ERP Providers Serving the Midmarket - Fivetags Consulting LLC.
ERP Providers Serving the Midmarket - Fivetags Consulting LLC.
ERP Providers Serving the Midmarket - Fivetags Consulting LLC.
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Lean manufacturing<br />
The concepts of lean manufacturing are not new to midmarket organizations, but<br />
<strong>the</strong> demands and complexities of today’s DDSNs are. These demands have moved<br />
lean from just its manufacturing-centric focus to more outside-in-facing constructs,<br />
such as demand shaping for promotions and pricing strategies and demand sensing<br />
for forecasting. Regardless of <strong>the</strong> manufacturing methods used by companies, <strong>the</strong>re<br />
is <strong>the</strong> need to expand lean thinking to support better short-term demand visibility<br />
and planning, tighter sales and operations planning (S&OP) processes, better supplier<br />
collaboration (scheduling, management, and communication), and overall performance<br />
management measurements for regulatory compliance and financial management (see<br />
“East Meets West—Lean Manufacturing and <strong>ERP</strong> Are a Better Fit Than You Think”).<br />
Several <strong>ERP</strong> vendors have evolved <strong>the</strong>ir lean thinking to support <strong>the</strong> ongoing focus of<br />
lean:<br />
• Cincom links lean execution to <strong>the</strong> ordering and configuration process beyond pure<br />
lean manufacturing operations support. This is accomplished through a guided<br />
selling front end with its Quote-to-Order product, which contributes efficient<br />
demand shaping and sequencing into <strong>the</strong> actual production environment. Within<br />
production, Cincom’s Demand Suite uses visibility into constraints to produce levelloaded<br />
production plans and sequences to manage material flows and production<br />
execution. Additionally, <strong>the</strong> Demand Suite is event enabled through Cincom’s .NETbased<br />
Environ middleware. This pegs line and order updates to <strong>the</strong> central planning<br />
mechanism to synchronize changes in production to any order changes, eliminating<br />
intermediaries in connecting individual manufacturing orders to sales orders.<br />
• IQMS relies on a central scheduling mechanism to drive <strong>the</strong> majority of activities<br />
its application EnterpriseIQ supports for small-to-midsize discrete manufacturers.<br />
Specifically, <strong>the</strong> scheduling mechanism is centered on a calculator that, upon order<br />
receipt, takes into effect current constraints for labor, raw materials, and work centers<br />
to identify if a manufacturer can deliver as promised to <strong>the</strong> customer demand. It also<br />
te<strong>the</strong>rs <strong>the</strong> output directly to <strong>the</strong> production schedule.<br />
• Oracle’s lean support is in <strong>the</strong> E-Business Suite and JD Edwards EnterpriseOne<br />
products, which are capable of supporting multiple manufacturing styles on a single<br />
instance.<br />
• Microsoft Business Solutions and SAP have acquired <strong>the</strong>ir lean support: eBECS and<br />
Factory Logic, respectively.<br />
For a more comprehensive overview of how <strong>ERP</strong> providers support lean manufacturing,<br />
please see “Lean Planning and Execution Software: Extending Lean Thinking Across<br />
<strong>the</strong> Enterprise.”<br />
22 © 2007 AMR Research, Inc. <strong>ERP</strong> Report | 2007 Technology and Vendor Landscape Series