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© AberdeenGroup 2011
Early Findings: ERP and Lean (Continuous
Improvement)
February 9, 2012 Kevin Prouty
VP and Group Director Aberdeen Group
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© AberdeenGroup 2011 2
Continuous Improvement (CI) and ERP
Comparing companies with a formal continuous improvement methodology and companies without one (heavily focused on Lean).
Focused on manufacturing operations and operational efficiency
Looking operational performance of companies with formal CI and how they use Technology and impact of an ERP strategy on CI and Lean
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Key findings from Continuous Improvement (CI) and ERP research Companies with a formal CI program are much more
driven by cost (43%) and customer experience (41%)
Companies with no formal CI are driven by growth expectations (44%)
They are almost all focused on efficiency an optimization of business processes
Companies with a formal CI program are more likely to be using ERP to standardize and get visibility in their business processes
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Operational performance of companies with formal continuous improvement and those without
Source: Aberdeen Group, February 2012
Maturity Class Mean Class Performance
Have a formal CI program: Top 49%
of aggregate performance scorers
40 days sales outstanding 5.4 days to close a month 93% schedule compliance 94% complete and on-time shipments 95% Inventory Accuracy
Do not have a formal CI program:
51% of aggregate
performance scorers
48 days sales outstanding 6.0 days to close a month 88% schedule compliance 88% complete and on-time shipments 92% Inventory Accuracy
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Pressures manufacturing companies feel…
Source: Aberdeen Group, February 2012 Not For Distrib
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Strategies/Actions to address those pressures…
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How are companies driving CI using ERP to standardize their processes:
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Companies driving CI are using ERP to do S&OP the right way:
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Companies driving CI are more capable of providing visibility to their users and decision-makers:
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Companies driving CI are more likely to use ERP to plan and schedule their operations:
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Companies driving CI are more likely to use ERP’s advanced capabilities
Source: Aberdeen Group, February 2012
36%
25%
46%
36%
13%
19%
30%28%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Supplier Collaboration/ Scheduling
Event Management WorkflowTechnologies
Product Configurator
% re
spon
desn
ts n
= 6
9
IEM Leaders IEM Followers
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Companies driving CI are more likely to be using ERP tools to support plant processes
Source: Aberdeen Group, February 2012 Not For Distrib
ution
© AberdeenGroup 2011 13
Key findings from Continuous Improvement (CI) and ERP research Companies with a formal CI program are much more
driven by cost (43%) and customer experience (41%)
Companies with no formal CI are driven by growth expectations (44%)
They are almost all focused on efficiency an optimization of business processes
Companies with a formal CI program are more likely to be using ERP to standardize and get visibility in their business processes
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ution
© AberdeenGroup 2011 14
For more information about our research visit
www.Aberdeen.com
Res
ourc
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Explore Aberdeen
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© AberdeenGroup 2011 15
Thank You
© AberdeenGroup 2010 15
Con
clus
ion
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