Aberdeen advisory: Best-in-Class machinery makers likely to commit to Lean
By Manufacturing Business Technology Staff -- Manufacturing Business Technology, 12/14/2007 9:09:00 AM
ERP is viewed as a strategic weapon to streamline and automate business processes and improve efficiencies. So says a recently published benchmark report out of Boston-based Aberdeen Group—ERP in Industrial Machinery and Components Manufacturing—which indicates companies that combine Lean manufacturing with ERP generate significantly more cost reductions and schedule improvements.
Best-in-Class make judicious use of selected Lean methodologies and distinguish themselves by using 24 percent more modules and functionality available in their ERP systems.
More findings:
• Best-in-Class achieve 96-percent inventory accuracy, manufacturing schedule compliance, and complete and on-time shipments.
• Best-in-Class have 120 percent to 320percent more reductions in cycle times measuring bid preparation, manufacturing, and order to shipment.
• Best-in-Class produce seven times (733 percent) more reductions in inventory levels than Laggards.
• Among those going Lean, Best-in-Class are 82 percent more likely to do value-stream mapping to remove waste from both manufacturing and nonmanufacturing processes.
• 74 percent of Best-in-Class implement work cell manufacturing; while 61 percent employ Kaizen (continuous-improvement teams) and adopt 5S (sort, set in order, shine, standardize, and sustain).
"In the manufacture of industrial equipment and machinery, it is critical to provide visibility across the enterprise to all phases of the project or contract from the initial bid preparation process to the submission of the proposal, as well as the management of the processes involved from the award of a contract, project, or order, to final delivery," says Cindy Jutras, VP and group director, Aberdeen. "For these companies, the manufacturing processes often represent the lion's share of both time and effort, but also must be well-coordinated with all other front and back office functions."
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