Lean - ERP

>Lean-ERPA BearingPoint Accelerator

Lean Production and ERP have long been two independent business improvement approaches, often coexisting within the same production site. Our Lean-ERP accelerator combines these two approaches and leverages synergies while abandoning weaknesses of each individual approach. By this means, the Lean-ERP solution supports our clients in creating a globally harmonized process landscape based on lean production principles and supported by a lean ERP solution.

Lean-ERP | A BearingPoint Accelerator

ContentsMarket Drivers

Our Approach

Client Benefits

References

Contact

CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >


Market DriversPaving the way to process excellenceHigher external complexity in doing business and product requirements resulting from customer demands require increased process transparency and overall flexibility.

Higher internal complexity through a globally dispersed production footprint with varying degrees of value chain integration.

Cost pressure coming from the downstream value chain increase impetus to reduce overall costs through seeking increased process e�ciencies and optimized working capital management.

Increasing drive towards the digitalization of the shop floor (Industry 4.0), on the one hand, and lean, robust and e�cient process, drives seamless and non-interfering integration of Enterprise Resource Planning systems with Lean Production principles, on the other.



Market Drivers


Market Perspective(external)

OEM Perspective(external)

Tier 1 – N Supplier Perspective(external)

Shift of valueadded shares

Trend toconsolidate

Structures,Organization,

Management Style

Employees

Machines

Material

ExternalComplexity

The increasing external complexity a�ects the internal complexity and evolves through the whole value chain

The whip-e�ect increases the whole way upwards the value-added chain

InternalComplexity

Processes

Information

Processes

Information

Product Diversity>

Product Life Cycle<

Cost Pressure>

Demand Volatility><

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Products

Manufacturer – SupplierRelationship Structures,

Organization,Management Style

Employees

Machines

Material



Our Approach BearingPoint uses its long-standing experience in the implementation of Lean processes with IT support in designing processes that comply with the rules of Lean Production, while leveraging the qualities of an ERP system. BearingPoint thereby follows the approach of using as much IT support as necessary, but as little as possible. The Lean-ERP BearingPoint solution is the enabling technology for the integration of the digitalized shop floor (“Industry 4.0”) and Lean Production. BearingPoint, through its unique approach, helps companies to generate substantial business benefits.

Step 1) Workshop-based assessment of Lean Maturity through a BE-created scorecard Step 2) Definition of Business Case of defined areas of improvements (“selling point for management”) Step 3) Definition of target scenario based on leading practice process knowledge from numerous industries Step 4) Implementation of the target scenario on-site

BE applied Lean-ERP tools are:• Lean Maturity assessment• eKanban• ABC/XYZ-analysis based optimization of materials management rules• Tools to support leveling of production requirements (Heijunka)• Internal and External Just-In-Sequence/Just-In-Time delivery of goods• Heijunka-based production planning• Implementation of ERP-based Jidoka/Quality first principle

Client Benefits Saving potentials/ E�ciency improvements

• Working Capital optimization thanks to improved material planning parameters resulting in lower/more optimal stock levels (LP: Muda reduction/ Pull)

• Increased productivity through less “smoothening” activities, e. g. searching for required materials in production (LP: Muda reduction/ Pull)

• More transparency in material flow thanks to clear forecasting; less variance in material flow (LP: Pull)

• Increased flexibility in production department through optimally leveled production (LP: Heijunka)

• Less unnecessary material movements through clearly defined material flow (LP: Muda reduction)

• Common understanding of processes across all plants of a company for decreased “process translation” issues across plants (LP: Standardization)

• Digitalization on shop floor (LP: Andon/Shopfloor management)





ReferencesSuccessfully completed projects:

• World leading provider of wires, optical fibers, cable systemsOur customer increased its global production footprint by means of organic growth and acquisitions; having grown from a German SME to a global juggernaut, on one hand, and the changing global market requirements on the other, it asked BearingPoint for assistance in creating a global process template based on standardized Lean processes supported by a standardized ERP system; among others BearingPoint implemented a Supplier/Vendor-based relationship across all plants (external pull), implemented a pull-based internal material flow and supported the implementation of a digitalized shop floor management tool; implementation has taken place in one plant with further plants currently being planned

• Leading manufacturer of commercial vehicles, engines and mechanical engineering equipmentHaving focused on Lean optimizations in the past through the implementation of a global TPS-based production system, the customer asked BearingPoint to support the harmonizing of the current process islands to a global process template applicable for existing and greenfield plants based on Lean Production; BearingPoint defined and implemented all internal processes, from receipt of raw materials to goods, issue of finished goods through leveraging its knowledge in Lean and ERP systems to implement Lean-ERP features, e. g. eKanban, ERP-based JIS/JIT, pull-based intercompany relationships and others

Contact

About BearingPoint

BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success. For more information, please visit: www.bearingpoint.com


© 2015 BearingPoint. All rights reserved

Stefan PenthinPartnerBearingPoint [email protected]

CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT<

Patrick JansenManagerBearingPoint [email protected]

mailto:[email protected]

mailto:[email protected]

www.bearingpoint.com

Lean - ERP

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