ToC and Lean to lead in 2004

Theory of constraints (ToC), with drum buffer rope (DBR) concepts and lean thinking supported by software, will be key drivers for new ERP system adoption during 2004. So says Scott Rich, vice president of product management, marketing and pre-sales at US enterprise IT developer Lilly Software. He’s not alone: SoftBrands (Fourth Shift Demand Stream) and PeopleSoft, for example, are also pushing the approaches vigorously, and with supporting software to match. Setting out his stall for the next year, Rich says the company has tasked itself with ToC and lean adoption. There are already 10 active Lilly manufacturing customers on ToC, and he wants a further 10 by Christmas, with more to follow in 2004. He concedes that it’s software vendors pushing the concepts, rather than users demanding IT to support their efforts, but insists that manufacturers facing international competition and cost, customer service and flexibility pressures, “need to look at their business practices” – and that’s what it’s all about. Technologically, Rich says Lilly is now focusing its development on the Microsoft .Net environment, “because that’s what 95% of our users want”. He also talks of developments with mobile computing – as do most of the ERP software vendors. Beyond that though, technology, he says, is a ‘given’, “as long as users can see modern development.” The firm is somewhat platform agnostic anyway, running with SQL, Oracle and DB2 databases, and PCs and AS/400, but has chosen not to pursue the Java route – instead sticking with Microsoft. Rich says he sees no more threat as yet from Microsoft, as an applications competitor in deep manufacturing, than from Oracle. Both are partners at the platform level. However, if user diktats or the software giants’ appetites change, “that’s something we’re always debating.” Interestingly, Rich also sees relatively little development in supply chain support software for now. “Our customers are doing some supply chain work, but most of their efforts are directed inside their four walls. That’s where they have more issues.”