Is enthusiasm for Big Data wavering? In 2015, McKinsey Global Institute claimed that the IIoT had the potential to create as much as $3.7 trillion in economic value in the global manufacturing sector by 2025. They also predicted that 80 to 100% of manufacturers will have implemented IIoT applications by then and already be reaping the benefits of data-driven insights into their operations. When Gartner surveyed manufacturers in 2016, nearly
The manual Kanban cards that were the precursor to Lean Manufacturing have evolved into eKanban systems that automate inventory replenishment and reduce material waste… READ MORE on our guest post on EBN, the premier online community for global supply chain professionals.
Jessica Twentyman reported in the Financial Times, that for many manufacturers, supply chain collaboration is stuck in the dark ages. When it comes to ordering materials and components, managing inventory levels, or organizing the delivery of finished goods to customers, companies are forced continually to chase business partners – mostly suppliers, logistics companies, and retailers – via a messy stream of emails, phone calls, and even faxes. Worse still, much
Driving Continuous Improvement. In Demand-Driven Manufacturing, there is only one measurement that is important to drive performance: Throughput. There are two subordinate measurements: Inventory and Operating Expense. These three measurements cover the gambit of what needs to be measured because they are directly related to customer orders, cash captured inside the organization, and the cash it takes to turn inventory into sales. Demand-driven managers know that having too many metrics
End-to-end Visibility for Real-time Coordination, Communication, and Commitment By applying demand-driven methods and synchronizing processes, manufacturers are reaching new levels of communication, profitability, and customer responsiveness. Demand-Driven Manufacturing incorporates the best of Lean manufacturing, Theory of Constraints (TOC), and Lean Six Sigma principles. In demand-driven environments, production is based on actual customer demand, with everything synchronized (people, processes, materials, machines, and information) to drive flow. The process is accelerated by
Measure efficiency and productivity against your REAL goal I keep seeing the word efficiency in the manufacturing media. For someone who is a Constraints Management person, this is the equivalent of saying “Ni” to the Knights Who Say Ni (Monty Python reference, okay?) or like scratching your fingernails across a blackboard. It is one of those words that I think we should remove from the English language. When we look