Tuesday, March 15, 2011

Applying "Monkeynomics" To Manufacturing Solutions

Once again I am involved with a company that is being steered by the “ERP is all you need” approach. I thought that by now we have come to peace with the fact that different systems provide solution to different problems. That ERP has found its place and made peace with MES and other shop floor systems. Maybe it is just human nature and we cannot stop ourselves from making the same mistakes over again. I was just watching one of the TED talks about "Monkeynomics" (see embedded video below). It seems that we as humans have something called “Loss Aversion”, i.e. we will take risks in order to avoid loss rather than play it safe.  This is an interesting observation that in retrospect explains a few of the odd behaviors that I have seen from companies in the past.



Another phenomenon that I find intriguing is the flawed notion that general economic methods are universally applicable. In other words the perception from people with business (or more precisely financial) background that it applies in all domains and all situations, specifically when applied to Manufacturing Systems solution. This means that everything that is in the past is money already spent and that we have to consider future state with no regard to what we currently have. Never mind the sweat and tears that where shed in putting a solution in, the extra hours, the training, etc. The current solution may not be perfect (but who or what is?) but it works, people are trained, they are using it, the company knows how to maintain it, in fact it adds value!  Yet, from a business perspective, which I equate to “the accounting or CFOs perspective”, we should disregard all of this; it is all water under the bridge. Just imaging the disruptions that will occur when the solution is gutted and a new one put in place, time, money, sweat, and tears – I just do not get it? We are slaves to this economic theory, investment planning only looks to the future and all that we have done in the past is irrelevant – I guess I will go out and get my memory erased - problem solved.

4 comments:

metrotaxresolution said...

From excitement and associating to business, all these going surfing.

The Techie Finds The Techie Finds is a general Technology blog. It provides Knowledge and Techy Articles and as well as Technology Stroy from different Countries.


Latest Technology News & Trends Find all Tech News Learning magazines and read them anywhere. Get a subscription for you'r latest in science and technology news on thetechmagazines.com

Health Life Buzz Get compassionate Health Life Buzz with experienced Healthy Living & Wellness. We have some of the best specialist doctors and also provide Healthy Living & Wellness Call today to book an appointment.

Anonymous said...

I really appreciate this wonderful post that you have provided for us. I assure this would be beneficial for most of the people. Thanks for sharing the information keep updating, looking forward to more posts. High Quality Product Images

software strategies said...

best content you provid us
is gogoanime safe 2018
free movie box apk
mighty text review
wifikill for iphone

software strategies said...

Best Blog ever seen
How to use HotSchedules login account
APA Login – apa pool login what benefits does it offer
GCU STUDENT PORTAL – HOW TO USE IT?
WATCH CARTOON ONLINE – THE BEST SITES TO WATCH CARTOONS ONLINE
WATCH ALL YOUR FAVOURITE MOVIES ON SOLAR MOVIES