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Lean Design ERP Solution in Management - Term Paper Example

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This paper under the headline 'Lean Design ERP Solution in Management" focuses on the fact that the way to achieving efficiencies and utilizing installed capacities lies in Technology upgrading. This is the most important, yet the weakest of all our resources. …
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Lean Design ERP Solution in Management
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Download file to see previous pages It is proposed that the company should implement a Lean Design and for this, it should select for suitable Enterprise Resource Planning (ERP) software from an experienced vendor.

The Project Management Teas has recommended Lean Design because it offers scope for reducing inventories and introducing ways and means to improve productivity by planning the optimal use of resources. By elimination of all activities that do not add value and/or are safety nets, maximum use of scarce resources like capacity, manpower and capital becomes achievable. It also results in value addition for the customer, improved bottom line and enhanced productivity of employees.

This is the ultimate objective of Lean Design. This is also the technology that is prevalent in our segment of the industry. In due course, it can be integrated with supply chain management which will again help to improve our delivery schedules and achieve customer satisfaction.

Premier Auto is a car manufacturer who is in the niche market of making sports cars and has one manufacturing unit. Although its planned capacity is 10,000 cars per annum yet it can deliver only between 7 to 8 thousand units only. Its Order Book is always overbooked due to the specialized nature of its product. The company has 50 dealerships all over the American and European Market with fixed annual quotas. The Company produces 3 to 4 models and introduces one new model every 2 years. The company has a 3 Assembly Lines with 3 machine shops for various body parts fabrication. The engine and the accessories are all out-sourced from about 80 suppliers. The engine supplier is located about 100 Km away but the accessory suppliers are scattered all over the country There is a paint shop but the company uses a contractor to do the jobs with his own labour.

There is either a shortage or excess of raw materials at Production Assembly Line as the company works on the basis of Material Requirement Planning (MRP) and is dependant on supplier offering delivery dates ...Download file to see next pagesRead More
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