The Lean-ERP accelerator by BearingPoint integrates lean production principles with ERP systems to enhance business processes and efficiencies. It addresses the challenges posed by external and internal complexities, cost pressures, and the demand for digitalization in production. The approach includes a workshop-based assessment of lean maturity, implementation of tailored solutions, and aims for significant improvements in working capital, production transparency, and flexibility.

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Lean-ERP
A BearingPoint Accelerator
Lean Production and ERP have long been two
independent business improvement approaches,
often coexisting within the same production site.
Our Lean-ERP accelerator combines these two
approaches and leverages synergies while
abandoning weaknesses of each individual
approach. By this means, the Lean-ERP solution
supports our clients in creating a globally
harmonized process landscape based on lean
production principles and supported by a lean
ERP solution.

2. Lean-ERP | A BearingPoint Accelerator
Contents
Market Drivers
Our Approach
Client Benefits
References
Contact
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3. Lean-ERP | A BearingPoint Accelerator
Market Drivers
Paving the way to process excellence
Higher external complexity in doing business and product requirements resulting from customer
demands require increased process transparency and overall flexibility.
Higher internal complexity through a globally dispersed production footprint with varying degrees of
value chain integration.
Cost pressure coming from the downstream value chain increase impetus to reduce overall costs
through seeking increased process efficiencies and optimized working capital management.
Increasing drive towards the digitalization of the shop floor (Industry 4.0), on the one hand, and lean,
robust and efficient process, drives seamless and non-interfering integration of Enterprise Resource
Planning systems with Lean Production principles, on the other.
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4. Lean-ERP | A BearingPoint Accelerator
Market Drivers
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Market Perspective
(external)
OEM Perspective
(external)
Tier 1 – N Supplier Perspective
(external)
Shift of value
added shares
Trend to
consolidate
Structures,
Organization,
Management Style
Employees
Machines
Material
External
Complexity
The increasing external complexity affects the internal complexity and evolves through the whole value chain
The whip-effect increases the whole way upwards the value-added chain
Internal
Complexity
Processes
Information
Processes
Information
Product Diversity
>
Product Life Cycle
<
Cost Pressure
>
Demand Volatility
> <
<
<
<
<
<
<
<
Products
Manufacturer – Supplier
Relationship Structures,
Organization,
Management Style
Employees
Machines
Material

5. Lean-ERP | A BearingPoint Accelerator
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Our Approach
BearingPoint uses its long-standing experience in the implementation of Lean processes with IT support in designing processes
that comply with the rules of Lean Production, while leveraging the qualities of an ERP system. BearingPoint thereby follows the
approach of using as much IT support as necessary, but as little as possible. The Lean-ERP BearingPoint solution is the enabling
technology for the integration of the digitalized shop floor (“Industry 4.0”) and Lean Production. BearingPoint, through its
unique approach, helps companies to generate substantial business benefits.
Step 1) Workshop-based assessment of Lean Maturity through a BE-created scorecard
Step 2) Definition of Business Case of defined areas of improvements (“selling point for management”)
Step 3) Definition of target scenario based on leading practice process knowledge from numerous industries
Step 4) Implementation of the target scenario on-site
BE applied Lean-ERP tools are:
• Lean Maturity assessment
• eKanban
• ABC/XYZ-analysis based optimization of materials management rules
• Tools to support leveling of production requirements (Heijunka)
• Internal and External Just-In-Sequence/Just-In-Time delivery of goods
• Heijunka-based production planning
• Implementation of ERP-based Jidoka/Quality first principle

6. Client Benefits
Saving potentials/ Efficiency improvements
• Working Capital optimization thanks to improved material planning parameters resulting in lower/more optimal stock levels
(LP: Muda reduction/ Pull)
• Increased productivity through less “smoothening” activities, e. g. searching for required materials in production (LP: Muda
reduction/ Pull)
• More transparency in material flow thanks to clear forecasting; less variance in material flow (LP: Pull)
• Increased flexibility in production department through optimally leveled production (LP: Heijunka)
• Less unnecessary material movements through clearly defined material flow (LP: Muda reduction)
• Common understanding of processes across all plants of a company for decreased “process translation” issues across plants
(LP: Standardization)
• Digitalization on shop floor (LP: Andon/Shopfloor management)
Lean-ERP | A BearingPoint Accelerator
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7. Lean-ERP | A BearingPoint Accelerator
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References
Successfully completed projects:
• World leading provider of wires, optical fibers, cable systems
Our customer increased its global production footprint by means of organic growth and acquisitions; having grown from a
German SME to a global juggernaut, on one hand, and the changing global market requirements on the other, it asked
BearingPoint for assistance in creating a global process template based on standardized Lean processes supported by a
standardized ERP system; among others BearingPoint implemented a Supplier/Vendor-based relationship across all plants
(external pull), implemented a pull-based internal material flow and supported the implementation of a digitalized shop floor
management tool; implementation has taken place in one plant with further plants currently being planned
• Leading manufacturer of commercial vehicles, engines and mechanical engineering equipment
Having focused on Lean optimizations in the past through the implementation of a global TPS-based production system, the
customer asked BearingPoint to support the harmonizing of the current process islands to a global process template applicable
for existing and greenfield plants based on Lean Production; BearingPoint defined and implemented all internal processes,
from receipt of raw materials to goods, issue of finished goods through leveraging its knowledge in Lean and ERP systems to
implement Lean-ERP features, e. g. eKanban, ERP-based JIS/JIT, pull-based intercompany relationships and others

8. Contact
About BearingPoint
BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and
adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We
combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s
individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s
leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with
them for measurable results and long-lasting success.
For more information, please visit: www.bearingpoint.com
Lean-ERP | A BearingPoint Accelerator
© 2015 BearingPoint. All rights reserved
Stefan Penthin
Partner
BearingPoint Germany
stefan.penthin@bearingpoint.com
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Patrick Jansen
Manager
BearingPoint Germany
patrick.jansen@bearingpoint.com