How ERP Can Help Companies Become Lean Coursework

How ERP terminate Help Companies Become Lean - Coursework ExampleIn the current economic climate, there is cut-throat competition and a rat race has emerged to capture and retain a large customer base. The larger a potents customer base, the stronger it shall become. A firms customers atomic number 18 its most valuable asset, as they are the ones who spread positive word of mouth if the family is delivering good value and this in turn drives select and subsequently the growth of an organization. Firms nowadays recognize the importance of delivering customer delight more than ever before and this has led a change in their business strategies whereby companies are striving to eliminate as many another(prenominal) costs as possible and streamline their business processes in order to provide better swear out at lower costs and pass this benefit down to their customers. Availability of information, or rather the need of it, is often cited as one of the main reasons why delays occ ur in business processes and often results in two or more departments doing similar paperwork thus duplicating the work, something which is totally unnecessary and only consumes more clipping and money than necessary. An ERP system in this case shall be an ideal addition to the companys resources as it makes available information across all functional departments thus ensuring transparency and availability of information at all times. ... fers and are adopting measures to integrate this system into their operations or, in case of those using older data processor systems, migrate to the newer ERP platform. The proponents of Lean have recognized that ERP can help organizations achieve the objective of becoming angle of inclination. The flipper basic principles that form the basis of the idea of Lean - value definition and specification, value stream mapping, continuous flow, customer pull and the pursuit of accurateion - are all supported and enhanced by ecumenical information c ontrol and management tools that an end-to-end enterprise software suite delivers. How an ERP system streamlines a companys business processes An ERP system can help a company move towards a lean structure in many ways. These include helping reduce waste, moving towards continuous improvement, exploiting and satisfying sales and customer service opportunities, keeping suppliers and production up-to-date with the use of order less manufacturing and Kanban and creating an environment of perfect information and collaboration. Waste Reduction An ERP system, if implemented, becomes the main information carrying artery of a company, carrying data pertaining do periodical activities, measuring progress and using metrics to identify opportunities where a company can improve its processes. round ERP systems also allow companies to conduct What-If analyses and help determine activities that have the quickest payback times. A luculent system with perfect information flow allows all departm ents to visibly see where each activity lies in terms of progress and ensures that duplication of work doesnt take place. With an ERP system in place, firms can in effect use the most efficient methods of routing and workflow such as using the most