Why ERP technology is the key to continuous improvement in manufacturing
In the decades since the continuous improvement methodology materialized within the corridors of the original Toyota Motor Company assembly plant in Japan, it has developed into the industry-standard approach for facilitating sustainable shop floor optimization. However, few manufacturing firms have mastered the implementation and management of continuous improvement methodologies, according to researchers for Deloitte, which found that more than 40 percent of adopters fail to generate real return on investment.
With that said, businesses in the manufacturing space are not doomed to swing and miss on this transformative production strategy, as there are various techniques and tools that make it easier to embrace continuous improvement and get results.
Enterprise resource planning software is among these items. In fact, of the numerous manufacturers that completed ERP installations in 2018, approximately 95 percent saw process improvements, per data analysis from Panorama Consulting Solutions. How exactly does ERP technology lay the foundation for continuous improvement? Here are three examples.
Shop floor transparency
ERP solutions generate massive amounts of organizational data. From raw insights collected through automated channels to manually entered information from internal or external users, these systems facilitate robust data flows that can enrich all operational facets. Continuous improvement hinges on the availability of this kind of shop floor intelligence – actionable data decision-makers can leverage to develop and deploy process upgrades.
Consequently, ERP technology can play an immense role in continuous improvement efforts, lending manufacturers the production transparency necessary to move forward with both incremental and holistic changes, IT Toolbox reported.
Employee involvement
Businesses within the manufacturing industry that succeed with continuous improvement efforts often emphasize staff involvement – and for good reason. After all, the technical specialists and operational leads that manage everyday production processes are responsible for implementing upgrades and pinpointing shop floor components that could be improved, according to The Manufacturer.
ERP software can facilitate employee engagement by simply lending workers access to real-time performance data and clueing them into larger organizational trends. In the end, this technology empowers employees, allows them to consider the business at scale and gives them the data they need to take an active role in continuous improvement initiatives.
Demonstrative reporting
Executives and other top-level stakeholders often offer conditional support for continuous improvement efforts based on the availability of clear results that show demonstrable ROI. Unfortunately, this sort of performance tracking is an issue for many adopters, Manufacturing.net reported.
From overall equipment effectiveness metrics to throughput rates, a good number of essential key performance indicators go unmonitored by firms that have embraced continuous improvement. ERP solutions address this issue directly, lending production teams the centralized technological tool they need to collect and share operational data that ultimately offers clear insight into shop floor performance.
As demonstrated above, ERP solutions can bolster continuous improvement efforts and put manufacturing firms on the path to sustainable advancement.
Is your business prepared to implement ERP technology in an effort to boost existing continuous improvement efforts? Consider connecting with Accent Software. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturing firms of all sizes the opportunity to adopt a quality ERP solution designed to facilitate operational growth via cutting-edge job platform features.
Contact us today to learn more about our proven products and services.