The document discusses optimizing ERP systems using lean principles to reduce waste and improve performance. It states that 70% of companies that implement ERP systems fail to achieve expected returns. Common problems are not aligning the ERP system with optimized business processes and lack of training. The document advocates conducting a detailed assessment of business processes to identify optimization opportunities when implementing or upgrading an ERP system.

1. ERP OPTIMIZATION

2. LEAN/AGILE BUSINESS processes to reduce waste and to achieve dramatic improvements in critical measures of performance, such as speed, cost, quality, and service. Lean/Agile is the fundamental rethinking and radical redesign of business & supply chain

5. YOUR MISSION To radically change your manufacturing, distribution, and supply chain processes … both internally and at your suppliers         Balanced Lean Establish Seamless Business Processes! Reduce Lead time! Reduce Cost! Reduce Inventory!

9. RETURN ON INVESTMENT ERP MID-MARKET

22. COMMON MATERIAL FLOW PROCESS: Cycle Counted Requisitioned Sourced Ordered Received Transacted to stock Kit line stocked Work Order Prints Parts collected Parts Kitted Inventory Transacted to kit Kit Moved to assembly $20 item is handled the same as a $0.02 item

23. NEW MATERIAL FLOW OPTIMIZATION Cycle Counted Requisitioned Sourced Ordered Received Transacted to stock Kit line stocked Work Order Prints Parts collected Parts Kitted Inventory Transacted to kit Kit Moved to assembly You now add real value!

26. Board Repair Team: “AS IS” VALUE STREAM MAP Total Cycle Time: 17.4 Days Total Process Time: 23.54 Hrs COPYRIGHT ROBERT ABAIR ASSOCIATES, INC., 2006 ABC INC. Value Stream Mapping -

27. Total Cycle Time: 3.52 Days Total Process Time: 18.05 Hrs Board Repair Team: “TO BE” VALUE STREAM MAP COPYRIGHT ROBERT ABAIR ASSOCIATES, INC., 2006 ABC INC. Value Stream Mapping -

28. Board Repair Team: Benefits Realized COPYRIGHT ROBERT ABAIR ASSOCIATES, INC., 2006 ABC INC. Value Stream Mapping -

30. Company 2 (OLP) Lean Supply Chain $0 Liability $37.1K 6 weeks 3 items 4.6 days 2 weeks 14 $144.2K Future State Lean ERP Process - Cost Savings - Block Assy Liability Eliminated 13 wk L/T @ $.5K per unit 42% Value of Power Controller Reduction $64.9K 57% Power Controller L/T Reduction 14 weeks 40% Reduced unique parts over 55 days L/T 5 items 29% Manufacturing Lead Time 6.5 days 86% Lead Time 14 weeks Same Number of Systems in Pipeline 14 47% Liability $270.2K Percent Improvement Performance Metric Current State MRP Push Process