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The Lean Benchmark Report

lution technologies should facilitate the capture of standardized processes and value stream operating models. Finally, Lean solutions should support the principles espoused in the ‘Toyota Way’ by embracing common language, promoting a shared understanding, providing tools that enable collaboration, and institutionalizing a culture of Lean for the long term.

ERP Solutions

Most manufacturers are using their ERP systems to manage enterprise processes such as customer orders, financials, purchasing, supply chain, and manufacturing planning. Ac- cording to this survey, 62% of manufacturers (Figure 10) are able to leverage at least a portion of their ERP capabilities to perform these (as well as other) major enterprise processes. In addition, Lean leaders are beginning to look to their ERP vendors to help manage supplier collaboration electronically to avoid issues associated with language, culture, and 12-plus hour time zone differences. For instance, TRW is able to share its demand, production, and supply chain information in real-time with 200 of its outsourced partners by using SupplyWeb from Infor. As a result, TRW has greatly improved cus- tomer service and decreased costs.

Custom code is still being used by 52% of respondents; and they largely will continue to maintain this into the foreseeable future according to a follow-up survey; reasons include the ability to comply with specific customer requests, meeting cost reporting require- ments, and scheduling manpower.

Figure 10: Current and Future Technology Plans for Lean Deployment

70%

62%

59%

60%

52%

50%

10%

8%

9%

0%

ERP

40%

30%

20%

21%

31%

7%

9%

Homegrown or custom built

15%

16%

10%

Lean Specialty/MES solution

Plan to use within 12 to 24 months Plan to use within 12 months

Currently use No plans to use

Source: AberdeenGroup, March 2006

All print and electronic rights are the property of AberdeenGroup © 2006. 20 • AberdeenGroup

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