(SAP xIEP) which just goes to show that no matter what industry or how small or big a business is, SAP, today's number one world leader in business solutions and enterprise resource planning, always has an answer to specific business needs.
From yesterday's blog on a SAP solution for such a big industry as oil and gas, we go to lean manufacturing. The SAP xApp Lean Planning and Operations (SAP xLPO) is a family of applications which is designed to help manufacturers base their production undertakings on the guiding principles of lean manufacturing. Lean manufacturing, by the way, is a generic process management philosophy which is focused on the reduction of wastes so that the overall customer value can be greatly improved.
Lean production management is based on two important process namely Pacing Production and Signaling to synchronize the supply chain.
Using the SAP xApp Lean Planning and Operations (SAP xLPO) can make a company enjoy the benefits and profits from a real-time production management and scheduling system. As such, the company can overcome two of the most critical requirements of lean manufacturing which are production leveling at peacemaker operations and synchronization in order to create stability in the upstream supply chain.
The SAP xApp Lean Planning and Operations (SAP xLPO) is great tool for maintaining the required stability, consistency, reliability and being waste free in production management while directly linking production to actual customer demands.
The SAP xApp Lean Planning and Operations (SAP xLPO) is compatible with any ERP systems so those that have a current infrastructure need not to worry about integration. SAP xLPO has a nice, user friendly visual interface with features such as pull-based planning and scheduling. It also features execution function and efficient what-if planning and exception management.
Integrating SAP xLPO with the SAP ERP application can result in a mixed mode manufacturing which can subsequently bring in better productivity. An example scenario would be company that has part of a plant managed by SAP xLPO based on lean processes and another part managed by a conventional push processes. But the splitting must make sense, otherwise it could result in a negative effect. For instance, work centers that belong to the same group should be managed by the same process. Manufacturing sites can then switch their processes progressively to lean production. The integration of SAP xLPO with SAP ERP is a well-defined process which goes beyond sharing of master data for work centers, items, routings, bill of materials, etc).
SAP xLPO can help in getting intelligent outlook and rapid replanning so that the company can synchronize supply with demand, minimize problems springing up when least expected and avoid last minute unplanned production. As a result, the production efficiency grows up, and cost for shipment, overtime pay, etc is reduced. SAP xLPO lives up to its function to make production lean and waste free as possible.
More SAP xApps tomorrow! Have a fruitful and waste-less day!
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