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MRP versus Lean - Round 1,318 and still counting

 

The battle between the advocates of Lean and those of ERP/MRP has been underway for decades and still shows no sign of being completely settled.

 The "Lean Purists" argue that proper use of visually controlled Pull Systems, including Kanban, throughout the supply chain will satisfy business requirements without introducing Non-Value Added systems.

The "ERP Zealots" insist that practically speaking, some system is an absolute requirement to control and manage materials in all but the most simple businesses.  They further argue that when properly applied, MRP can support Lean implementation.

The argument recently became quite personal for us while working with a small client in a make-to-order business.   They had outgrown their informal production scheduling system and were implementing Lean methods in their plant.   Their question to us was "What is the best way to load and manage production orders in the plant?"   One faction favored a FIFO based pull system while others wanted to use the Shop Floor Capabilities of their ERP system.

With only this limited information, what are your thoughts on how to proceed?  Join in the discussion and we will post what we actually advised the client in the next few days.

Comments

Visit the Toyota truck bed plant in Long Beach, California. "TABC" They have .7 days of inventory. While you're there, look for the ERP system. What? Can't find one? Is it an oversight? Nothing to find but a traveler card that started when steel is delivered twice a day to the production line, and ends when everything in the plant gets placed on a truck to be delivered to the customer the next day.  
 
Why is it that all the most informed arguments for ERP come from systems and software companies? 
 
Why should you enter something into a system that will be gone that night? Why should you count what shouldn't be there in the first place? And if you do, aren't you establishing the practice of doing the wrong things right? 
 
There are many uses for ERP. It is indispensable in many large enterprises. Shop floor control will never work this way.
Posted @ Sunday, March 07, 2010 4:54 PM by Michael Beason
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