ERP - Lean Initiatives to complement your ERP System

Lean manufacturing uses ACTUAL demand to PULL product through the value stream. ERP systems use top-down FORECAST demand to PUSH product through the value stream. It’s the classic problem in materials planning and production scheduling.

Inside the plant, lean techniques should drive production and build to a level demand plan. Lean works best when there is smooth flow of materials and variation in the production schedule has been minimized.

Raw material feeding the plant and finished goods leaving the plant should be driven by ERP. Customer orders from ERP should be used to manually level plant production.

The lean method of operating plants, combined with ERP to communicate with suppliers and customers, is an optimal approach to integrating lean and ERP.