Lean and Erp - can they coexist?
This article is also available on our website: PROACTION - generate best practices. This is a piece of paper was originally written by George Miller, PROACTION founder. It has been modified and updated by Paul Deis, PROACTION CEO. Introduction
Some have chosen concluded that the ERP (enterprise resource planning) or ERM (Enterprise Resource Management) is dead and that Lean replace it. It's like stating that the body is replaced by a new engine. ERP is the backbone of modern enterprise system. Lean is a philosophy of management, with accompanying tools and techniques to run the company much faster, cheaper "better. They are NOT mutually exclusive, but Lean ERP must be different from the traditional approach. Chassis requires some changes in the project.
ERP is obsolete? Points made:
¢ ERP has evolved considerably, and almost ceased to exist as we knew it years ago and later ¢ Lean ERP can coexist
Lean ¢
¢ ERP is compatible with Lean, but software vendors need to increase lean functions Μ
industry needs to learn how to better support the use of ERP Lean
content
Μ lean ERP: Oxymoron not
Μ ERP definition and evolution of body
EPADSIG ¢
knowledge areas definitions of lean
¢ ¢ What are the clients Looking For? Μ
lean aerospace initiative
¢ lean principles
Μ Μ
weakness ERP ERP / Lean Enterprise
Summary of functional requirements
¢ ¢ Applications
DEFINITIONS
The changing definition of ERP ...
"Oriented accounting information system for the identification and planning resources for businesses to take, make, ship and account for customer orders. ERP system differs from the typical MRP II system technical requirements, such as a graphical interface relational database, use the fourth-generation language tools and computer aided software engineering in the development, client / server architecture and open system portability
. "-APICS Dictionary 8th Ed
I always thought it was very weak definition. Don Frank agreed with me and offered a better presentation EPADSIG (APICS engineered products and special interest groups Aerospace / defense). Then he was adopted in later APICS Dictionary.
later APICS ERP definition:
method for effective planning and controlling all resources necessary to take, make, ship and account for customer orders in the company of manufacture, distribution or service. APICS Dictionary-10th Ed
definition is very important for the lean environment. What is important is the design of most ERP systems and management software to use it.
lean Definition 1: Lean Production 'philosophy of production that focuses on minimizing the amount of all resources (including time) used in various activities of the enterprise. It includes the identification and elimination of value adding activities in design,
production, management supply chain and deal with customers. Lean producers employ teams of multiskilled workers at all levels of the organization and use highly flexible, increasingly automated machines to produce the quantity of products in potentially enormous variety. It contains a set of principles and practices in order to cut costs by removing waste and relentless simplification, all the manufacturing processes and support. Syn: lean meat, lean manufacturing. -APICS Dictionary, 9th Ed definition of lean 2:
systematic approach to identifying and eliminating waste (non value added activities) through continuous improvement by flowing the product at the customer pull in the pursuit of excellence. -MEP Lean Network
lean Definition 3: Perform
as the optimum value for each step in the process of providing the product or service to optimize the total value chain. "-Dr Dan Shunk, Arizona State University
lean Definition 4: Configuring and
Lean is a philosophy company, not just techniques. Lean means doing things as simply and cheaply as possible, while ensuring the highest quality and very fast service. The old joke about this is that you can choose any two. But that is no longer acceptable. The organization should absorb Lean thinking for the lean meat. It is embedded in its culture, metrics, policies, procedures, and finally, its tools.
Some worry that Lean can not be built on the ERP. The real problem is that the vast majority of companies do not even accept the ERP successful yet, so They could be based on very shaking Foundation. I smile to me after visiting some companies claiming they have "certified the class and the ERP system." And then I talk to the staff and start hearing the real topic, namely that the emperor is not wearing any clothes in most businesses. Some companies try to leapfrog
ERP, but they must first master the basic disciplines into an organized system. There are no shortcuts.LEAN CHANGE ERP
During our ancient fathers oriented ERP MRP is mostly obsolete, the changing attitude of the company definitely lives mutation and adaptation to the new world of shrinking cycle time, budgets, value added activities and white collar.
Some companies are implementing lean tools by hand. Some are modifying ERP software, or containing a third extension of lean software / systems to enhance functionality. A few isolated are still trying to complete college applications. Changing the culture, education and leadership are also needed to change the way organizations are run. Lean tools are gradually incorporated into the standard offer of ERP, but are delayed in the rate of flow generally lean. Some manufacturers are now addressing ERP more of it through the white papers than product development. As mentioned earlier, third party suppliers
contributes to fill the gap. Maybe some of them must be ultimately acquired by enterprise software vendors.Some suppliers to differentiate themselves (and confusing for all of us) are now referring to themselves as "Supply Chain", "e-business" or even the supplier ERPII.
main things that require should reflect the latest ERP systems to improve Lean supports:
Implementation of Rapid Configuration
¢ ¢ flexible business model and the system is very simple
¢
Μ built in the process of mapping, support and training processes
Μ very rapid response from the market, proposals and design, order processing, planning, procurement, production and shipping.
¢ Strong quality assurance support
¢ slash administrative tools, material and production costs
Μ facilitate integration with other systems-internal
and external visibility of information quickly and easily ¢
Μ true built-in limit management
Μ integrated product design and process management tools
¢
Some lean tools needed by many companies:
¢ Flow Planning Cell
Μ / focus factory
Μ Kanban, consignment, inventory, point of use
Rapid Supply Chain Management Planning
¢ ¢ vendor management, VMI, ¢, near real-time, flexible
Μ six sigma quality tools planning, monitoring, improvement of standardization
Μ / technology group
¢ Project management for projects of production, capital and development
Μ "Control Panel" metrics
Although some of them can be handled by the software, these approaches must first be embedded in a general management system by the organization. Even if the software was ready for Lean, we still need to get management of most companies, employees and the implementation of support ready to print. Rarest and most important resources needed for the change of this magnitude is continue implementing leadership and management support "is not really about the software.
LEAN
OBJECTIVES To understand what Lean is
, we first switched to Fathom what to do.To understand the attributes that we need to lean or no ERP needs, first run with stakeholder expectations ....
What customers are looking for?
Fast Turnaround ¢ inquiries, processing orders and deliveries, changes, information requests, new designs and engineering changes and other services customers.
Μ high quality - very low defect product, process and administrative activities.
¢ Good rates - not just low price, but low total cost, taking into account the unit price, other factors unloading costs, the cost of quality, development costs, changes, maintenance, servicing, the costs associated with procurement.
¢ Easy to work with a simple, straightforward service, no endless waiting for the hold and voice mail menu, convoluted, no runaround,
What shareholders are looking for?
Μ profit-competitive return on investment. Μ
capital growth - short / long term. Μ
home security
¢ No legal ethical trouble -
What are employees looking for?
Μ employment security, income, benefits
Μ interesting, it's worth the work, sense of purpose
Lean Aerospace Initiative
objectives, supported by The Lean Aerospace Initiative:
Μ promote lean leadership at all levels constantly focused
Μ customer
Μ development of relations based on mutual trust / commitment
Μ and the ability to optimize the use of human
¢ Make decisions at the lowest possible level, nurturing environment
Μ Μ
learning to implement the integrated development of the product / process (IPPD)
Μ identify and optimize enterprise flow
Μ ensure process capability and maturation
Μ keep challenging existing processes
Μ ensure seamless flow of information
Μ maximize stability in a changing environment
lean principles (generic):
We can put these together on the basis of experience and exposure to lean thinking:
Μ identify the product value stream
Μ Rapid Response to customer needs, competition,
Μ single Piece
pull
Μ Μ Μ
elimination of waste and lean product development process
Μ capacity to respond to changes
¢ Continual improvement of the elimination of defects
Μ Μ standardization - to eliminate process variability
systems management / control of visual ¢
What is wrong
What 'One' Hate About traditional ERP
Those who badmouth ERP raise some important points that must be addressed. These are the most We have heard complaints.
¢
proliferation of screens, transactions
Μ cumbersome procedures for transactions / Release
orientation process batch ¢
Μ fixed lead times in a day or longer increments
Μ reduce MRP poor planning / management Set pieces, disconnected from the planning of resources for many restrictions
No ¢ off and manage production activities
Poor document management
¢ difficult Μ Μ extract information
weak, inflexible workflows
¢ No Lean tools such as Kanban, VMI, etc.
Early approaches
ERP
had additional problems, a little bit better addressed now, such as: Μ lack of integration of financial systems
¢ No support functions such as maintenance, QA
Μ lack of integration of project management
About what you have done suppliers ?
In our experience, the software typically smaller companies to develop new philosophies and techniques for many years. Infuriatingly long it took even the most basic concepts of JIT to filter down to the software companies and corporate practices. The task is still not complete. Newer lean concept implementation is still delayed. Takes years for new ideas to understand and accept. Next, companies must insist on their adoption and the organization of planning and implementation. Software companies need to identify customer requirements, even predict, then the software provides the tools and support services for them. Finally, the industry needs to learn more and effective implementation of new tools.
WHAT TO DO ABOUT PTT
more proactive companies are not waiting for software vendors. One hand in developing an approach or writing your own software. Some are advising their software providers on what they needed. Emerged as a new sub-industry dedicated software tools of lean.
not wait for the perfect software. Strive to develop and implement cost-effective approaches early. ERP system can be extended by manual procedures, interfaces with other systems, home grown software, third party software enhancements or improved features of the ERP vendors. Early attempts to serve as prototypes for the more elegant ERP improvements later. Additional attempts to develop and modifications in such a way as not to damage the ease of maintenance and upgradeability ERP software later. Some providers extend the application will ultimately be swallowed, cars, enterprise software providers, when they see Finally, how important are these applications.
In selecting ERP software, extend the company's software or
own projects, check out the following .....What to look for a (high):
Μ embedded philosophy of Business (Lean, Six Sigma, TOC, JIT, etc.)
Μ flexible quick
Μ / platform (Open, flexible, low cost)
Μ Μ
E-Business/Web included ease of integration of operations in support of Lean
¢
support lean Finance Μ / Μ
valuation support lean product / process development
Μ support industry-oriented Savvy applications
What to look for the (general):
Μ easily defined, flexible to change the basic structure of Μ
/ discipline
¢ Easy to extract, process data
Μ ability to define and control processes, simple processes supports
Μ Business needed (and required)
¢ Simple as possible to learn and use
Promoting high-quality software, documentation, ¢
Μ strong future product plan to remain competitive
Μ best and better practices
What to look for (Configuration, implementation):
rapid implementation tools Μ Μ
tours, plants template
Μ vertical market (A and D) version ¢
Simple table / parameter ¢
Μ template
¢ maintenance of simple, flexible report / written question
Μ on-line, context-sensitive help, tutorial
Μ can be easily customized workflow, screens, options
As for appearance (the operation):
Μ Μ
flow generation cellular / support line / line balancing
Μ kanban / pull
Μ VMI (supplier managed inventory)
¢ Transactions minimum required, a simple data entry
Μ near real-time scheduling
cycle time management ¢ ¢ exceptions
Management
Μ quality / process management
Μ Μ reduce management
Cross contract planning (with a soft marking transactions / allocations), ¢-off and recurring activities
Μ fast / efficient transaction input, the default settings, automation
Μ interface / integrate with process control systems
What to look for (more detail):
Engineering, BOM or routing:
Μ encoding technology to support group / sub-model Μ
manufacturing / service facilities
¢ alternative Config. business process Def. by
document management, workflow
program / contract management: Support
¢ timely, accurate estimates of μ
support prices competitive, profitable
Μ record, flow down the contractual obligations tied ¢
Accurate schedules
Μ program operations, financial integration ¢
General Budget definition and tracking of the timely identification ¢ / correction of problems
Μ ensure the use of a suitable configuration for environments
Processing high volumes of transactions efficiently ¢
Planning:
group Μ requirements-the same, similar
Μ consume excess substitutes, alternates,
¢ Time phase granular
Μ optimize the constraints - time, material, Labor, equipment, manpower, technical
Μ response
Μ adapt quickly to reduce the related administrative / indirect costs
Μ ensure proper configuration used
Μ help manage inventory, order the production and distribution of resources
Procurement: improve the supply
Μ Μ
VMI,
Μ procurement process
Μ illumination requirements, technical specifications.
facilitate price competition Μ Μ
reduce defects by supply, requirements, metrics, ¢ communication administer PO's, contracts, releases, Outsourcing, Processing Μ
reduce the associated administrative costs
Μ partnership to help manage your suppliers, including supplier certification / evaluation
Quality Management:
Μ define / implement quality requirements, quality plan
Μ support / Tor certificates., inspection
Μ track all defects, reduce the volatility Μ
process to quickly identify and highlight exceptions to sanctions, corrective actions highlight
Μ ensure that the equipment, the qualifications of personnel, documentation, materials, processes, are responsible
Μ maintain traceability, accountability
Operations:
Μ schedule, control activities Μ
accurately, effectively track the material flow, storage, use - VMI, POU, kanban, E-business
¢ Help ensure that relevant items / configurations are used
¢ Help
Μ record of work performed, the configuration, the processes used. Μ
record costs, variances
Financial / HR:
¢ Manage, financing, billing, collection, kW
Μ keep up to date, accurate book "Enterprise, a business unit, cost center, program, project, part of the cost of the item on the budget and real
Μ quickly, efficiently, cost tracking and variances for the products and processes
Μ asset management, cash investment "to improve cash flow
Μ human resource management skills, benefits, payroll - to improve employee ROI, employee satisfaction
universal requirements:
Μ leading role, commitment Μ
effective plan
Data Integrity ¢ ¢
excellent education, training, support for qualified, motivated people
Effective systems "upstream" ¢: forecasting, engineering, sales
Μ streamlined, flexible process metrics
¢
MATTER RELATING TO THE IMPLEMENTATION OF
software might be 20% of the equation. "System" is structured and how to implement the objectives and may consist of:
mission
Μ Μ Μ
leadership goals, objectives
metrics ¢
Μ organizations / persons
Μ policies
Procedures ¢
Μ education
Training Tools
¢ ¢ such as software, hardware and other technologies
Successful implementation often requires a lean to the success of all of the above, Although some success may be due to some of them. Many lean improvements can be implemented without any software and computers, but they are required for best results and integration with other systems in more complex environments. In the meantime, significant improvements can be made by adopting the lean philosophy and techniques of manual or semi-manual systems. But if your competitor is already a lean enterprise systems and not, as knives Vs. guns. Outstanding knife fighter may take precedence over inept gunslinger, but why risk?
Other points
The
0 comments:
Post a Comment