For many companies, simplifying manufacturing processes and reducing inventory levels are leading to simplifying their ERP, enterprise resource planning, systems.

For many companies, simplifying manufacturing processes and reducing inventory levels are leading to simplifying their ERP, enterprise resource planning, systems.

Regardless of company size, the need for an ERP system is a given and in this competitive climate using an ERP system to find areas of improvements in the manufacturing process are where enterprise systems really show their value to an organization.  Some low hanging fruit areas of opportunity are inventories, lead times, bill of materials including lot size analysis, setup.  From a process standpoint, manufacturers can reduce up to 70 percent of transactions that run on their enterprise systems by making these areas “leaner”.

Manufacturers get their best return on investment from investing time and resources in ERP software by using the predictive capabilities of the enterprise solution along with its efficient productivity tools and features such as value stream mapping, uninterrupted flow and consumer pull dynamics.

In most cases today, most customization in whatever ERP system is chosen is not necessary as “lean” features and applications are standard in its core capabilities.  However, the issue is in the established business processes of the organization and the utilization of these “lean” features by users.

Before an ERP system is implemented or a new system upgrade, the current business processes of the organization as well as future business strategies must be thoroughly refined to make sure enterprise systems our built on a strong foundation.  In summary, make sure your business processes are designed with “lean” in mind before you embark on an ERP system to streamline your company.

Customers being properly trained on how to use the applications are a key.  If the tools are not being used, they can’t add value to an organization.  To help with this potential bottleneck, application training on the ERP system is a  key as well as other user friendly features that can be added to enterprise systems to enhance user acceptance and adoption such as visual management features and techniques.

Written by :

rich