Saturday, May 16, 2009

Continuous Improvement: “Adapt or Fail”

Manufacturers have learned that staying competitive means they must continually improve their processes or face the consequences of technological Darwinism—”adapt or fail.” Whether the initiative is Six Sigma or kaizen, traditional implementations of JDEdwards EnterpriseOne are nearly impossible to change when needed because they require expensive, time consuming custom code-based modifications. Because of this, the software becomes a barrier to operational excellence. This usually means that improvement opportunities are lost, or work-arounds are developed to accomplish tasks outside of the system. This results in poor data accuracy.
A new approach, called Lean Execution™ has recently been compiled on the belief that software should be a catalyst for continuous improvement—not an obstacle. Our implementation methodology not only provides a detailed view of plant history, but the flexible architecture also allows reconfiguration quickly and cost-effectively as the manufacturing operations change and evolve. We also provide the Business Intelligence needed to make fact-based decisions and adapt as manufacturing operations improve over time.
Maximized Supplier Relationships
In today’s lean and just-in-time manufacturing environments, collaboration with key suppliers is essential. The best manufacturing execution solutions provide manufacturers with the capability to exchange information among trading partners and enable true collaborative execution up and down the supply chain. A secure Web portal replaces time consuming phone calls and faxes as the basis for real-time information sharing and improved inventory visibility—critical factors in enhancing collaboration and streamlining supply chain operations.
Some manufacturing execution solutions also provide both the communication and visibility necessary to facilitate the effective delivery of goods from supplier to buyer. From the point of purchase order (PO) release at the buyer’s location through fulfillment, shipment and receipt, processes that have historically been performed manually—or in some cases simply not performed—are automated. With improved communication regarding compliance and/or serialized labeling requirements, inventory is received at the dock door with the required bar codes already applied. Functionality can also be provided to allow suppliers to perform other value-added services for their customers, including demand-pull replenishment, advanced shipping notification (ASN), and supplier quality inspections.
Rapid Product Recall Decisions
Product safety and quality are paramount concerns for manufacturers. When there are concerns about safety or quality, it is essential for manufacturers to have traceability tools that assist them in making product recall decisions. Manufacturing execution solutions aid in this process by capturing detailed product genealogies. When suppliers communicate a product defect, it is possible to trace exactly which finished goods were manufactured using the supplier’s defective component. This traceability can be achieved using lot number, serial number or other product attribute such as version, revision or “born-on date.”
Product recalls often result in enormous costs for the company issuing the recall. In most cases, companies lack information about the affected products. This results in companies inspecting individual products, or being overly cautious and recalling products that have no risk of quality or safety issues. Manufacturing execution solutions bridge this information gap for many manufacturers. With detailed product and order history information, these systems help companies deal with recalls in a timely, cost-effective manor.

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