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Lean ERP

Lean Manufacturing makes you the least cost producer, with the best quality and a delighted clientele. Lean manufacturing defines the parameters, which are to be adhered to in place of traditional method of mass manufacturing.

Lean Accounting helps in   tracking   these parameters and the teams do the course correction to achieve the desired results.

Lean ERP is desired for a lean company .As the operation and controls are on the gemba, the real time collection of the data takes the importance. What the value stream teams are doing is captured On Time.

Lean ERP can capture a lot of data from the various functions and gembas. What data is to be captured for the lean manufacturing and lean accounting and any modification is required in the ERP system and any new format of MIS required.  Lean ERP can provide that information.

It is essential. The most important is the discipline to be followed by every function in the company so that the data, which is being captured, can be consolidated and become meaningful.

The customer orders when they arrive at the marketing department they have to ensure they give it the same code which they have used earlier when they have supplied last time. This will ensure historical cost structure is available for guidance.

The design dept. is using the historical codes to take out the design before generating any new codes. If some item is already ordered the lean ERP will prevent its design revision.

Purchase dept.  Will follow old codes to track and match new requirements against the slow moving and non-moving stock available in the stores. It will prevent ordering if the material is available in the stocks.

The standardization is done all across the plant so that all value streams are tied together and nowhere excess stock is getting generated.

Freeze the quantities for the consumables so their usage is controlled.
All the material is made to travel across the value stream to the dispatch and depleted from the Lean ERP system through the invoicing. All components of the product are tracked on Lean ERP so that the real time product costing can be done. If you are able to track the real costs then you can determine whether you are making profits or not .The journey of cost reduction is however continuous. When you are ready you can go to the next step and work on the target costing.

Stock taking on regular interval is important. More so it confirms whether the Lean ERP transactions are being done correctly or not.

The way you want to run your operations you can work your way through Lean ERP and cross check during the lean journey that is being run that way or which department or person needs counseling.

If you are able to run your operation and track data product wise, value stream wise, plant wise, group wise then you can have your profit and loss statement on 1st of every month. It will give you enough time for corrective action to be taken.

Specific lean initiatives will eventually fail without considerable attention to specific ERP aspects. Lean addresses how processes should work and ERP makes sure the processes work consistently.

Lean ERP integrates information across all departments -Marketing, Design, Production Planning and Control, Purchase, Production, Quality, Assembly, Logistics and Finance Departments. It allows all users to input their data at many locations. Lean ERP processes this data and presents the useful information in the real time. Lean Lives in real time like the ERP and you are able to do the course correction in the real time.

Specific Lean initiatives can be successfully implemented with considerable attention to specific Lean ERP aspects requirement.
It is critically important to note that the way the ERP system is implemented in your company –is to be studied whether it will support the lean initiatives .If not then your ERP system has to be modified which is very much possible with the help of your ERP service provider.

Lean Kaizen Business Consulting has expertized in Lean ERP. These experts work with all departments and your ERP team and your ERP Service Provider and ensure that these gains are sustained and become a habits and culture of the organization.

Lean Kaizen Business Consulting offers the highest quality training and consulting services available anywhere; and we feel strongly about producing results in your plant, with your people, addressing your problems and opportunities.

To get started Contact Lean Kaizen Business Consulting.