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4 Tips To Use ERP For Empowering Lean Manufacturing

There is a buzz around the lean manufacturing world that ERP is an expense. So, manufacturers hesitate to adopt it. To some extent, this may seem true as lean manufacturing is about minimizing waste to zero. And, ERP becomes a waste when not implemented properly.

But, if implemented properly then, ERP encourages lean manufacturing. It streamlines operations and reduces waste within your manufacturing unit to become in-line with lean practices. In explanation of this, we present you the four tips in which a manufacturer can blend the features of an ERP with the operations to meet the requirements of lean manufacturing:

Tip 1: Reduce Inventory Wastage

Keeping maximum inventory in minimum keeping cost is what benefits a manufacturer. As ultimately, this reduces the inventory wastage which is the main concern in lean manufacturing.

Aggregating the entire data, ERP helps in accurate planning. It guides you to operate lot-by-lot, size batch and produce the quantity that can be taken off the shelf. It also helps you map the entire workflow, connecting every stage of product development, and thus lets you analyze the opportunity to reduce waste or backlog, if occurring, at every stage.

Tip 2: Save Precious Time

ERPs are meant for automation. You can use it to manage, execute and track all the processes occurring in the manufacturing unit. Using the ERP to automate everyday processes on the shop floor, personnel can save much of their time. And, the time saved can be used to focus on value-adding activities that can impact the quality of the product, not just the fact that it gets produced.

This, in turn, meets the concept of reduction in waste of the finished good and rejection from customers. Ultimately, cuts back the non-productive time of personnel by handing  over those tasks to machines that can be monitored. When that non-productivity is measurable and traceable, it will be much easier to report on areas of waste and get to work on fixing those leaks in your manufacturing process.

Tip 3: Make Assured Quality and Intended Shipments

Moving products that are in demand surely ensures that your industry is manufacturing products that will be accepted by the consumer. May be smaller but more frequent movement of assured quality items IN and OUT of the production facility immensely reduces inventory wastage and expenditure in large shipments.

And, ERP is capable to accommodate this. It helps manufacturer in scaling down delivery and shipping costs. ERP streamlines business processes, tracks every stage of product development, brings real-time data for efficient planning, and let’s manufacturer know what they need, and exactly when they need it. Besides, it lets you apply the quality check at every required point in the supply chain and prevents the item from moving to the next stage before qualifying every test.

Result: production of item in demand and in desired quality. This, definitely contributes in lean shipment concepts.

Tip 4: Reduce Downtime Cost

Implementing an ERP software for routing is one of the simplest ways to decrease wait-time when it comes to process cell downtime. We all know-well the consequences of process cell breakdown within a manufacturing unit, and the effect it can have both, on product quality as well as on the company’s revenues.

Now since, an ERP tracks the product development at every stage of manufacturing, it can also monitor any stoppage, if occurring and can alert the manufacturer at the right time. And, with the entire information available to the manufacturer, he can take the preventive actions much ahead of time. He can schedule the maintenance when it will have the minimum loss or impact on the production and working unit. Ultimately, saving the money otherwise wasted due to production halts.

We believe it is clear now that an ERP acts as the goldmine of data that can be used to empower lean manufacturing. And, one such ERP is BatchMaster ERP – a standalone software that not only streamlines manufacturing processes, but also helps reducing waste and save costs.

Written By

Sanjay Panjwani, Co-founder & MD BatchMaster Software. A technology enthusiast, he is the brains behind BatchMaster ERP- ERP Software for process manufacturers. An avid outdoorsman by the weekends, he enjoys reading & playing sports too.

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