The global commercial market strives for perfection – functional efficiency, maximized performance, and ever-growing profitability, which comes from the streamlined workflow of all business departments, where every activity brings value to the business outcome.
In reality, however, the productivity paradise is rarely the case. Very often, the available workforce doesn’t provide the expected value and benefits to the company, which motivates businesses to implement leanness into the company, minimizing non-value activities and maximizing the outcome.
Alongside these efforts, companies are increasingly focusing on product customization to meet diverse customer needs, adding value and differentiating themselves in the market.
Let’s learn what the lean manufacturing philosophy is and how to bring it to life with the help of digital solutions such as SAP software.
What Is Lean Manufacturing?
Lean manufacturing is an efficiency-oriented approach that primarily focuses on reducing ‘waste’ of an end-to-end production cycle.
Lean manufacturing is related to just-in-time manufacturing, yet they are not the same. Just-in-time manufacturing targets only productivity efficiency, aiming to produce exactly the amount to meet the demand. In short, it prevents the excessiveness of inventory.
Lean manufacturing, however, is a broader term; it is a complex system of measures that target efficiency across all business departments – manufacturing, production, marketing, distribution, customer service, etc.
Businesses that pursue a lean manufacturing strategy strive for the maximized usage and value of their investment (labor and finance) that the customers are ready to pay for.
How to Introduce Lean Manufacturing?
Lean manufacturing resembles manufacturing heaven, where all activities run smoothly and are streamlined. Yet, it is only possible to reach if there is comprehensive software that can bring clarity, transparency, and efficiency across departments, thus, increasing the value of the manufacturing process.
One such type of software is SAP ERP and its modules, which target practically every form of business activity, taking its performance to a new level of efficiency.
SAP consists of 64 dedicated modules, every one of them designed for specific business activities. For instance, SAP EWM (Extended Warehouse Management) and SAP SCN (Supply Chain Management) will directly target the manufacturing process, streamlining its performance and improving efficiency. SAP FICO (Finance and Controlling) will focus on the company’s financial matters, and so on.
This modular structure provides businesses with relative flexibility, as modules can be implemented separately as independent solutions, and they can be part of a unified system of SAP modules that empower businesses with full control and automation of business processes.
SAP coverage will allow companies to bring all the departments under one roof, thus, providing a cooperated and streamlined performance of the whole company – the ‘leanness’.
Top SAP Modules
Here are a few lean-benefiting modules to consider:
- SAP Production Planning – the modules responsible for planning, scheduling, and executing the manufacturing orders. It allows for the implementation of that time, which is the basis of lean principles.
- SAP Material Management – the modules allow control of the material and inventory level, making sure they meet the customer’s demand.
- SAP Plant Maintenance – the module keeps track of the plant’s ‘life’, tracks the performance of the technical systems, and notifies when an additional inspection can be needed. It allows the production cycle to be up and running, avoiding downtimes.
- SAP Quality Management – quality is the core of overall performance. It is the reputation, the customer’s satisfaction, and the profitability of the business. The module enables businesses with all the tools to ensure the quality of their goods and services, implementing further improvements in the production cycle
- SAP Warehouse management –the module provides visibility and optimization for inventory and stock within the warehouse facilities, regardless of their location. It is responsible for improving the picking and packing time, storing, and proper slotting, and reducing inappropriate placement of the inventory.
SAP is a beneficial set of tools for implementing lean manufacturing practices, yet, only if there are skillful developers who can make use of its complex structure, like LeverX.
LeverX is an international company that provides digital transformation of companies and offers a full range of high-quality services, from consulting and implementation to support.
A tandem of LeverX and SAP is a winning strategy for every company targeting long-term and efficient market performance. LeverX assistants will guide you through the hurdles of SAP implementation, identify your company’s weaknesses, and help you choose relevant SAP solutions for their further implementation.
What Are the Benefits of Lean Manufacturing?
#1 Less Efforts – More Results
Lean manufacturing encourages end-to-end optimization of all processes, encouraging maximized value of all applied efforts. By eliminating unnecessary activities, manufacturers improve the productivity and time management of the process, and as a result, its profitability.
#2 Improved Quality
By streamlining the product journey to the customer, manufacturers reduce the number of errors, prevent or identify defects, and thus, contribute to a positive customer experience with the products.
#3 Reduced Waste
Lean manufacturing promotes on-demand production, following the current expectations of the customers. Implementation of lean principles allows to prevent overproduction, over-processing, weak logistics, excess motion, downtime, and defective products.
Thus, the overall performance becomes co-arranged and co-agreed, with all the activities benefiting the goods/services production. It elevates the efficiency and productivity of the process, thus, increasing the ROI and profitability.
Final Words
Implementation of SAP into the core of a company’s infrastructure will change the mode of its performance, elevating the efficiency of its performance. Lean principles require all the activities to be properly planned and co-agreed across the board.
SAP modules will provide full end-to-end visibility of the process, letting businesses streamline the process, and shorten the lead time, thus, improving its input and profits.
Don’t hesitate to contact LeverX – SAP services company, for further guidance and implementation assistance.