Monday, 3 December 2012
The 10 Steps in 10 Minutes Value Stream Map Manual - Lean Center of Excellence
A Value Stream Map (VSM) is a visual depiction of the value creation process. It is a key tool for understanding flow and for identifying areas of waste.
Constructing a VSM though is not like firing an arrow at a target. There is not just one way of constructing VSM’s, and there are no mistakes to make. The point is to just start. Learn how here!
Tuesday, 27 November 2012
Review of Run Grow Transform: Integrating Business and Lean IT - Lean Center of Excellence
Tuesday, 20 November 2012
An ERP System Can Support Make to Order Lean Manufacturing - Lean Center of Excellence
As evidenced by another successful "go-live", an ERP can support "make to order" (MTO) Lean Manufacturing. This particular international Lean manufacturer produces MTO application-engineered specialty fractional motor and motion products. Read the article to learn how an ERP can support MTO.
Wednesday, 3 October 2012
Relaunch of the Lean Center of Excellence
Highlights of the revised website include:
- Expanded Lean content and topics;
- More focus areas: Lean Manufacturing, Lean Accounting, Lean Sales and Operations Planning, Lean IT, Lean ERP, Lean Reporting, and Lean HR;
- Upcoming Lean events; and
- Featured Lean Thought Leaders.
Sign in or sign up today. Take a tour. And, consider this your personal invitation to comment on content or add Lean related content of your own. Be sure to wish us a “Happy Relaunch” too.
The Lean Center of Excellence Team
Saturday, 2 April 2011
Lean Manufacturing for Microsoft Dynamics AX 2012 – Partner Workshop
The Microsoft Business Solutions team invites interested partners to a workshop on Lean Manufacturing to the Microsoft Development Center Copenhagen. Do not miss this unique opportunity to touch base with the R&D team that implemented Lean Manufacturing for AX 2012 and the related features.
When?
Wednesday, 4th of May, 2011
Thursday, 5th of May, 2011
Friday, 6th of May, 2011 (Hands on lab)
Where?
Microsoft Development Center Copenhagen
Frydenlunds Alle 6
DK-2950 Vedbaek
Who can attend?
You must be a certified partner for Microsoft Dynamics AX. The participation will be free of charge. No more than 4 registrations per partner can be accepted. Profound knowledge of the manufacturing and master scheduling functionality in AX 2009 is expected.
Who should attend?
• Presales engineers
• Functional consultants
• Developers familiar with production and replenishment requirements
Agenda: see attached
Workshop Registration
Please send the attached filled out form to daxlmpw2012@microsoft.com for registration. You will get an acceptance mail, when your registration has been approved. The number of participants is limited so Microsoft cannot guarantee approval. Microsoft is not liable for any cost to the partner in case of non-approval or unforeseen cancelation of the event.
Tuesday, 8 March 2011
WEBINAR - Lean Manufacturing in Dynamics AX - March 18th, 11am EST /4pm GMT
Microsoft Dynamics AX is the first genuine Lean ERP solution that is true to the principles of Lean. It provides comprehensive Lean functionality from the simple use of Kanbans through to sophisticated Lean Accounting concepts, yet at the same time allows it to co-exist and work with the traditional manufacturing world.
As the thought leader in this area, and original authors of the Lean software purchased by Microsoft in 2007, eBECS is running a seminar on how ERP solutions can support Lean Manufacturing Processes without adding waste and constraining the flow.
If you wish to learn more, the event takes place Friday March 18th at 11.00am EST or 4.00pm GMT. Space is limited, please reserve your Webinar seat at: https://www3.gotomeeting.com/register/680625110
This webinar will cover just the Dynamics AX support for typical processes that come out of deploying Lean thinking in manufacturing.
· Title: ERP Support of Lean MFG Processes With Microsoft Dynamics AX
· Date: Friday 18th March, 2011
· Time: 11:00 AM EST or 4:00 PM GMT for 1.5 hours
After registering you will receive a confirmation email containing information about joining the Webinar. Please contact me directly at swilson@ebecs.com should you need any assistance.
Monday, 7 February 2011
Lean ERP - Talley Group Microsoft Dynamics user featured in industry article
Lean manufacturing projects usually start well but then stall, as project teams falter after the low-hanging fruit. Brian Tinham examines what it takes to drive lean the extra mile
- please see http://www.worksmanagement.co.uk/magazine/Default.aspx for a download of the magazine.
Wednesday, 26 January 2011
LEI Lean IT Workshop (1 Day Class ) Fundamental principles of leveraging Lean and IT to build and sustain Lean improvements throughout the enterprise
Every business process relies on information systems, whether manual or electronic, as the flow of information supports the flow of work and the creation of value. Most organizations today have no choice but to rely heavily on electronic information systems due to the volume, complexity, or global reach of their activities. However each year, business spends many billions of dollars on information technology; much of it does not add value – and often contributes tremendous waste, cost, frustration, and lost productivity.
Attendees will benefit from this workshop as they develop a clear understanding of the central role played by the IT organization as a partner in continuous improvement and enterprise transformation from both inward and outward facing Lean IT. The workshop uses hands-on exercises and engaging discussion to create a fast-paced and fun experience. Participants will receive practical knowledge and examples which they can adapt to their organization.
This workshop has been designed to introduce you to the fundamental principles of leveraging Lean and IT to build and sustain Lean improvements throughout the enterprise.
Benefits:
After attending this workshop, you will:
· Understand what Lean IT is and how it supports and sustains Enterprise-wide Lean transformation
· Learn how to identify and address information waste
· Gain hands-on experience with value stream mapping as it applies to information systems
· Apply A3 thinking to an IT systems-based business problem
Course outline:
This workshop consists of two modules:
Module 1 covers the fundamentals of Lean, a Lean IT overview, information waste, critical tools and concepts of Lean applied to IT, and an information waste case study.
Module 2 explains value streams and the role of IT, an information-system centric value stream mapping exercise, Lean IT operations, inward and outward facing Lean IT, Lean software development, and Lean project management
Who should attend: CIO’s, CFO’s, IT Directors and Managers, all IT staff members (infrastructure, developers, business analysts, application support, DBA’s, administrators, helpdesk, etc.), Lean leaders and change agents, operational leaders and professionals who want to make sure they are approaching the application of Lean to IT the right way.
Instructors:
Steve Bell
Mike Orzen
Steve Bell For more than twenty years, Steve has delivered a balance of Lean, business process improvement, systems design and implementation services. Clients include healthcare, IT, banking and insurance, high-tech, food, chemical and pharmaceutical production, medical devices, sports franchising, forest products, shipping, global logistics, apparel, public sector and non-profits. Steve published Lean Enterprise Systems, Using IT for Continuous Improvement in 2006 (a John Wiley & Sons publication) helping to introduce the emerging discipline of Lean IT. In 2010, Steve and his partner Mike Orzen published "Lean IT, Enabling and Sustaining Your Lean Enterprise" (a Productivity Press publication, available on lean.org). In this book they explore all aspects of Lean IT – including business process improvement, software development, infrastructure operations and ITIL, cloud computing, project management, business intelligence, ERP systems – and more. They have been featured as presenters for many organizations including the Shingo Prize, the Society for Information Management (SIM), the Association for Operations Management (APICS), Healthcare Support and System Innovation Program (CSSI), the Greece IT Directors Forum, the Institute for Managerial Accountants (IMA), and Microsoft. Steve is a faculty member for LEI and co-founder and President of Steady Improvement Inc., which emphasizes the development of people into effective teams, the continuous improvement of business processes, and the thoughtful application of information technology . . . in that order.
Mike Orzen Mike delivers a unique blend of Lean, Six Sigma, IT and Operations. He has been consulting and coaching for over 20 years. Mike holds certifications in Management Accounting, Production and Inventory Control, Project Management and Six Sigma. His experience includes application of Lean to non-manufacturing and manufacturing environments including Lean Office, IT, Accounting, Legal, Engineering, Document Control, Procurement, Supply-Chain, HR and Customer Service processes. His experience includes systems design, application development, numerous ERP implementations, enterprise-wide process improvement, large-scale roll out of Lean Enterprise initiatives for global companies as guide/sensei, IT governance, strategic planning, and Project Management Office. In 2010, Mike and his partner Steve Bell publish" Lean IT, Enabling and Sustaining Your Lean Enterprise" (Productivity Press publication, available on lean.org). In this new book they explore all aspects of Lean IT – including business process improvement, software development, infrastructure operations and ITIL, cloud computing, project management, business intelligence, ERP systems – and more. Mike has been featured as a presenter for many organizations including the Shingo Prize, the Society for Information Management (SIM), the Association for Operations Management (APICS), Healthcare Support and System Innovation Program (CSSI), the Greece IT Directors Forum, the Institute for Managerial Accountants (IMA), and Microsoft. Mike is a faculty member for LEI and a co-founder and CEO of Steady Improvement, Inc, which emphasizes the development of people into effective teams, the continuous improvement of business processes, and the thoughtful application of information technology . . . in that order.
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Suggested Reading for this Workshop:
Lean Thinking, Second Edition
Lean IT
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Price: $800.00 ($700.00 if the participant is taking 2 or more workshops at one location)
Price includes all participant materials, breakfast, lunch and snacks each day.
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Locations and Dates for Lean IT February 3, 2011
San Francisco Marriott Union Square
San Francisco, CA
Instructor(s): Steve Bell
Schedule: 8:00 AM to 4:00 PM
Hotel Discount Available
Important Information About This Event & Location
We encourage you to make hotel accommodations early.
Tuesday, 25 January 2011
TOMORROW - Lean Manufacturing Process Support with Microsoft Dynamics AX ERP
Microsoft Dynamics AX is the first genuine Lean ERP solution that is true to the principles of Lean. It provides comprehensive Lean functionality from the simple use of Kanbans through to sophisticated Lean Accounting concepts, yet at the same time allows it to co-exist and work with the traditional manufacturing world.
As the thought leader in this area, and original authors of the Lean software purchased by Microsoft in 2007, eBECS is running a seminar on how ERP solutions can support Lean Manufacturing Processes without adding waste and constraining the flow.
If you wish to learn more, the event takes place on today at 11.00am EST or 4.00pm GMT. Space is limited, please reserve your Webinar seat at: https://www3.gotomeeting.com/register/478541038
This webinar will cover just the Dynamics AX support for typical processes that come out of deploying Lean thinking in manufacturing.
• Title: ERP Support of Lean MFG Processes With Microsoft Dynamics AX
• Date: Wednesday 26th January, 2010
• Time: 11:00 AM EST or 4:00 PM GMT for 1.5 hours
After registering you will receive a confirmation email containing information about joining the Webinar.
Please contact me directly at swilson@ebecs.com should you need any assistance.
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eBECS
Enterprise House
The Bridge Business Centre
Beresford Way
Chesterfield
S41 9FG
United Kingdom
Wednesday, 12 January 2011
What A Difference A Year Makes For Auto Industry
DETROIT (AP) — The sunny yellow Ford C-Max minivan that greets visitors at this year's Detroit auto show says it all. After taking a pounding during the recession, the U.S. auto industry is full of optimism, and a strong mix of new products will greet buyers as they return to dealerships.
"Looking around at what's at the show, we've never been happier," said Mike Jackson, the CEO of AutoNation Inc., the nation's largest auto retailer. "We can tell a gradual recovery is under way."
The show, which opens to the public Jan. 15 and is one of the biggest in the U.S., has long echoed the mood of the industry. When sport utility vehicles were booming, car companies had elaborate displays, such as the indoor waterfall that cascaded past Jeep vehicles. When the recession hit and General Motors and Chrysler tumbled into bankruptcy, cars were spread haphazardly on bare carpet and attendance fell.
This year, there are signs of a resurgent industry. Car companies are expecting to sell at least 1.5 million more cars in the U.S. this year than they did last year, bringing total sales to 13 million or more. GM and Ford, newly lean and profitable, have multiple-story displays, with big screens and interactive exhibits. Toyota, on the mend from a series of safety recalls last year, shows some bravado with its "swagger wagon," a tricked-out Sienna minivan lined with wood floors and a gumball machine. Porsche, the luxury carmaker, is back at the show after a three-year absence, sensing a U.S. recovery.
Buyers are returning to a market with more choices in size, style and fueling than ever, including electric cars such as the Nissan Leaf and Chevrolet Volt and plug-in hybrids such as the upcoming C-Max, which can carry up to seven people.
"Throw away your conceptions of which brands to consider," said James Bell, an analyst with Kelley Blue Book. "You're going to come into a whole different world now."
At the Detroit show, visitors are treated to the Hyundai Veloster, a $17,000 sports car that gets 40 miles per gallon (17.01 kpl), and the Prius V, a hybrid wagon from Toyota. Both go on sale later this year. There are new products in every segment, from the Chevrolet Sonic subcompact to the sleeker, more sophisticated Honda Civic small car to the luxuriously restyled Chrysler 300 sedan.
The Detroit auto show is home to some legendary media stunts to introduce cars. In 2008, cowboys drove a herd of cattle down the streets of Detroit to introduce the new Dodge Ram pickup. The year before, Chrysler introduced the Aspen sport utility vehicle in a blizzard of fake snow. But the spectacles disappeared along with U.S. sales.
This year, some of the showmanship was back, albeit on a more modest scale. Grammy-winning singer-songwriter Colbie Caillat entertained a mass of media troops at Mercedes-Benz's 125th anniversary presentation with her hit "Bubbly." On Tuesday, auto supplier ZF Friedrichshafen had a tall blonde model in a silvery cat suit prowling the floor.
Volkswagen went country for the introduction of its revamped, made-in-the-USA Passat midsize sedan. In a film made for the show, stirring, Western strings and harmonica strains played as two cowboys on horseback surrounded by red canyons filled the screen. One said, "They gonna settle here," but then cautioned, "they've said that before." The other drawled, "This time ... I think it's for real," and the cowboys came upon VW's gleaming Chattanooga, Tennessee, plant, where the Passat is being built.
Bell said automakers were chastened by the downturn and are being smarter about how they display their cars and how much they spend.
"We'll get back to the swagger and theatrics, but not quite yet," he said.
Ford, for example, has its biggest-ever auto show display. At 71,000 square feet (6,600 square meters), it's 40 percent bigger than last year's space in Detroit.
But it doesn't aim for glitz as much as teaching people about its upcoming electric and hybrid offerings. At its heart is an auto show first, a 208-foot (63-meter) test track for its electric vehicles that show-goers will be able to ride in alongside a professional driver. The oval track was created by a bridge-building firm, according to Dave Tillapaugh, Ford's global auto show manager.
"We get people engaged initially with a bit of theater," he said, then give them "a lot more substance than they expected."
Thursday, 22 July 2010
eBECS WINS 2010 MICROSOFT DYNAMICS RESELLER OF THE YEAR AWARD FOR THE UNITED KINGDOM
This recognition was presented at the Microsoft Worldwide Partner Conference 2010, the company's annual premier partner event, which took place this year in Washington, D.C, USA at which 9,500 partners from around the world attended. Microsoft Corp. honoured 27 of its partners from around the world with the 2010 Microsoft Dynamics Regional Partner of the Year awards.
Stephen Wilson, Marketing Director at eBECS comments, "As a specialist in the design and delivery of Dynamics solutions for manufacturing, distribution and the extended supply chain, eBECS is thrilled to be presented with such a prestigious award. eBECS is fully committed to reselling Microsoft Dynamics and this award reflects the business benefits we are so passionate about delivering to our clients."
Wilson continues, "It has been a wonderful year for eBECS. In addition to winning this acclaimed award, eBECS was also very proud to be one of just three companies selected worldwide as a global finalist for Microsoft Dynamics Manufacturing Partner of the Year. Furthermore, following achievement of membership of the exclusive President's Club, eBECS has since been invited to graduate to the elite Microsoft Inner Circle. This places eBECS within a select group of partners that enables Microsoft Senior Management and Inner Circle members to work as a powerful partnership delivering enhanced value to eBECS' customers."
The award winners were selected for their dedication to delivering solutions that meet diverse customer needs. Several key criteria were considered in selecting Microsoft Dynamics Certified Partners for the special recognition, including outstanding sales performance, thorough technological expertise on Microsoft Dynamics products and services, and feedback from Microsoft team members and customers.
"Each year, it is a privilege for us to recognize the innovative contributions made by organizations within our diverse Microsoft Dynamics partner community," said Doug Kennedy, vice president, Microsoft Dynamics Partners. "eBECS serves as a leader within this community because of the value it provides through its solutions as well as its exceptional levels of customer service. We are proud to congratulate eBECS on being named as our top Microsoft Dynamics partner of the year in the United Kingdom."
- ends -
About eBECS Ltd
eBECS is a specialist in the design and delivery of solutions for manufacturing, distribution and the extended supply chain. eBECS delivers world class lean and agile business solutions using Microsoft Dynamics AX and Dynamics CRM. Its solutions streamline and integrate processes, minimise waste, optimise the supply chain and manage demand-driven operations. eBECS is a global company with a personal touch, and it takes enormous pride in its large referencable client base.
For further information please contact:
Stephen Wilson
Marketing Director
eBECS Ltd
Enterprise House
The Bridge Business Centre
Beresford Way
Chesterfield
S41 9FG
Mobile: 07775 571110
Tel: 01246 888555
Fax: 01246 888558
E: swilson@ebecs.com
W: www.ebecs.com
For further press information and to arrange interviews please contact:
Warren Ryland
Managing Director
Francis Ryland Limited
Mobile: 07748 156 925
Tel: 0800 917 4577
E: warren.ryland@francisryland.com
# # #
Tuesday, 15 June 2010
eBECS receives AMR Research ‘Partner Industry Certification Status’ for Discrete Manufacturing
On 31 March 2010, AMR Research and Microsoft Dynamics launched the AMR Partner Industry Certification Program for Microsoft Dynamics Partners.
This program is a new and innovative way to allow Microsoft Dynamics Partners to demonstrate their industry-specific expertise and to provide end-customer organisations across multiple industries with insight into the industry-specific capabilities of Dynamics Partners. The Program is based on objective, research-based findings and allows customers to easily identify those Microsoft Partners that are proficient within their specific industry.
Stephen Wilson, Marketing Director, eBECS, comments, “As a specialist in the design and delivery of Microsoft Dynamics solutions for discrete manufacturing, eBECS is delighted to receive this certification. We supplied numerous customer references to successfully achieve this certification and believe it is a testimony to our commitment and ability to address and satisfy our clients’ business needs.
Wilson continues, “This programme is a first in our industry and we wholeheartedly support the goal of the AMR Research Partner Industry Certification Program - designed to connect end-customers organisations with companies like eBECS - because it will allow end-customers to easily find those Microsoft partners that are best-equipped to serve their needs quickly and effectively.” - ends -
About eBECS Ltd
eBECS is a specialist in the design and delivery of solutions for manufacturing, distribution and the extended supply chain. eBECS delivers world class lean and agile business solutions using Microsoft Dynamics AX and Dynamics CRM. Its solutions streamline and integrate processes, minimise waste, optimise the supply chain and manage demand-driven operations. eBECS is a global company with a personal touch, and it takes enormous pride in its large referencable client base.
For further information please contact:
Stephen Wilson
Marketing Director
eBECS Ltd
Enterprise House
The Bridge Business Centre
Beresford Way
Chesterfield
S41 9FG
Mobile: 07775 571110
Tel: 01246 888555
Fax: 01246 888558
E: swilson@ebecs.com
For further press information and to arrange interviews please contact:
Warren Ryland
Managing Director
Francis Ryland Limited
Mobile: 07748 156 925
Tel: 0800 917 4577
E: warren.ryland@francisryland.com
Tuesday, 25 May 2010
Achieving a Lean Enterprise PODCAST – Can a Business System Support Lean Initiatives?
Lean manufacturing is a methodology that has changed how manufacturers think about controlling costs and cutting waste ever since it was introduced by Jim Womack, John Krafcik and colleagues at MIT's International Motor Vehicle Program in 1987. Thousands of companies around the world have adopted the improvement methodology and its tools. The challenge for manufacturers now more than ever is to get a handle on how to leverage strong practices from lean manufacturing in addition to what is available from an ERP system.
Join our hosts and a special guest for this 15 minutes or less discussion to spark some thoughts on what your company should consider to ready itself for its own adoption of lean manufacturing. We'll discuss how an ERP system can and should support your lean initiatives.
Brought to you by Microsoft Dynamics, a leading provider of business management software solutions including: Enterprise Resource Management, Supply Chain Management, and Customer Relationship Management.
http://www.microsoft.com/events/podcasts/default.aspx?topic=Topic-b3ef853c-274f-4ae5-818b-f50ccbf187be&audience=Audience-c4daf212-dedf-4fde-b7f8-fdcf86216d48&seriesID=Series-cea520d2-5add-49a8-bb89-43e4a4804c35.xml&pageId=x5664&source=Microsoft-Dynamics-Podcasts-about-Enterprise-Resource-Planning:-Accelerate-Your-Business-Toward-Profit-for-Business-Executives&WT.rss_ev=a
Monday, 24 May 2010
2010 Lean Manufacturing Survey
The Manufacturer, in conjunction with Cardiff University, eBECS, Minitab and TBM Consulting Group, is compiling responses for the annual 2010 Lean Manufacturing Survey.
Please take a few moments to complete the questionnaire to help us understand the current lean trends within the manufacturing sector.
Everybody who completes the survey will receive a free copy of the Lean Management Journal and will be entered into a draw for the chance to win 50 iTunes tracks. Click here to take the survey.
Friday, 19 February 2010
LOTUS RACING APPOINTS EBECS LTD TO KEEP ITS SOFTWARE SYSTEMS ON TRACK FOR THE 2010 F1™ SEASON
eBECS was the partner of choice for Lotus Racing because of its experience in the automotive industry and its ability to implement successful and demanding Microsoft Dynamics solutions within short time frames.
Bill Peters, Head of IT, Lotus Racing, explains, “We came to the grid with a lot to do in a short time frame. We needed an entirely new solution that would assist in our aim of being ahead of the new teams when we all reach Bahrain, and also to support our objective of being close to the midfield teams after the first few races of the season. Peters continues, “We chose eBECS for their excellent reputation in the automotive industry and also because they took the time to listen carefully to our needs and then proposed a solution that really worked for us”
Stephen Wilson, Marketing Director, eBECS, comments, “We see Lotus as one of the most evocative names in British motor racing and we are thrilled to be working alongside Lotus Racing on such an exciting challenge.”
- ends -
About Lotus Racing
Lotus Racing is the Norfolk based Formula One team headed up by Malaysian businessman Tony Fernandes, supported by Mike Gascoyne as Chief Technical Officer. The team was granted its entry into the 2010 FIA Formula One World Championships in September 2009 and since then has appointed Heikki Kovalainen and Jarno Trulli as drivers and recently launched its first car in a glittering ceremony in London. For more information about Lotus Racing go to www.lotusracing.my
About eBECS Ltd
Since 1999, eBECS has been providing customers across manufacturing, distribution and the extended supply chain with expertise on how they can utilise Lean and Agile solutions to reduce waste, increase response times and maximise value to their customers. eBECS is proud to state that every one of its customers is fully referenceable.
For further information please contact:
Stephen Wilson
Marketing Director
eBECS Ltd
Enterprise House, The Bridge Business Centre, Beresford Way, Chesterfield, S41 9FG
Mobile: 07775 571110
Tel: 01246 888555
E: swilson@ebecs.com
For further press information and to arrange interviews please contact:
Warren Ryland
Managing Director
Francis Ryland Limited
Mobile: 07748 156 925
Tel: 0800 917 4577
E: warren.ryland@francisryland.com
For Lotus Racing:
Tom Webb
Press Officer
Tel: +44 (0) 1953 851 411 ext. 1809 / Thomas.webb@lotusracing.my
EBECS LTD APPOINTED BY FOGARTY (FILLED PRODUCTS) LTD TO DRIVE THROUGH EFFICIENCIES IN ITS SUPPLY CHAIN
Microsoft Business Solutions partner eBECS has been appointed by Fogarty to deliver a flexible Microsoft Dynamics AX solution that will dramatically improve the efficiency of its internal processes and support its long term growth plans.
eBECS was the partner of choice for Fogarty because of its specialist supply chain experience in the manufacturing sector, and its successful implementation of many Microsoft Dynamics AX projects.
Gerry Tawton, Finance Director, Fogarty, explains, “In recent years, we have seen significant increases in the service demands of our customers. We pride ourselves on a high level of service and so recognised the need to improve our internal processes to complement those of our customers, enabling us to drive through efficiencies on both sides.” Tawton continues, “We chose eBECS as our technology partner for a number reasons, but primarily we took great confidence from the depth of commitment displayed by all levels of the eBECS team throughout the selection process”.
Stephen Wilson, Marketing Director, eBECS, comments, “eBECS is especially excited about this project because it matches perfectly our core capabilities of manufacturing, supply chain and Microsoft technologies. We are delighted to be able to deliver improved systems to Fogarty and eBECS very much looks forward to working with them on their continued success.
- ends -
About Fogarty (Filled Products) Ltd
Fogarty is one of the most famous brands for filled products in the UK. It has manufactured pillows and quilts since 1877 and is dedicated to the highest levels of quality in the filled products industry, ensuring its customers a perfect night's sleep. It is headquartered in Boston, Lincolnshire and supplies a number of major high street retailers.
About eBECS Ltd
Since 1999, eBECS has been providing customers across manufacturing, distribution and the extended supply chain with expertise on how they can utilise Lean and Agile solutions to reduce waste, increase response times and maximise value to their customers. eBECS is proud to state that every one of its customers is fully referenceable.
For further information please contact:
Stephen Wilson
Marketing Director
eBECS Ltd
Enterprise House
The Bridge Business Centre
Beresford Way
Chesterfield
S41 9FG
Mobile: 07775 571110
Tel: 01246 888555
Fax: 01246 888558
E: swilson@ebecs.com
For further press information and to arrange interviews please contact:
Warren Ryland
Managing Director
Francis Ryland Limited
Mobile: 07748 156 925
Tel: 0800 917 4577
E: warren.ryland@francisryland.com
Why should lean IT join the commonly used tools for continuous improvement?
Waste. Look around you and you will see it in your own home; things you bought but have not used, things you have bought more than one of, things you move from one place to another for no useful reason. In this scenario you are the both the customer and the provider and mostly you are making a poor job of meeting “own customer value”.
Multiply this, even in a low complex manufacturing plant or distribution organisation, and it’s no wonder lean has got such traction for meeting customer value and waste reduction initiatives. It is commonly accepted that organisations can meet their current customer needs with around 30% fewer resources – that’s all resources from space to inventory. Just imagine what you could do with that 30%! It is also accepted that traditional ERP can be a very wasteful engine.
eBECS have long been advocates of lean and with the above in mind set about creating a solution within the Microsoft AX Dynamics ERP product that help organisations deliver customer value and reduce waste – after all, although I have labelled ERP as wasteful, it does run things. It takes sales orders, it creates production orders, it orders inventory – it just does it in a wasteful push way where we need a lean pull and flow way.
When Wika Inc, a US based industrial instrument producer, set out on its lean journey it recognised that the legacy ERP system was not helping them and indeed was working against them. “We realised that in order to move our operations to the next level, we needed to make some fundamental changes. That meant moving from a batchoriented supply-chain and production process to a system based solely on customer demand,” says Michael Gerster President.
Please view the article to read more.
Essential LEAN Management - Thriving not just surviving
Your host for the event is Professor Peter Hines, Chairman of the LEAN Enterprise Research Centre at Cardiff University (LERC), who is a respected thought-leader in LEAN business improvement. His fascinating theory is that implementing LEAN is rather like looking at an iceberg - it's also what you cannot see!
The event is a valuable source of learning for businesses of all sizes and sectors. It is particularly relevant to senior managers and LEAN champions in organisations that are about to embark - or have already embarked upon - their LEAN journey and have identified issues around the sustainability of their change programme.
At this event Professor Peter Hines will enable you to:
· Gain a better understanding of what LEAN really is
· Network with others that face the same challenges
· Learn what you need to do to sustain a LEAN journey
· Develop the basis of your own action plan
· Raise your issues with award-winning leaders in LEAN thinking
· Get your own copy of the Shingo Prize winning book: Staying Lean: Not Just Surviving
At this seminar you will receive information regarding some of the latest thinking in LEAN management and you will be able to develop your own senior executive network.
The event takes place on 11 March 2010 in Kenilworth and, as the sponsor, eBECS is able to offer places at a reduced price of £145 + VAT (25% less than the usual £195 + VAT). There are a limited number of spaces so please reply to me or call Clair Munro on 01443 844 048 to confirm your place. For more information please see the event booking form.
I hope to see you there.
Thanks - Stephen Wilson
07775 571110
swilson@ebecs.com
Thursday, 21 January 2010
Partner Certification Training - Lean Manufacturing for Microsoft Dynamics AX
This course is also designed to provide partners with the tools to demonstrate functionality within Lean Manufacturing for Microsoft Dynamics AX.
With Lean Manufacturing for Dynamics AX 2009, organizations have the tools needed to help remove waste by reducing their non-value adding business transactions and improving their ROI. This course offers an overview of the Microsoft Dynamics AX Lean Manufacturing functionality and how to leverage this functionality in a sales opportunity.
Upon completion of this course, attendees will understand the various components of Lean Manufacturing for Microsoft Dynamics AX and how to demonstrate these effectively to a potential customer.
The cost per participant for the 5 day course is now discounted to $1375.
To find out more please join The Lean Centre of Excellence and view the event details.
Microsoft requires partners to have at least 2 employees attend the certification program and pass their certification test to fulfil the requirements to sell Lean Manufacturing for Microsoft Dynamics AX.
Future Training and bespoke offering
The next training dates in the US currently planned to take place are June 14th-18th, 2010 in Atlanta. On site partner training is also available at a cost of $10,000 for the 5 day programme, to register your interest for the above training date or to enquire about training specific to your partner organisation please email partner@ebecs.com
Free Introductory training Video
Please visit the Lean Centre of Excellence to view an introductory training video featuring eBECS Solutions Director and Microsoft Dynamics AX Lean Manufacturing original solution architect, Andrew Rumney. Andrew will guide you with an explanation of the lean concepts using practical demonstrations (pull and flow). The master class also includes a step by step Kanban demonstration, establishing a finished goods buffer and customer pull scenario.
Follow up course available "Implementing a Lean Enterprise on Dynamics AX"
In addition to the certification course, a one week follow-up course is available for attendees who have already completed the certification course. This 5-day classroom based course "Implementing a Lean Enterprise on Dynamics AX" will build on the certification class and include an introduction to the additional capability that eBECS provides. The course will provide attendees the opportunity to practice their knowledge on more advanced case studies. This is not a certification requirement, but is strongly recommended for those consultants who will be expected to install and configure the Lean Manufacturing module following a successful sales engagement.
eBECS Sales and Implementation Support Service
It may take some time for partners to achieve certification and it maybe that some partners, whilst interested in including Lean in their marketing campaigns, will not want to undertake the certification program. To help partners either as an interim support mechanism or as a longer term relationship, eBECS provides a sales and implementation support service agreed uniquely with each partner. For more information on this please get in touch with us at partner@ebecs.com to understand how this can work for your partner organisation.
Monday, 4 January 2010
Managing Lean Manufacturing using Microsoft Dynamics AX2009 by Scott Hamilton – a review!
The recently released Lean module for Microsoft Dynamics AX2009 gives manufacturing organisations a choice as to how they implement production within their ERP system. There is now an alternative to the traditional manufacturing approaches involving planned orders generated by master planning. Kanbans or lean orders can now be used instead; the new Lean module makes these visible within the ERP environment. There are a number of potentially confusing and conflicting choices to be made in this Lean software environment, and Scott Hamilton guides the reader as they set about commencing their lean journey.
Lean principles are generally based around the concept of a pull generated from sales demand. This creates the need to manufacture, purchase or move products and components to satisfy the demand. This is straight forward to comprehend in a make to order organisation, but what happens where organisations hold stocks of finished goods or semi-finished components? In most manufacturing organisations this will be the case. This book explains the alternatives available and how to mix the different possible approaches.
What about the traditional ERP tools such as Master Planning, Forecasts, Routings and Planned Orders? Are these all redundant in an AX2009 Lean implementation? My view is generally not. In his earlier book “Managing Your Supply chain Using Microsoft Dynamics AX2009” Scott Hamilton demonstrated a thorough understanding of all of these principles and this enables him to explain concisely how they all can have a place alongside the new Lean tools. It is to be expected that most organisations will want to use existing traditional approaches alongside Lean principles; the reader is guided in the way a company may do this.
There are two things which this book is not. It is not an introduction to Lean. There are many other titles which will introduce the reader to Lean. My personal recommendations would be “The Goal” by Eli Goldratt and “Lean Thinking” by Womack and Jones. You really need to read books similar to these before considering the detail of how to implement the Microsoft AX2009 Lean module. Nor does this book replace the software documentation that is available for the AX2009 Lean module. It is up to the reader whether they read Scott Hamilton’s book before or after they study the software documentation. I would recommend an iterative approach. Start by making yourself aware of the options available within the software documentation. Then I would read the book to work out what is relevant for your particular organisation. Identify the most relevant sections of the software and then undertake appropriate hands on training using the documentation. Finally I would revisit the book to confirm that a thorough understanding has been obtained.
This book concentrates on the aspects of Lean which users will probably be interested in first. This is specifically Kanbans which are covered in great detail. Other topics such as Lean Order Schedules and Lean Accounting are included but in less depth. Understandably the scope is limited to the current Microsoft release of the Lean module and does not extend to include the additional functionality available from eBECS in their lean add-on modules.
In summary this book is an invaluable resource in understanding the new AX2009 Lean module, we should be grateful that it is available so soon after the release of the software. The text is concise and factual and the many diagrams explain the scenarios and tools available. To read what other people think of this book I suggest you consider the reviews available on www.amazon.com.
Please let us all know what you think by adding to this blog.
The Lean Management Journal (LMJ)
Wednesday, 25 November 2009
Interview with Talley Group - Medical equipment company finds clinical IT solution for Lean operations using Microsoft Dynamics AX
Talley Group, makers of medical equipment, had expanded their product range and markets rapidly in recent years and needed very specific operational requirements from their IT. Talley’s Tyrone White tells The Manufacturer Magazine why the business chose Microsoft Dynamics AX delivered by MS gold partner and Lean manufacturing solutions provider eBECS.
Matching information technology to a business’s needs can be straightforward. Often though, a business has very particular needs – a big, diverse product range; a rental business that requires product tracking; or the need for the IT solution to incorporate Lean manufacturing criteria, like waste identification. The best solutions can then be narrowed down to a special few, who are not always the obvious tier one ERP vendors.
Talley Group manufactures a large range of medical equipment products for global healthcare markets from its Romsey, Hampshire base. Its core products are pressure ulcer prevention and therapy products, including dynamic alternating pressure mattresses. The product range has expanded to include negative pressure wound therapy devices and dressings, TECcare antimicrobial fluid technology, specialist pillows and duvets and more. The product expansion has been driven by success in all healthcare markets and Talley have direct sales and service operations in the UK along with distribution partners in most European countries, and the US. The company now boasts a 50 strong product range in six geographical markets, with over 10,000 individual items rented to its two core customer markets, the NHS and private institutions like hospitals. It is now in its 55th operating year.
In early 2009 Talley, supported by Microsoft gold partner eBECS, implemented Microsoft Dynamics AX, its Lean manufacturing module, and the eBECS rental module customised to Talley’s requirements. When it went live with the Lean module on October 5, it became the world’s first company to operate AX 2009 with Lean manufacturing.
To read more please view the article.
The Manufacturer Magazine Oct 09 interview with Andrew Rumney - eBECS Solutions Director
To read more please view the article.
Tuesday, 24 November 2009
Lean Manufacturing for Microsoft Dynamics AX Partner Training and Certification.
Please make plans to join us in Atlanta, December 7th-11th, 2009 for Lean Manufacturing for Microsoft Dynamics AX Training and Certification.
Microsoft requires partners to have at least 2 employees attend the certification program (consisting of course 1 and course 2) and pass their certification test to fulfil the requirements to sell Lean Manufacturing for Microsoft Dynamics AX.
The 5 days partner certification programme consists of 2 courses:
Course 1: Positioning Lean Manufacturing for Microsoft Dynamics AX in your Sales Engagement
General Overview of basic Lean principals, How to position Lean Manufacturing for Microsoft Dynamics AX for sales opportunities, as well as a high level look at Lean Manufacturing for Microsoft Dynamics AX functionality. $1,100.00 per participant. 2 days.
Course 2: Demonstrating Lean Manufacturing for Microsoft Dynamics AX
Discussions and demonstrations around functionality within Lean Manufacturing for Microsoft Dynamics AX including Lean Parameters, Kanban Processes, Pull and Flow, Lean Order Schedules, Sales Schedules and Other Lean Manufacturing for Microsoft Dynamics AX Functionality. $1,650.00 per participant. 3 days.
To find out more and register please join The Lean Centre of Excellence and view the event details.
Training is not confirmed until full payment has been received.
BOOK NOW LIMITED NUMBERS
Friday, 6 November 2009
Lean Discrete Manufacturers not measuring up!
Lean Discrete Manufacturers not measuring up!
Microsoft and the MPI Group recently published an article entitled ‘Lean Operational Improvements That Last.’ Being an eBECS Lean ERP consultant, this immediately peaked my interest and as I read further had some lasting takeaways.
The article began with some interesting statistics, showing that Lean companies relative to non-lean companies have higher figures for sales per employee, on time delivery and inventory turns. This did not surprise me at all as you all know these are the commonplace statistics that drive companies to Lean initiatives. What did surprise me was the next statistic: ‘median gross margins are 10 percentage points lower (median) among Lean discrete manufacturers than non-Lean discrete manufacturers.’ How can this be? If all of the KPIs above are increasing, why would gross margins be lower?
They then proposed that the reason for this explaining that Lean companies often choose the simplest and easiest to use tactics, an example being extrapolating the 5S concept into ‘being Lean’, resulting in low-level results. Taking this a little further, the article reported that while 97% of Lean discrete manufacturers use Lean in production, only 23% use Lean in finance, 26% in customer management and 29% in administration.
These statistics reaffirm what I’ve seen in real world ‘Lean’ companies. Whether it be joining the Kanban, 5S, or production Kaizen ‘bandwagons’, most companies have focused on a particular concept or tool in Lean and have failed to grasp the entire picture. Without fully embracing Lean concepts throughout an entire organization from the back office processes to strategy deployment, companies will continue to ‘silo’ themselves losing the synergies achieved through enterprise wide improvement.
In my experience, this ‘silo’ concept becomes glaringly obvious as you look at how various functional departments of an organization operate utilizing IT ‘systems.’ The sales department needs this piece of software to better meet the customer’s needs, Planning needs this Excel spreadsheet, Finance uses a different but similar Excel spreadsheet than Planning. Each department is working as their own unit, trying to improve their unit albeit, but not with an organization wide view. They create informational and functional ‘silos’ that lead to independent goal and target setting, and ultimately wasted time, effort and money trying to apply ‘Lean’ tools. Without the backbone of Lean as an organization wide measure with corporate visions that drill-down to meaningful and measurable goals for the entire workforce, the most impactful benefits of Lean are lost.
The article continues to examine this concept of a ‘Holistic Lean’ through the methods deployed by Toyota. Toyota have used both A3 reports and value stream mapping to build problem-solving into all areas of their business to promote a problem-seeking and solving culture throughout. As the article began describing these two concepts, my mind naturally moved to how Microsoft has so many great tools to holistically help Lean companies. While A3 reports and Value stream mapping software is not within Dynamics AX, Microsoft SharePoint helps breakdown organizational silos and broadcast to an organization wide audience. Further with Microsoft BI tools, KPIs at every functional level become a reality with drill down functionality to real time data to understand the measures and a user’s impact on organizational KPIs.
What’s more obvious within Dynamics AX Lean Manufacturing is the outcome of the value stream itself where each person in the value stream has the visibility to see their impact on the value stream in real-time. With the customer service representative taking an order and immediately seeing the result hit the manufacturing floor with Lean Order Schedule functionality to production seeing the direct sales link to the order they are manufacturing, even with alerts on the floor to show where the customer ‘s delivery date was pushed out due to an issue. With one enterprise wide system, the dramatic increases in visibility through software drive an understanding of the impact that each user has on the entire value stream. While this can be a scary realization for users at first, it more importantly leads to collaborative efforts across functions to both eliminate waste and improve the entire value stream for the end goal of satisfying the customer.
The article fittingly ends with this take away, “Today, modern and flexible and enterprise resource planning (ERP) and customer relationship management (CRM) systems work together with Lean to bring real-time visibility to planning, scheduling and tracking (checking) capabilities – across plants, companies and countries.”
What have your experiences been with Lean companies that have done just this, departmentalized their Lean initiatives without regard for the holistic Lean Enterprise? Please join the Lean Centre of Excellence to comment.
Wednesday, 30 September 2009
The third in a series of articles following the implementation of Lean Manufacturing in Microsoft Dynamics AX 2009 to a Medical Equipment Manufacture
This tends to take us back to standard work and whether the steps we have identified can stand the test of repeatability and clarity. In the earliest stages of the implementation, processes tend to be painted with a broad brush: what is it the business actually does, how do the parts interact and how can we apply the tools in our toolbox in the most effective manner?
Once the broad picture has been painted, we move into the minutiae: agreeing the exact steps in a order process, identifying the codes we use to identify individual types of transaction and getting into the detail of data, its migration and how each individual field will apply to the new system.
The final stages need to strike the balance between the two: we know the broad picture and we know the detail so what we need to do next is provide a clear and unambiguous set of user instructions - standard work if you prefer - which breaks the process down into ‘bite-sized chunks’. Lean practitioners are already familiar with this approach and it pays dividends for two good reasons: the brain finds it easier to absorb small pieces of information at a time (well, mine does) and it is far easier to change one small part of a process than reissue the whole volume, both in terms of retraining and the sheer effort of ditching one version and replacing it with another. Even in this world of SharePoint, getting the message around can be slow and imperfect.
It is inevitable that variations, exceptions and even new processes or sub-processes will crop up at the last minute: people cannot remember every circumstance and sometimes only a chance remark or an order from that difficult customer who insists on a special delivery or a modified document triggers a person to remind you that we really need to go back to that process which we thought had been nailed-down months ago. But, if you have good standard work, broken down in to simple instructions in discrete steps, then even a last-minute change of process stands a good chance of being picked-up and understood by everybody who needs to use it.
Now, where’s my to-do list...
Friday, 11 September 2009
The 2nd in a series of articles following the implementation of Lean Manufacturing in Microsoft Dynamics AX 2009 to a Medical Equipment Manufacturer
There's no substitute for seeing real data in the system and it does help reinforce the message that the new system is not far away.
Although receiving the data in spreadsheet form saves one heck of a lot of legwork, when it finds its way into Microsoft Dynamics AX and testing follows, several inconsistencies come to light. Sometimes the supply chain turns out not to be entirely continuous with materials being called-up by one work centre not necessarily being supplied by the right warehouse. The other 'biggie' we encountered was one work centre which seemed to hold its inventory in several warehouses. When I asked about this, it seemed that the reasons were entirely sound (largely to do with available space), but the method of controlling this overflow inventory seemed to be surrounded with a little mystery as nobody seemed to know why it was controlled in the way that it was!
This is entirely reasonable and it's good to find these 'funnies' now, rather than after go-live. There is not a company in the world that doesn't have a few inventory skeletons in the closet, and although the reasons may not seem sound today, chances are there was a good reason for them once. The secret now is to address these anomalies and find a solution which can be tested before the Big Day when it all becomes live. Lean transformations are often triggered by compelling events and in turn, our ERP implementation can be used as an equally compelling event to identify, question and eliminate the inconsistencies in your internal value chain.
Sunday, 2 August 2009
Microsoft and eBECS Launch the Lean Centre of Excellence - PLEASE JOIN US
If you are an organisation considering the implementation of Lean ERP; investigating discrete areas of the functionality to enhance your traditional approach or already a customer using Microsoft Dynamics AX and perhaps looking to adopt the lean functionality; a Microsoft Dynamics Partner interested in achieving the certification required to sell, support and implement the Lean solutions; a Lean Professional interested in helping others by sharing practical experiences or just simply interested in learning what Lean has to offer, then we would encourage you to become a member of this lean community by visiting http://www.leancentreofexcellence.com/ to sign up for free membership.
Becoming a member of this community will provide you with a place to ask questions, share your experiences, access the latest materials and ultimately expand your knowledge. Joining The Lean Centre of Excellence will ensure you are kept up to date with news, events and training opportunities through the Centre. You will also be able to learn about the additional capability that eBECS provides in Lean Manufacturing II, III and the Vendor Portal, which addresses some of the more advanced Lean requirements of a Lean Enterprise including the key Lean requirements for the Automotive, Aerospace & Defence, High Tech and the Medical Devices & Equipment Manufacture sectors.
Microsoft recently acquired the Lean functionality from eBECS and we are now pleased to announce that Lean Manufacturing for Microsoft Dynamics AX became available as a fully integrated Microsoft product on 1st August 2009 for the UK, US and Canada.
Friday, 17 July 2009
Partner Certification Training - Lean Manufacturing for Microsoft Dynamics AX
A: The solution is sold, maintained and supported by Microsoft. eBECS has a very good knowledge of the solution, and they are the "Lean Centre of Excellence for training and certification”, visit http://www.leancentreofexcellence.com/ for more details..
Q: Will a partner need any certification to sell, implement and support Lean Manufacturing for Microsoft Dynamics AX 2009?
A: Partners must be certified through the certification program provided by eBECS in order to sell, implement and support the solution.
The partner certification programme consists of 2 courses:
Course 1: Positioning Lean Manufacturing for Microsoft Dynamics AX in your Sales Engagement
Course 2: Demonstrating Lean Manufacturing for Microsoft Dynamics AX
Please visit the Microsoft Event Registration to book a place, the first training is scheduled in Atlanta, US August 17th to 21st.
In order for a partner to be certified to sell Lean Manufacturing in Microsoft Dynamics AX the partner will need to ensure that a minimum of two of their consultants have attended and passed this certification program. It will be expected that attendees are experienced in the areas of Inventory, Production and Master Planning and have achieved relevant certification on Microsoft Dynamics AX in those areas.
In addition to the certification course, a one week follow-up course is available for attendees who have already completed the certification course. This 5-day classroom based course “Implementing a Lean Enterprise on Dynamics AX” will build on the certification class and include an introduction to the additional capability that eBECS provides. The course will provide attendees the opportunity to practice their knowledge on more advanced case studies. This is not a certification requirement, but is strongly recommended for those consultants who will be expected to install and configure the Lean Manufacturing module following a successful sales engagement.
It may take some time for partners to achieve certification and it maybe that some partners, whilst interested in including Lean in their marketing campaigns, will not want to undertake the certification program. To help partners either as an interim support mechanism or as a longer term relationship, eBECS provides a sales and implementation support service agreed uniquely with each partner. For more information on this please get in touch with us at partner@ebecs.com to understand how this can work for your partner organisation.
Wednesday, 1 July 2009
Lean around the corner - August 1st Go live
Microsoft has engaged eBECS to establish the Microsoft Dynamics Lean Centre of Excellence. The mission of the Center is to serve as an educational outreach/training facility for organisations that require training on the Lean capabilities in order to further their Lean initiatives. Microsoft recognises that a successful Lean implementation is not simply about providing the right software tools; as important are the skills of the team that architect and deliver the solution.
The Centre is currently ready to serve the Microsoft partner community for sales and implementation training and is scheduling training for late 2009 for current Microsoft Dynamics customers, as well as companies that are considering Microsoft Dynamics solutions. To register your interest please email customer@ebecs.com
The first partner trainings will be offered in Atlanta, Georgia during in the week of August 17th - 21st, with two back-to-back courses available. An invitation will be sent to Microsoft Partners with registration instructions within the next 10 days.
In addition to training, the Centre will also serve as a magnet for collecting new ideas and requirements from existing and future users of Microsoft Dynamics.
Tuesday, 30 June 2009
The first in a series of articles following the implementation of Lean Manufacturing for Microsoft Dynamics AX to a Medical Equipment Manufacturer
Part 1 Synopsys: Lean transformations require transformation of IT systems to reflect the new realities of operation with pull systems, kanbans and the requirement to respond immediately to changes in customer demand.
It's all very well leaning-out your manufacturing and supply chain processes but if your ERP systems aren't up to the job, then all that might happen is that balancing production gets progressively more difficult as your supply chain backs up in a maze of spreadsheets, guesswork and finger-pointing.
The nice part of my job is playing a direct role in helping my customers move their businesses from MRP-driven platforms, usually backed-up with an acre of spreadsheets, to something that closer-reflects how to operate in a Lean environment: Kanbans and all.
I have a customer in the UK who manufactures medical equipment. Over the past five years, they have embodied some of the best aspects of a Lean transformation: not only have they implemented all the best aspects of cellular manufacturing, but their product range has been rationalised in an extremely intelligent manner, combining a simplified range of common product families with a broad market reach for both domestic and export markets. In some cases, product variation can be controlled through a software change alone, such has been the extent of Lean product design.
Unfortunately, the supply chain was creaking and causing a familiar pattern of shortages, expedited deliveries and stock obsolescence, especially for component parts. What had happened was that as the manufacturing areas moved toward cellular production, the MRP system could not adapt. The traditional structure of production orders and MRP had gradually diverged from how the production processes were evolving, while the hard-pressed purchasing manager needed to maintain an alternative set of inventory and demand figures for much of his portfolio.
A significant part of the problem lay in the MRP system's structure. The traditional MRP model of forecast-based demand generating a range of production orders throughout the bill-of-materials didn't match a kanban-based environment where replenishment of finished products, components and key subassemblies was now managed by physical kanban cards. MRP was retained to generate production orders, as much as to generate documentation for the shop floor, as to use the system to consume inventory through backflushing.
The problem was that the generated orders simply did not match what they were making. Orders were created to reflect batch quantities far in excess of the daily capacity and this led to a backlog in system bookings: physical inventory would routinely diverge from system inventory and not only would this lead to problems with the despatch of finished goods, but component and subassembly inventories would diverge far from reality.
Now let's look at purchasing and stores. Here, system inventory could not be relied-upon and this led to the purchasing manager having to initiate regular physical checks of inventory which then had to be loaded into his own spreadsheets which were used to control the supply of key raw materials and components.
This pattern of operation is familiar to many of us. Slowly but inexorably, traditional MRP and production order-based systems fall out of synch with reality and gradually the number of spreadsheets and workarounds increases. System transactions are processed merely in an attempt to keep on-hand values in line with physical inventory and they become increasingly irrelevant as they fail to provide worthwhile information that helps people do their jobs. Meanwhile, as the transactions often fail to reflect the sequence of activities in the shop floor, it becomes increasingly difficult to post the transactions and so the cycle becomes progressively worse.
Some Lean practitioners have an easy solution for this: pull the plug on the MRP system and run things manually either fully or by "phantoming" out parts of the process! Great in theory and for the purist, but not much use in the Real World where we want to manage our business. ERP systems happen to be rather convenient for keeping track of where the business is, not to mention managing the cash and other key assets. What a pity to have a huge black hole in the middle of the whole process!
A better solution might be to implement an ERP system that works with Lean principles rather than against them. The system being implemented by my customer uses electronic kanbans to control the entire internal supply chain, from generating pull-to-order instructions directly from customer orders, through to launching replenishment kanbans to restock inventory throughout the internal supply chain from major subassemblies right down to withdrawing components from the stores.
The benefits of this approach are twofold: first of all, electronic kanban tickets can be set-up to reflect the physical layout of the production area and second, these tickets become transactional documents which can be used to provide feedback immediately they have been satisfied: the pull-to-order tickets for the top-level items can be scanned to perform a real-time update of inventory status, while triggering backflushing transactions if they are required. Similarly, those backflushing transactions can trigger the kanban replenishment of components and subassemblies; again, real-time and ensuring accuracy throughout the internal supply chain.
The key thing is to roll with lean and support it, not fight against it. Lean works and we know it, but traditional ERP systems generally don't get it. There is -shock, horror - still a place for MRP in this process; many companies acknowledge the value of extending the Lean supply chain externally, but often suppliers have to be coaxed to operate within a kanban environment and it may often be a better interim strategy to use traditional reorder management processes to keep the shelves of the main store stocked. It might not be true Lean as the theorists know it, but then again many of them haven't had to deal with your day to day issues, and it is pragmatic. Similarly, MRP can still provide a medium-to-long-term view of requirements to give suppliers an indication of where the market is heading.
My customer will be going live later this summer. Stage One will be to create a manual kanban board so we can schedule the shop floor, allowing us to mix products and level the cells in a visual and intuitive manner. Electronic kanbans still work in the physical world; they give us a traveller to accompany the work and, by carrying barcodes, allows receipts to be booked with minimal effort, thus ensuring that the ERP system maintains an accurate picture of what is going on. We are also developing the Plan For Every Part (PFEP) to ensure we have a clear and easily understood course of action for the supply of materials to the shop floor, while the first preparatory steps towards the generation of purchase kanbans for a pilot group of suppliers are underway.
Our customers have operated ERP with a Lean core for over many years and have succeeded in enhancing their own Lean transformations by operating in an environment where ERP supports Lean and does not work against it. Very soon, one more British manufacturer will join this select group and allow their systems to catch-up with the superb progress they have made with their physical processes.
Please follow this story through the coming months:- It will also be published on the eBECS blog, the eBECS Customer Update, and the Lean eZine.
Neil Ferguson-Lee
NB - Lean Manufacturing for Microsoft Dynamics and additional Lean functionality provided by eBECS will be generally available on August 1st 2009. To find out more please visit www.leancoe.com
Lean & Green Manufacturing: Real Solutions to Cost Cutting - FREE On demand recorded webinar
Click to watch the recorded Microsoft Dynamics webcast: Lean and Green Manufacturing: Real Solutions to Cut Costs
Despite being around for decades, most manufacturers have still not implemented Lean manufacturing processes and systems to their advantage. Many more still do not understand how to improve operations and manage energy consumption without available environmental performance indicators. With current economic conditions, government regulations and the importance of cutting costs and improving customer service, going "Lean & Green" are the vehicles to accelerate you past your competitors.
Discover:
- Why Lean is a must-have business initiative in this economic crisis.
- What solutions are available to support your lean initiatives and environmental sustainability
- How companies are going "Lean and Green" for greater advantages
If you only have a limited amount of time I would suggest you go straight to hear how WIKA have progressed with their lean journey - 30 minutes into the webinar.