What is ERP?
Enterprise Resource Planning
Computer Software, again, either homegrown or commercial
Manages all business activities - Production, Sales, Procurement,
Finance, Supply-chain, Human Resources, etc.
Promises to reduce waste, improve efficiency, provide greater visibility
into your company’s health, etc. etc. etc.
- ERP/MRP initiatives can be a threat to lean/six sigma
initiatives in that they soak up limited support resources
for large-scale systems change
- ERP/MPR initiatives can be a complement to lean/six
sigma initiatives in that they provide essential IT
infrastructure – particularly from a jidoka standpoint
- Unfortunately, many ERP/MRP initiatives are not
designed to adjust on the basis of PDCA, Kaizen
- ERP/MRP cannot make up for bad business processes
If fused properly to business processes, ERP/MRP can be
strategic tools enabling business success