Can You Farm Out Implementation?

By Mike Hart  

You are the owner of a small manufacturing business and you decide to upgrade from general accounting software to a manufacturing software package.  Can you farm system implementation out to a consultant?   

For the majority of small companies, those that only need 5, 10, or 15 computer users, using a consultant for implementation is not a viable option. 

Cost is one factor.  Any good consultant is going to charge an hourly or daily rate that is at least triple what you pay your top salaried executives, plus travel expenses.  Spending tens of thousands of dollars on consulting services is beyond the budget of most small companies. 

If cost were the only factor, it could still be justified if using a consultant guaranteed a successful outcome.  The question is, does using a consultant guarantee implementation success?  Don’t get your hopes up. 

My company has been providing manufacturing software to small businesses since 1992.  Over the years we’ve worked with hundreds of consultants.  How do they stack up? 

The track record is not good.  Most of these “consultants” are not true consultants who help you improve your manufacturing efficiency.  Anyone can hang out a shingle and call himself a consultant, regardless of qualifications.  Many consultants are simply someone who is out of a job.   

Small business owners are easy prey for mediocre consultants who have just enough technical knowledge to appear competent.  A consultant may know a particular software package from a previous job, for example, and can impress you with his product knowledge.  That knowledge, however, is often superficial and the consultant has no clue how to actually implement and use the software in an effective way.   

Many of these consultants are amateur programmers who impress clients because they can create custom reports or simple applications.  Whenever any problem or issue arises, custom programming is offered as the solution, which of course generates billable hours. 

Beware of consultants who push advanced technology as a solution instead of the basic processes that must get up and running first.  Bar coding, labor data collection, and EDI and web store integration are lucrative gigs for consultants, but are not needed until way down the road, if ever.
 
In my experience, most consultants involved with manufacturing software have a technical orientation rather than a managerial approach to problem solving.  As a whole, they do not follow directions and have little respect for process workflow. 

Do good consultants exist?  Of course, but they are few and far between and tend to focus on mid-market ERP systems, which is where the consulting money is.  Frankly, the odds of finding a qualified and effective small business manufacturing consultant in your local area are close to zero.  

Don’t despair.  Manufacturing efficiency is achieved by implementing the core functions of inventory, bills of material, routings, sales orders, MRP, jobs, and purchasing.  These core functions are best implemented by your own people who know your products, customers, and suppliers far better than any outsider can. 

Plenty of people can help you with physical system installation and initial software setup.  You can also get outside help with data import, if you are unable or unwilling to do it on the inside .  These are services that should not be confused with true consulting. 

It is a mistake to start out focusing on peripheral functions such as bar coding, labor data collection, EDI, web store integration, or custom programming.  These applications are highly technical and do involve consultants.  Instead, implement the core processes on your own, which is where most of your efficiency gains are made.  After the core processes are up and running, you can then assess if any of the aforementioned peripheral functions are actually needed and whether they are worth the cost.

Mike Hart is the co-founder and President of DBA Software Inc., a leading provider of manufacturing software to small businesses. 

Comments

[Linda Ruby]

Can this software be upgraded to web based run?
I am the Business Development Manager for a small company that currently uses DBA software. I would like to be able to add contacts to the exsisting database, rather than add an additional software package to the mix.
Thanks

[Mike Hart]

Linda, I'm keeping this blog product neutral so that I can present topics of general interest without the blog becoming a forum for DBA issues.

For DBA-specific questions, please use the "Ask DBA" service on the DBA website (www.dbamafacturing.com), which is geared to handle this type of question. Thank you.