23.ERP/MRP

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
improvement processes

- ERP/MRP cannot make up for bad business processes
􀂾 If fused properly to business processes, ERP/MRP can be
strategic tools enabling business success