Question

Explain how ERP and Lean can work together to improve operations management and enhance competitive advantage (e.g. stock ordering systems and inventory management, improved joined up thinking and decision making on quality with integrated IT systems etc.)

Answer 1

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The most significant conflict between Lean and ERP is in material planning and production planning. The top-down approach of ERP depends on the sales forecast of the material plan. On the other hand, lean products rely on the production plan, and inventory gets minimize through a factory Kanban system that complements materials and parts as needed. It's as classic as push vs. pull Production. Despite these differences, manufacturers find creative ways for several initiatives and ERP systems to coexist and collaborate.

ERP is based on MRP, works with infinite capacity, and ignores employee issues. "ERP provides basic information on customer orders, but each plant builds its level of demand through customer-centric data. On the other hand, the building decides to build it every day. It's a faster process, and we don't have anything due to human error. Now that we have time to ship the material built into the system, we need to provide the customer with an exact delivery date in advance." Poor production means the process of removing all forms of waste. All processes in business gives the final product and customer experience. Companies that follow the lean method can profitably approach to production while increasing productivity while reducing costs. Accurate planning, according to the principles of the line, is based on accurate data and predictions in real-time. ERP provides a wealth of data needed to plan the store's floor process using simple techniques. The lean production principle, ERP systems can eliminate waste, drive production, and satisfy customers more efficiently than ever. ERP is a handy tool for process data and mining, and these benefits are available in all areas of the business.