Lean Manufacturing

Reduce waste with SYSPRO ERP solutions

How ERP can support lean manufacturing

Businesses are continuously trying to find ways to maximize productivity and reduce waste to remain competitive in the global marketplace.

Lean manufacturing allows businesses to eliminate that which does not add value to deliver the best possible product to the customer. An Enterprise Resource Planning (ERP) system improves lean manufacturing by providing the visibility and tools to identify wasteful processes and assists with continually improving processes to ensure that waste is eliminated wherever possible.

Use data from an ERP system for process optimization

An ERP system can be used to support lean principles and strategies to slim down the manufacturing process by giving you full visibility across all business operations. This enables you to create an enhanced experience for your customer through a value creation process that eliminates waste.

Production planning

ERP provides you with the rich data you need to schedule your shop floor processes according to lean principles and techniques. An ERP system can assist with workflows which automatically trigger production lines to manufacture goods once an order is made.

Create a connected shop floor through the Internet of Things (IoT) ensuring real-time production updates for scheduling around planned downtime to avoid inefficiencies.

Quality management

Leverage ERP metrics and tracking tools to analyze and prioritize each process and add value to your product or service. Improved quality allows businesses to stay competitive and meet the changing needs and wants of customers.

Key Performance Indicators (KPIs) can be monitored to highlight potential processes or operations that are affecting the quality of the finished product. Allowing for proactive maintenance, management and continuous improvement.

Demand planning

With an ERP system and lean manufacturing methodologies in mind, you can forecast your purchasing and stocking needs by leveraging historical data – eliminate waste and drive production. Demand planning also accounts for fluctuating prices and availability of raw material. ERP gives you the information and predictions to power your lean principles.

An ERP system is an extremely valuable data mine and planning tool that can be leveraged in every area of the business.

Lean operations can lead to greater profitability by significantly reducing DOWNTIME :

Defects

Caused by reworks, scraps and/or incorrect job information.

Overproduction

Producing more than needed or before its needed.

Waiting

Wasted time waiting for the next step of the process.

Non-Utilized Talent

Not utilizing individuals with talents or skills for the job process.

Transport

Unnecessary movement of products or materials.

Inventory

Excess products or materials not being used.

Motion

Unnecessary movement of people within the process.

Extra Processing

Doing more work or production than the job order requires.

Discover ERP Solutions for Lean Manufacturing

Re-engineering traditional manufacturing methods through the use of lean concepts can help your business to speed up order turnaround, streamline deployment of resources, reduce waste, and build customer satisfaction.

SYSPRO ERP can be tailer made for your business requirements to help you achieve lean manufacturing through inventory management, manufacturing management, planning and scheduling.

Achieve Lean Manufacturing in your business

Lean manufacturing addresses how processes should work and ERP makes sure the processes work consistently.

5 principles to guide business improvement and ERP implementation:

1. Define the value

Identify the value of the product or service for the customer. This is what your customer is paying for. For example, identify what is the timeline for manufacturing and delivery? What is the price point? What other requirements or expectations must be met?

2. Map out the value stream

Map out the set of activities required to bring that specific product to the customer. This process can be design, production, procurement, administration, delivery, or customer service. Identify every step that does not create value and find ways to eliminate wasteful steps. A critical step here is a complete analysis of the business operations and visibility across the supply chain.

3. Create flow

After waste is removed ensure the remaining steps flow smoothly with no interruptions, delays, or bottlenecks. This requires breaking down silos and increasing collaboration throughout the supply chain across all departments.

4. Establish a pull system

With improved flow, the time to market is improved. The customer can pull the product as needed. This means products don’t need to be built in advance or stockpiled, this improves forecasting and inventory management.

5. Pursue perfection

Lean manufacturing is not a static system but one of continuous process improvement. The process is usually lean after you have mapped out the value stream multiple times.

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