resources on both internal and external, and all of that comes out and culminates through the project plan development. We use an online project planning tool so that you have full visibility to that any time, real time, all the time.
All of that comes out through our best practice reviews. So what we do is we engage with you guys, we come out, we take a really good look at the business, we go through some in-depth workshops and we come out of that understanding what the scope of the project needs to be, what are the key processes, the Achilles’ heels that we are going to see for your business, for your project, because every single one is different, so we attack it in that way.
Then we go into education. Key thing here, core module education. We’re level setting vocabulary. Consultants tend to speak Klingon and clients tend to have their very own language that they’d developed over the years, so we need to level set that so that we can have good, beneficial, architectural conversations coming up.
So here’s where we then break in and we do the architecture prototyping of your project, and this is where we take that spin and we go into agile. So we break that down towards nice and neat monthly springs. So every month you go through the exact same processes as you did the month prior, so you know you’re going to be launching a spring. You’re going to be working through data migration for the activities within that sprint, and you’re going to be finalizing processes by the end of the month for that sprint, and anything else that shakes out of that is coming out into a development track on the side, might need customization, custom reports, dashboards, those kinds of things, right?
So the idea here is though is it creates consistency, repeatability and a really clear understanding of exactly how you’re going to take all of those bites out of that whale of an ERP project. We document all of those results through workflow in the EUPs, so if you use Exall and EKM, you’ll know exactly what I’m talking about there for those tools. Otherwise, we have some other tools available through different Excel templates called biostream scripts and those kinds of things and those kinds of things and then EUP templates to make sure you’re documenting every last procedure. Click here, save here, do what you need to do there and then go. Key is you’re go live ready at the end of this stage.
So then we break that down and we go into validate. We want to make sure that you’re doing a full dress rehearsal here. That includes a cutover process. That’s different than a lot of other folks in how they approach it out there, so make sure you understand how you’re going to prove that you are ready for go live and proving it is the most important step, because if you don’t and you try to just go live, never seen one of those be successful, right? So make sure you go through… you do the dress rehearsal, you know what’s going to happen and then odds are for go live day, you’re going to be really prepared for what might happen.
So when you do all that it just goes right into stabilizing. So it should be a very natural cutover and transition at that stage of the game. You have final training that needs to be caught up. You go live. You stabilize the system where we’re monitoring, we’re helping, any of the little things that pop up here and there, we’re helping troubleshoot and triage, but very typically at this stage of the game it gets to be pretty light.
So Estes Group is tailing off drastically at this stage of the game. You guys are ramping up, and you’re starting to see that ROI because money is not going out the door; you’re using the system now for good information on what you’re doing.
So with that, start a conversation with us. Love to hear from you. Love to hear what your thoughts are on the methodology and what you just saw here today. There is a longer version of this out there so if you want to hear in more detail and more of what my thoughts are on the project methodology, by all means take a look at that video, go on to our YouTube channel and you’ll be able to find that.
You’ll also find it on Facebook, Twitter, LinkedIn and start conversations with us. You can hit us up on any of those three at any point in time. I pretty well monitor them real time and as well hit us on our website. Ask an expert comes directly into my inbox. I’ll be glad to talk you with you about any of your questions you may have and then as well [email protected] is monitored by several of us here, and any one of us will be happy to get back to you as quick as we can. Thank you guys very much. Looking forward to the next one.
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Manufacturing excellence is achieved by paying attention to the smallest detail.
When I was working in the shop we had an owner with a manufacturing management strategy that was obsessed with understanding and tracking each detail of the manufacturing process as well as making sure his employees were equally passionate about providing the detail needed for manufacturing excellence. This started with the part quoting process that our shop received from our customers and prospects. He insisted that his engineers/estimators provide all the detail related to what they would estimate it would take to manufacturer the part (i.e. each operation set-up/run time; w/work center, special comments, subassemblies with every nut/bolt/raw material, any outside processes; including the intended vendor that they were going to use for the OSV process, etc., etc.). Of course the push back from the engineers/estimators on this manufacturing management strategy was this would take too much time; based on the number of quotes they were asked to get out as well as the percentage of quotes they received actual orders for. The owners response was always the same, do the detailed work now when you’re quoting the part, so when we get the order (which might be in 2 to 6 months after the quote was completed) no one would have to guess what their thought process was to arrive at the price they gave the customer/prospect. The added bonus of breaking down the manufacturing process in detail during the quote process was you could then take an “Order Entry” person (using the Epicor Vantage, 9 or 10 system for ERP manufacturing solutions) have them create the order, link it to the quote and pull the manufacturing detail from the quote into the job so production could review it, change it if necessary, schedule it and create the shop paperwork. This was a highly efficient ERP manufacturing solution process to get work out to the shop in a timely manner.
With all the detail instructions now in the shop (via a Shop Traveler) for the production worker to understand specifically what they needed to manufacture (Vs having to review/interpret a part blue-print), they knew:
The Date on when they need to start the part/job to get it out on time to meet the customer’s requested delivery date(s).
What Material(s) (raw, finished, etc.) they need to pull from stock to make the part.
What Operations they need to report their time against to make the part; as well as the machine/work area with estimated set-up/run times for each operation.
The specific Quantity they had to make.
Any Outside Subcontract work necessary and where in the manufacturing process it needed to done.
Mistakes in manufacturing, as most business, is due to a lack of communication on the details of what’s needed to be done to deliver the product and or service. In manufacturing the true value of providing the detail from the start of the quoting process through the reporting of actual time, materials, costs against the manufacturing process of the part is that it provides management the ultimate reason for why they purchased the Epicor 9 or 10 ERP system. That is knowing what parts, type of work and customers they’re most profitable working on. As soon as you know that information as a manufacturer you can guide your business to getting more of that work as well as get rid of the unprofitable customers/no margin work.
The manufacturing shop I worked at knew this information from their analysis of the Completed Job Report and Part History Report (which are standard reports in ERP manufacturing solutions provided in the Epicor Vantage, 9 and 10 systems). They used this information to implement a successful manufacturing management strategy and grow their business 10 fold in 5 years.
If your company would like to better understand the importance of the information (or lack of accurate information) on the Completed Job Report and/or Part History Report, let EstesGroup’s ERP manufacturing solutions share with you our experience in manufacturing management strategy and how to interpret this information to ensure the future success of your business in good/bad times.
The Importance of Tracking Indirect Labor Costs in Manufacturing
In the fast-paced world of manufacturing, understanding and tracking indirect labor costs can significantly impact your bottom line. Let’s delve into why it’s crucial and how it can benefit your organization.
Definition of Indirect Labor
Indirect labor refers to any labor that supports the production process but isn’t directly involved in converting materials into finished products.
Ramifications of Not Tracking Indirect Labor
Inaccurate Labor Reporting: Without accurate tracking, labor reporting to the manufacturing process becomes unreliable.
Inaccurate Part Costing: This leads to inaccuracies in part costing, with actual setup and production times overstated.
Disrupted Part Scheduling and Shop Loading: Inaccurate tracking affects part scheduling and shop loading, leading to inefficiencies.
Inability to Reduce Indirect Labor: Without proper tracking, it’s challenging to identify areas for improvement and reduce indirect labor costs.
Understated Shop “Burden Rates”: Failure to track indirect labor results in understated shop burden rates, impacting overall cost calculations.
A Real-Life Example: The Impact of Tracking Indirect Labor
Let’s explore a real-life example of a manufacturing shop in Minnesota that experienced significant improvements after implementing a system to track indirect labor.
Case Study: Transforming Shop Operations
This shop, prior to implementing a computerized Shop Control (ERP) system, faced challenges in understanding the true cost of indirect labor. Employees would routinely shut down machines and engage in cleanup activities, but the management lacked visibility into the actual time and cost associated with these tasks.
Implementation and Results
After implementing the Shop Control system and encouraging employees to report their labor efforts accurately, management gained insights into the inefficiencies of having highly skilled production workers engage in cleanup activities. By analyzing the indirect labor reports provided by the system, management realized the significant waste of time and money involved in this practice.
Optimization and Savings
With this newfound understanding, the company optimized its operations by reallocating cleanup tasks to a dedicated employee, freeing up skilled production workers to focus on core tasks until the end of their shifts. This simple change resulted in substantial cost savings, increased productivity, and improved adherence to delivery schedules.
Partnering with EstesGroup for Manufacturing Efficiency
At EstesGroup, we specialize in optimizing and streamlining manufacturing operations to maximize efficiency and cost savings. By leveraging tools available in Epicor to produce detailed indirect labor reports, we help businesses identify areas for improvement and implement actionable strategies for success.
Our Approach
Comprehensive Analysis: We conduct a thorough analysis of your indirect labor reporting to identify inefficiencies and opportunities for improvement.
Tailored Solutions: Based on our findings, we develop customized solutions to streamline operations and reduce overhead costs.
Implementation Support: Our team provides hands-on support to implement new processes and technologies, ensuring smooth transitions and tangible results.
Let Us Help You Unlock Efficiency and Savings
If you’re ready to optimize your manufacturing operation and unlock potential cost savings, partner with EstesGroup. Contact us today to learn how we can leverage technology and strategic insights to drive efficiency and improve your bottom line.
This is how the EstesGroup approaches Epicor 10 Project Management in a nut shell. Watch this brief video to understand the things we do differently within our approach to your projects. Read more here: /epicor-consulting/our-approach/peak-methodology
The Prospect has Objections What are the Common Ones & How Do You Handle Them?
Prospect objections arise for different reasons and have different implications on whether you selling anything or not. Some objections will be legitimate, but many times prospects will just make the statement when they’re just trying to brush you off. Below are four common prospects “delay or blow-off” statements and a few suggestions on how to handle them.
“We’re just starting to review our purchasing options”What it means is: Your prospect is in the early stages of their buying/bidding process. They tell you they’re “just looking” because they want to continue to maintain control of their buying process and it’s too early for them to engage with a salesperson right now. Most manufacturing salespeople will take that at face value and allow the prospect to end the conversation. But this is the wrong approach, because the next time you contact them, they’ll most likely provide you a similar answer.A better way to handle the objection might be: To stop selling and acknowledge that if you’re a little early in their buying/bidding process that you’re not trying to sell anything, but you’re just inquiring to what products they might need you to quote on down the road so when they do go out for bid, you’ll be prepared to be of service. A common, but the wrong response is, “I’m glad to hear you’re looking. Here are a dozen reasons I think our products, company, services, etc. would be a great fit for you.”
The correct response accomplishes three (3) things. First, you’ve shown that you listened to the prospect by acknowledging they’re not ready to buy. Many prospects use this delay phrase because they’ve gotten the hard sell too early far too many times before. If you’re polite and calm with your prospect they shouldn’t be afraid to continue the conversation and give you a little more information.
Second, you’ve let the prospect know you’re interested in getting to know them, so you can be helpful and provide a service at a later time. Third, maybe the prospect didn’t think they had other buying options. Providing a quick example of how you’ve helped your customers with a similar approach of getting a list of parts/products earlier to start thinking about Vs when it’s actually out to bid/quote might provide them a viable reason to engage with you further either on your current call or subsequent calls. If you’ve gotten a better understanding of your prospect’s problem, you might tell them, that you’ll follow up your call with some helpful information, not on your company, product or service, but with some information that can be of help to him/her, so they remember the next time you contact them that you’re not one of those salespeople that’s only interested in selling stuff.
“We’re going with the lowest bid/quote when we make our decision”What it means is: You haven’t established the value of your service, product or company.How to handle it: This objection might come at several points in the sales process but is a common sales objection manufacturing salespeople need to address when it comes up and your prospect is trying to blow you off.
Your job is to show your prospect the value of having them work with you Vs just considering the price. You need to emphasize your value over price. Remember “Value Statements” about your product/service/company need to be specific that can be tied to a dollar equivalent that represents your higher price (i.e. If you work with XYZ manufacturing, because of our cloud ERP system we can provide you an online portal that you can monitor your inventory levels of your product(s) as well as order online which saves you “X” numbers of hours/month, etc. etc. )
“We’re not ready to make a buying decision right now.”What it means is: This objection is commonly heard when a salesperson is trying to close the business. Assuming your prospect has the authority to purchase your product or service and you have thoroughly qualified the opportunity (Budget, Authority, Need and Timeframe (BANT)), this objection means they still might need more information or it could signify that they’re waiting to hear back from your competition.How to handle it: Take a step back. Don’t be defensive. Ask your prospect if you can review their buying process to make sure you haven’t missed any steps to cause the delay? If you’ve taken the time to understand their buying process (which oh, by the way, should resemble your selling process) and documented that process and shared it with your prospect along their buying journey, it might expose the prospect, in a nice way, to provide you information about your competition to gain an edge when it comes time for final negotiations. It might also be noted here if you’re in a competitive situation, ask what points of vendor differentiation your prospect is examining, and provide resources that show why your offering is the best option. If they simply need more information, drill down to the area of your solution they’re still uncertain about.
“Is this your best price?”What it means is: “Can I get a better deal” (i.e. your value statement, above, didn’t help and the price is probably still the primary determining factor of who they’ll buy from.How to handle it: Your prospect’s voice tone is important here. How you respond to this objection depends on your ability to read your prospect. Do they sound like they’re ready to play hardball, or are they asking, because that’s expected in your industry?
You can either give a discount or hold firm. Your product is priced the way it is for a reason, so don’t give away the store! Remember if do go down the path of offering your prospect a discount you need something in exchange for the discount (i.e. a longer-term commitment, a signed contract on the spot, a larger quantity purchase, etc., etc.). There are of course hundreds of other objections or variations of the above objections a manufacturing salesperson hears if they’re selling long enough. The bottom line here is if you take the time to get to know your prospects and thoroughly understand their buying situation (BANT), you should be able to overcome most objections like the ones above; which should result in more sales. Don’t be just another bid or quote.
