Chances are your company has already embarked on
lean initiatives. Many companies have realized that waste is the opposite of
value. Because of this they work to optimize in order to remain profitable and
competitive. But what value can an ERP bring to your lean initiatives? First,
let’s assess our lean practices.
How many of these rules do you follow?
1.
Do not over-purchase
2.
Do not over-produce
3.
Simplify processes and procedures
4.
Minimize wait-time
5.
Optimize human movement in moving material
6.
Measure and Improve continuously
What is your score on the practices above? 3 out of 6? Maybe
more or maybe less? Did you know that an ERP system such as Dynamics AX can
help you achieve the above practices right out of the box?
ERP systems are built with lean in mind, and can really aid
in a manufacturer’s lean efforts.
What can an ERP do specifically?
Reduce waste: An
ERP will increase your flow of information through its routings and workflows.
The planning module will minimize inventory while making effective use of transportation
and warehouse facilities. It will also eliminate waste or delays in the supply
chain by becoming a link to your trading partners. This means that your
warehouse will be able to capitalize on the available space provided by trade
and logistics, while your supply chain eliminates excess inventory and
shortages through supply chain management.
Increase your
Business Intelligence: An ERP system contains documentation of your
processes and procedures. It will record and implement any changes placed into
the system. This will deliver the most up-to-date information while providing
info on changes in relation to costs, lead-times, and efficiency. Built in
Business Intelligence tools will monitor performance indicators and notify management
of changes whether they are good or bad. BI tools will also allow for the
analysis of data that, in turn, can reduce waste.
Increase
Collaboration: Use the knowledge that resides in your sales people,
representatives, distributors, agents and customers. AX in conjunction with MS Office
provides electronic collaboration tools to make doing business easy. Trading
partners can forecast accuracy; ensure quality service and timely delivery.
Are you the lean super star of your business? Are you
leveraging the lean capabilities of your ERP software? Make sure your ERP
system keeps with your lean practices.
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up-to-date information.
