Lean production and ERP systems in small- and medium-sized enterprises: ERP support for pull production

Abstract

It is generally accepted that lean production improves manufacturing processes through the systematic application of lean practices, and equally assumed that present day IT systems, particularly ERP systems, are essential for companies seeking efficiency through organisational integration. Though lean production and ERP co-exist in many companies today, there is an ongoing argument in the scientific literature as to whether or not ERP systems can be used to support lean production principles, particularly pull production. By applying a multiple-case-study approach, we assess the functionality offered by ERP systems to support pull production. We develop and apply a capability maturity model that can be used to assess the extent to which the usage of a company's current ERP system supports pull production practices and to suggest modifications to the ERP system in order to better serve the company's pull system. We focus on the application of lean production and ERP within small- and medium-sized enterprises, as in these companies decisions on lean and ERP are generally made by the same decision maker, which improves construct validity.

Keywords:

• lean production
• enterprise resource planning
• small- and medium-sized enterprises
• pull production
• maturity model

Acknowledgements

This research has been made possible by the projects SFI Norman (Norwegian Manufacturing Future) and ERIP (European Regions for Innovative Productivity). The authors would also like to express their gratitude to representatives of the case companies that were involved in this research, namely Fried Kaanen (Bosch Hinges); Robert Peters (SoftTools); Hendri Kortman, Nico van der Dussen, and Ernst Mik (Variass Electronics); and Gerko Arends, Erwin Koops, and Elvert Lusseveld (Altrex).