and Planning is a viable and superior alternative to an MRP
based system. As demonstrated in our
article, the bottom line cost savings in abandoning a MRP
based system is staggering. The savings from shedding the
entire MRP administrative overhead goes right to your
companies bottom line profit.
Abandoning Production Scheduling for one-piece flow and
abandoning a conventional stockroom configuration for Kanban
point-of-use inventory provides your company with decreased
cycle time, increased inventory turns, significant net profit
and working capital.
There is a mind-set that a company needs
an MRP system and these companies are reluctant to abandon it
once they have it. The general feeling is that they incurred
the initial expense in purchasing it plus the supporting staff
made a career out of using it. A cultural and psychological
commitment was established to keep an MRP system active
despite the availability of a profitable alternative. In
actuality, a company only needs an accounting system to manage
Sales, Accounts Receivables and Payables. Manufacturing is
managed “off-line” by a Lean Visual Manufacturing System.
To Learn more
about the LEAN system, follow the links below:
What is Lean Manufacturing?
-A Definition of
Company – An established Lean Company needed a software
approach – An article to support your Lean movement over
ROI – A Case
Study of a Lean company and their Return On
Why Do You
Need Lean ERP Software? – Rationale and
a supporting article to use Lean Manufacturing