1. Approaching Lean Manufacturing with Warehouse Execution Systems Software, Hardware and Business Concepts
2. Presented by: Michael Armanious
3. Retrospective • Has your company implemented lean technology based concepts? • Are you getting all you expected from it? • Do you see other organizations achieving greater productivity, profitability and market share from their strategies? • Do you perceive room for improvement?
4. Real Time Process and Function In order to achieve the proper strategy one must evaluate the entire enterprise to achieve optimal execution.
5. Traditional Approaches • • • • • • • • Lack of management support Poor metrics Not enough training Resistance to change Ineffective communication Not able to sustain initial efforts No buy-in from supervision No buy-in from workforce
6. Traditional Approaches • Not involving stakeholders in the planning process (primary cause of resistance) • Not considering the entire organization as a system • Not understanding the real purposes for the initiative
7. Root Causes for Lean Gap • • • • Reactionary Decisions Uncertain workforces looking for leadership Shifting supply chains No clear direction, fuzzy and changing targets
8. Reactionary Decisions • The need to hit quarterly numbers • The need to appease shareholders’ current expectations • The need to hit analyst targets • Focusing on short term goals
9. Reactionary Decisions Manufacturers Capital Equipment investment Information Technology Process Improvement Initiatives Business as Usual
10. Uncertain Workforce • Coaching and communication hit rock bottom with downsizing • Relationships are severed between employee and management • Employee becoming more anxious • Undefined or unclear roles for employees
11. Shifting Supply Chains • Key vendor failure of critical raw materials or components • Major customers cancel or slash orders • Cash flow management as only measurements • Main problem becomes a glut of inventory
12. No Clear Direction • Reactionary, short term decisions that do not consider what might lie beyond the horizon • Employees without guidance • Supply chain without collaboration • Main problem becomes a glut of inventory
13. NO CLEAR DIRECTION Regardless of current conditions, manufacturers need the ability to see, react, and change instantly– while adhering to the goals and objectives that guides them.
14. What needs to be done
15. Lean through Performance Management Methods, systems and personnel that enable an organization to set goals and the assess progress toward those goals on an individual, department, and companywide basis.
16. Performance Management Manufacturing Processes and Objectives Eliminates chaos and takes the guesswork out of strategic planning, allowing a manufacturer to continually identify problems and uncover opportunities across the entire organization
17. Lean Checklist • Strategic vision in place • Performance management readied • Process and functional targets monitored and acted upon • Companywide goals and objectives monitored and acted upon
18. Real Time Information Systems • • • • • Operations management Customer demand management Supply chain management Workforce management Logistics management
19. Operations Management How are operations performing, day-in, day-out, hour by hour? • Computer based customized dashboard tracking key performance indicators (KPIs) – – – – Historical KPI analysis Links to reports Day to day tasks Standardized work instructions • Pushing the right information in front of the right managers at the right moment
20. Operations Management • • • • • • • Solve problems at an early stage Reducing the need to escalate problems Reducing missed production targets Reducing missed delivery targets Improving the quality of production Reducing equipment failure Increasing revenue
21. Customer Demand Management Manufacturers need real-time customer information such as: • Accessing customer histories • Accessing customer buying patterns • Aligning sales efforts to current production capabilities • Efficiently translate demand into level production schedule Real time information can only be accomplished by capturing the data as transactions occur
22. Supply Chain Management Manufacturers monitor their supply base for productivity improvements and hidden costs: • Identifying supplier risks as early as possible • Deliverability of raw/component materials on time • Maintaining consistent raw/component quality • Assessing financial stability of suppliers EDI or an electronic integration with your suppliers would increase visibility for both the supplier and the manufacturer allowing for proactive responses
23. Workforce Management Manufacturers recognize that they must develop people in order to develop better products and processes: • Provide necessary training for the technology and software being implemented • Placement of the correct resource for the proper task • Strive for productivity improvement through incentives • Foster the right amount of pressure and urgency Workforce management can only be achieved with proper tracking software with flexible process mapping making the business and product flow second nature to the workforce.
24. Logistics Management Manufacturers can damage customer satisfaction and profits if logistics performance is poorly managed • Efficient design of a warehouse and distribution network • Freeing up cash by better coordinating inventories from suppliers through to customer • Accurately hitting lead times and avoiding late-delivery charges • Reducing transportation costs • Flawless compliance with customers, suppliers and regulating agencies such as FDA, USDA Monitory of your logistics process requires the capture of real time data translated into useful information
25. Implementing Lean Manufacturing Lean on the plant floor through flow manufacturing using technology: • Work moves through the plant in predetermined quantities (lots or batches) – Arriving at the work area – Waiting for other work to complete – Moving on as a unit to the next work area Work is scheduled through production lines that contain a variety of resources arranged efficiently and tracked using hardware and software technologies.
26. RFID Implementation
27. Wireless Mobile Computers
28. Data Rich Barcoding in Manufacturing
29. Dashboard Technology
30. Summary • Focus on identifying your own goals—one that articulates the value your company provides to customers and its competitive advantages in today’s volatile markets • Cascade those few, key objectives that support the goals throughout the organization, translating them into meaningful goals for every function, department, and employee. • Monitor and manage performance vertically within processes and functions and horizontally across the organization. • Do it all again, over and over, recalibrating the organization based on the latest planning, goal-setting, failures, and achievements
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