When Good Integrations Go Bad: Lessons from Failed Manufacturing System Rollouts

Key Takeaways

• Most failures in manufacturing system rollouts are not due to software, but rather issues in leadership, testing, and change management.
• Common patterns of failure include inadequate testing, poor change management, and underestimated integration complexity.
• Leaders can identify early warning signs by observing factors like scope creep, testing phases, data readiness, and workforce fatigue.

As food manufacturers face mounting pressure to digitize operations—driven by retailer demands for better traceability, regulatory requirements, and market volatility— the implementation of digital systems like ERP and MES has become commonplace. However, not all integrations that seem promising end up successfully enhancing operations.

For instance, earlier this year, J&J Snack Foods faced severe disruptions following a poorly managed ERP rollout, illustrating that even established companies can encounter significant setbacks. Similarly, Hershey’s notorious ERP misstep from over two decades ago serves as a timeless reminder of the vital importance of testing prior to launch.

As integrations become more convoluted, often involving cloud systems and AI tools, understanding why high-profile rollouts fail is crucial. Here’s a breakdown of the common pitfalls and actionable insights for food manufacturing leaders to ensure successful system rollouts.

The Fragility of Food Manufacturing Rollouts

While all industries face challenges during system rollouts, food manufacturing in particular must navigate unique complexities:

• Perishability and Tight Timelines: Inventory must move quickly; long delays in stabilizing systems can lead to spoilage and financial losses.
• Heavy Regulation: Systems must adhere to strict lot tracking and recall procedures, where misconfigurations can have dire consequences.
• Product Variability: Frequent recipe changes and seasonal products increase the risk associated with untested systems.
• Decentralized Operations: Multiple facilities with varying capabilities can make standardized processes challenging.

With the workforce already stretched, introducing complex integration projects can further exacerbate issues. Common failure patterns become predictable, often rooted in interruptions of service due to poor planning and inadequate execution.

Identifying Common Patterns of Failure

1. Inadequate End-to-End Testing

These failures often stem from treating testing as a mere formality rather than a necessity for success. Historical instances, such as Hershey’s rushed implementation, highlight the crucial nature of thorough testing phases.

Recommended Testing Framework:

1. Process-fit Testing: Chain test processes from order receipt to pallet loading.
2. Integration Testing: Simulate real transaction volumes, including necessary interfaces.
3. User Acceptance Testing: Involve floor workers in practical scenarios to address potential issues.

2. Poor Change Management

Resistance to new systems often arises when employees feel unprepared, highlighting the need for effective change management strategies that go beyond simple communications.

Key Change Management Strategies:

• Create a change impact map for critical roles.
• Ensure visible support from operations leaders.
• Establish two-way communication loops for feedback.

3. Underestimated Integration Complexity

The patchwork of varied systems across food manufacturing can lead to complexities that integrations often fail to address. Risks escalate without a clear understanding of these interdependencies.

Integration Complexity Assessment:

1. Evaluate product and process complexity.
2. Assess regulatory requirements and compliance standards.
3. Review multi-site operational structures.
4. Analyze the IT/OT landscape comprehensively.
5. Investigate data quality governance to understand system interdependencies.

4. Insufficient Training and Support

Typically a budget-cut target, inadequate training can derail the most well-planned integration. Comprehensive, role-specific training programs are essential.

Effective Training Approaches:

• Focus on role-based training, addressing actual tasks.
• Create scenario-driven modules to prepare for unexpected situations.
• Provide hands-on practice in a safe environment.
• Ensure multi-shift and multi-language training coverage.

A Leadership Framework for Successful Rollouts

Food manufacturing leaders can use a four-stage framework to govern system rollouts:

1. Align: Define clear business outcomes and acceptable obstacle levels while forming a cross-functional steering committee.
2. Design: Start with current processes and identify risks using an integration complexity canvas.
3. Prove: Test under extreme conditions to validate readiness before rolling out.
4. Land: Monitor performance through a dedicated support team for the first 90 days post-launch.

Diagnostic Questions for Leaders

To monitor the status of rollouts, leaders should ask questions surrounding:

• Scope and timeline adjustments.
• Evidence of thorough testing and defect resolution.
• Clarity of data governance and process integrity.
• Training gaps across shifts.
• Operational readiness and rollback plans.

Manufacturing system rollouts are transformative endeavors that require meticulous planning and execution. By focusing on crucial aspects like testing, complexity management, and workforce readiness, food manufacturing leaders can turn potential pitfalls into successful implementations.

FAQ for Food Manufacturing Leaders

Q: What is systems integration in a food plant?

A: Systems integration refers to how various systems (like ERP and MES) communicate with each other and with the plant floor, ensuring data accuracy.

Q: How much downtime should we anticipate during go-live?

A: It’s advisable to plan for a few days of reduced performance, not zero downtime, and to schedule rollouts strategically away from peak periods.

Q: When should plant managers/operators be involved in the project?

A: They should be involved from the selection phase to ensure that operational realities are considered throughout the process.

Q: What metrics should be monitored in the first 90 days?

Track operational metrics like order fill rates, line uptime, scrap rates, and customer complaints to spot issues early.

Q: How can smaller manufacturers minimize risks in integrations?

A: Focus on simpler scopes, leverage proven solutions, and emphasize training to counterbalance limited resources.

Q: How does AI impact integration risk?

A: While AI can enhance processes, it requires robust foundational systems. Therefore, AI initiatives should be planned as secondary projects built on established integrations.