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01.10.24

Lean manufacturing is a systematic approach aimed at minimising waste while maximising productivity. Lean principles have been widely adopted to streamline processes, reduce costs, and improve product quality.

Dynamics 365 is a great option for lean manufacturing ERP software and can play a pivotal role in implementing and sustaining lean practices within an organisation.

Tools in Dynamics 365 Supply Chain Management let you use production flows to model manufacturing and logistics processes, use kanbans to signal demand requirements and monitor kanban jobs. Check out a lean manufacturing overview in more detail from Microsoft. 

Here are some examples of how Dynamics 365 can help manufacturers reduce waste and increase efficiency.

1. Identifying and Eliminating Waste

One of the core principles of lean manufacturing is identifying and eliminating waste, which can take many forms, including overproduction, waiting, transportation, over-processing, inventory, and defects. Dynamics 365 helps manufacturers pinpoint these types of waste by providing real-time data and insights into operations.

Example: Using Dynamics 365’s analytics tools, you can track and analyse production data to identify areas where overproduction occurs, allowing you to adjust schedules and production rates to better align with actual demand.

2. Streamlining Production Processes

Lean manufacturing focuses on streamlining production processes to ensure that every step adds value. Dynamics 365 supports this by providing tools for process mapping, workflow automation, and continuous improvement. By modelling your processes as production flows, you can analyse and streamline your process – improving the cycle times of activities and the flow of materials.

Example 1: With Dynamics 365, you can automate repetitive tasks such as material requisitions and order processing, ensuring that production lines remain operational without unnecessary delays. Additionally, process mapping tools can help identify non-value-adding steps in the production process, which can then be eliminated or optimised.

Example 2: A production dashboard in Dynamics 365 can display the status of all active jobs, including progress against targets, any delays, and potential bottlenecks. This transparency enables teams to make informed decisions on the shop floor, leading to faster problem resolution and more efficient operations.