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Friday, December 29, 2006

Lean manufacturing, SAP, Kanban, Heijunka and factory logic

In a recent post in ARC web they announced the acquisition of Factory Logic Inc by SAP the leading ERP solution of the world. To understand the importance of this acquisition we have to understand SAP and Factory Logic and the need for them to become one and operate as one.

SAP is the worlds leading ERP solution. Without a doubt it is a winner in the world of ERP. So compacted and integrated and durable, SAP implementations include the biggest companies in the world. Visit SAP website to get more details on their SAP implementations. Among all of these implementations there is one which standout in lean manufacturing context. Toyota is also known to be on SAP. So no need to say the acceptability of SAP as a software which can be used even in a lean environment. On the other hand, on the same news page ARC declares SAP as a leader in eKanban market based on a survey conducted by them. Kanban being one of the prime tools of lean manufacturing this shows the importance SAP has given to their lean customers. This is very interesting indeed.

On the other hand Factory Logic is known as a good Advanced Planning and Scheduling software. This is known as Heijunka or workload balancing. So the combination of successful ERP, ekanban and a Heijunka system is going to be better for all the parties involved. SAP, Factory Logic and more importantly the lean manufacturers using SAP as their ERP will definitely benefit from this move.

Apart from the business perspective of this story, I believe this implies something more interesting to all the manufacturers around the world. Even SAP is trying to cater lean manufacturers. This means there is a strong trend towards lean manufacturing all around the world. The worlds leading ERP is trying to cater this market. I am so interested about this trend. If you are a traditional manufacturer it is the time to have look at lean and the opportunities it can open up for you before the rest of your competitors does.

1 comments:

Anonymous said...

Factory Logic has *one* customer. How good can they be? Talk about customer focus...

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