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Applying LEAN to ERP System Implementations

"The speed of the boss is the speed of the team" - Lee Iacocca

LEAN methods have been applied to software development. LEAN methods, or Agile methods use development iterations during software develoment. These methods minimize risk by developing software in short pieces over short periods. These short development project pieces, or iterations allow for logical pieces of functionality to be developed; the bugs to be ironed out; and for project priorities to be re-evaluated.

How do we apply LEAN to ERP system implementations? Traditionally, a 'waterfall' approach is used on ERP projects. This means that you would design the solution first; and then configure the ERP software; and then test it. Using this traditional approach, project teams would have spent a lot of money and time before finding issues that may have required going back to changing the solution design, or system configuration.
But LEAN CAN be used to make ERP system implemenations more effective. This is how:

  • Spend time up front in getting requirements correct to avoid waste due to developing functionality that is not needed or defects.
  • Break down Design concepts by critical business subprocesses or functional areas that can be tested and validated against business requirements.
  • Plan iterative Design / Build / Test activities around these functional sub-system designs.
  • Creating Learning Cycles around the Build and Test activities. This will reduce training effort and better utilize people's time.
  • Align business processes around ERP system functionality – maximize asset usage; avoid having to customize the system more than you need.
  • Avoid complex project plans. Use a milestone plan to drive achievement of project objectives. Use of Work Packages to breakdown work activities, if more detail is needed at that level. These Work Packages should be build around the iteration cycles that will lead to rapid deployment of the system.
  • Rapid deployment – design, build, test and review pieces of the solution. This requires user involvement during design, testing and review – knowledge transfer reduces training effort of traditional methodologies.
  • Document of design and review decisions – capture knowledge
LEAN in system implementation has two basic components:
  1. a quick, interactive process to achieve flow in the development process, and
  2. a knowledge capture process to improve quality, reuse, and repeatability of information developed in the interactive cycles


Rahul Pawar said...

Greatful informations on ERP solution.
It looks like you spend a large amount of time and effort in writing the blog. I am appreciating your effort.
To implement erp project organization must perform an honest assessment of various business needs.ERP project plan is built using a project management package that permits one to focus on planned activities from various perspectives.
Thanks for sharing such a nice blog...

raj patil said...

Great post. You know we all think about this very topic.
ERP software training is as important as evaluation & selection of ERP system. ERP software training is necessary to perform day-to-day activites in the ERP system.
Thanks for sharing such a nice blog...