Lean Purchasing and Planning is a viable and superior alternative to an MRP based system.  As demonstrated in our article, the bottom line cost savings in abandoning a MRP based system is staggering.  The savings from shedding the entire MRP administrative overhead goes right to your companies bottom line profit.  Abandoning Production Scheduling for one-piece flow and abandoning a conventional stockroom configuration for Kanban point-of-use inventory provides your company with decreased cycle time, increased inventory turns, significant net profit and working capital. 

There is a mind-set that a company needs an MRP system and these companies are reluctant to abandon it once they have it.  The general feeling is that they incurred the initial expense in purchasing it plus the supporting staff made a career out of using it.   A cultural and psychological commitment was established to keep an MRP system active despite the availability of a profitable alternative. In actuality, a company only needs an accounting system to manage Sales, Accounts Receivables and Payables.  Manufacturing is managed “off-line” by a Lean Visual Manufacturing System. 

To Learn more about the LEAN system, follow the links below:

What is Lean Manufacturing? -A Definition of Lean Manufacturing.
A Lean Company – An established Lean Company needed a software solution.
The Lean approach – An article to support your Lean movement over MRP practices.
ROI – A Case Study of a Lean company and their Return On Investment.
Why Do You Need Lean ERP Software? – Rationale and a supporting article to use Lean Manufacturing Practices.