LEAN theory dictates that manufacturing should be about the manufacturing process only and that all other activity is “non value-added”. As such, IT systems are considered surplus to requirements when manual of visual systems will suffice. But in the business world, there are other systems that are necessary to run a manufacturing business, beyond the actual production line.
By applying Lean to the enterprise, rather than to one process – taking into account processes that are equally value-added but tangential to manufacturing itself – manufacturers are finding that IT can be applied to Lean philosophies to the benefit of business.
The schism between IT and Lean thinking occurred due to the incompatibility of existing manufacturing IT with the Lean environment at its conception. Lean advocates a “pull” action that conflicts with traditional IT systems (such as ERP) which supports a “push” chain.
In addition, the ways in which Lean and ERP maintain control are very different. ERP maintains control through work orders and inventory transactions – a “top down” process, centralised by the knowledgeable few. Lean promotes control in the hands of many, decentralised through simplicity and process visibility. It promotes pushing responsibility, ownership and execution as far down the hierarchy as possible, using simple, manual systems. IT is seen as anathema to this as it puts down decision-making into the hands of few.
Integration of technology – not complete removal – is the key to Lean success. By reviewing technology to use it only where it adds a genuine advantage, and integrating systems to enable the automation of essential but non-specialist tasks (such as Kanbans), IT can add value to the processes surrounding manufacturing, as well as support the Lean environment. This boils down to applying the 5S philosophy (sort, set in order, shine, standardise, sustain) to your IT: sort out what systems add value, set them in order (integrate), shine them up (BPO), standardise them (BPM), and sustain them through appropriate support.
IT can demonstrate real value in terms of modelling, data collection and assimilation for decision support at the point of attack.
Sales process
Far from putting information into the hands of a few, the skilled IT staff now puts it into the hands of many.
For example, with Knowledge-Based Guided Selling, IT can be responsible for quickly pushing knowledge forward into the hands of those who need to use it. The sales process, even for complex and demand-driven manufacturing, can therefore be simplified and expedited through the use of IT. This ensures “buildability” as well as the knowledge that the product being offered meets the needs of customers.
Demand planning
Where problems exist in determining just when a product will or can be built, people are usually at the centre of the activities and knowledge is local or specific.
Modern demand-management applications assist in capturing knowledge about time and space constraints, which they use to sequence demand into available production slots. By understanding the constraints of the production process, IT can ensure the lead-time quoted is accurate and based on facts not assumptions.
Material flow
Kanban systems were originally a purely visual system and are lauded by Lean purists.
However, high-tech Kanban systems can be made to include automated steps and can be fully integrated with suppliers, improving efficiency throughout the supply chain. In the global supply chain, IT is irreplaceable because it enables information to be exchanged almost instantaneously, which otherwise would take valuable time.
Product and process management
Examining a complex product and its almost endless array of possible configurations today presents the Lean manufacturer with two major issues:
1. How to acquire and assemble the necessary details about how a product is going to be built, including its BOM, its route and relevant documentation such as work instructions, process sheets, safety sheets etc.
2. How to maintain that information as things change along the way (product, processes, standards etc).
The most efficient and productive way to assemble all of this information in the first place is to do it using the knowledge gained during the sales process. With an integrated IT system linking sales to planning, information such as the BOM, the route and the documents needed to support the product build can be easily collected from re-usable components. Thus, BOMs and routes in particular must be engineered to be modular in nature and attribute-driven.
Business process optimisation
The ability to respond quickly and efficiently to any request – internal or external – can be seriously hampered by inefficient or manually restrictive processes.
While important in any organisation, a critical factor for the successful Lean enterprise is establishing an environment where actions and decisions occur in or near real-time. Purists believe IT hinders this by virtue of its basis in rules. However, if the IT system is highly configured enough, it should facilitate the process, becoming the catalyst for the event-enable environment.
Lean manufacturing and IT is not an oxymoron. IT can be a means by which to improve the business processes that surround and support manufacturing in order to bring Lean to every corner of the business; eliminate non-value added activity and focus on the needs of the customer. In short, to create the Lean Enterprise.
* Chris Astall, product director, demand-driven strategies, Cincom 02 8875 1400.