Category: Production Flow
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The Devastating Impact of Too Much WIP: How Excess Inventory Kills Manufacturing Flow
In manufacturing, WIP (Work in Progress or Work in Process) refers to partially finished goods that are at various stages of production but not yet completed. In accounting terms, WIP represents the value of raw materials, labor, and overhead that has been invested in unfinished product. Reducing WIP is a frequently cited goal for many…
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Time to Revisit Your Constraints
We talk a lot about constraints management in our work with customers who are implementing Demand-Driven Manufacturing (DDM) in their facilities. That’s because constraints management is fundamental for synchronizing the pace of production and keeping the demand (orders) flowing throughout the shop floor. But, our focus is naturally on physical constraints, e.g., that…
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3 Ways to Put Big Data to Work in Your Factory
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…
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Five Key Elements that Drive Manufacturing Flow
If you follow the Demand-Driven Matters blog, you know we specialize in Demand-Driven Manufacturing and have identified the two key components of this method as synchronization and flow. At an enterprise level, synchronization is all about fully connecting your organization to aggregate and share information in real-time. Data from machines, tools, applications, enterprise systems –…