Why CAPM fails to deliver and benefits

Question 1

CAPM Benefits

Answer 1

Quotes realistic delivery times
Matches capacity to demand
Have the right materials at the right time
Have the right operations in the right order at the right time
Offers the ability to reschedule
Provides Management information
Improves productivity

Question 2

Reason for failure - Inaccurate Data

Answer 2

Data needs to be Correct, Current, and Complete
Where BOM are incorrect gross material requirements could be wrong.
Where lead times are incorrect, work orders will be issued at the wrong times resulting in late or early delivery.

Question 3

Reason for failure - Inappropriate packages

Answer 3

Systems that do not meet the needs of the business or are too complex for the users are a problem.
Finding someone with the background necessary to understand the CAPM system and the business is difficult/impossible.

Question 4

Reason for failure - IT dominated

Answer 4

The exclusion of individuals.
When a CAPM implementation focus on the software and becomes an IT dominated exercise it will ultimately undermine the projects success.

Question 5

Reason for failure - Inadequate training

Answer 5

Inevitably a problem somewhere within a business adopting a CAPM system, and results in poorly or underused features.

Question 6

Reason for failure - Use of consultants

Answer 6

A careful balance must be struck between wasting resources by “reinventing the wheel” and handing over ownership of the system to consultants

Question 7

Reason for failure - Championing the issue

Answer 7

Success of a CAPM system will be inextricably linked to the support it receives from senior management.
Project will need to be managed by an individual who has a high level of commitment to the exercise along with respect and authority within the organisation to make it happen

Question 8

Reason for failure - Cultural issues

Answer 8

The system will never work until everyone involved understand how their individual and departmental behaviour impacts on its effectiveness.
The old ways may no long be acceptable in the highly disciplined environment required by a CAPM system.

Question 9

Reason for failure - Performance measures

Answer 9

Traditional departmental performance measures may disagree with the new integrated management system that results from a CAPM or ERP system.
Accuracy of sales forecasts, adherence to production schedules and total cost of purchases need to replace the size of the order book, production volume and unit price as measures of efficiency.

Question 10

Reason for failure - Lack of discipline

Answer 10

Without discipline the data in the system will never be accurate
As soon as the CAPM users get away with circumventing the operational rules the system will be in trouble.
If old procedures lacked discipline, the more sophisticated computer based system will make the problem bigger and less visible.