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Manufacturing

January 2017 Durable Goods Report

Operational excellence depends on how well you compete with time.  All improvement in delivery, quality, competitiveness, profit and cash flow is driven by improved velocity in the factory and supporting supply chain.  This means changing the physics of the factory, not just the accounting.

To deliver these results we developed a set of manufacturing methods and supporting applications powered by the Ancelus database.  The unmatched performance of Ancelus and its ability to deal with the logical complexity of factory flows enables applications unlike anything else in the industry. Along the way we've solved some of the most perplexing problems in manufacturing. 

Continuous process improvement has always been the focus of successful manufacturing.  But the measures we  use to define "improvement" are critical.  Local process improvement that increases efficiency, but degrades ROA isn't real improvement.  And we now have actual measures of this effect across the US durable goods economy.  Check out the Durable Goods Report for details. Then test the measures against your operation.

The "Theory of Velocity" was developed to avoid this trap.  For job shop and batch process manufacturing it applies primarily inside the factory.  For line-based and continuous process manufacturing it includes the supply chain.  In all cases improved profitability plus improved customer response is the requirement.  No trade offs.

Theory of Velocity involves multiple levels of methods and tools.  Fortunately most are already available:

  • Financial: Decision Support Accounting is the other half of your accounting system.  Forward focused measures play "what to do next" vs. "what happened."
  • Material Planning: Replace unstable "pull" systems. Demand driven supply chains have the potential for serious disruption.  The solution is not found in the automation of administrative tasks.
  • Real-time Status: Accuracy + Visibility + Agility.  Add a focus on velocity and you have the winning combination.
  • Analytics for Quality: Catch process deviations before product spec violations.
  • Dynamic Capacity Planning: Getting beyond "efficient scheduling" to profitable customer responsiveness. Eliminate constraints. Don't optimize their loading.

How these methods and tools apply is always site dependent. But our experience with over 1200 companies on 4 continents will help you define priorities to achieve operational excellence in ways that avoid the "local optimum" trap. 

We've been doing real-time since before it was cool.  Let's talk about how our experience can help you take advantage of the next revolution in manufacturing operations.


 

 

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