5 Ways You Can Move Towards Lean Manufacturing With New ERP Software 

Nov 02, 2020

5 Ways You Can Move Towards Lean Manufacturing With New ERP Software 


If you’re running a manufacturing company, you must have heard about lean manufacturing and the many benefits that it offers. What you probably don’t know is that investing in a new Enterprise Resource Planning (ERP) solution can help minimize different types of waste during the manufacturing process. Here are five ways ERP improves lean manufacturing operations.  

  1. Reduce transport waste 

Manufacturers are unable to maximize profits for various reasons, and one of them is the lack of proper communication between the different departments of the company. This typically results in the movements of materials and goods from one location to another without adding value to the final product that customers eventually receive. When this happens, you are investing time and operator skills in a non-revenue generating activity, which translates to losses for the company.  

The right ERP will help you monitor your production processes such that transportation only occurs when necessary and that the materials or goods are taken to the correct designated locations. It also helps you schedule and tracks the use and performance of the vehicles sued for transportation.  

  1. Minimal inventory waste 

Manufacturing companies typically expect to have a certain amount of raw materials and products maintained in the inventory. Inventory waste occurs when these materials are unprocessed, and unless you are stockpiling on purpose, this could hurt your business in different ways such as tied-up capital, used-up warehouse space, transport waste, and more.  

With the new ERP solution, this form of waste will be reduced to the barest minimum since you will have access to tools necessary for forecasting accuracy, analyzing historical data for sales and products, setting min/max stock levels, planning distribution, etc.  

  1. Less motion waste 

Motion waste occurs when people and machinery have to move around in a way that does not have value or in a way that results in fatigue, injury, damage, or wears and tear. A number of causal factors are responsible for motion waste, and some of them include the plant layout, miscalculation of talk times, and obsolete or flawed production.  

Today’s powerful ERP software improves lean manufacturing in this case by providing data on machinery utilization, job planning, and scheduling on the production floor. In other words, it allows you to design your processes to incorporate optimal talk times.  

  1. Ensure continuous workflows

Waiting may occur from time to time in an organization, but when it becomes the norm, time is being wasted. Waiting time may be described as the time when employees are unable to act because the various departments of the company are not in sync or because of the unavailability of critical data for decision-making.  

The right ERP tool eliminates waiting time by providing a single interface for all the functions of the company, thereby granting access to data that can be retrieved at any time and by anybody. This will help ensure continuous workflows and greater efficiency. 

  1. Avoiding overproduction and over-processing 

Overproduction leads to waste because there are more goods than what your customers need, while over-processing refers to the excess use of materials without creating any customer value. These twin problems lead to loss of time, money, and other resources. A new ERP helps solve these issues by providing tools that enable better supply chain and accurate demand forecasting. It also helps in automating processes, so production performs to the right KPIs and customer goals.  

Bottom line 

The concept of lean manufacturing is designed to reduce costs and wastage, and the right ERP software can help you achieve that goal. It is easy to use and boasts fast implementations plus a short time-to-benefit.  


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Topics: ERP, enterprise software solutions, ERP software, Manufacturing, ERP Solutions, manufacturing erp software, lean manufacturing, lean manufacturing practices