The goal of Operational Excellence is simple: be more productive than your competition.
There are three fundamental components to achieving Operational Excellence:
- An integrated ERP system
- A culture of Lean
- Performance Monitoring using KPI’s and Dashboards
Operational excellence isn’t just a term for executives to use, and it isn’t something that only relates to your factory floor and the products you make. Every person at every level of your company can affect how you deliver value to your customer and can strive to achieve operational excellence.
The secret to achieving operational excellence is to ingrain it in everyday activities and there’s no better way to do this than by implementing an ERP system. Companies that achieve operational excellence see rapid growth and sustain market leadership.
Seradex ERP can help your operation achieve operational excellence through consolidating your information into a single database, facilitating lean initiatives, and allowing you to effectively track Key Performance Indicators (KPI’s).
Seradex ERP provides a single database to eliminate information silos, and streamline and optimize your major business processes:
- Lead to Cash
- Purchase to Pay
- Production to Shipping
The single database enables management to drill down to quickly spot opportunities to improve productivity and maximize your major resource groups: labour, parts, and equipment. Improvements in inventory accuracy and the elimination of data duplication to save numerous man-hours and data-entry errors. Companies look to ERP systems to reduce internal costs, improve processes, and increase efficiency across the organization.
Lean provides many tools for continuous improvement to help you identify and eliminate waste. Leans tools include:
- 5S approach: Sort, Shine, Straighten, Standardize, and Sustain.
- Kanban & Pull systems – to optimize flow and inventory levels
- Visible Part Controls
- Kaizen – to drive continuous improvement in quality, technology, processes, productivity and safety
- Value Stream Mapping – To identify process improvement and waste
Seradex ERP and Lean- The Unbeatable Duo
For many organizations, lean and ERP exist as separate initiatives. Seradex ERP works hand in hand with lean methodologies. Our ERP offers powerful support to help you implement pull systems, digital Kanban, standardized work, SMED, and continuous improvement activities. Converting business processes from paper to digital eliminates many of the eight types of waste.
Lean, Digital, and Paperless
Digital business processes are fast, cost-effective, transparent, shareable, and more efficient. Converting your files into digital formats from paper improves shareability, searchability, productivity and reduces storage space, increasing your operational excellence by leaps and bounds
Here are 6 ways that going paperless will help your business:
Save Time – paperless processes save hours on sorting, printing, recycling, and filing
Increases Productivity – eliminate staff keypunching the same data into multiple silos.
Work Remotely – when you aren’t attached to files and paper you can take your work on the road. whether you’re traveling, working a side-job, or visiting a job-site, being paperless increases staff ability to work effectively from any location.
Save Costs – use less floor space for storage of files, save on paper, ink, printers, file folders, and employee hours that are spent on processing large amounts of paper.
Save Space – eliminating paper reduces clutter and storage space.
Lost Records – paper records can be mislabeled, misplaced, thrown away, or lost in a fire.
Go Green – using less paper means requires fewer trees, chemicals and energy is environmentally friendly
Performance Monitoring- – using KPI’s for Operational Excellence
It’s difficult to determine how efficient you are without some benchmarks and metrics. Seradex ERP dashboards allow you to track this data in real time, set monthly targets and evaluate performance against the targets. Here are the 10 most important Key Performance Indicators (KPI’s) that apply to every manufacturing company and are correlated to world class performance:
- Safety Recordables, Near Misses
- On Time Customer Delivery %
- Average Order to Ship Days
- Credit Note $
- Employee Turnover %
- Overtime Hours %
- Inventory Turns
- Inventory Adjustment $
- Sales vs. Budget vs. Prior Year
- Non-Conformance Counts
Seradex ERP can help you to measure operational excellence and identify improvement opportunities. After implementing an ERP system and getting started on your lean journey you should be able to see monthly improvements in all of the above metrics.
For more information on how Seradex ERP can help you improve your operational excellence contact us today!