Author: David Dehne

  • Demand-Driven Matters

    Demand-Driven Matters

    Welcome to the Demand-Driven Matters blog. During our conversation in this space, I hope to bring you additional insights on demand-driven manufacturing and/or help in your quest to become a demand-driven, factory of the future. I call this blog a conversation for a reason—your input will enrich what we are trying to do here, which is provide ideas about how you can become more demand-driven, each and every day.

    When I first began instituting demand-driven practices in the late 90s, we were into creating pull, eliminating waste, and getting on a path of continuous improvement. Technology at the time was seen as an inhibitor rather than an enabler. Most people active in Constraints Management and Lean Manufacturing were abandoning their technology and going to purely manual solutions.  I always believed that technology was important to get the most out of the system and to make it scalable, however, in the late 90s, the lack of technologies that enabled pull made manual the only logical choice.

    Convergence

    One of the more fascinating developments in demand-driven enablement has been the shift of demand-driven manufacturing back to technology as an enabler rather than an inhibitor. There is recognition today that technology has to play a significant role in eliminating waste and synchronizing operations and extended supply chains.  Along with this trend, the creation of open ERP systems that are easily integrated with service-oriented architecture allows companies to leverage the system they already have and benefit from today’s best-of-breed, demand-driven solutions through seamless, real-time integration. Finally, the web-based, SaaS revolution has made this process more cost effective, with expensive internal services now “downloaded” to the software provider, freeing up IT and manufacturing teams to focus on what matters. The digitization of demand-driven practices has, in effect, opened up companies’ ability to manage inventory and constraints more effectively; free up capacity; control operating expenses; drive flow; dampen variability; and create innovations to meet customer demand.

    You will see me often weigh in on what’s valuable and not-so-valuable—and you can do the same by commenting or perhaps even writing a rebuttal, just to keep me on my toes! We’ll look at the classic hallmarks of a demand-driven culture and see what kinds of leadership, change management, and employee communications keep such systems alive.  We’ll delve into the challenges and benefits of a demand-driven environment as well as what really happens on the shop floor – for example: what happens when you “choke the release” of inventory. I’ll also invite people from my team to weigh in about their areas of expertise—from implementation to integration to constraints management to new sales and marketing opportunities for a demand-driven business— and I hope you will tune in to hear their proven and exciting ideas.

    Based on decades in this business, I have found that demand-driven manufacturers realize the most benefit when they keep their eyes on the prize: Each day, they stay focused on demand-driven behaviors and remain disciplined in their efforts. It can be a difficult road. But it is my hope that this conversation will validate why demand-driven matters and inspire you on your journey each day. Until next time, keep it Lean!

    – John Maher

     

    John Maher                                                                                                                                                                                                                                                                                                           John’s passion for demand-driven manufacturing is equal to his interest in how this method improves the lives of employees within these environments. “I’m here to help, not to judge” comments John whose posts reflect why demand-driven matters and are based on his experience working in manufacturing environments and expertise in ERP, MRP, APS, supply chain, manufacturing planning and scheduling systems and constraints management.
     
  • Never Stop Learning

    Never Stop Learning

    Theory of Constraints

    Necessary demand-driven components: How TOC delivers powerful results

    I grew up in a home where my family held daily quizzes around the dinner table about what we learned during the day at work or school. These topics ranged from Astronomy to current events – yet what this experience instilled in me was not so much knowledge in specific disciplines, but the idea that I could learn something new each day. And even if I was not directly exposed to new knowledge, these moments showed me that the people I associated with during each day were a rich source of knowledge by sharing what they learned with me.

    As I entered the workforce after college, I began another learning process. I found to my dismay that not all I learned in the university was directly applicable at the manufacturing companies where I worked. Each company seemed to have their own definitions for their processes and believed that their environments were completely unique. This attitude created production practices that seemed needlessly complex. I often thought, “There has to be a better way.”

    It wasn’t until my first management job that I finally found some answers. I was introduced to The Goal, by Dr. Eliyahu M. Goldratt and Jeff Cox. This book was a watershed moment for me, in that it shed light on some of the assumptions I had seen at play within all of the organizations I had known.

    Since that time, using principles of the Theory of Constraints (TOC) in The Goal, I have researched, taught, and applied many approaches to overcome the assumptions that prevent organizational growth, employee development and increased profitability.  Drum-Buffer-Rope scheduling, Thinking Process Jonah Training, Six Sigma Black Belt Training, extensive research on the Toyota Production System, Lean principles, and study in Deming’s Theory of Profound Knowledge all contribute my repertoire of improvement methods.

    During these blog discussions, I would like to share the insights that I have gathered across many manufacturing environments and over decades. I hope that similar to those dinner table discussions of my youth, you will bring your insights and share some of your knowledge here, as well.

    My expertise focuses on the Theory of Constraints; Lean manufacturing; and creating a culture of continuous improvement within a demand-driven manufacturing framework. I will be talking about how these theories can be put into practice to drive your production success. We’ll learn about:

    • The genesis of the Theory of Constraints and why it matters to your business
    • Using constraints management to drive practical change for profitable results
    • The kinds of constraints you will encounter and how to deal with them
    • What measurements drive the behavior for improvement
    • And more…

    My goal is to bring the valuable science inherent in these systems to you in an accessible way. Yet I will also make sure to deliver practical advice and examples of how I have seen a TOC focus make a world of difference at companies large and small. Just as gravity is an immutable law of nature, to me, the TOC is an immutable law of manufacturing success. And just like any laws, the best ones sort out complexity. I finally got my answer to, “There has to be a better way.” I hope I can help answer the same thing for you.

    – Rick Denison

     

    Rick Denison                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Rick is the “Dr. Who” of manufacturing operations and logistics. And while Rick doesn’t travel through time, he is adept at leading change – and saving time – in a diverse range of manufacturing environments through Lean manufacturing, Six Sigma, and TOC techniques. Rick’s posts address how demand-driven matters and draws from his background in process improvement, change management, project management, information systems implementation, and profitability analysis.

     

     

  • Rockin’ Relationships: People ARE the Project

    Rockin’ Relationships: People ARE the Project

    Logistics planning to enable project relationships – practical directives from an industry veteran.

    Part One: Love Your Logistics

    At the end of the day, implementation projects end up being about people—their skills, styles, and investment in the project and the project’s success.

    As you may well imagine, there are quite a few ways to set up effective relationships. For me, these fall into three categories: Project documentation; communication: and logistics. And whether I am working on an overseas project or around the Midwest, logistical considerations sometimes loom the largest in starting off a project on the right foot.

    In the other two sections of this “Rockin’ Relationships” blog series, we’ll discuss documentation strategies and communications best practices. We’ll obviously have some overlap in these areas. But in the meantime, we’ll concentrate on logistics, using the five ”W’s” and the one “H” of journalistic renown.

    Project management logistics

    Who? It’s easier to retain control of a project when specific people become associated with each project deliverable. I also recommend pairing these individuals on-site with a corresponding member(s) of the consulting team. It enables them to cultivate a level of comfort with one another that can lead to open lines of communication – discussions that send so-so projects into the stratosphere.

    What? The success of any project depends on how task-oriented its team members are. We’ll talk more during the rest of the series about documenting these tasks, but, logistically speaking, this question has to do with the nuts-and-bolts of the project: What do our teams need to succeed? These items range from specialized laptops to on-site building access cards.

    When? Make sure your repository includes timelines for when certain members of the consulting group will be on site. Also get the few selected regularly scheduled meetings on the calendar right away and require that people rearrange schedules to accommodate them. Holding all team members even to an initial, high level timeline will begin to drive the project toward on-time delivery. We’re talking about production software here, so of course, on-time remains a pressing concern for our industry. Don’t let your project be any different.

    Where? Make sure the consulting team has a workspace and the proper introductions to the key people responsible for the project. This may seem like a no-brainer, but I have seen consulting teams literally headquartered in a closet, waiting for building or server access for weeks. As you may imagine, this doesn’t help with the project budget.

    Why? Logistically speaking, taking the time to explain to members not only what you will be doing but why you have done it this way will help you obtain buy-in—the project manager’s most precious commodity of all. The more people understand the project priorities, the more supportive teams will be later in the process.

    How? Crafting a solid Statement of Work document will help you ensure that the people involved with each phase of the project are clear on scope. Approach it like a lawyer would, even perhaps before a lawyer reviews the document. If the Statement of Work has already been established when you join a project, read it through enough times to be able to explain it to someone else at both a high and detailed level. If you have questions, ask your leadership team in case it leads to a potential scope loophole later on. Show the team you have a clean grasp of scope and they’ll feel secure that you know how to get everything done, on time, and with the right resources.

    These are just a few of my takeaways from being on my own project management journey. I also urge you to send me some of your own project logistical tips; or send comments or questions about what you’ve read here. I can easily tailor future blogs to address them and would much prefer these pages to reflect a conversation rather than a lecture!

    If you are responsible for implementations from a client standpoint or even in another industry or for another vendor, I’d like to invite you to share your experiences, as well. We’ll continue our discussion about managing relationships effectively in the next two blogs. Until then, keep those implementations rockin’!

    – Sarah Huhner

    6.0-Sarah                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Sarah takes a customer-focused and results-driven approach to project management and demand-driven manufacturing systems implementation. With hundreds of projects under her belt, Sarah is fearless when it comes to challenging the status quo and delving into the details to ensure an optimal user experience. As such, her posts reflect tips and best practice advice for managing people and processes through projects – and getting the most out of your systems.

  • Three Ways Your Data Empowers Customer Confidence

    Internet of Things

    The Internet of Things helps differentiate your company by providing more information and insight so you can be more agile in responding to customer needs.

    I’ve spent my career in marketing explaining to people how having the right software will make them the right company for their customers. Can it really be that simple? I think it is.

    When the Gartner Group first put voice to the concept of an interconnected world, one in which Cloud-based software, linking to things (products, machines, etc.) creates an “Internet of Things” that holds incredible value for customers — I nearly rose from my desk and cheered. Experts say that by 2025, this vast network will be worth over $225 billion dollars. To me that number represents value for customers who work with manufacturers who know how to harness all of zillions of bytes of data included in this network. And if you are such a manufacturer, you should be already on your way to creating your own, mini, Internet of Things across your supply chain.

    Data as Differentiator

    I understand that using data as a differentiator seems daunting. But please consider that in this new world, data is the single most important driver to your growth in the marketplace. The actual products you produce can no longer meet your customers’ needs by themselves. I don’t think it’s too strong of a statement to declare—your data can and will make or break your customer relationships. Here are just three ways:

      1. Machine-level data gives you unsurpassed control over your flow—Connecting machines to the rest of your production data allows you to truly identify the constraints to flow on the shop floor. Identifying issues with flow on the machine level creates an environment where your promise to order promises are as real as they get. And your customers will stay satisfied.
      2. Hooking up suppliers to your data network allows you control over your supplier relationships—If you don’t have your suppliers included on your own Internet of Things, you’re missing out. As you know better than anyone, your finished goods can’t get to your customer until and unless you have figured out a way to manage your inventory appropriately. Having your suppliers’ supply chains included in your digitized, inventory management software solves this problem.
      3. Controlling flow by digitizing your production process frees up capacity and allows you to meet new customer needs—You can start by using software to manage inventory. That will often give you enough new capacity to create new opportunities to meet customer needs. Once you get an entire platform connected, you will delight your customer. How? By gaining access to actionable data that lets you identify constraints in real-time and improves your time to delivery. In empowering people to act quickly to mitigate constraints, you are protecting your customers’ orders. And by creating a business environment that promotes continuous improvement, your customers see that you are truly focused on being the best you can be — for their benefit.

    Of course, your own Internet of Things at your company empowers you in many more ways. I will talk about these in later posts. I think together we can uncover even more exciting trends about how software and the Internet of Things creates value for our customers. In fact, if you have any stories about how harnessing your big data has granted you big rewards, definitely send them to me. I’d love to hear from you.

    – Marketing

    Marketing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Big data, the Internet of Things, Industry 4.0, Factory of the Future, the Visual factory – what do you really need to pay attention to and what do these concepts mean to most manufacturers? A sceptic and trend-spotter, Pam’s posts leverage a background in technology marketing to apply these big concepts to the real world – and real work – of demand-driven manufacturers.

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  • Kanban Series White Paper: Gaining Clarity: Drive Productivity, Flow and Profit with Data that Matters

    Kanban Series White Paper: Gaining Clarity: Drive Productivity, Flow and Profit with Data that Matters

    Many of today’s discrete manufacturers are overcoming the challenges of legacy push-based systems by turning to pull-based eKanban software systems that focus on throughput and flow and result in a reduction in costs and inventory. This resource explores manufacturing Kanban systems from a management perspective, detailing the benefits of a more predictable environment with the decision-making power gained through deeper access to real time data and analytics.

    Download

  • Customer Case Study: Dynisco

    Customer Case Study: Dynisco

    Today’s manufacturing eKanban software systems are not only equipped to manage highly complex environments, but provide a wealth of hidden benefits. Benefits that Dynisco, a leading materials testing and extrusion-control instrumentation manufacturer, realized after implementing SyncKanban® software, an electronic manufacturing Kanban solution from Synchrono®.

    In upgrading from a manual to a manufacturing eKanban software system, Dynisco addressed 5 key business challenges and achieved significant reductions in inventory costs, lead times and more. What’s more, their 66-step manual manufacturing Kanban process to report inventory and supplier data was reduced to just 6 easy steps.

    Download

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