Integrating enterprise resource planning system with lean concept to minimise waste in Sri Lankan construction industry – a theoritical review

Abstract

Construction industry is currently facing severe challenge that producing high rate of waste at the end of the construction process. Lean philosophy has arrived and expanded over the various industries by providing an imperative solution for most of the challenges facing by the industries. Accordingly, construction industry accommodates lean concept to provide the modest output in the shortest possible time, while attaining maximum value and quality at reasonable cost. Enterprise Resource Planning (ERP) system is developed as an approach that integrates all business functions into a single process to enhance the efficiency of all activities by supporting organizations to uphold the competitiveness within the industry. ERP system affords accurate data of current performance in a single database with more transparency for the users who demands them. Construction companies used to adopt ERP system with the intention of enforce supply chain partnerships, enhance organizational flexibility, improve decision making capabilities and reduce project completion time and costs. The ERP system diminishes labour-intensive processes and eliminate the root causes for waste production in construction industry and already offers lean support in their software. This paper highlights the literature findings on the lean philosophy and synchronizes ERP system and lean principles in the course of lean ERP route. These basic findings will aid to assessing the possibility of integrating ERP system with lean principles in order to eliminate construction waste. Sri Lankan construction industry practitioners can directly use these findings of the research to eliminate the challenge of producing high rate of waste at the end of the construction process