The Benefits of Lean Manufacturing ERP Principles

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Examples of Lean Manufacturing ERP Support


lean manufacturingBusinesses everywhere are harnessing the power of lean manufacturing methodologies. Once a primary approach to batch manufacturing and distribution, now a modern means of running a business of any size. Lean six sigma, a form of process excellence for businesses, encompasses the idea of lean ideologies and the elimination of defects inside the steps of a value-added process. The application of LSS programs systematically improves products and services as close to perfection as possible. Many business are transferring to Lean manufacturing ERP software that can help further support these initiatives.

Today, businesses are moving away from providing products and services that satisfy a general market and instead are implementing intelligent resource software, like Epicor 10, to prove what customers really want. The focus of lean manufacturing is customer-centric, proving quality processes and agile software management can be leveraged in a customer’s buying decision. Big cloud data and sophisticated analytics are prompting firms to lean out processes that provide no value to buyer and end user.

Driving out inefficient processes through the use of software is one way companies can refocus their attention on quality per opportunity. Opportunities are the steps of a process where a defect can occur and any transaction that may cause a chance for non-conformance. Lean manufacturing ERP processes are a matter of qualifying measures rather than quantifying them in order to underpin customer specifications or other macro forces; and continuously improving business processes with Epicor 10.


Benefits of Lean Manufacturing ERP

Integrating-ERP-and-CRMThe infographic above illustrates the benefits of lean manufacturing, specifically for manufacturing and distribution. A study released by Aberdeen Group in 2013 surveyed companies participating in lean six sigma initiatives. Respondents were asked to reveal development training for employees, process challenges facing the business, and ROI following their adoption of a process excellence program. Lean six sigma, an otherwise underutilized approach to business management, had become a largely popular process excellence methodology among manufacturing and distribution businesses.

Although implementing a lean manufacturing ERP software system to procure essential objectives of LSS programs can be complex and resource consuming, it’s quickly becoming the most sought out approach to business management. Analysts have determined software suites integrated with a lean six sigma approach have saved companies billions of dollars. They further state that no other process excellence program has saved companies more. On average, lean manufacturing programs integrated into lean manufacturing ERP can potentially render an average of 40 percent cost savings, higher margins on products, and increase customer acquisition.


Why Epicor may be a lean manufacturing ERP fit…

Research shows businesses strictly adhering to lean principles are achieving a cost savings 65 percent higher per project than those who revere process excellence primarily as a way to reduce waste; and dismiss a progressive TQM business model. However,  a number of businesses employ just six sigma practices.  Over half of respondents believe process improvement initiatives deliver strategic objectives. So why are business not implementing systems that help them do this? Many times we find that it takes the right partner to help configure these systems to get the job done right.

Many management systems for manufacturing and distribution on the market today feature TQM and production management capabilities, but are not core functions of those systems as they are in Epicor 10. What’s unique about Epicor 10 is its employment of agile mapping. Quality management and production management modules can be conditioned to exploit and control value-added processes based on lean six sigma figures. In addition, best practices of valued processes can be automated for any size manufacturer or distributor streamlining quality data and eliminating defects.


Remember…

Remember, brands that provide consistent products and services are perceived much more valuable to customers. As you may have guessed, customer loyalty is increasingly becoming a primary goal of enterprise management. Integrating lean manufacturing principles into your ERP system can support business processes driving customer acquisition, simplified production systems, and continuously optimized efficiencies.

2 Comments so far:

  1. […] gives you the power to eliminate waste from your supply chain and operate as a lean producer. Your inventory will be stocked only with what is most essential—components that will be used, […]

  2. […] by focusing all of a business’ processes on the finished product and customer experience. In our lean manufacturing infographic, for example, we noted that businesses strictly following lean methods achieved cost savings of 65% […]

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