2020Case16Mercury

Contents Lean Construction Ireland Annual Book of Cases 2020 Case 16 In terms of alignment of spend, Figure 4 illustrates an example of one key vendor where 2020 spend is limited to sole source equipment only. Born out of a need to do things better for our client, this Lean initiative has been an enormous and long-term undertaking to enable full implementation of material master usage on SAP and entailing large-scale information management. Lacking formal training in Lean within the Procurement function until 2015, this project hit many speed bumps throughout its eight-year period; however, two critical factors stand out as being pivotal in achieving the initial objectives set out, namely the team approach and the commitment of Mercury senior leadership in making it happen. We now have a fully integrated EMR on SAP ERP, coupled with a Materials Requirement Planning (MRP) materials demand planning system going live November 2020. These information management systems would not be possible without the data and the work done on this Lean initiative. The requisitions process will become fully automated, and the demand and supply of materials will be managed similar to how it is done in manufacturing. The Mercury CI journey continues with gusto and Procurement plays its part. Figure 5. Lean Supply Chain Example Figure 6. Reduction of Costs Associated with Purchasing Late to the FND