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Tuesday, November 21, 2006

Computers and IT in lean manufacturing

Today all the industries all over the world is using computers and various software to organize their information and perform their tasks efficiently. Smaller organizations might use basic tools like MS Excel and Access based systems for this purpose. But when it comes to larger organizations they can not operate with these simple tools. Most of the big players use some sort of an ERP (Enterprise resource planners) for this purpose. Among them SAP, Oracle are prominent. Even Toyota and other leading lean manufacturers are using one or more of these software.

These software are based on the requirements of the organizations and on the operating model of the organization. This is especially true for the ERP systems where they can bring business best practices to your organization. These software are very expensive to purchase or to develop. But is it a worthy effort and investment? Specially to buy a world class ERP. Can it solve your problems? I believe we have to do many things before implementing these software and expecting efficiencies from them.

First of all any organization should have a clear operating model. Of cause all has an operating model. But you should go in to the finer details of the day to day operations and find out whether it operates in the way you intended. Many organizations on the surface operate on model they want to operate. But when you go in to finer details you will find your organization is not actually operating on the model you want. Many non value added and non standard activities are carried out in day to day operations. It is very important to correct your operating model before even thinking about computers and software to operate your system efficiently.

Lean manufacturing is a process driven system. No software or an ERP make you a lean manufacturer. You must get your processes sorted to become a good manufacturer. Without a good conceptual and practical operating model computers and software will mean nothing to you other than a heavy cost, added work and frustrated set of people.

1 comments:

Tom Roberts said...

Well said. As an IT Director for a family of companies, I see so many departments looking for software to solve their problems. Without processes in place, inconsistent data will be entered (if at all), leading to inaccurate and bad reporting, and an expedition to find a "better" piece of software to solve the "problem". Software should be used to model and enforce a process, but the process needs to come first.

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