Monday, November 23, 2009

Vendor Defends Its Strongholds with Focused Enterprise Resource Planning Solution

The "biggest and the best" action applications players will not necessarily accept a breeze in some geographic regions or vertical segments, as approved by the connected actuality and advancing bounded success of Strategic Systems International (SSI) (www.ssi-world.com). Back 1982, the UK-based aggregation of about one hundred advisers has been developing, implementing, and acknowledging business systems solutions that accept been tailored alone to a alleged few industries, appropriately reportedly carrying absolute allowances for these targeted customers. SSI is a Chelford Accumulation plc company, which has offices in Basingstoke (England), Darlington (England), and Glasgow (Scotland). Its applicant abject of about one hundred about absolutely UK-based mid-market enterprises includes baby companies and subsidiaries of multinationals and ample absolute companies, such as Allergy Therapeutics, Scottish Blood Transfusion Services, Almac Sciences, Shell, Adams Pork Products, Brintons Carpets, British Nuclear Fuels, G&J Greenall, Morganite, Rangemaster, Saxbys, Sony, Sundora, Tullis Russell, Turtle Wax, and CWV (formerly Vymura). Recent wins in the 2000s cover Fox's Confectionery, Uniq, Inter Link Foods, Naturally Best, and Hamworthy Combustion.

Part One of the alternation Bell-ringer Defends Its Strongholds With Focused Action Adeptness Planning Solution.

SSI's ambition markets are action industry manufacturers, including aliment and beverage, mills (paper, textiles, primary metals, packaging, and plastics), chemicals, and pharmaceuticals, breadth ever-stricter authoritative acquiescence and legislation, chip traceability, and superior administration are mission-critical. The abutting aswell sells its web-based TROPOS action adeptness planning (ERP) band-aid to some detached artefact manufacturers, breadth top volumes, quick-response abbreviate accomplishment cycles, accumulation customization, and demand-driven assembly planning are the modi operandi. These detached manufacturers may aswell abnormally account from decidedly bargain advance times by appliance the TROPOS demand-pull model, and all -to-be barter may account from SSI's added accumulation alternation solutions, including account optimization, avant-garde planning, and abstracts accumulating systems.

User enterprises are about in the $20 actor (USD) to $500 actor (USD) acquirement range, the 200- to 3,000-employee range, or analogously sized capacity aural beyond groups. On the casework side, SSI provides consultancy, accomplishing and activity management, development and integration, and support, as able-bodied as limited managed casework and applications hosting, breadth at atomic a third of all of its barter crop some anatomy of managed services. As for the bazaar position, SSI logically competes adjoin the bigger and better-known names in the all-around action industry sector. Obvious competitors cover Ross Systems/CDC Software, Infor Action Accumulation (including afresh acquired Geac System21, which had a ample allotment of the UK aliment and cooler market), Oracle, SSA Global, SAP, and Intentia on the action side; but aswell Infor Detached Group, QAD, Made2Manage Systems, Microsoft Dynamics NAV and AX (formerly Navision and Axapta), SoftBrands, SYSPRO, and so forth, in fast-response mid-market manufacturing, with the accent on real-time and process-centric accomplishment management.

Looking at the buying structure, SSI is now a wholly endemic accessory of about captivated Chelford Accumulation plc, the specialist advice technology (IT) solutions accumulation headquartered in Basingstoke (UK). In August 2000, Chelford Group, a banknote carapace listed on the Another Investment Bazaar (AIM), acquired SSI in a about-face takeover, whereby the lath of SSI became the lath of Chelford Group. The carapace aggregation is listed beneath the "CHR" ticker mark at AIM, which is the allotment of the London Banal Exchange that specializes in growing businesses. Chelford aswell operates to International Organization for Standardization (ISO) 9000-2000 standards, and the AIM advertisement gives the aggregation admission to basic for convalescent the articles and casework accessible to its barter and to abutment the amplification of its business. The aggregation has anniversary revenues estimated to be in the arena of over $30 actor (USD), with SSI accidental a bit over a bisected of the absolute revenue.

The Chelford Accumulation action is to abound both organically and by acquisition, to advance its aggressive position in the markets it targets. The aggregation has afresh marshaled a artefact portfolio, and able accumulation and abutment capabilities, extending from ERP and broad and administration implementations, through to abounding managed services.

Besides SSI, the Chelford Accumulation consists of the afterward companies:

* Chelford SAP Division, which has consistently been one of SAP's top two value-added resellers (VARs) in the UK back 1997. In 2002, Chelford Accumulation acquired the assets of one of the bigger SAP resellers in the UK, which now operates as the Chelford SAP Division, and focuses on the administration and chump packaged appurtenances (CPG) markets. It provides SAP solutions and abutment casework alone to mid-market companies, and centralized antagonism with SSI is abhorred by absorption on somewhat altered and possibly commutual industries. The Chelford Group's ambition is to become the arch supplier of accumulation alternation administration (SCM) solutions to the UK mid-market.

* Agility Systems Ltd, which specializes in accumulation alternation beheading (SCE) and barn administration systems (WMS), and asset-tracking systems amalgam to arch ERP vendors and products, including Geac (now allotment of Infor), JD Edwards (now allotment of Oracle), and SSA All-around aural the CPG and busline and acumen markets. In September 2005, Chelford acquired Agility, whose barter again included Exel Logistics, Morphy Richards, Sara Lee, Courtaulds, and BAE Aerospace. Above-mentioned to the acquisition, Agility had developed a cogent adequacy in radio abundance (RF) abstracts abduction systems and in radio abundance identification (RFID) applications, decidedly aural asset tracking and SCM applications. The bell-ringer is aswell a Premier Honours Accomplice of Intermec, the arch RF and RFID accouterments manufacturer, and was Intermec's aboriginal RFID-approved accomplice in the UK. Agility's business complements Chelford's absolute SSI and SAP divisions, and has added added SCE, WMS, and RFID capabilities to the Group's absolute artefact and account portfolio.

* Shian Ltd, which is an IT solutions and technology casework business focused on Microsoft and SAP applications. For Microsoft applications, Shian's arch markets are in the banking casework and accessible sectors. The bell-ringer is a Microsoft Gold Certified Partner, with competencies in abstracts administration solutions, advice artisan solutions, and Microsoft Dynamics AX. For SAP, Shian focuses on SCM applications, and barter cover Hewlett Packard (HP), Black and Decker, Barclays Bank, Scottish Enterprise, and the Glasgow City Council. The October 2005 accretion of Shian complemented Chelford's absolute activities, as the Microsoft Business Systems (MBS) convenance added to the Group's absolute operations, while Chelford's SAP analysis has been adequate by Shian's activities. Meanwhile, banking casework and the accessible breadth represent new vertical markets for the connected group, admitting the accession of an appointment in Glasgow should advice in appliance Chelford's absolute Scottish barter and extending its advantage in that area.

* A new subsidiary, RFID Band-aid Centre Ltd, which was formed afresh to advance the abeyant of Agility's RFID consultancy casework and affiliation software, from ambiance account checks to abounding action band-aid architectonics and implementation. In particular, there is a abeyant for developing Agility's RFID activities and the Intermec relationship, and for establishing the new RFID band-aid centre business as the RFID accumulation arm for the Group's SSI and SAP divisions. The accretion of Agility offered the connected Accumulation the abeyant for added advance in new accumulation alternation sectors, with the added allowances of a able position in the arising bazaar for RFID applications (see As Hype Becomes Reality, a Radio Abundance Identification Ecosystem Emerges) and cross-selling opportunities aural the connected Group. The aboriginal RFID adjustment has been accustomed from GeoPost, the authentic accoutrements accumulation service.

Early in 2006, Chelford provided a advice amend on its achievement for the agenda and budgetary year 2005, aural which it has connected to body on the able advance of the antecedent two years, aggrandized by the acquisitions of Agility and Shian in the fall. In backward April, it appear its audited after-effects for the year to December 31, 2005, whereby all locations of the Accumulation accept reportedly fabricated cogent advance throughout 2005 in agreement of about-face (a 22 percent increase) and operating accumulation (a 49 percent increase), decidedly advanced of the above-mentioned year. Chelford charcoal debt chargeless with anniversary net banknote of about пїЅ0.9 actor (GBP) (compared to пїЅ2.1 actor [GBP] in 2004), afterwards advance пїЅ3.2 actor (GPB) in acquisitions during the additional bisected of the year. Both the SSI and SAP capacity accomplished solid amoebic advance (there was acceptable advance in architectonics managed casework aural SSI), while the SAP analysis won its aboriginal above managed casework contract. New affairs in SSI adequate its position in the aliment sector, and included Dairy Farmers of Abundant Britain, Naturally Best, and Glisten. The SAP analysis bigger its position in the broad and administration area, abacus Neopost, Supercook, and Findus to its chump base.

Zooming into SSI's ambit of articles and services, its aboriginal artefact was PROTOS 2000 ("protos" acceptation "first" in Greek), which was replaced by the aboriginal absolution of its now flagship artefact TROPOS in 1992. Back then, the artefact has been consistently developed, with an accessible action adaptation on UNIX appear in 1995, TROPOS for Microsoft Windows NT in 1997, and for e-business accomplishment in 1999. Today, the arrangement supports the afterward operating systems and accouterments combinations: HP-UX, and Windows, while the authentic databases are Oracle and Microsoft SQL Server (the closing of which is acceptable an added accepted choice).

TROPOS is a modular multicompany, multicurrency, and multilanguage (currently English, German, and French) continued ERP arrangement accoutrement around all the accomplishment business administration aspects (such as sales adjustment processing, assembly planning and management, purchasing, and so on), both aural the four walls of the user enterprise, and for entering and outbound logistics. Advised with online and real-time beheading in mind, the arrangement aswell encompasses forecasting, chump accord administration (CRM), warehousing and account management, superior management, bulb maintenance, financials and accounting, and abounding added capabilities.

To accompaniment its appliance solutions, SSI provides all the casework adapted for the absolute lifecycle abutment with a individual point of responsibility, including activity management, abstruse (tools) training, and appliance accomplishing and support. These casework are backed by proprietary methodologies like Quickstart Plus, which includes business action reengineering (BPR), and Quickstart, which strives to accommodate a accelerated acknowledgment on investment (ROI) through accomplishing templates, managed casework (including hosted appliance services, hosted Web collaboration, limited managed services, and so forth), systems development (including systems integration, amalgamation enhancements, and customized systems), and accouterments and basement design, supply, and abutment (including Web development, boutique attic connectivity, adaptable applications, and abstruse consultancy).

The bell-ringer is almost aberant for its one-stop-shop approach, and its abyss of IT and ambit of appliance and account is significant, accustomed its almost abate size, as able-bodied as associate bell-ringer offerings. Namely, SSI combines broadly packaged action arrangement authorship, systems accomplishing and integration, and managed casework provisionas able-bodied as businesslike advantage of the extended-ERP scope, including e-business, CRM, SCM, and so on. From the antecedent concept, TROPOS was advised to handle a user company's accumulation alternation and trading accomplice business processes, and to access the accumulation alternation velocity. The vendor's administration contends this has a lot to do with SSI's origins accouterment accomplishment adeptness planning (MRP II), agency services, and custom-built solutions in the 1980s.

As for the presentation layer, TROPOS can be acclimated with both browser-based audience or in an n-tier client/server architectonics with fat/rich Microsoft Windows desktop clients, or a "thinner" Telnet client. The artefact aswell supports attenuate applicant operations on Citrix, while the business-to-business (B2B) e-commerce $.25 and pieces are based on several cyberbanking abstracts altering (EDI) alliances, and on leveraging adaptable markup accent (XML) and Microsoft Biztalk.

In fact, this vendor, a aggregate of avant-garde software purveyor, businesslike and absolute arrangement integrator, and consulting casework provider, should angle out in its ambition bazaar segment. Beyond this, it is acclaimed by specialization in the action accomplishment sector: the vertical bazaar specialization emanates from both the product's anatomic capabilities and the company's long-tenured and accomplished people. The abstraction of such a aciculate focus is to accommodate one accepted out-of-the-box arrangement to a apparent customer, with no charge for cher one-off modifications, which all eventually translates into lower risk, lower absolute amount of buying (TCO), and no advancement restrictions.

Moreover, the tools-based development and systems affiliation access provides a awfully configurable arrangement (but after annoying antecedent cipher customizations), and adeptness for the customer, if required. The chump has a notable best in agreement of technology, attributable to SSI's accessible architectonics and interoperability approach. The best-of-breed access is aswell a best if adapted (see Best of Breed Versus Fully Chip Software: The Pros and Cons and Individual Antecedent or Best of BreedThe Debate Continues). To that end, TROPOS appearance modular architectonics and accessible architecture, which allows it to be interfaced to added applications, and to be adapted if all-important to add functionality as business requirements evolve.

This bazaar adeptness in agreement of uncompromising specialist applications and agents experience, arranged with the minimized accident for the chump (due to the individual point of responsibility, or the "one throat to choke" principle), a advanced ambit of the complete band-aid (including applications, infrastructure, and services), and abutment throughout the absolute lifecycle (from an applications advice band to abounding solutions outsourcing), is yet to be akin in the ambition market. The SSI TROPOS aesthetics is to abutment these accomplishment barter in their adventure to become "better, faster, and cheaper" by carrying systems to abutment "my industry, my company, and my job." In added words, SSI emphasizes the fit of the TROPOS artefact to the chump at the three levels, starting with "my industry."

Looking at the abundant functionality of the targeted industry verticals reveals a anatomic backbone and a absolute compassionate of the business needs of these action industries. Production, and accumulation alternation and adjustment administration all appearance vertical-specific functionality, which compares able-bodied or even exceeds some of the above action action adeptness planning (ERP) products. An appraisal of action accomplishment functionality shows abyss and substance, with TROPOS acclamation action accomplishment idiosyncrasies stemming from both material-oriented requirements (such as chip superior management, authority management, shelf activity controls, bassinet and packaging management, item-level units of admeasurement [UOM] ascendancy and conversion, and so on) and production-oriented requirements (such as bi-products, co-products, another materials, agitator and decay artefact management, recycles handling, action and artefact yield, scheduling to the minute and sequencing, rate-based absolute call-off, adjustable absolute backflushing, lot traceability including plan in advance [WIP] traceability on a individual accomplishment order, and the like).

For added advice on the archetypal action accomplishment show-stopping requirements, see Action Accomplishment Software: A Primer and What Makes Action Process?.

The bell-ringer abnormally exhibits a abstruse compassionate of the aliment and cooler and fast-moving chump appurtenances (FCMG) manufacturers, which aggregate about 60 percent of its install base. Manufacturers bartering the above bazaar retailers (whether the artefact is food, drink, claimed care, charwoman products, or any added artefact abounding and awash by supermarkets) all allotment abounding accepted business challenges and a boxy aggressive environment. The chump (a huge, powerful, and ambitious bazaar or retail chain) wants articles bogus to order, and with advance times generally abstinent in hours rather than canicule or weeks. In fact, accumulation advance times beneath than the time it in fact takes to accomplish the artefact are routine, generally ironically arranged with awful capricious forecasts.

For a specific altercation of the chump packaged appurtenances (CPG) industry see Yes, We Accept No Bananas: Chump Appurtenances Manufacturers Serve Ambitious Customers.

CPG manufacturers admeasurement the a lot of important metric of all: orders delivered on time, in abounding (see The Perfect OrderInside-out or Outside-in?). Because supermarkets about accept no warehouses, all accomplished goods, whether decaying or not, accept to be calm from the architect and baffled to the bazaar shelves aural hours. And because there is no "finished goods" stock, the end of the assembly action becomes the loading bay. For this market, ERP systems should be able to accord able-bodied with connected processes and top volume, rate-based accomplish (where one adeptness accomplish to forecast, but will amalgamation to-order in a accumulation customization manner). Indeed, an ERP arrangement advised for CPG accomplish has to abutment order-less, rate-based manufacturing, and still absorb abounding traceability. CPG accomplishment is about fast moving, top volume, and adequately simple manufacturing, with almost bargain ingredients. Nevertheless, full-quality ascendancy and lot traceability is essential, so it have to be accessible to use capacity after the aerial of consistently accepting to almanac banal issues.

SSI offers several chic capabilities to advice CPG manufacturers with these requirements. For one, to drive advanced planning and to accord with adjustment expectations, TROPOS can administer forecasts from a amount of sources (for example, these can be customer- or product-specific, for preproduction runs orr for interplant or aggregation demand). A characteristic affection allows the conception of a anticipation at a lower akin in the artefact anatomy than the top-level (finished goods) item. This lower-level anticipation can be captivated by assembly (as with all forecasts), and its purpose is to abutment the aggregate accomplish of articles breadth a advanced array of accomplished options is available, based on a accepted abject product. Potentially, the end artefact is fabricated accurately to a customer's orderand the accessible variations at the top-level bartering account are so abundant that forecasting at this akin will consistently be absolute inaccurate. By forecasting at a lower akin (sub-assembly or component) than the accomplished appurtenances one (which is apparently the added accepted forecasting akin beyond a array of products), a added anticipated anticipation can be maintained. This is due to the aggregated forecasts of the accepted apparatus beyond assorted accomplished products' variants. Manufacturing, however, would go according to chump specific call-offs. Breadth this is planned into the artefact architectonics and accomplishment planning, it is alleged "decoupled manufacturing" or "mass customization."

The assembly action in TROPOS is authentic as a alternation of stages and steps, with adeptness and absolute ascribe and achievement authentic at the date level. This is in accession to the able adjustment accomplishment capabilities ahead mentioned, forth with abutment for decoupled accomplishment (which agency managing a assembly plan at an average or all-encompassing level, and applique off [deducting] or arresting absolute sales orders for accomplished products), for an authentic analogue of the assembly action accordingly with the rate-based blueprint if adapted (with time traceability to account and seconds).

The ascendancy of achievement absolute agency that complicated absolute action flows can be defined, including by-products, co-products, waste, scrap, yield, work-off, and feed-back, all which can again be inputs for added assembly stages on added processes, or into inventory. These inputs and outputs are included in the costing action as absolute or abrogating contributions, which allows the analogue of the assembly action in TROPOS to be a abutting description of the absolute way articles are manufactured.

This access includes carrying absolute food to the assembly action in band with accomplishment requirements according to time and location, clashing the abstraction of kitting absolute (according to a account of detached apparatus or ingredients, alleged the bill of abstracts [BOM]) to a plan adjustment that is acclimated by accepted absolute requirements planning (MRP)-based systems. This access emphasizes the accent of bigger timing aural a assembly operation, back few acknowledged accomplishment companiesin around any sectorhave the affluence of just auctioning a accumulation of raw abstracts into a apparatus and accepting their articles out absolutely if the chump wants them. A above adequacy is the adeptness to advance appeal beyond assorted assembly sites so as to access adeptness usage, and abbreviate assembly and busline costs. For companies that banal appurtenances as intermediates (partially finished) or aggregate appurtenances (such as whisky distillers or actinic producers), both accomplished and partially accomplished appurtenances can be accounted for.


A Focused Web-based Solution for Chemicals, Drugs, and Mill-based Industries

The packaged action systems offered by Strategic Systems All-embracing (SSI) (www.ssi-world.com) abutment such industries as actinic and drugs, and mill-based. The analogue of the assembly action in SSI's flagship artefact TROPOS can be a abutting description of the absolute way articles are manufactured. For accomplishments advice on SSI, and added advice on TROPOS, see Vendor Defends Its Strongholds With Focused Action Adeptness Planning Solution.

Part Two of the alternation Vendor Defends Its Strongholds With Focused Action Adeptness Planning Solution.

As for chemicals and pharmaceuticals, SSI aswell shows a abysmal compassionate of their requirements and constant must-have capabilities, such as authority controls, alembic movements, top-down and bottom-up traceability (for example, if one needs to trace aback from a accurate tin of acrylic to acquisition the assay after-effects of a accumulation actual that went into it, or if one needs to analyze all the added [completely unrelated] articles that were fabricated from a accurate catchbasin of awkward oil), chip and automatic community and customs (C&E) controls and documentation, shelf action controls, area validation control, dip tanks with alteration controls, and so on. For added advice on the actinic industry's burdensome requirements, see So What's the Big Deal with Chemicals?.

Like aliment chump products, chemicals and drugs are not fabricated of apparatus that can be aggregated into acceptable detached bills of actual (BOMs). But on the added hand, these are not about simple products, as they may be actinic by way of circuitous actinic formulae (requiring circuitous accomplishment processes), or they may be extracted, forth with abounding added by-products, from one above raw material. The TROPOS formulae and action archetypal afresh comes in handy: action stages can be added torn down to action steps, anniversary with action instructions, superior specifications, and ascendancy and assay belief that can accommodate with (or even replace) accomplishment beheading arrangement (MES) and class assay administration arrangement (LIMS) packages. This allows the user to configure and amount a artefact according to appearance and options and user-defined rules after any charge to actualize and advance allotment numbers and BOMs for the end artefact beforehand. The artefact analogue options action a array of choices:

* absolutely authentic artefact codes

* partially authentic artefact codes with superior specifications, grade, or added abstracts fields

* partially authentic artefact codes with assemblage of admeasurement (UOM) about-face or accessory ambit controlled by the ascendancy reference

* absolutely configurable articles (via a artefact configurator)

Furthermore, the TROPOS Action Configurator bore allows the accomplishment action to be authentic according to a agnate set of predefined rules, accordingly with agreement of the end product. This bore will again account the advance time, amount the assembly process, and add it aloft the artefact costs, while the accomplishment adjustment can be affiliated anon to the antecedent sales order. The action authentic this way can be rate-based if required, with diminutive time-based traceability for all stages and inputs and outputs.

Recouping huge assay and development (R&D) costs is the abundant claiming for actinic and biologic companies, attributable to a humongous authoritative burden. The ecology regulations crave austere ecology and assembly restraints, back the accomplish and use of chancy chemicals requires adherence to austere regulations, abnormally in North America and the European Union (EU). The actinic industry (and companies that await on chemicals aural their plants) appropriately accept a countless of new regulations to address.

The new regulations abode the EU's Restriction of Chancy Substances (RoHS) charge and added regulations that crave compositional analysis, development of actual assurance abstracts bedding (MSDS), ecology analysis, and hazards identification. The actinic industry faces accurate analysis from a authoritative perspective, back companies accept been discussing the impacts of European Classification and Labeling Inspections of Preparations, including Assurance Abstracts Bedding (ECLIPS), Registration, Evaluation and Authorization of Chemicals (REACH), Science, Children, Awareness, Legislation and Evaluation (SCALE), and Global Harmonized Arrangement for the Classification and Labeling of Chemicals (GHS). For added information, see Action Manufacturing: Industry Specific Requirements; Allotment Two: Chemical.

Life science and biologic manufacturers face possibly the toughest restrictions of all, and are appropriate to advance austere adherence to "good accomplishment practices" as able-bodied as to the absolute and awful activated US Aliment and Drug Administration (FDA) regulations. Implementing and ensuring acquiescence with agent assurance guidelines, accessible aliment acquaintance rules, ecology emissions (which are generally delineated by authoritative permits), and even acceptance the agent and agreement of articles are all mission-critical processes that accord to the amount of accomplishing business. Drugs and chemicals are appropriately conceivably the a lot of deeply adapted of all accomplishment sectors, and after the adeptness to amuse regulators as to the a lot of minute abstracts of assembly data, companies will be clumsy to prosper.

For these reasons, chemicals superior ascendancy is an basic allotment of TROPOS, which controls the absolution of articles to barter or for centralized use, acknowledging acquiescence with authoritative authorities such as the FDA in the US; Hazard Assay Critical Ascendancy Points (HACCP) in Canada; the Medicines and Healthcare articles Authoritative Agency (MHRA), Her Majesty's Revenue & Community (HM C&E), Ascendancy of Substances Chancy to Bloom Regulations (COSHH), and the Aliment Standards Agency (FSA) in the UK; Bloom and Assurance Statutory Instruments in Ireland; and European Aliment Assurance Assay Account (EFSIS)/British Retail Consortium (BRC) standards. (EFSIS is a arch third-party absolute assay and acceptance service, accouterment retailers, manufacturers, farmers, and caterers, throughout the world, with able assay and acceptance of their operations to ensure that alone the accomplished standards are maintained.)

Accordingly, the TROPOS Hazards Administration bore aims at allowance users accomplish acquiescence with account to bloom and safety, transport, and civic account regulations throughout the absolute business cycle, from cancellation of raw abstracts to celerity and busline of accomplished goods. Anniversary account aural TROPOS can accept a appointed hazard category, which controls how the account accept to be handled. Hazard and assurance advice can be authentic for anniversary product, account the administration instructions, labeling and packaging instructions, and accident and assurance phases, and this advice can alter depending on the adjustment of transportation.

Additionally, raw abstracts authentic as chancy cannot be accustomed on-site until the assurance advice is recorded on the system: all appurtenances cancellation addendum accommodate hazard and assurance advice to ensure safe actual handling. Furthermore, all plan instructions apropos to the use or conception of chancy abstracts accommodate hazard and assurance advice to ensure safe assembly and packing activity. Selection of chancy accomplished appurtenances automatically checks whether an MSDS needs to accompany the goods, and based on the adjustment of transport, advises which carriage abstracts are appropriate to accompany the appurtenances (in the anatomy of Tremcards), and defines the languages appropriate based aloft the carriage avenue defined.

Tremcard is a universally accustomed European Actinic Industry Council (CEFIC) arrangement for alarming appurtenances cars that accept to accept emergency advice in writing. The advice accept to be set out in a assigned format, in a accent the disciplinarian can understand, and in the accent of the countries of origin, transit, and destination, so that it meets civic and all-embracing authoritative requirements and minimizes delays. Last but not least, a civic account account can be maintained which defines the articles that are banned in some countries. The TROPOS Sales Adjustment Processing and TROPOS Purchasing modules automatically analysis this account and anticipate appurtenances accepting purchased which are not accustomed in the home country, and anticipate the auction of banned appurtenances to added countries.

Mill articles (paper, packaging, textiles, and primary metals) functions are abnormally able too, thereby giving SSI backbone in these under-served markets. Because it is based on a action archetypal of accomplishment rather than on acceptable accomplishment adeptness planning (MRP II), SSI TROPOS aswell copes able-bodied with by-products, decay products, rework, and scrap. Action yield, work-in-progress (WIP) and cycle traceability on a individual accomplishment order, job sequencing, and adjustable actual backflushing capabilities aswell arise in accessible to these users, which are about after barring alive in awful aggressive markets in which margins are baldheaded to the bone, and area accepting the accomplished accessible crop from abstracts is acute to advantage (see The Burdensome Needs of Metal Account Centers).

Indeed, dimension-based manufacturers such as cardboard mills, carpeting makers, and animate plants face actual altered challenges from their aggregation in added sectors, back potentially every individual artefact they accomplish may be unique. Like aliment and chemicals, these environments do not use acceptable detached BOMs or artefact character (which are aswell acceptable for detached engineering companies), accustomed that acquired articles accept to accept assorted attributes accoutrement dimensions, length, color, coating, texture, width, grade, thickness, patterns, and specification, all to be authentic after creating new artefact codes. The TROPOS Attributes adequacy provides a adeptness for those industries whose ordered articles are not discretely definable. It aswell represents an ideal abode to abundance customer-specific abstracts on the TROPOS database, with the added advantage that it can be flexibly searched. The adeptness to seek by aspect (for example, by dimension) is fundamental, and needs to be fast. Up to thirty attributes can be searched at a time in TROPOS, and numeric ranges (for instance, "less than 1.2 m and greater than 0.6 m"), specific ethics ("black and gray"), and agrarian cards can be acclimated to authorize searches.

It's abnormally accurate in these industries that accepted articles and the archetypal "one artefact equals one artefact number" assumption do not apply, back actuality barter adopt to adjustment in an "attribute" of a artefact accumulation address (such as a specific dimension, grade, quality, catch-weight, or backpack type). If there had to be a audible artefact and action cipher for anniversary abeyant ordered item, again the account adept and action aliment would be unwieldy, and the resultant planning, ordering, production, costing, account management, allocation, delivery, tracking, invoicing, and celerity processes would be actual difficult to manage. Thus, the TROPOS Attributes functionality is accurately advised for industries which advertise abounding derivatives of a accepted product: a individual artefact cipher and action of accomplish per artefact accumulation or blazon can be complemented by user-defined attributes. The aftereffect is a slicker business process, and a arrangement which is easier to use and maintain. For instance, the allocation of account is acute to attributes, whereby alone lots with analogous aspect ethics will be allocated to orders that specify a appropriate aspect or ambit of attributes.

User-definable "intelligent" attributes can be set up by account for all key abstracts entities and contexts, such as artefact group, product, customer, customer/product, sales adjustment line, and so on, whereby attributes absence according to a authentic bureaucracy of abstracts entities (such as artefact or customer/product to sales adjustment line). There can be assorted attributes (up to a thousand) authentic for anniversary abstracts article in TROPOS, and they can be numeric, calculated, called from a menu, or chargeless text. Furthermore, user-defined calculations can be added to account aspect ethics from added aspect values, or even from customized admission to the database for added data. UOM conversions can aswell be attribute-based and automatically affiliated to account movements. For example, account can be confused in units of a authentic attribute, in accession to the absence account and accepted acclimation units for the product.

The accepted scheduling argumentation aural the accepted TROPOS Assembly Planning apartment caters to constraint-based scheduling. But area assorted constraintts, agenda optimization, or a beheld representation of the agenda is required, SSI recommends the use of the TROPOS Planners Workbench. The another bore provides a faster, added able another to chiral planning boards or acceptable block-scheduling procedures. It is a scheduling arrangement able of added accelerated acknowledgment in circuitous situations, and is based on Greycon's S-Plan 4 Advanced Planning and Scheduling (APS) apparatus (see Advanced Planning and Scheduling: A Critical Allotment of Chump Fulfillment), and can be implemented stand-alone or absolutely chip with TROPOS.

When implemented with TROPOS, the bore supports complicated scheduling algorithms that accommodate available-to-promise (ATP) responses at adjustment entry, in accession to acknowledging the assembly planning and administration processes. The assembly scheduling enhancement basic can advice agenda assembly in a address constant with business goals, which can backpack assorted weighting factors (such as chump adjustment satisfaction, minimum labor, maximized bulb utilization, minimum downtime, and so on). Key functionality includes a bulb enhancement capability, including the amount of basal algorithms (for instance, block scheduling, constraint-based scheduling, acceptable MRP, amount and busline approach planning, and able semi-finished banal utilization).

A alternation of accurate capabilities accept been developed for industries which are accomplishment dimensional articles (such as reels, coils, webs, sheets, and the like), area schedules are based on attributes, and area articles are managed that arise in a ample amount of combinations of concrete sizes and specifications. The artefact manages the many-to-many relationships amid orders and concrete entities, while application the abounding UOMs that are allotment of the artefact at anniversary footfall of the accomplishment process. Some users accept aswell been application the module's interface options for account planning, anxiety and enquiries, and abstracts accumulating mechanisms.


Web-based Enterprise Resource Planning Solution Exhibits Lean Approach

TROPOS, the flagship artefact of Cardinal Systems International (SSI) (www.ssi-world.com), uses accomplishment adeptness planning (MRP) for abiding planning, and adept assembly scheduling (MPS) for concise scheduling. This admission appeals even to some detached manufacturers with abbreviate advance times and top volumes, area the acceptable MRP admission generally shows abounding shortcomings (and can even be a compound for disaster). And although MRP runs can now be performed in annual rather than the hours and canicule of yesteryear (owing to accretion processing power), planning on the aback of MRP in an active accomplishment ambiance agency either captivation ample assurance stocks, or ambidextrous with unhappy, irate, and ailing served barter (see Demand-driven against Acceptable Abstracts Claim Planning).

Part Three of the alternation Bell-ringer Defends Its Strongholds With Focused Action Adeptness Planning Solution.

For accomplishments advice on SSI and TROPOS, see Bell-ringer Defends Its Strongholds With Focused Action Adeptness Planning Solution. For a altercation of TROPOS for called industries, see A Focused Web-based Solution for Chemicals, Drugs, and Mill-Based Industries.

Thus, TROPOS consolidates all forecasts into the MPS, and these forecasts can be acquired from customers, marketing, sales, or production. Absolute appeal in the anatomy of absolute orders will aswell be taken into the MPS, and a able adequacy in TROPOS is that the MPS takes all the altered types of appeal (such as forecasts, absolute sales orders, and assembly and purchasing schedules), and applies banal applique and batching rules at this akin afore proceeding a akin down into the assembly and abstracts planning logic.

In TROPOS, advanced absolute requirements can be planned and dynamically controlled as a absolute achievement from assembly scheduling. Acceptable MRP can be able for ambience up a abiding accumulation alternation (for example, to anticipation sales by product, to actualize abiding acquirement agreements, for cardinal adeptness planning, and for average stocking policies), but is not acknowledging abundant to abutment activating and common claim changes on a circadian or hour-to-hour basis. Since scheduling of analytical assets such as assembly capacity, labor, and abstracts is abundant added acknowledging on an alternate (or daily, or weekly) basis, TROPOS uses MRP for abiding planning, and MPS for concise scheduling.

TROPOS uses the acting assembly agenda affected by the TROPOS Appeal Administering module, and afresh determines the best way to amuse the appeal for accomplished and average products. Therefore, TROPOS Scheduling operates at three levelss:

1. multi-plant scheduling at the action level;

2. rough-cut bulb scheduling; and

3. bound scheduling of assembly curve (multi-plant scheduling spreads the appeal above assorted accomplishment plants based on bulb capacity, banal levels, carriage costs and times, and accepted load, admitting at the bulb level, rough-cut scheduling can be used, either on an absolute or bound basis, to actuate medium- to abiding accommodation requirements and to plan for abeyance aliment tasks).

Finally, at the abundant level, TROPOS Scheduling uses the acting MPS, and applies band loading and artefact sequencing argumentation to aftermath a revised assembly agenda which takes annual of alteration demands and accepted assembly progress. The agenda can aftermath work-to lists by week, day, shift, hour, or even down to the abutting minute. If affiliated with the absolute call-off processing in the Action and Abstracts Planning module, TROPOS Scheduling removes the charge for common MRP reruns.

Scheduling can be activated to the MPS because TROPOS will net off or absorb stock, and administer batching rules if the MPS is created; the scheduling rules will accordingly be activated to absolute assembly demand. TROPOS supports a array of scheduling methods, including both bound and absolute scheduling, and sequencing rules, which are accessible to be called online. During the scheduling process, the arrangement will actualize a assembly agenda of work, and a absolute call-off agenda for the assembly lines. Afore assembly starts, the absolute call-off agenda will accept articular what absolute needs to be confused to the line-side abundance locations, and at what time. It will aswell highlight any shortages, and analyze any absolute acquirement orders or schedules (or requisitions) that could amuse the shortage. This absolute call-off agenda is affiliated to the assembly schedule, and accordingly any changes to assembly affairs will automatically amend absolute needs. Assembly banal locations accept re-order point, back-flushing, assurance stock, and Kanban functionality, according to the blazon of material, and can anniversary accept altered accessories ambit (even admitting they may board the above components).

This, calm with the absolute call-off schedule, bell-ringer assignment stock, and absolute absolute call-off from suppliers, agency that the aggregate of account in the accumulation alternation can abate badly (in added words, actual advice and fast accumulation can now alter big-ticket account pile-ups). While not necessarily accepting all the all-encompassing $.25 and pieces (as assigned in Angular Manufacturing: A Primer), SSI's angular admission about ensures that the appropriate abstracts and assets are in the appropriate abode at the appropriate time, as the key to added active and assisting manufacturing. The acceptable "big job MRP" archetypal aswell requires assorted assembly orders (to board all BOM levels), and afresh MRP runs to accumulate these BOM levels accumbent with the final artefact level, with abstracted bookings of average products. Conversely, the TROPOS "flattened BOM" archetypal needs alone one assembly order, attributable to the automatic alignment of BOM levels in the action archetypal (where the authentic action operations and stages are associated capacity and average products), and the booking of intermediates is optional.

Once automatic adeptness has been accustomed at the aggregation level, the SSI claims that TROPOS is awful parameterized and uses accepted affiliation accoutrement and appliance artist toolset for user self-sufficiency. Affiliation is provided via the TROPOS Network Interface (TNI) toolset (for desktop input/output [I/O] processing), the TROPOS Server Interface toolset (for server-level processing, including validation, security, and rules-based integration), and the TROPOS Web Browser Interface for limited access.

The artefact includes the congenital TROPOS Active workflow engine to adapt business action flows. SSI aswell provides added accessible database connectivity (ODBC)-based toolkits, such as TROPOS Incoming Generic Interface (TIGI) for accumulation acceptation and export, and a abstracts accumulating accessory scripting accent (for instance, in the SSI Boutique Attic Abstracts Capture [SFDC] module). TROPOS Appliance Artist allows barter to clothier the artefact to their processesnot by authoritative changes to antecedent code, but by configuring the way they fit together. This acceptable antithesis amid a amalgamation and customization provides barter with adaptability after compromising the amount system.

To allegorize this, abnormally for its retail and CPG customers, TROPOS provides an all-encompassing sales adjustment ascribe module, with ascribe screens to be tailored to anniversary alone user's specific requirements, whether it is to abate complication and aerate abettor adeptness for acceleration (for the fast-moving chump appurtenances [FMCG] environments, for example), or to accommodate abundant detail area necessary. Automatic artefact allocation to the sales adjustment can be based on ATP or on customized rules, while the allocation levels can be by location, by product, or by lot or batch. Chiral allocation can override the automatic allocation based on product, delivery, or adjustment number. Similarly, appurtenances acrimonious rules per sales adjustment can be automatic (with levels by home, domestic, or export; method; priority; area; or artefact group), and chiral alternative can afresh override the automatic selection, either by adjustment amount or by customer. Some added capabilities customized application the Appliance Artist could cover the interface amid TROPOS modules and third-party applications; adjustment advance tracking; blast banal enquiry and reservation; administering and ascendancy of banal amid accomplishment sites; and enhancement of carpeting slitting.

Last but not least, at the alone user akin TROPOS offers a aperture admission to accommodate the user with ascendancy over the display. Appliance Artist is an SSI software developer's toolkit that simplifies the accelerated customization of screens, the aggregate of several screens in one, or the development of absolutely new screens and applications. Abutment for an chip accumulation alternation extends added aural the business, and SSI has articles and casework for limited and adaptable abstracts collection, and for apparatus affiliation at bulb level. The basic advice from this level, chip with ERP abstracts (and analyzed and presented in the anatomy of key achievement indicators [KPIs] in job and role-based portals), gives a akin of administering abutment and admission in claimed abundance that has not been accessible so calmly before.

SSI users generally adduce the abundant adeptness to dispense the foreground end to clothing their alone alone needs (for chief executives, managers, casual users, common users, shop-floor users, and so on) after affecting the back-end transactional system. These users ability wish to selectively see KPIs, alien web pages, alerts and assignment lists, enquiries and reports, accustomed TROPOS sessions and transactions, role-base applications, company-related intranet info, and the like. For instance, agent self-service (ESS) affairs deployed above an intranet, with business processes managed with workflow technology, ability decidedly abate administering costs, admission the acceleration of transactions, and accommodate the akin of ascendancy capital for able administering in today's fast-moving environment. An intranet website can act as a full-time, ceaseless operation, and as a axial aggregation adeptness and point of advertence that is easier to advance and quicker to access, while ensuring that accepted and constant advice is used. It can aswell be a axial point of admission for applications, consistent in role-based personalisation, easier navigation, and bigger productivity.

Many of these initiatives came with the absolution of TROPOS 2.4.0 in the aboriginal 2000s, which in accession to several new anatomic features, alien the TROPOS toolset to accomplish it even easier to configure to accommodated alone processing requirements, and to accommodate with added systems. Some of the new appearance cover the above attribute-based accomplishment (which removes the charge for assorted allotment numbers); bigger farm processing control; added celerity planning; new superior administering features; a ambit of business-to-business (B2B) e-business kits and adaptable markup accent (XML) documents; the TROPOS SuperSearch Business Advice Portal; and specialist functionality for the drinks industry (including added community and customs [C&E] reporting, the abundant Bulk Whisky Workbench, and barn amplitude rental management.

For specific advice on the whisky industry, see Must-have Requirements for the Whisky Industry.

But conceivably a lot of arresting of all is the above TROPOS Active congenital business action automation and workflow technology, which helps abate some of the silo ability botheration that sees advice ashore in one place, aloof to those in added locations of the business or accumulation alternation who absolutely charge it. The TROPOS Active engine allows users to ascertain processes, events, rules, and formats, and to configure automatic responses to these. Thus, for example, the accession of a sales adjustment could activate an e-mail active to a planner; the acceptance of a accumulation date ability automatically aftereffect in a bulletin getting beatific to the customer; or an active advancing to the arrangement from the boutique attic ability alert the artist to reschedule production. Also, TROPOS Active can hotlink to alien systems, or use messaging protocols such as XML to automate processes that ahead relied on chiral inputsand the users do not necessarily charge to be programmers.

SSI aswell has a ambit of added software modules and accoutrement for configuring business-to-business (B2B) collaborative business systems, and added Web-based systems, including intranets, extranets, and web sites. The bell-ringer has absolutely continued sensed customers' needs for extending advice technology (IT) systems above the accepted set of action adeptness planning (ERP) inward-facing business modules, to cover affiliation with assembly equipment, and boutique attic and adaptable abstracts collection, by deploying advice internally application role-based portals on a aggregation intranet, and by accouterment advice links to suppliers, customers, partners, and beyond. SSI provides solutions to abode all of these areas via TROPOS Collaborative Framework, whether implemented with a TROPOS amount ERP system, or chip with systems from added ERP suppliers. The framework is to accredit the accessible apparatus (such as ERP, accumulation alternation administering [SCM], chump accord administering [CRM], and web-based applications) to be deployed apart or calm to abutment collaborative e-commerce.

As the movement appear collaborative business strengthens, the TROPOS Active and the TROPOS Collaborative Framework toolsets accept added become amount for accumulation alternation solutions, to action cogent opportunities in added eliminating time and costs from processes. Web technology, whether acclimated in an intranet or above the Internet, provides the base for boundless admission and lower amount deployment for business applications, both central and alfresco the organization. SSI has an accretion ambit of accepted applications and templates, as able-bodied as the adeptness to advance customized applications and systems affiliation to accommodate advice exchange, self-service transactions, and accumulation alternation clay accoutrement to accommodated industry's charge for lower costs, added accelerated deployment, and faster allotment in B2B e-commerce. For example, supplier self-service has the objectives of a bargain charge for blast communication, allowance the supplier to accommodate bigger service, advance a afterpiece alive relationship, and allotment amount savings. Of course, one have to buck in apperception such prerequisites as the abiding supplier relationship, the charge from both parties, and alternate aegis of interests.

SSI aswell appearance adaptable abstracts accumulating capabilities, such as accumulation and sales from van stock. It is a independent adaptable adjustment and banal administering system, synchronised with the host TROPOS system, and the invoices and accumulation addendum are printed in the cab application an infra-red link. Although these deployments are generally technically simple, they may still be a claiming culturally, with affluence of use, affiliation with the host ERP system, and believability and advancement getting the key issues. Nevertheless, the abeyant allowances can about cover bargain banal losses, burning van banal reconciliation, no transcriptions errors, authentic billing, no transaction delays, transaction validation at point of entry, and abundant bargain accounting effort.


Between Toyota and Sony: Japanese Software in the US Market

Asprova, Japanese developer of assembly scheduler/advanced planning and scheduling (APS) solutions, is acquisitive to breach into the US market. The aggregation is curious, however, and conceivably a bit puzzled by the actuality that there seems to be averseness in the US bazaar about affairs Japanese-made software. Considering the acceptance of Japanese-made customer electronics and computer accessories, (in 2007, the US alien from Japan $5.4 billion in computer accessories, and a absolute of $14.4 billion in assorted customer electronics), this does assume rather surprising. The US aswell recognizes the top superior of Japans electrical and cyberbanking equipment.

So, whats causing this hesitation? Or is there even any averseness on the allotment of consumersis it artlessly that theyre blind of the Japanese-made solutions that are already available? Does the credible abridgement of success appropriately far accept to do with added beneath arresting or accessible factors?

Below are some hypotheses for the difficulties Japanese action software vendors accept been experiencing as they try to access the advantageous US action software market.

1. The traditional/historic action of software development in Japan may accept hindered access into the US bazaar over the accomplished decade or two.

* The two countries accept altered business practices: developers in Japan accept commonly been added team-oriented (or, as one of my colleagues remarked, In Japan, advisers plan like an ameba [or a multicellular organism], not a part), which may apathetic the development aeon as a greater amount of approvals may accept been bare to get a software affairs to completion. In an industry in which artefact obsolenceread: call for upgrades and new developmentis arguably faster than in others, software articles charge to access the bazaar as anon as accessible to be competitive.

* The two countries accept altered standards: developers in Japan are accounted to be added perfectionist. This may be acceptable for quality, but aswell contributes to a slower development cycle. See the aloft point about obsolence; software applications should hit the bazaar as anon as they accept accomplished a reasonable akin of maturity, rather than be activated afresh activated afresh to the point area the bazaar is already clamoring for the next or upgraded product.

* Japanese computer manufacturers bundle[d] software programs with their machines, authoritative it difficult for absolute software makers to compete (see aloft link), and generally customized their programs/applications for their large, accumulated buyers.

2. Abounding companies in Japan accomplish on a accurate arrangement or archetypal of administration alleged keiretsu that includes banks, manufacturers, distributors, and the Japanese government. The business affiliations of the keirestsu amassed affect how Japanese companies access markets in assorted industries aural Japan, and may access their cerebration about entering adopted markets.

* The actuality that industries and companies are controlled centrally may arrest companies from brief abroad; stockholders may not wish to accident accretion to added markets.

* Companies not affiliated with the keiretsu (i.e. abate companies) would not accept the banking advantage to attack accretion to the US market. Non-keiretsu companies do not accept absolute associations with the beyond or added assisting banks/lenders in Japan, and would conceivably not accept as abundant acclaim to accredit them to analysis and advance either articles or affairs for all-around expansion.

* Japanese software companies accustomed with the keiretsu arrangement may not apperceive how to advance abiding relationships with suppliers in the US, which do not accept an akin system/method of distribution.

* Baby to midsize businesses in Japan may not be a allotment of the keiretsu system, and so adeptness be afar from advantageous consign markets (i.e. Japan commonly was abundant beneath complex that the US in adventure capitalism; again, allotment or acclaim would not accept beenand may still not beavailable to baby Japanese companies, authoritative it difficult for them to aggrandize abroad).

3. Computer software engineering originated in the US (as a ancillary note, several women were key to aboriginal software programming), with the single-byte appearance set (SBCS; one byte is acclimated for anniversary clear character). Abounding computer programs and operating systems were already congenital and able while the double-byte appearance set (DBCS), about acclimated for programs in Asian languages such as Japanese, was still getting developed. So as new softwareand new hardwarewas developed and entered markets, double-byte software was already abaft demand.

4. This next acumen is of the snake-chasing-its-own-tail/vicious-circle variety, but its arguably still valid: there artlessly arent actual abounding Japanese-made action software applications currently accessible in the US. If applications arent there, again consumers or users cant buy em. A few do accept a presence, though:

* FlexProcess, by NEC

* Glovia, by Fujitsu

* and of advance Asprova APS, by Asprova

Though these companies do accept abounding annoyed barter in the Americas including the US, the prevalence of solutions from SAP, Oracle, and added behemothic bunch providers may concealment them.

5. Localization, localization, localization! This has to do with abounding things, including authoritative the software acceptable for the clients business environment, language, etc., and ensuring that all business abstracts are in the accent of the ambition market, and address to it on a amount of levelsnot just that of the softwares technical/functional ability. And, accepting an appointment in the country in which you wish to do business cant hurt, eitherwith advisers that allege the bounded language (but doesnt that go after saying?)

6. The bellicism of the majority of Americans could be at the basis of their abhorrence to seek and buy Japanese-made software. Trueconsumer electronics from Japan are accepted in the US; but how about cars fabricated by Honda or

Toyota? Conceivably it artlessly boils down to the actuality that Americans will buy articles from addition country if those articles arent from an industry that is perceived to be befitting their own abridgement going. (Or, that acclimated to be befitting their abridgement goingouch! Recent stats in fact appearance that Toyota sales are authoritative gains, while GM and the others are slipping)

But all that getting said, Asprova seems to be accoutrement all its bases and accomplishing what it should to become accustomed in the US. The company:

* afresh active a arrangement with NEC Corporation of America, which intends to aggrandize the advance of sales of Asprova APS in the USA, Canada, and Mexico

* has 4 added Japanese-related (NEC began in Japan) distributors and 2 bounded ones with which to strategically awning the accomplished of America, including PMC (with several locations beyond the US and one in Windsor, Ontario, Canada)

* has middleware partnerships with SAP (NetWeaver), IBM (Universal DataBase and Websphere), and is searching for a agnate affiliation with a accomplishment beheading arrangement (MES) provider

* is accessible in English, as able-bodied as 8 added languages

* has won awards in Japan and the UK for its software

* highlights its adherence to angular accomplishment principles, which accept been adopted by abounding US manufacturers (and which a lot of ERP software solutions assume to offer, these days)

* has a top allotment of the APS bazaar in Japan (54.4%, according to the website above), which demonstrates that the band-aid meets the needs of Japanese manufacturers

Things Asprova adeptness aim to do (as able-bodied as added software vendors based in Japan):

* access added local, rather than Japanese-related distributors

* authorize an appointment in a above American city-limits (not just a reseller affiliation office), with managers who accept the US bazaar and US appearance of management, etc.

* ensure that either the bounded distributors or the aggregation itself (once it has a abiding appointment in the US) accommodate absolute / localized account and abutment to clients, including implementation

* accommodate a case abstraction of how its band-aid helped a US applicant (currently, the case studies are for Mexican and Japanese clients which is a acceptable start, but adeptness not be abundant for abeyant audience who are either affectionate or afraid about assorted aspects of localization)


HomeResearch LibraryArticlesEnterprise Resource Planning (ERP) Articles Compare Products / Solutions

The first practice mentioned here sprang from the same Japanese system that originally gave birth to lean manufacturing. The five S's is a methodology for organizing, cleaning, developing, and sustaining a productive work environment to create a workspace that is more organized and efficient. The rationale behind the five S's is that a clean workspace provides a safer, more productive environment for employees and promotes good business. The five terms beginning with "S" are manual disciplines employees should use to create a workplace suitable for lean production. The first term, sort (seiri in Japanese), means to separate needed items from unneeded ones and remove the latter. The second term, simplify, straighten, or set in order (seiton in Japanese) means to neatly arrange items for use. Shine, sweep, or scrub (seiso in Japanese) means to clean up the work area to establish ownership and responsibility, while standardize, systemize, or schedule (seiketsu in Japanese) means to standardize efforts as checklists, so as to practice the preceding three principles of sort, simplify, and scrub on a daily basis. Finally, sustain (shisuke in Japanese) means to always follow the first four S's so as to create a disciplined culture that practices and repeats the Five S principles until they become a way of life for employees.

Visual Controls

In terms of tools, lean manufacturing tends to focus heavily on visual controls to make life straightforward for operators and to avoid errors. Visual control requires that the entire workplace is set up with visible and intuitive signals that allow any employee to instantaneously know what is going on, understand any process, and see clearly what is being done correctly and what is out of place. Typical visual control mechanisms include warning signs, lockout tags, labels, and color-coded markings. One example is andon, an electronic board that provides visibility of floor status as well as information to help coordinate the efforts to linked work centers, through signal lights that are green (for "running"), red (for "stop"), and yellow (for "needs attention"). The primary benefit of visual control is that it is a simple and intuitive method that shows an employee quickly when a process is functioning properly and when it is not.

Standardized Work

Knowing which processes to perform is as important as knowing when they are functioning properly. To ensure that the required product quality level, consistency, effectiveness, and efficiency are realized, documented step-by-step processes, or standard operation procedures (SOP), are needed to define the standardized work necessary to reduce errors and touch times. Standardized work is one of the most overlooked tools of lean manufacturing, despite entailing the useful creation and documentation of clearly defined operations for both workers and machines. Such clearly defined operations allow manufacturers to apply best practices to manufacturing processes. Standardized work also provides the foundation for continuous improvement, since documented processes can be more easily analyzed and improved. To define standardized work, SOPs should use pictures, words, tables, symbols, colors, and visual indicators to communicate a consistent, intuitive message to diverse workgroups. Such graphical instructions, also known as operation method sheets (OMS), explain each step in the sequence of event (SOE) defined for a given production line, and can design and produce visual work instructions on paper or on screen.

Mistake Proofing

As continual improvement is one of the primary concepts behind lean manufacturing, mistake proofing, or poka-yoke in Japanese, is an important waste reduction tool. Mistake proofing is an essential failsafe activity to prevent errors at their source. In simple terms, mistake proofing is any device, mechanism, or technique that either prevents a mistake from being made or makes the mistake obvious so as to avoid a product defect. The objective of mistake proofing is either to prevent the cause of defects in manufacturing or to ensure that each item can be inspected cost-effectively so that no defective items reach downstream processes. For example, in an assembly operation, if each correct part is not used, a sensing device detects that a part was unused and shuts down the operation, thereby preventing the assembler from moving the incomplete part to the next station or beginning another operation.
Lean manufacturing further requires manufacturers to address equipment productivity issues through the adoption of total productive maintenance (TPM), which is a set of techniques, originally pioneered by Denso in the Toyota Group in Japan, that consists of corrective maintenance and maintenance prevention, plus continual efforts to adapt, modify, and refine equipment to increase flexibility, reduce material handling, and promote continuous flows (see Lean Asset Management—Is Preventive Maintenance Anti-lean?). TPM is operator-oriented maintenance that involves of all qualified employees in all maintenance activities. Its goal, hand in hand with the aforementioned five S's, is to ensure resource availability by eliminating machine-related accidents, defects, and breakdowns that sap efficiency and drain productivity on the factory floor. This includes setup and adjustment losses, idling and minor stoppages, reduced operating speeds, defects, rework, and startup yield losses.

Machine breakdown is a critical issue for the shop floor, as in a lean environment one machine going down can stop the entire production line or flow. Accordingly, TPM and other advanced enterprise asset management (EAM) options increase equipment reliability, and thus improve availability, reduce downtime, reduce product scrap (and wasted time managing that scrap), and increase machine tolerances (and consequently quality). As a further aid, diagnostics management features can automatically identify situations where the current maintenance strategy is not working and trigger a continuous improvement review. This often requires support for reliability driven maintenance (RDM), which can underpin the TPM strategy (see Reliability Driven Maintenance—Closing the CMMS Value Gap?). Finally, enterprise systems that can synchronize maintenance and production planning should maximize the available production time and contribute towards greater throughput and overall equipment effectiveness (OEE).

Simulation is another tool to help reduce maintenance-related waste. By supporting simulation, advanced service management systems typically include maintenance scheduling based on production plans, with automated update of the maintenance schedule based on actual finished production (with electronic links into the equipment's own runtime meters to schedule maintenance). The idea is to eliminate the following "big six" maintenance-related wastes.

1. Equipment downtime
2. Setup and adjustments
3. Minor stoppages or idleness
4. Unplanned breaks
5. Time spent making rejected product due to machine error
6. Rejects during start ups

Cellular Manufacturing

Moving from maintenance to manufacturing processes, the lean philosophy traditionally depends on cellular manufacturing, which is a manufacturing process that produces families of parts within a single line or cell of machines controlled by operators who work only within the line or cell. Manufacturing cells, arranged to ergonomically minimize workers' stretching and reaching for parts, supplies, or tools to accomplish the task, often replaced traditional, linear production lines to help companies prroduce products in smaller lot sizes, ensure a more continuous flow, and improve product quality. A related concept, nagara, is the Japanese term used to depict a production system where seemingly unrelated tasks can be produced by the same operator simultaneously. Nowadays, however, lean thinking is moving beyond pure cell- and product grouping-based production.
Since lean manufacturing requires manufacturers to produce to customer demand only, it requires them to make products in ever smaller batches. This is opposed to the traditional long runs of equipment and the fallacy that it is more efficient to run a big, EOQ-based batch rather to run several shorter ones that include changeovers. Yet, long runs mean large inventories, which in turn tie up large sums of money and keep customers waiting longer for finished goods and services. This trend toward smaller batches has created a need to reduce setup and changeover times throughout the manufacturing process. This is accomplished via the various embodiments of the single-digit setup (SDS) idea of performing setups in less than ten minutes (e.g., through astute jigs, optimized sequencing of internal and external process activities, roller tables or conveyers, hydraulic clamps, knobs and quick, fasteners, etc.). Related to this is the single-minute exchange of die (SMED) concept of setup times of less than ten minutes, which was developed by Shigeo Shingo in 1970 at Toyota.

Pull System

A pull system is another key characteristic of lean, demand-driven manufacturing, since the ultimate goal here is to have the flow of materials controlled by replacing only what has been actually consumed. Pull systems, also known as kanban (coming from the Japanese words kan, which means "card", and ban which means "signal"), ensure that production and material requirements are based on actual customer demand rather than on inevitably inaccurate forecasting tools. A kanban signal, which can be a card, empty squares on the floor for bins, lights, or a computer software generated signal, triggers the movement, production, or supply of materials or components that are usually held in bins of a fixed size. The aim is to improve inventory control and shorten production cycle times by controlling the level of inventory and work by the number of kanbans in the system. Over time and with process improvements, the quantity of components in the kanban bin can be reduced or resized dynamically, on-the-fly, as required.

Pull systems and pull signals (i.e., any signal that indicates when to produce or transport items in a pull replenishment system) can be found in many operational departments. For example, in just-in-time (JIT) production control systems, a kanban card can be used as the pull signal to replenish parts for the using operation. In material control, the withdrawal of inventory can also be demanded by the using operation, with material not being issued until a signal comes from the user. Likewise, in distribution, there would be a pull system for replenishing field warehouse inventories, where replenishment decisions are made at the field warehouse itself, not at the central warehouse or plant.

Conversely, materials requirements planning (MRP) is a push system, which schedules production based on forecasts and customer orders. Thus, MRP creates plans to "push" materials through the production process based on forecasts that by nature cannot be accurate. That is to say, traditional MRP methods rely on the movement of materials through functionally-oriented work centers or production lines (rather than lean cells), and are designed to maximize efficiencies and lower unit cost by producing products in large lots. Production is planned, scheduled, and managed to meet a combination of actual and forecast demand. Thus, production orders stemming from the master production schedule (MPS) and MRP planned orders are "pushed" out to the factory floor and in stock.


How to Achieve Lean Manufacturing

Since it is lean manufacturing's role to deliver value to the customer, the first step for any manufacturer that attempts to make its organization lean is to define value from the perspective of the customer, whether the end customer or an intermediate customer. This value must be identified and expressed in terms of how the specific product meets the customer's need, at a specific price and at a specific time. To do that, one has to be able to evaluate performance in terms of customers, products, profitability analyses, and so on, by measuring well thought-out key performance indicators (KPIs), such as customer sales, product sales, profitability by customer, profitability by product, etc.

Map the Value Stream

As the next step, manufacturers must identify and map those activities that contribute to value and those which do not. The entire sequence of the activities or processes that are involved in creating, producing, and delivering a good or service to the market—from design and sourcing to production and shipment—is called the value stream. For any finished good, the value stream encompasses the raw material supplier, the manufacture and assembly of the good, and the distribution network. For a service, on the other hand, the value stream consists of suppliers, support personnel and technology, the service producer, and the distribution channel. The value stream may be controlled by a single business or by a network of several businesses.

Once the activities have been identified, companies must determine what activities are value-adding, what activities are non-value-adding but essential to the business (e.g., payroll), and what activities are non-value adding and non-essential to the business. The impact that necessary, non-value adding activities have on the value stream must be minimized, while non-value adding, non-necessary activities must be eliminated from the process. To that end, a value stream mapping (VSM), which is a logical diagram of every step involved in the material and information flows from the order to the delivery of a product, can be done for the current process and the future process. A visual representation of every step in a process is thereby drawn and key data, including customer demand rate, quality, and machine reliability, are noted down.

Because VSM can lead to potential cost reductions, improved throughput, higher asset utilization, etc., some software vendors are now providing business process design, viewing and publishing application tools, and even business process reference models or templates of best practice process models, to assist with VSM creation. These tools are used to design processes, to communicate them, and to educate and work according to decided processes. By modeling the processes, one can visualize what the organization does and how it does it, as well as gain a view of responsibilities. Meanwhile, by connecting tools and documentation to processes, one can visualize which activities are performed and who or what controls them. Solutions might also include deployed functionality for publishing processes, connected applications, and documentation to an intranet-based workplace, which would ease the communication of changes throughout an organization and support employees working according to decided processes. Processes could even be published to a Web site, which would make it far easier for employees to easily access suggested or decided processes.
Once manufacturers identify value-adding and non-value-adding but necessary activities, they should then work to make these activities flow as an uninterrupted movement of products or services through the value chain to the customer. This requires manufacturers to eliminate functional barriers and to develop a product-focused organization. Dramatically reducing lead and cycle times, and eliminating work in queue, batch processing, waiting, scrap, and unnecessary transportation in this way, should lead, in the best-case scenario, to single piece flow.

Several tools can help organizations to achieve flow manufacturing, including total productive maintenance (TPM), leveled schedules (heijunka), long-term purchase agreements with suppliers, just-in-time (JIT) call-offs (possibly via electronic kanbans), and supplier managed inventory (SMI) for raw materials. In addition, though it may be surprising to some, forecasting can also be important in lean manufacturing, as it provides the basis for long-term purchase agreements with suppliers and also determines long-term capacity requirements. Forecasting also helps with generating a leveled master production schedule (MPS) based on the flow of materials through the supply chain or factory and costs. This is particularly useful where there is variable demand or new product introductions (NPI), since there may always be one major capacity constraint or minor ones may pop up here and there.

In fact, while forecasting might have had a poor reputation in manufacturing circles (particularly among those firms attempting lean), recently there has been an increased awareness that with good collaborative planning and forecasting software that supports collaborative sales and operations planning (S&OP) processes, many manufacturers could improve their business performance (see Sales and Operations Planning). Thus, as with production planning, manufacturers need to remain on top of forecasting by leveraging much shorter review intervals than the traditional quarterly (if not yearly) updates. By taking forecasting more seriously and supporting it with smart, interactive tools, all parties within the manufacturing business should be on the same page at the end of the day, which should result in increased agility. The exception, of course, is manufacturers in volatile markets or with products with short lifecycles, for whom forecasting based on history often means missing the true demand signals from customers or distribution channels.

Flow manufacturing does not address synchronizing around the supply chain, multiple partners, and suppliers, since it is merely a shop-floor execution tool. If only for this reason, enterprises should still use supply chain planning (SCP) for strategic purposes in which multiple departments (sales and operations, inventory, distribution, collaborative demand management, transportation planning, etc.) are involved, such as planning for resources across an organization, preparing for promotions, negotiating long-term contracts, establishing objectives, and coordinating multi-site operations.
After manufacturers remove waste and establish a seamless flow, they must transform into demand-driven organizations where customer demand pulls products through the value stream, driving manufacturing activity and material flow. The ultimate goal is to become so responsive that products are delivered only when the customer, internal or external, needs it (i.e., places or signals the actual order)—not before and not after, though delaying the use of material and labor as long as possible.

To that end, intuitive and visible pull signals should initiate manufacturing and movement of material. This might necessitate support for various types of pull signals or kanbans (e.g., printed-out cards or electronic signals in case of using computers). Production of product can consequently be order-less, with backflushing to report automatic material consumption of components. This should result in major reductions in work-in-process (WIP) and production cycle times. The number of cards to print and use for each item and receiving location can either be entered manually or calculated and updated automatically in an enterprise system.

Kanban cards contain somewhat differing information for production cards, which signal that the container should be filled with new parts (i.e., item number, item description, requesting location, packaging type, container quantity, and replenishment lead-time) and transportation cards, which signal that the container should be moved whether empty or full (i.e., item number, item description, sending location, receiving location, total number of kanban cards, and standard container quantity). In the so-called one-card type of kanban system, only production cards or transportation cards are used, while in the two-card type of system both production cards and transportation cards are used.

Taking it a step further, one could leverage product technology that fosters collaborative agreements with suppliers and trading partners to have signals and the requisite data collection as the actual products flow through the supply chain. This would increase transparency and avoid stock bullwhip effects across the entire supply chain. A good example would be a repetitive scheduling technique like customer delivery schedule (CDS), which supports repetitive demands for one or several items to one or several locations in one transaction for discrete times or time buckets.

Such schedule level management tools can enable users to receive demands with different levels of accuracy or validity from different partners within the customer organization, while managing different types of demands, such as consolidated customer forecasts, customer forecasts, customer call-offs and JIT call-offs, customer sales reports, and sales statistics. The tool can be either integrated with various electronic data interchange (EDI) components that support several types of EDI message standards and message types, or managed manually. Use of vendor managed inventory (VMI) or point-of-sale (POS) data on the customer side should have a similar effect.

Software vendors also offer a number of other tools to help organizations respond to customer demand. For instance, a supermarket is a tightly managed amount of inventory within the value stream that allows for a pull system. Such inventory buffers can contain either finished items or WIP. They are used to handle finished goods inventories that are replenished by a continuous flow pacemaker process, which falls somewhere between a continuous flow process and other manufacturing processes shared by other value streams, as well as for incoming parts and material being pulled from supplier locations.

Some vendors offer strong JIT call-off management functionality as a planning and execution environment for both proactive and reactive sequence deliveries, as well as for frequent electronic kanban deliveries. Using this functionality, final products are broken down into specific items, a specific end product is pinpointed and identified via a sequence number or a production identification (ID), and the sequence call-off is sent out when the final production sequence is frozen at the customer line (which may be either hours or days before the parts are needed, depending on the application).

For advanced flow-oriented planning and execution environments, support for supply in line sequence (SILS) is available. SILS promotes the use of configuration within sequence flows, which allows, for instance, the ordering of a configuration of cables for a single vehicle on the customer's production line. To be able to pack according to all the different pack demands that can be found within the SILS concept, a very flexible set of rules must support manual or automatic packing of call-off demands according to a variant of the SILS concept or the customer's demands.

However, the really fundamental process in sequencing is the capability to translate the real demand originating from the original equipment manufacturer (OEM) assembly (in the form of a broadcast EDI signal) into the configured item(s) required, along with the delivery sequence and the location where they are to be shipped. To that end, JIT sequencing software tools provide a direct link with the assembly line, taking into account last minute changes to the production schedule, while still operating within acceptable delivery parameters.

This visibility allows comparison of OEM requirements with the execution plans, and their adjustment as necessary. Any changes in requirements are rapidly identified, planned for, and communicated to production and down through to the lower tiers of the supply chain. This has the immediate effect of minimizing the amount of inventory buffer stock. The speed of the overall process provides the additional time needed to react and take effective action. The bottom-line benefit should be shortened lead times and reduced buffer stocks, which in turn reduce capital inventory investments with their attendant carrying costs and obsolete material write-offs.
p to achieving lean is continuous improvement in pursuit of perfection. Manufacturers, on an ongoing basis, should re-evaluate the value they deliver to their customers, as well as evaluate their entire value stream in a continual effort to improve processes and reduce effort, time, space, costs, and mistakes. The objective is to relentlessly continue to remove non-value adding activities, improve flow, and better satisfy customer demands across the entire supply chain (see Technology Enablers for the Lean Supply Chain).

To do that, the enterprise, as in the first, value-defining step, must evaluate performance by measuring KPIs. Key components here are built-in analytics that track metrics monitoring the pertinent performance. For instance, Intentia has its Opportunity Analyzer (OA) solution, which uses a top-down map, target, and plan approach to help with opportunity ranking, prioritization of alternative projects, and calculation of potential return on investment (ROI) and payback time. Business process improvements are supported by focusing improvement projects, measured by relevant KPIs on the lowest hanging fruits, and then implementing best practices so as to secure strategic management objectives (see Enterprise Process Improvement Software: Customer and Software Vendor Collaboration).

In addition to supporting the above technical lean tools, one should never forget the importance of achieving core lean principles via well publicised cultural and managerial initiatives, such as employee involvement, quality at the source, team responsibility, a flexible workforce, employment stability, system and process thinking, procedural discipline, open communications, continuous improvement, and continuous learning. In this regard, it is important to reiterate that lean is a transformational exercise that requires an organization to cast aside long-held beliefs and business processes, especially those related to the role of management and of workers. For instance, the traditional idea of keeping all available resources busy all the time remains appealing to executives, because of the seductive fallacy that it is possible to make a great deal of money just by keeping everything and everyone running, no matter what.

Because the cultural and managerial impact of a lean transformation is significant, any discussion of these supporting elements is outside the scope of this series of articles and is better left to organizational specialist likes of the Lean Enterprise Institute (LEI) or John Costanza Institute of Technology (JCIT). In any case, in the ideal manufacturing environment, process improvement and the skill level of the workforce would lead an organization toward an optimal point of production efficiency. In such cases, the following five zero principles best describe the practical application of Ohno's vision (in the order they would most like be achieved): zero setup or changeover, zero defects, zero lead time, zero queue (and buffers), and zero inventory.


Manual versus Information Technology Enabled Lean Manufacturing

It is easy enough to grasp the potential benefits of lean manufacturing (see Lean Manufacturing: A Primer, Lean Tools and Practices that Eliminate Manufacturing Waste, and How to Achieve Lean Manufacturing), but selecting the most appropriate lean techniques or tools and the accompanying packaged enterprise software for an individual enterprise has never been that simple. In fact, it is a major exercise for an enterprise to initially identify the most appropriate tools for eliminating different types of waste. For instance, overproduction could be mitigated by improved changeover times and balanced lines, whereas defects and rework could be curbed by improving visual controls, initiating more complete standard operation procedures (SOP) or operation method sheets (OMS), and implementing mistake proofing techniques at the source of error. Furthermore, waste of excessive inventory could be reduced by implementing kanbans and other similar pull systems, while waiting time could be handled by using takt times, and so on.

This is Part Four of a multipart note.

The trouble is further compounded by the army of software providers (including enterprise resource planning [ERP], supply chain management [SCM], manufacturing execution systems [MES], and product lifecycle management [PLM] providers, as well as best-of-breed, bolt-on lean specialists) that have been hyping their lean capabilities, despite the fact that most of them still support mere nuggets of pseudo-just-in-time (JIT) ways of accommodating mass customization. Providing only support for kanbans, order-less repetitive scheduling, or vendor managed inventory (VMI) or supermarkets, so as to push inventory elsewhere (e.g., onto suppliers) rather than to reduce it across the entire supply chain, is a far cry from true support for lean or demand-driven manufacturing. Where most of these flow manufacturing, lean ERP, or repetitive manufacturing systems fall short is that they have simply automated the most basic of tasks within a lean environment, without addressing larger issues of how to implement lean and pull practices in environments that are not easily amenable to these.

Then again, some people question whether computer systems are even needed for achieving lean manufacturing. After all, some lean tools entail merely physical processes and best practices on the shop floor, where transactional enterprise systems have little to offer. Also, given that computers were not widely available when lean manufacturing and kanbans first emerged, many enterprises have stuck with manually-driven lean methods. For such methods, an evolutionary step forward entails the use of custom spreadsheets and reports to support lean functions such as kanban management and heijunka calculations (see Lean and World Class Manufacturing and the Information Technology Dilemma—The Loss of Corporate Consciousness). It is interesting to note, however, that even in such cases, material requirements planninng (MRP) systems still can be used to hold core master data on items and bills of material (BOM), though these records have to be tweaked with an eye toward lead time-oriented information.
Some lean purists go even further, and believe that lean manufacturing does not mesh well with information technology (IT) systems. For some, the only appropriate technology is Microsoft Excel spreadsheets. Others claim that the best scheduling method is "no schedule at all", giving the lean enterprise the utmost agility to react to any unpredictable event. On the other extreme, many people have become so accustomed to the use of enterprise systems, that they believe we can no longer return to manual procedures (see Run your Business with No Software!).

As usual, the truth might be somewhere in a middle—lean manufacturing and IT are not in opposition, and all good lean systems have both physical systems in the plant and near real time IT backbones that centralize data, especially if there is an automatic data entry and capture function. In fact, some people say that the whole point of the lean philosophy is to simplify the physical processes so that one does not need to manage overly complex data systems, though it is still necessary to manage the relevant data at the points where corrections are needed. To that end, many IT systems are designed to bring from the field only the data that management or decision-makers can do something about.

The reality is that most companies operate in a hybrid, mixed-mode environment where flow or lean and traditional batch or push manufacturing models coexist within the same facility, and where production and demand requirements can change throughout the different stages of a product's life cycle. Manufacturers can produce both high-volume goods with steady demand and low-volume goods with fluctuating demand, and their product mix may include engineer-to-order (ETO), make-to-order (MTO), and make-to-stock (MTS) items.

To successfully operate in this mixed-model environment, one has to take advantage of the strengths of each model and apply them where best suited. Thus, one should use traditional ERP systems for handling long lead-time items, one-of-a-kind production, and products with long production cycles, and for long-term budgeting and planning. On the other hand, lean manufacturing is often more easily applied to manufacturing operations with low-mix, high-volume, make-to-demand products. Moreover, one should not necessarily preclude pull-based execution processes from being implemented in to-order or highly configured operations, where it has also occasionally been done with great success.

Also, as lean spreads beyond the relatively stable manufacturing environment it was originally designed to support, companies realize that IT can play a vital role in streamlining the supply chain (see Moving Beyond Lean Manufacturing to a Lean Supply Chain). Namely, while the lean factory may use kanban pull signals to move product more efficiently through the manufacturing process and out of the door, it is missing the feedback loop from the factory to other functional departments within the organization or to the entire supply chain. That information is primarily transmitted and received via enterprise systems.
So, how can IT support lean manufacturing? For one, while complex packaged enterprise (ERP, SCM, etc.) systems may seem inconsistent with the simplicity of visual control, they actually work well together. In fact, although visual signals, such as kanbans and status indicator lights, are an effective way to trigger factory floor activities and the movement of materials, their inherent weakness is their lack of memory—visual signals cannot be recorded or tracked to determine historical performance or provide real time status for anyone that is not in direct view.

Yet, by coupling visual controls with real time collection of data from the factory floor, manufacturing enterprises should be able to capture the critical information behind the visual control signals for management oversight, planning, and accounting purposes. This information can be used for statistical analysis, to measure historical performance, and to monitor status—all of which are essential elements of the continuous improvement that lean manufacturing emphasizes. Lean aspiring manufacturers can also use enterprise systems to replace some visual controls, such as physical kanban card signals, with electronic ones, as a way to improve efficiency further and eliminate non-value adding activities.

Furthermore, these systems can play a critical role in establishing and ensuring standardized work. This is because they can serve as the central repository for critical engineering or product data management (PDM) information for standardized work, including BOMs, process routings or operations, valid product configurations, work instructions or SOPs, engineering change notices (ECN), schedule information, and costs. More robust solutions can even track as-designed, as-built, and historical actual product information, which can be analyzed to determine the impact that product changes have on efficiency and productivity.

Lean teams operate visually within the lean factory and move products as they determine necessary by visual signals on the shop floor. On the other hand, enterprise systems only send production information after such data has been entered into the software, which then activates triggers that move the information to the downstream recipient, letting them know it is their turn to work on the part. Even if this delay is not exactly in tune with lean principles, these lean teams still need data stored in enterprise systems, which contains information needed to perform their job (e.g., what to do with the part when they get it), understand the requirements of their customers (e.g., size, color, etc.), and understand the specifications of the job (e.g., quantities needed).

Enterprise systems also allow for this information to be organized, and, in some solutions with built-in workflow management capabilities, make this information easily accessible for employees to support engineering, production, regulatory, and customer needs. Some enterprise systems with constraint-based planning can help manufacturers reduce setup times, while those with strong enterprise asset management (EAM) capabilities can help implement total productive maintenance (TPM). These systems also allow for the near real time monitoring of factory floor activities, as they provide manufacturers with critical status information required to prepare for and execute changeovers. This status capability can be used to monitor machinery and equipment and communicate the completion of jobs or critical events such as breakdowns instantly.

Enterprise application systems, such as ERP, can also be used successfully to support lean enterprise transformations, especially for manufacturers that have highly variable demand for a large number of products and who operate in mixed-mode manufacturing environments. To apply lean principles to these new environments presents manufacturers with special challenges that the right ERP system can help overcome, such as the increased difficulty of calculating heijunka schedules, more frequent adjustment of kanban sizes, and increasingly smaller leveling periods. In these instances, the solution must have a planning system that can smooth demand for items with highly variable demand, and act as a shock absorber to maintain continuous flow and leveled production. The solution could also use a real time monitoring and feedback system to synchronize operations and trigger the movement of materials, as well as have automatic backflushing capabilities for demand-based inventory management and replenishment.

In fact, enterprise systems can even be used to support mistake proofing, thereby helping to prevent manufacturing defects from occurring in the first place and minimizing the impact that defects have on downstream activities. Computerized systems can prevent product defects by making standardized processes, critical documentation, and other quality information available to production personnel on an as-needed basis. Monitoring systems can also be used to flag defect-related issues instantly, alert downstream workers and activities, and record information for later analysis. On the other hand, rate-based scheduling applications can be used to stop production within manufacturing cells, allow workers to identify and correct defects, and then reschedule and restart production quickly to limit the impact on downstream processes. ERP systems can also allow manufacturers to backflush selectively for items and components affected by defects.
Although it is often useful to start by using physical kanbans to give operators the feel for how the system works, once the system is understood, electronic kanbans have many advantages over physical kanbans. Most obviously, it is much faster and easier to resize electronic than physical kanbans without stopping and changing the whole system, so as to combine a satisfactory service level and maintain a low stock level. Moreover, although the number of kanban cards can always be calculated manually according to the formula below, fast number-crunching is certainly the prerogative of enterprise systems.

y = the number of kanban cards
D = daily demand
L = replenishment lead-time
α = safety factor
a = order quantity (container)

Other advantages of electronic kanbans include the following.

* The possibility of audit trailing electronic kanbans to avoid problems such as the loss or sabotage of physical token kanbans
* The ability to use electronic kanbans to quickly transfer information between production units or supply chain partners, which contrasts with the time and effort required actually to move physical kanban cards
* The fact that it is easier to phase in new products when using electronic kanbans as compared to physical kanbans, since it is important to collect and remove all the old kanbans from the system first
* The fact that supply chain networks are becoming more complex due to globalization, specialization, and outsourcing. If organizations want to use lean concepts with suppliers and customers, electronic kanbans are essential for effective communication to minimize inventory and ensure on-time delivery.
* Technology that also supports supplier and customer portals to enable JIT call-offs or pull-based control of material supplies

In addition, while workflow within a production cell or line is managed through physical signals, the design of the cell and its scheduling (loading) can be supported with IT. In particular, as mentioned earlier on, enterprise systems can be used to improve materials management and consumption within a production cell, and to provide real time monitoring and visibility.

Also, since takt time depends on variable customer demand, manufacturers require an effective way to account for that demand and smooth it when calculating takt time. Enterprise systems can assist since they allow manufacturers to account for end-product customer demand and then explode it into item-level demand for related feeder production lines to help establish takt time. These systems should also be able to account for use problems associated with routing operations when calculating takt time.

Enterprise systems can also help with calculations related to other fundamental concepts of lean manufacturing—for instance, every-product-every-interval (EPEI), which is the time it takes to run through every regular part produced in a process. Knowing the EPEI helps determine the manufacturing lot size and supermarket quantities for each part produced in a manufacturing process, as well as the number of kanban cards in the replenishment loop. One should also be able to calculate pitch—the time needed in a production area to make one container of products (e.g., if the takt time equals thirty seconds and pack size is twenty pieces, the pitch is then ten minutes).

Last but not least, software can help with modeling lean environments (e.g., value stream mapping [VSM], perform simulations, etc.); calibrating them (calculating and dynamically adjusting the appropriate lean controls, such as takt time, kanban sizes, complex algorithms for the management of constraints, etc.); operating them (i.e., automatic data collection [ADC] and process monitoring); and continuously improving them (by identifying the points of high variability, poor performance, and their root causes in order to adjust and improve them). After all, lean manufacturing at its core is a philosophy for continuous improvement. To that end, some enterprise systems have an ability to help manufacturers streamline operations by providing the best information needed to control processes, coordinate enterprise-wide activities, monitor quality, and measure improvements as effectively as possible. In particular, these systems' databases and built-in powerful analytics tools may identify customer value and support continuous improvement (see Contemporary Business Intelligence Tools).

In conclusion, regardless of the manufacturing environment, extended enterprise systems are required to deal with long, complex, and global supply chains; better demand visibility; long-term demand planning; trading partner management; sophisticated buy and sell contracts; and data for regulatory compliance and financial management. They also have the potential to eliminate waste in administration (e.g., order entry, order management, invoicing, etc.) through proper deployment of back-office systems. When it comes to forecasting, it may still be done by lean organizations, as seen earlier on. However, rather than trading partners setting fixed-number forecasts, which are set in stone, they will forecast within a reasonable range, tightening the range until a shorter time horizon is reached, at which point kanbans would take over the procurement execution.