LEAN ERP optimizes your production efficiency; productivity increases and costs become more manageable. But how does it work? We’ll explain LEAN working, what ERP is and what the LEAN ERP combination can do for your production.
Working LEAN is all about working waste-free. What’s optimal production when the processes can run 24/7, without interruptions? That is the ultimate goal of LEAN working. To achieve this, LEAN thinking is focused on continuous improvement of company processes. Eliminate waste and put the customer first. This way, quality improves, lead times decrease, and costs will go down.
ERP stands for Enterprise Resource Planning. By linking logistical, financial, and administrative processes, you’ll get a smart and organized information system, suited for small and big companies, from manufacturing to service delivery. An ERP system provides an overview of lead times, purchasing, orders, manufacturing, supplies, and more. This enables you to make faster decisions.
The LEAN and ERP combination
At first, LEAN and ERP might seem opposites. ERP uses predictive demand. LEAN uses actual demand. ERP relies on registered data. LEAN ultimately aims to eliminate waste during production (including redundant registration of data).
It’s not always easy to find the connection between the big, powerful ERP systems and the streamlined LEAN processes. But you can make significant steps! Properly implemented, an ERP system supports the LEAN process perfectly and improves results considerably.
LEAN ERP in practice
LEAN ERP is about the interaction of the suppliers, the office, the process, and the client. Every cornerstone of this interaction benefits from this collaboration.
Here’s an example:
Customer benefit: During order entry, the client can be notified immediately about actual manufacturing and delivery times.
Process and supplier benefit: After order entry, the effect on the existing workload can be calculated instantly, as is the demand for raw materials. This way, planning and purchasing can be perfectly adjusted to demand.
Office benefit: automated invoicing during delivery: no separate reporting or notification of the manufacturing status is needed.
In this example, a company-wide manufacturing- and administration system really enables LEAN working and balances manufacturing with demand. And there are many more situations where LEAN ERP allows you to eliminate waste from demand to supply.
Customized LEAN ERP
The demand-to-delivery production process is basically the same for every company. The execution, however, varies considerably. At Cierpa, we can chart your process perfectly and translate it into a customized LEAN ERP solution. Contact us! We like to think with you about the possibilities for your company!