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Lean Manufacturing and ERP Can Be Complementary Processes

8/5/2010 at 1:44 pm by The Sage ERP Team

In the past, some businesspeople have advocated the cancellation of an ERP system if a business decides to practice lean manufacturing. They claim that the elimination of excess required by lean manufacturing also requires the elimination of ERP. However, when run together, ERP and lean manufacturing strategies can actually get along quite well. A tailored and well-run ERP system – coupled with lean manufacturing practices – can drastically improve the bottom line of your business.

It’s worth remembering that businesses are complex organizations composed of numerous different processes and ledgers, whether or not they’re lean. For even the leanest business, ERP systems can still help manage all the tasks that need to get done, from managing accounts to keeping the payroll up to date to reviewing and cataloging inventory.

Lean manufacturing can be a cleansing fire: It often means doing away with old business practices to make way for totally new lines of production, and ERP often isn’t a part of this drastic destruction and rebuilding. However, ERP systems do play a vitally important role in restructuring existing processes so that they can function at their peak efficacy, especially in a lean environment.

If you’re thinking about switching to a lean manufacturing business model, don’t dismiss ERP systems. A well-designed ERP system, in conjunction with a lean manufacturing process, can actually make some businesses more efficient than either system could on its on.