When fully implemented, a lean manufacturing strategy transforms the entire manufacturing enterprise by cutting waste and removing non-value added processes. In general, a manufacturer puts into place a lean strategy by:

  • Cultivating a culture of continuous improvement
  • Streamlining processes and creating a well ordered work environment
  • Adopting lean principles company-wide, from senior leadership to production workers

The Role of ERP Systems

ERP systems can play a key role in facilitating lean manufacturing by continually measuring and monitoring key production metrics. A powerful approach is to redesign workflows to follow a lean strategy during ERP implementation. When implemented strategically, manufacturing ERP software provides a lean foundation by capturing mission-critical data that crosses a variety of functional areas including production, inventory management, LERP (lean enterprise resource planning), logistics, scheduling and more.

It’s been my experience that the most successful manufacturers achieve lean success when they use ERP to track and monitor the following metrics from their ERP systems:

  • Equipment reliability data
  • Organized, documented work instructions
  • Material flows
  • Defect, production quality metrics
  • Customer demand requirements
  • Inventory levels

While not an exhaustive list, the areas above have one thing in common: successful manufacturers use their ERP solutions to clearly see operations via continuously monitored data that is available throughout the organization.

By measuring production data relative to material flow, production traceability, resource performance, production quality and other areas, manufacturers gain a better ability to identify continuous improvement opportunities and remove waste.

 

Note: The inclusion of guest posts on the Panorama website does not imply endorsement of any specific product or service. Panorama is, and always will remain, completely independent and vendor-neutral.

If you are interested in guest blogging opportunities, click to read more about our submission guidelines.

Posts You May Like:

What is ERP in Supply Chain Management?

What is ERP in Supply Chain Management?

Business leaders need to interact with key team members, including suppliers and partners, to turn raw materials and resources into finished goods. How does ERP fit into the picture – or in other words – what is ERP in supply chain management? Well, an ERP solution...

2020 ERP Report: Should You do an In-house Implementation of ERP?

2020 ERP Report: Should You do an In-house Implementation of ERP?

Today, we released our 2020 ERP Report analyzing trends from the past year and looking toward the future to determine what these trends mean for ERP projects in 2020. One conclusion at which we arrived was that an in-house implementation of ERP can mean a less intense...