How ERP and Lean Can Work Together

Enterprise resource planning software is the lynchpin in corralling and centralizing important data in a business's transaction processing. The role of manufacturing and distribution software in supply chain management solutions is growing in impact as businesses attempt to respond faster to market conditions during these difficult economic times. I've been reviewing offerings from TGI (http://www.tgiltd.com/) that could be a radical step forward, when paired with Lean Production. Lean manufacturing aims to eliminate components and processes, whether that is excess stock, inventory, excess parts or handling, or labor. Using ERP software automation to improve operational efficiency makes perfect sense when implementing process improvement. What I've witnessed is that, for Japanese companies, ERP software is more prevalent at the top of a lean process, especially in industries such as car manufacturing (Honda) or consumer electronics (Sony). Japanese companies are less likely to face the need to rebuild ERP software or even MRP systems to support new manufacturing techniques -- something businesses world-wide could emulate to find cost savings and other efficiencies.