LEAN Manufacturing is a powerful approach used by manufacturing companies to drastically improve their operating processes. This may include improving inventory control, job costing and forecasting. Manufacturing was also the original spawning ground of MRP and MRP II which later evolved into the now ubiquitous ERP (Enterprise Resource Planning) that we find in virtually every type of corporate entity.
In today's business world, it is appropriate to ask how LEAN and ERP interact – if at all – and specifically whether they are mutually supportive, mutually exclusive or independent concepts altogether. In short, LEAN addresses how processes should work, and ERP makes sure the processes work consistently.
In this white paper we respectfully present our conclusion, namely that some LEAN initiatives can be hugely strengthened with a synergistic ERP implementation and vice versa, whereas in other cases the two efforts should really be viewed as separate initiatives and managed independently from each other. This is, however, not an open ended “it depends on what you want” answer; we conclude that specific LEAN initiatives will eventually fail without considerable attention to specific ERP aspects, but that other specific LEAN initiatives and specific ERP software functionality have little in common.
What if you discovered an ERP system that strengthened LEAN manufacturing initiatives that …
decreased defects and waste
helped cut cost and lead time
improved work flow and production