ERP & JIT: Streamline Manufacturing Scheduling

Want to boost efficiency and cut costs in your manufacturing process? Combining Enterprise Resource Planning (ERP) and Just-in-Time (JIT) might be your answer. Here's what you need to know:

• ERP manages business processes in one place
• JIT produces goods only when needed
• Together, they can revolutionize manufacturing

Key benefits of combining ERP and JIT:

1. Better inventory control
2. Faster response to market changes
3. Less waste
4. More accurate planning
5. Improved delivery times

Real-world results:

"Our inventory accuracy went from 70% to over 98% when we switched to a new ERP system." - Mike Britton, VP and CIO, La Marche Manufacturing

"We are now delivering 96-97% of our product on the day it was scheduled, with only a three- to four-week lead time." - La Marche Manufacturing

Ready to streamline your manufacturing? Let's dive into how ERP and JIT work together to boost your bottom line.

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How ERP and JIT work

ERP and JIT are a powerful combo for manufacturing. Here's why:

Main ERP features

ERP is the brain of your business. It handles:

• Money stuff
• Inventory
• Production schedules
• Sales and customers
• Data crunching

ERP's superpower? Connecting everything. When you make a sale, it updates inventory and kicks off production if needed.

Core JIT ideas

JIT is all about making stuff just when you need it. It aims to:

• Cut waste
• Slash inventory costs
• Speed up production

JIT needs tight planning and good supplier relationships. Materials should show up right when you need them, not sit around.

Advantages of using both

ERP + JIT = manufacturing magic. Here's how:

1. Better inventory control

ERP tracks inventory in real-time. This makes JIT run smoothly.

"Our inventory accuracy jumped from 70% to over 98% with our new ERP system. We save big by not ordering stuff we already have." - Mike Britton, La Marche Manufacturing

2. Faster production

JIT cuts waste, ERP provides accurate planning data. Result? Speed.

"We now deliver 96-97% of our product on schedule, with only a 3-4 week lead time." - La Marche Manufacturing

3. Improved quality

JIT's small batches make quality issues easier to spot. ERP tracks these issues and finds patterns.

4. Cost savings

Less inventory + more efficiency = money saved. ERP helps track and find more savings.

5. Better decision-making

ERP gives you the big picture. Managers can make smarter calls on production, inventory, and schedules.

Combining ERP and JIT isn't a walk in the park. It takes planning and might shake up how you work. But for many manufacturers, the payoff is worth it.

Getting ready to combine ERP and JIT

Before you mix ERP and JIT, you need to prep. Here's how:

Check current methods

Look at how you work now. This shows where ERP and JIT fit in.

1. Map your processes

Draw out your factory's material flow. Look for:

• Bottlenecks
• Too much inventory
• Long waits

2. Check your data

Make sure your systems give accurate info on:

• Inventory levels
• Production times
• Order history

3. Talk to your team

Ask workers about waste or delays. They often have great ideas.

Who needs to be involved?

You'll need help from:

• IT team
• Production managers
• Inventory managers
• Purchasing team
• Finance department
• Top management

Can your ERP handle JIT?

Check if your ERP can:

• Track real-time inventory
• Forecast demand
• Manage suppliers
• Schedule production

If not, you might need an upgrade.

Mike Britton from La Marche Manufacturing says:

"Our inventory accuracy jumped from 70% to over 98% with our new ERP system. We save big by not ordering stuff we already have."

How to add JIT to your ERP system

Want to boost efficiency and cut costs? Adding Just-in-Time (JIT) to your ERP system can do just that. Here's how:

1. Study your production process

First, take a good look at how you're doing things now. Where are the bottlenecks? Where's inventory piling up? Where are things moving too slow? This info will show you where JIT can make the biggest impact.

2. Set up ERP for JIT

Now, it's time to tweak your ERP:

• Turn on real-time inventory tracking
• Set up automatic reorders
• Create alerts for when stock gets low

3. Connect factory floor to ERP

Get your production line talking to your ERP:

• Use barcode scanners or RFID tags
• Track machine status with IoT devices
• Set up dashboards to see production data in real-time

4. Plan based on demand

Use your ERP to see what's coming:

• Look at past sales
• Set up automatic order triggers
• Adjust production based on what's selling right now

5. Manage inventory better

Time to get lean:

• Set up kanban systems in your ERP
• Use ABC analysis to focus on what matters
• Keep an eye on how fast inventory is moving

6. Train workers on new methods

Get your team on board:

• Show them how to use the ERP
• Explain why JIT is a big deal
• Write clear instructions for new processes

Mike Britton from La Marche Manufacturing puts it well:

"When your inventory is inaccurate, it costs you a tremendous amount of money because you're constantly placing orders to replenish something that you really already have, but just don't know it."

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Tips for using ERP and JIT together

Keep checking and fixing

Don't just set up your ERP and JIT systems and walk away. Check them often. Are they working well? If not, fix problems quickly.

Toyota does this. They check their production lines every hour. They find and fix issues fast. This keeps their JIT system running smoothly.

Check your systems often

Make sure your ERP gives you good info for JIT. Bad data can ruin everything.

"Our inventory accuracy jumped from 70% to over 98% with our new ERP system." - Mike Britton, VP and CIO of La Marche Manufacturing.

Set up ERP alerts for:

• Low stock
• Late deliveries
• Quality issues

Get teams talking

JIT works best when everyone's in sync. Get your teams sharing info and working together.

Have weekly meetings to solve problems. More team talk means smoother JIT.

JIT needs constant attention. But if you stay on top of it, you'll boost efficiency and cut costs.

Solving common problems

Mixing ERP and JIT isn't always smooth sailing. Here's how to navigate the choppy waters:

People resisting change

Workers often push back on new systems. Here's how to get them on board:

• Show them the "why". Explain how it helps the company and their jobs.
• Get their input. Ask how to make the switch easier.
• Train step-by-step. Start simple, then build up.

Toyota nailed this. They didn't rush JIT methods. Instead, they added them slowly over years. This gave workers time to adjust and see the perks.

Keeping data accurate

Bad data can torpedo your JIT system. Here's how to keep it shipshape:

• Set up ERP checks. Flag weird numbers or missing info.
• Train on data entry. Show how tiny errors can snowball.
• Audit regularly. Compare system data to reality.

Handling supply hiccups

JIT doesn't leave much wiggle room. When supplies run low:

• Have backup suppliers. Don't put all your eggs in one basket.
• Keep a tiny safety stock. It bends JIT rules, but can save your bacon.
• Use ERP to spot trends. If a supplier's always late, find out why or switch.

Toyota learned this the hard way. After the 2011 Japan earthquake, they changed tactics. Now they ask suppliers to keep 2-6 months of key parts on hand. This smart move helped Toyota avoid shutdowns in 2021 when chip shortages hit other carmakers hard.

How to tell if it's working

Mixing ERP and JIT can boost your factory's output. But how do you know if it's actually helping? Let's look at some key ways to check:

Numbers to watch

Keep an eye on these metrics:

Signs of improvement

1. Lower costs

Are you spending less on:

• Storing inventory?
• Fixing mistakes?
• Overtime work?

2. Happier customers

Do you see:

• Fewer complaints?
• More repeat orders?
• Better reviews?

3. Smoother operations

Notice:

• Less downtime
• Fewer rush orders
• More consistent quality

4. Better supplier performance

Look for:

• Shorter lead times
• More reliable deliveries
• Improved communication

"The only way to survive and be successful in this market is to have visibility into the KPIs to drive manufacturing, maintain profitability, drive customer satisfaction and quality. We couldn't have done that without Acumatica." - Bill Ferrin, Director of Information Technology at Portacool LLC.

Conclusion

ERP and JIT in manufacturing pack a punch. Here's why:

1. Inventory control skyrockets

La Marche Manufacturing's inventory accuracy jumped from 70% to 98%+ with their new ERP system.

2. Delivery times shrink

La Marche now delivers 96-97% of products on time, with just a 3-4 week lead time.

3. Costs drop

Less waste, lower storage costs, and fewer errors add up to big savings.

4. Customers smile

Faster, more reliable deliveries = happier customers.

5. Operations run smoother

Real-time data helps catch and fix issues fast.

The future looks bright

Mike Britton, VP and CIO of La Marche Manufacturing, puts it this way:

"Upping our inventory accuracy from 70 percent to over 98 percent saves us a tremendous amount of money because it almost completely eliminates the risk of placing orders to replenish material that we already have but just don't know it."

Want to stay ahead? Here's what to do:

1. Keep your ERP system up-to-date
2. Train your team on ERP and JIT
3. Work closely with suppliers
4. Use data to drive improvement