ERP, supply chain, warehouse management, and even PLM software products are teaming up with lean practices to drive overall operational excellence gains for many manufacturers.
Since the inception of lean, there has been debate over technology’s role. Applications and controllers can help to automate processes, but lean proponents always warn that automating the wrong processes can be detrimental to the ultimate goal of reducing waste.
Before introducing any technology into the mix, lean experts say, companies should go through some lean exercises, starting with value stream mapping of operations, or creating a visual rendering of processes, including how information and material flow, and then identifying where there is waste. Once the up-front lean legwork has been done and the non-value-add areas are identified and removed, software can be used to automate specific processes, such as how information flows or is accessed, heightening the overall lean effect.
“Lean is about people and processes, but software is a facilitator,” says Mark Symonds, CEO of Plex Systems, a provider of on-demand enterprise resource planning (ERP) software.
Indeed, operational excellence, which is how many manufacturers define their lean initiatives these days, often requires technology tools to automate the many processes that make up a modern manufacturing company. In fact, in a Managing Automation Reader Poll, nearly 50% of respondents said they are turning to ERP as part of their lean strategy. The poll also showed that 31.7% are using warehouse management software and 17% are tapping into business intelligence technology to accelerate their lean efforts. Regardless of the applications, the key, once again, is to make sure the right process is automated, experts say.
Technology can be a lean enabler by providing greater supply chain visibility, applying financial metrics to manufacturing processes, or aligning customer demand with production output. And that’s why technology vendors are pushing lean as a key concept in their product offerings. Today, the applications making the biggest strides in linking lean to operational excellence initiatives are, apart from ERP programs, business and enterprise manufacturing intelligence. But even supply chain management, product lifecycle management (PLM), and application development are benefiting from the evolution of what some call “lean IT.”
Most vendors, however, don’t have a lean product per se; rather, it is an inherent aspect of what their tools can do.
“We’ve never had a lean product, but we’ve accumulated a number of products that have been built out as a lean solution,” says John Barcus, vice president of manufacturing industries at Oracle Corp.
“Lean is a mind-set,” echoes Rod Winger, senior director of product marketing for manufacturing, supply chain, and mobile applications at Epicor Software Corp. “It is not something that is [purely for] manufacturing or the supply chain, and it is not blue collar versus white collar.”
Nevertheless, Epicor is releasing an application that will wrap analysis around lean metrics. The new module for Epicor 9 ERP, due out this quarter, adds measures to existing data structures that apply baseline metrics built on predefined lean goals in, for example, a manufacturing cell or business process. The tool will identify deviations from identified goals, tracking on a shift-by-shift basis and displaying results using visual analytics similar to those found in business intelligence tools.
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