LEAN thinking and IT systems working together to reduce costs
November 2, 2011

As senior managers become more familiar with LEAN principles to improve business performance, they are beginning to realise that their LEAN  business objectives can be greatly improved and sustained with modern, fully integrated business management software.

This is because there is so much more to LEAN than just the shop floor.  Many companies will be aware of LEAN manufacturing and its principles across their business.  For example, in recent years we have seen software-enabled LEAN tools come to the market, including electronic kanbans and so on.

However, we have learned that the principles of LEAN can work well beyond manufacturing and can permeate every aspect of an organisation’s business processes and subsequent performance.

Integrys is very much aware that organisations typically have multiple stand-alone IT systems, countless interfaces, complex information flows and duplication of effort, all of which can lead to loss of control and lack of visibility on materials, production, orders and stock control.

To achieve optimum performance, we recommend that our clients systematically identify and eliminate inefficiencies right across the business. This may also mean looking at management key performance indicators (KPIs) to decide whether they represent the best approach for the business.

For example, one company altered its key performance indicator from production-efficiency to on-time delivery, and their on-time deliveries went from 60 per cent to 95 per cent. They mapped their order-fulfilment process and removed four days’ worth of manpower in loading orders.  This translates into four days’ cash for the bottom line and it also means getting the stock out quicker and improving customer service.

Integrys specialises in Microsoft Dynamics AX. This is an enterprise resource planning (ERP) business management software system that is ideally suited to support LEAN thinking because it provides instant access to up to date, accurate business information at the touch of a button.  It gives managers much greater visibility what is happening throughout their business and enables them to be proactive when the time is right rather than after it is too late

The road to LEAN thinking is a journey of continuous improvement that requires focus and persistence.  However the improved business performance rewards can be staggering and, probably more importantly in these austere times, can save money and improve service to clients.

We love talking about LEAN Thinking so please call us anytime.

Read a more detailed article here: IT Supports Lean Thinking