DownStream Technologies Introduction

DownStream Technologies was founded on January 1, 2002. The company is focused on addressing the growing complexities associated with the fabrication, assembly, and testing of Printed Circuit Boards through innovative Computer Aided Manufacturing (CAM) software solutions. Downstream Technologies is devoted to software applications that streamline the transition of electronic products from engineering into manufacturing. This will include PCB documentation, Fabrication, Assembly, Test, Work In Process, Quality Management, and web based collaboration.

DownStream Technologies will have a concentrated focus on the PCB manufacturing market. Where manufacturing is a small percentage of other EDA vendors’ total business, PCB manufacturing will represent 100% of DownStream Technologies’ business. This will allow DownStream Technologies to provide feature rich releases, a broader offering of manufacturing software solutions, dedicated customer service and support, and stronger marketing alliances.

DownStream Technologies is devoted to providing further development, marketing, and distribution of CAM350, while servicing our valued customer’s needs. DownStream is committed to providing our customers with the tools they need to rapidly assimilate engineering data into productive manufacturing tools. We will continue to work with you to further develop our products to ensure you remain competitive in your market place.

A key reason behind the success of the CAM350 product family, and which sets DownStream Technologies apart from the competition, is our distribution channel made up of independent sales and support Partners.  DownStream Technologies’ Partners are carefully chosen to ensure that our customers receive the industry’s best service and support.  As a DownStream Technologies Partner, you are among the best in your field, and we are proud and excited to have you as part of our team.  It is due to your expertise and level of commitment that DownStream Technologies is able to claim over 8,000 systems worldwide, and it is because of you that this number will continue to grow.

The remainder of this manual contains all of the sales policies and procedures of DownStream Technologies designed to help ensure your success in selling our products in your territory.  Please read them carefully and familiarize yourself with them. If you have any questions or comments regarding the material contained in this document, or if you require any assistance at all, do not hesitate to contact any representative from the DownStream Technologies’ Sales Group.  A complete list of DownStream Technologies contacts is provided in this document.

RESPONSIBILITIES AND DUTIES

The DownStream Technologies Partner Program was created in order for the Partners and DownStream to achieve mutual success and to maximize that success.  DownStream recognizes that success is not possible unless the customers’ expectations are fully met through a mutually supportive, structurally sound organization.   This organization is made up of DownStream and its partners.  It is, therefore, of paramount importance that we observe the spirit of the agreement between our companies in our working relationship, and that we adhere to the specific terms and conditions defined within the agreement.

In order for the Partner to function effectively, they must have an organization that will allow them to efficiently sell and support DownStream’s products in the territory.  DownStream has therefore created a requirement for each Partner to maintain a minimum number of full-time employees in the territory, as well as a requirement to meet specific experience levels.  Both of these requirements are clearly defined in the Value Added Reseller Agreement in place between the companies.  DownStream will monitor the quality of the personnel retained by its Partners and periodically assess their capabilities in order to maintain the highest quality of representation and support.

DownStream partners must prepare to offer end-user training to customers.  In addition, Partners are expected to aggressively support their customers with the highest level of customer service.  It is therefore required that each Partner will have facilities for product demonstrating, benchmarking and end-user training.  These facilities must be sufficient to demonstrate DownStream products to potential purchasers, as well as provide training, for all of the operating systems supported by DownStream in a professional manner and atmosphere.

DownStream expects that the Partner will conform to all civil, criminal, and regulatory requirements and abide by all U.S. Laws, including export agreements.  DownStream expects its Partners to attend any planned sales meetings during which DownStream and the Partners have the opportunity to share information and experience.

Partners are expected to maintain the same high level of professionalism externally as they do internally.  Therefore they will not advertise, communicate, or otherwise represent any DownStream product, its characteristics, or capabilities which are false or misleading, or in any manner which might adversely affect the reputation of DownStream and its products.

Types Of ERP Manufacturing Software - Choose the Best

ERP systems applications are mainly targeted at the manufacturing companies. Previously Material Resource Planning application was used to track the manufacturing product status and schedule manpower accordingly. Many new features were integrated into this application to form the Enterprise Resource Planning. The ERP has to be customized to fit the requirements of the company.
The best type of ERP Manufacturing Software should be selected with care. It should focus on the main functional areas of the manufacturing industry. After the evaluation of the business has been done, the software can be chosen accordingly. Each application has to be integrated with other application and has to be customized to provide a solution for the customer needs. The features of the manufacturing software should offer simple methods to generate RFP. The software should allow determining a checklist to obtain the capabilities of the vendors. The modules in manufacturing are Human Resource Management, CRM, Finance, Sales, Product Data Management, Supply Chain Management, Master Data, Service Management, etc. A number of ERP Manufacturing Software is available and some of the providers are Sage, Tally, SAP Manufacturing, Oracle JD Edwards, etc.

The best type of ERP manufacturing software has many features like being scalable and is able to adapt to the trends of the market. It should be able to offer an increase in the profits, sales and market share. The software should be able to decrease the manufacturing costs, reduce the wastage, reduce total work time and increase the production cycles. It should offer easier maintenance of the data at the different units which are located at different locations all over the world. The best type of ERP Manufacturing Software should allow for better market visibility and be able to predict the market demand to get an edge over its competitors. The application should aid in improving the quality of the products and provide for engineering of products according to the requirements of the customer. It should be have feature for keeping the maintenance cost low and make the communication with the partners easy. The automated system should ease the process of customer support.

Planning of resources is the core of process manufacturing software and it aids in planning of manufacturing activities which are based on machinery, material and labor. MRP software is normally integrated with MES systems and CRM software. The accounting software is also integrated now to aid in monitoring the general ledgers.

The best type of ERP manufacturing software should provide the company with an integrated inventory control, resource planning, material acquisition, serial number control and shop floor control. The software should efficiently process through a fully integrated MRP, it should eliminate the double entries, perform easy transition from a planned to released work and purchase orders, keep a history of the product and maintain the production scheduling. Along with all this the best type of ERP manufacturing software should ensure quality which is an important element of a manufacturing system. It should be able to perform quality tracking and take corrective action tracking to ensure that one problem does not lead to another.

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Manufacturing Inventory Management Software

Manufacturing inventory management software is a specialized software package which monitors and manages the inventory required in all stages of the manufacturing process. This software manages processes such as purchase order placements, tracking the usage at each manufacturing stage, periodic checking of inventory levels, and reordering of depleted stock. Manufacturing inventory management software forms a key component in the automation of the manufacturing process. It helps in faster processing of the system with minimal human intervention. A company can rely on manufacturing inventory management software for greater productivity and better utilization of its resources.

Inventory control forms the core functionality of manufacturing inventory management software. Each stock item is tracked through the manufacturing process. The stock level is periodically matched with the reorder level to automatically generate purchase orders and requests for quotations in regard to fresh purchase orders. The software also performs other tasks such as serial number assignment, work order assignment, and report generation. A person operating the software is given a detailed history of the product manufacturing process. Advanced versions of the software can calculate labor costs and indirect costs involved in manufacturing. Personnel belonging to the production department can enter their hourly job status, which is utilized while preparing employee histories and job cost summaries. Manufacturing inventory management software has additional features such as customer order tracking, customer report generation, and tracing of the product order history of individual customers.

Increased productivity and faster processing promised by manufacturing inventory management software are often dependent on the user. Hence, a menu-driven interface is the mandatory requirement of manufacturing inventory management software. The software is feature-rich and can perform multiple tasks like storage bin label printing, database searching, and auxiliary report printing. It can also import and export production-related data into a variety of different file formats. Furthermore, the software supports a multi-user environment.

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Small Business Manufacturing Software

Small business manufacturing software is software which is of prime importance in small business production and distribution. Small business manufacturing software is an ideal solution for midsize companies, which aids in issues such as successful running of the company, turning customer data into customer information, understanding the needs of the customers, suppliers and partners. Advanced enterprise application software solutions and professional services have now been created by various software developers to solve these concerns.

Small business manufacturing software systems should ideally connect sales, support, manufacturing, distribution and finance sections with customers, suppliers and partners. This will enable better customer relations, and thereby encourage repeat sales. Small business manufacturing software includes the tools to keep production running smoothly and efficiently, including powerful inventory management tools, and job costing tools. Ideal examples of small business manufacturing software are the various shop management software which guarantee the flexibility and control businessmen need to manage their businesses on a day to day basis.

Shop management software handles the functions of creating quotes, handling and scheduling jobs, managing material, and tracking labor cost. These software packages have outstanding accounting features and cost analysis tools. Core business functions such as materials management, job management, sales management, financial management, service management and administration are focused on.

The intention of small business software developers is to provide custom software solutions to small business. They understand the needs and working of the company and provide software customized to their need. Some of the best software in this regard can instantly confirm the availability of products and the shop's ability to produce specific order delivery requests.

The best small business manufacturing software has the features of controlling the five main manufacturing processes, namely inventory control, sales and purchase orders, bill of materials, RFQs, and material requirements planning. The fast pace of the modern world lays tremendous pressure on businesses, the smooth functioning of small businesses is facilitated to a great extent by the small business manufacturing software packages.

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Key Benefits of Mobile Computing Technology

Employing mobile computing technology for business operations can bring compelling benefits to any organization. Using the latest mobile computing technologies, organizations can provide secure and real-time information and applications to their field workers, making them more efficient. Mobile computing improves operational efficiency, speeds up business transactions and ultimately enables better customer service. Versatile benefits of mobile computing devices made them essential tools for business transactions in many industries.

Listed below are a few benefits of successfully utilized field mobility solutions.

Eliminates paperwork: Mobile computing devices effectively eliminate paperwork as they collect, store and transfer data electronically. Field mobility solutions like handheld PCs, barcode scanners, mobile printers, etc., eradicate the burden of writing invoices and delivery receipts manually. These tools effectively increase a worker's ability to collect, access, and evaluate critical business information quickly and accurately.

Productive output in less time: Mobile computing devices offer improved and faster access of information, both to and from the central fixed information systems. This helps employees get critical information in real-time from the company. This way, field executives and technicians can complete their jobs with increased individual productivity, enhancing the organization's overall productive output in less time.

Cost reduction: Increasing individual productivity can effectively reduce intermediate staff, thereby saving on labor costs. Further, the need for separate equipment for various functions like transfer, evaluation and retrieval of data can be eliminated using mobile computing devices. Reducing extra travel, rework and selling time, field mobility solutions enable significant gains in service profitability.

Better decision making: Real-time access to critical information for both workers and management helps the companies make better decisions in terms of customer service. In fields like inventory management, field mobility solutions help in balancing stock levels. Accurately tracking the stock helps company management make timely decisions in order to avoid both excess and out-of-stock situations. The availability of current and accurate information across all levels of organization supports individual/group decision making and thus enhances effectiveness of the management.

Improved customer relations: Flexibility to access information using field mobility solutions helps employees to resolve customer queries, update customer information, check prices and stock availability, place an order online right from the customer's home or business, immediately calculate estimates, cut down on the time spent per customer, and more. This kind of approach makes the customer feel more satisfied and comfortable about the services and develops loyalty to the brand or company. Faster and convenient service is always a sure way to improve customer relations, as well as the customer base.

Greater accuracy: Field mobility solutions transfer data electronically, allowing the data transfer to be quick and accurate. Electronic transfer avoids transcription and interpretation errors that are common in the manual data entry process. Online data transfer involves automatic time and date recording and tracking works in progress, which assures transparency, accountability and traceability.

Increased ROI: The latest technologies used in field mobility solutions make low-cost mobile computing a practical reality. Businesses can expect a payback on investments within a very short span of time. Enhanced business process, increased productivity and reduced expenses using mobile computing devices offer substantial return on investments.

As communication plays a vital role in an organization's success, every business should be sure to have effective and efficient tools like field mobility devices for information transfer. Field mobility solutions improve information quality, decrease transaction times, break down business barriers and give competitive advantage - all of which are required components of a successful business.

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Manufacturing Business Software

Manufacturing business software is used in the business field. The management of all the credits and debits of business is an important factor. Sales report management is another essential aspect. The manufacturing business software will help to control all the financial information and the cash flow. This software will give instant information on the progress of the business and the progression of accounts. This will help to make quick decisions regarding the finances of the business.

Downloading fact sheets and sample accounting reports is also possible. The main advantage of manufacturing business software is that it can be used for both small sized and large sized businesses. Looking at the overall success and challenges, handling of logical concerns is easy. This business software informs how the company is working. By analyzing this, sufficient improvements can be done. Many businesses use the business intelligence report to highlight the work patterns. Human observation alone cannot monitor the financial and structural changes occurring in a business company.

Good software can observe every change and analyze all work patterns. A network of prospective clients can be established and strengthened by making the business card. An established plan is crucial to every business. Manufacturing business software will make the business plan professional and concise. With this software the growth and development of the company is very easy and much more effective. Reduced material costs and increased efficiency in less time are some advantages of manufacturing business software. It offers the critical functionality needed to manage the business.

The manufacturing business software provides higher performance data processing. More data integrity, more efficiently distributed processing and scalability are the desirable features of this software.

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Manufacturing Software - Vertical Vs ERP

Vertical manufacturing software or ERP manufacturing software

Your a small manufacturer and although times are tough your company is managing to survive and even thrive by picking up work from those that haven't. You see a need to improve productivity and the flow of information on the floor. So how do you go about it, what will you look for, a solution that deals with the manufacturing side well( a vertical solution) or a solution that integrates the entire business.(ERP manufacturing solution.

If this was 10 years ago I might suggest, because of your size and the cost of software, you should look at a package that deals with manufacturing only or a vertical package as they call it. Nowadays its not like that. the cost of software has come down and the scalability of software is much better. Meaning you can focus your efforts on fewer areas to start off and then grow into the parts of the system that you need.

Don't get me wrong you can still buy vertical packages, but they don't make a lot of sense. Why buy something that only does part of what you want. Your people will spend time and energy getting it going and learning the package. Then a time will come when you need more information or functionality or your whole business focus will change. You used to do a lot of custom work but now are moving to process manufacturing, or distribution or a mix of all of these. Vertical packages do not offer you the flexibility you need down the road. They will waste all the time and effort put into them once they are changed.

A better solution is to provide the a solution that is scalable, one that your people can learn and grow with. The longer you use the same solution the more you learn about it and how to use it. It is also important to seek flexibility. Who know what the focus of your business will be in 5 years from now. Turning down business or poorly managing it because your system doesn't handle that process well is not what you want out of your software.

The requirements of manufacturing software is very different from place to place. Process, custom, ETO, batch, mixed mode all have different processes and needs but the one thing that they share in common is that they are managed much better through an ERP program. The reasons are many one thing to think of is manufacturing is supported and must communciate in an effective manner to accounting, sales, purchasing and every other department in the company.
So the question is, if it is inevitable that your company will grow out of a vertical package, why go through all that trouble for nothing.

A complete end-to end solution for small and mid-sized manufacturers and distributors is out there. One that fits your business needs and your budget. Find it and you will have an edge over your competitors in efficiency, customer service and flexibility.
Visit our ERP advice blog for more tips on ERP.

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Creating a Software Requirements Document

In order to successfully evaluate and select a packaged software application you must first clearly identify the functionality that you are looking for in the product. A Software Requirements Document specifically identifies and documents the overall business purpose for the software and includes a more detailed listing of the functional modules, and the general and technology requirements for the software. To create this document you will need to collect, prioritize, and organize the data in a format that will be useable by your internal team as well as one that can be passed on to software vendors so they can assess if their software offers a fit for your organization.

Define the Objective - Start out your requirements document with a statement that defines the business reason you are evaluating software at this time. The business objective can typically be defined in one or two statements then qualified with some bullet point line items that more clearly define and support the primary objective.

 List the General Requirements - You should start the requirements document by listing the general requirements you have for the software. This includes technical requirements (ie. database, operating system, etc.) and general use requirements such as workflow, drill down, query and reporting tools, etc.

 Define the Functional Modules - Next you should define the functional modules that will be evaluated as part of this project. This may require you to translate your business terminology to modules that are offered by the software vendors. For example Financials (General Ledger, Accounts Payable, etc.), Manufacturing (Shop Floor Control, Quality Control, Inventory, etc.), Human Resources (Benefits Administration, Position Management, etc.) are examples of how you can translate your terminology for the software vendors.

List the Specific Functional Requirements - Within each module, list out the key specific functionality you require. While it is not necessary to list every single item your list should include enough functionality that will allow you to compare and contrast the different software solutions available to you.

Request Vendor Information - Finally, your document should include a request for information about the vendor including vendor size, target user and customer profile data, and certifications and partnerships. You should also ask for a ballpark cost estimate for the project based on the information they have to date.

 As you put together your software requirements document here are a few key points to keep in mind. Make sure that your requirements document is:

• Complete. The document should include all of the key requirements that are important to your organization. Define what you need the software to do but not how it will do it. Expect to leverage from the best practices offered by the packaged software applications.
• Consistent. Keep the wording of the requirements unambiguous and with a consistent level of detail; be concise and direct. Avoid vague requirements and word redundancies or paragraphs of information that contain multiple requirements. Use terms and acronyms consistently and define them in a glossary. Avoid the use of and/or.
• Feasible. The requirements that are included in your document should be realistic in terms of functionality a software application can provide. If the requirements are too extreme your only choice may be customization of applications that can be costly and not recommended by most software vendors.
• Prioritized. Develop a rating system so that the document clearly defines what requirements are most critical to your final decision. A suggested ranking system may be Required, Important, and Nice to Have.

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Reducing Lead Time

This article covers reducing lead-time, also known as becoming a time-based competitor.
The concept of the Supply Chain is a useful metaphor. Your business is just one link in the chain between your customer and your suppliers. Your company's ability to supply the best quality, desired features, and best delivery at the best price determines your competitive position. Reducing lead-time also frees up cash, increases capacity and enables you to be a more responsive supplier to your customers.

Lead-time, for the purposes of this article, will be defined as the time from when a customer places an order until they accept the product from the supplier.In the grocery business, lead-time, as defined above, is instantaneous; a shopper selects from the inventory on the shelf and places it in the basket. If we look one step back in the supply chain to the wholesaler, the grocery probably placed an order for the item one to three days before. If the item was fresh produce, the store probably ordered that morn­ing.

A three to six hour lead-time was needed. Continuing with fresh produce, we can go another step back in the supply chain. The farmer had to plant the seeds, nurture the crop, harvest it and ship it. This processing lead-time may take from six to ten weeks or longer depending on the variables of nature. In the above example, lead-time expands significantly as the production moves further away from the consumer.

The farmer, unlike the manufacturer of a product, has no real way to reduce the time nature takes for organic produce to ripen.A manufacturer, on the other hand, has almost unlimited tradeoffs in the process used to produce their products. Let's take a Total Quality Control (TQM) view of the typical process. To do this we will use an Ishikawa or fishbone chart to identify some of the contributing factors that can impact lead-time for a typical product.
Picture the fish's backbone has ribs that identify the major issues and each major issue can have branches going into more detail.

After the chart is created, usually by a multi-functional team, investigation can begin on how to control or eliminate these factors to reduce lead-time. The ribs would include these areas: Order Entry, Engineering, Scheduling, Purchasing, Materials, Production, Quality, Shipping, Accounts Receivable; all of the factors that contribute to long lead-time at a high level.
Another approach is to list all of the activities involved and the time to perform them. The list would begin with the customer placing the order and end with the customer being able to use the product. (Note that it does not end with the shipment or delivery of the product, since the customer cannot use defective or damaged products.)

Now that the list is completed (aka Value-Stream Map) a value-analysis is per­formed to determine what activities the customer is willing to pay for. After reducing or eliminating those items the customer does not want to pay for, effort is expended on reducing the time to perform the remaining tasks. Redesign of the product is often the end result of this process. It can eliminate waste in manufacturing process time as well as material waste. The Bill of Material at some manufacturers may include all inputs and outputs used in the manufacture of the product.

This could include the amount of electricity, heat or other products used in the transformation process. It could also include all the items that were formerly considered waste, such as the scrap metal not used in the final product. It could also include the amount of by-products generated such as the pounds of CO2 generated.

"Less than 5 percent of the total time required to manufac­ture and deliver a product to a customer is spent on the actual process. The remaining 95 percent is non-value added time. This wasted time represents a gaping window of opportunity for the time-based competitor." Time-Based Competition by Joseph D. Blackburn
A third alternative to evaluate your lead-time is benchmarking. Benchmarking is the process of comparing your organization to that of your competitors, or best in class, in different areas. For example, your company takes two weeks to process an order from the customer to the factory. Your best competitor takes one week. The best time in your industry is one day. By comparing, or benchmarking key business areas you can begin to determine where to focus the most effort to reduce lead-time.

Some examples of the above techniques and the impact they have on a company's competitive advantage.
So far we have discussed lead-time and how it can be reduced using three different techniques. Yet with some thought it could be said that the techniques presented: Fishbone charts, Value Stream Mapping, and Benchmarking are different aspects of the same World Class Philosophy. Total Quality Management or TQM is an all encompassing method of viewing processes. According to TQM, everything in business can be described as a process. And every process should have a feedback loop to improve its performance. A feedback loop, in engineering terms, means there is an input (measurable), process (measurable), output (measurable), and a control loop from the output back to the input and process to adjust the parameters to insure the product meets the customer's requirements/specifications.

The Deming wheel of Plan, Do, Check, and Act can naturally be applied to problems with hard data, i.e. those that can be measured. The first issue to recognize that there is a problem. In this case, we are looking at lead-time. The benchmarking pro­cess compares our business to others in our industry, and in other industries, to isolate best practices and performance standards. After the standard of performance is established, we can determine our relative situation. If we decide that lead time is a problem, more tools can be brought to bear on it. The Fish bone chart is one way to organize data gathering that focuses on isolating a problem. Once identified, other tools, such as Process Capability and Statistical Process Control can be applied.

Benchmarking is performed as a matter of course by World Class competitors. It may not always be called by that name, but businesses are always comparing performance data. The telecommunications ISO9001:2000 variant TL-9000 requires submission to a common benchmarking database for providers and suppliers alike. It may be as simple a measure as sales per employee or how many line items can be picked in a warehouse per day. How to measure yourself against the best. Francis Tucker, et al in HBR APICS Readings for CIRM Reprints
Benchmarking Process Steps:

• Identify what is to be benchmarked
• Identify comparative companies
• Determine data collection method and collect data
• Determine current performance "gap"
• Project future performance levels
• Communicate benchmark findings and gain acceptance
• Establish functional goals
• Develop action plan
• Implement specific actions and monitor progress
• Recalibrate benchmarks

From Benchmarking: The Search for Industry Best Practices That Lead to Superior Performance by ASQ, Quality Press.
Alcoa has benchmarked areas such as administrative, manufacturing, and service functions. The process allows them to identify new ideas and possibilities. Several excellent articles on benchmarking can be found in Quality Progress Magazine. The above information on benchmark­ing is from the article "The Benchmarking Bandwagon" by Karen Bemoswski 1/91.

We have now established the areas for improvement. Next we can apply several tools to isolate specific problem areas.
"First comes discovering there is a need. Here is a useful procedure: Subject each process to Pareto analysis and then a fishbone chart at a coarse level of problem analysis. Do it (pareto- fish bone) again at a finer, more specific level, and again with a still finer mesh. Repeat this procedure until the problem's solution reveals itself or requires measurements, perhaps plotted on SPC charts." The Quality Concept: Still Evolving, by Richard Schoenberger, CIRM Customer and Product Reprints
A Pareto chart is simply a listing of occurrence by fre­quency from highest to lowest in a vertical histogram. A multi-functional team is the best way to isolate alternatives using this method. Now that we have isolated the problem, we can take action to reduce or eliminate it permanently.

Conclusion of lead-time reduction via TQM
In the last section, we discussed Benchmarking as a way to establish World Class performance measures for lead-time and other business processes. Now we will conclude the lead-time reduction series with two Total Quality Management methods to reduce and monitor lead-time perfor­mance: Value Stream Mapping and Statistical Process Control.
One method of taking action is to use Value Stream Mapping to redesign the product or process, so that operations are reduced or eliminated. Value Analysis has been defined as "... the effort to analyze functional requirements of systems, facilities, equipment, procedures, and supplies in order to achieve performance, reliability, quality and maintainability at the total lowest cost." Purchasing World, Feb. '89

Value Stream Mapping, also called Value Engineering, has been used in the Aerospace and Defense industries for many years. It has proven to be useful in both original design reviews and ongoing process analysis. John Deere reduced the cycle time for design of a new line from 3 years to under I year. Using Value Stream Mapping, John Deere increased flexibility, as well as offering 25,000 configurations from the original 160. "Value Analysis has helped Deere achieve shorter lines of communication among design, manufactur­ing, purchasing and other support functions." Purchasing June '88
Textron Lycoming has also benefited by using Value Analysis with outside suppliers. "Over $37 million dollars has been saved since the program was implemented", Purchasing, June '88. I equate money saved with reduced lead-time; although it can be argued that this is not always the case.

Now that we have identified the problem, isolated some solutions, and reduced the lead-time of the product, how can we insure that the new lead-time will remain as short as possible in the future?
Statistical Process Control (SPC) is a technique that can be applied to any business or manufacturing process. It is effective because it highlights variability. Variability is one of the chief causes of waste and delay. By using control charts, SPC eliminates time-consuming rework and scrap.

SPC charts visually alert the operator that a process is exceeding the allowed variability; control is drifting. The process can now be corrected to avoid output that is not acceptable.
"The Ingersoll-Rand Energair (IR) plant at Davidson, North Carolina, reduced manufacturing losses 76% over 10 months through the use of SPC." Quality, April '91
There is one serious problem with using SPC. Companies have found that many employees have basic math and reading problems. "If business wants its workers to take control of their jobs, it will have to invest in the education and training needed. When Plumley Companies tried to teach its workers SPC, it discovered that over 50% could not do basic math. Motorola Inc., refocused its efforts to help employees gain reading and language skills. Em­ployee productivity at its cellular plant is 5 times higher than predicted." Industry Week, April '91 and all of this before Six Sigma!

United States suppliers should have a lead-time competi­tive advantage for products made or assembled to order. However, due to foreign investment in more efficient order entry, production and logistics methods, the local supplier advantage is all but eliminated. World Class suppliers recognize that lead-time is not the only customer expectation. Only through understanding customer needs for Quality, Price, Delivery, and Customer Satisfaction can a firm be successful.

To briefly summarize, lead-time reduction is a process. Processes can be measured and controlled. Benchmarking can indicate the potential for improvement, or it can help establish a goal. Value Stream Mapping can reduce steps. Employ­ees must be provided with the skills needed to implement process improvement programs. It can seem daunting at first but you are now on the path to becoming a World Class competitor.

Interested to expand your business by using manufacturing software solutions. Call Alenu Group today at +65 6884 5030

Outsourcing Warehousing and Fulfillment As an Alternative to Just-In-Time Manufacturing

Some companies that want to increase efficiency and bring down costs are considering the just-in-time (JIT) manufacturing system to accomplish their goals. Although the system offers benefits with regard to inventory, it also poses risks that can prove detrimental to operations and sales. An alternative to JIT that companies can look into is outsourcing warehousing and fulfillment processes to qualified third party logistics providers.

Also called the Toyota Production System, JIT involves purchasing and producing items only as needed in order to eliminate waste (whether inventory, time, or effort) and make operations more efficient. Because companies will only be carrying and processing small amounts of raw materials and finished goods, there is no need for in-house warehousing or comprehensive fulfillment processes.

While it seems like a promising concept, JIT doesn't come without limitations. All processes in the JIT system are interdependent. Thus, a chink in one aspect of operations can cause the entire system to grind to a halt. For example, should a delivery of raw materials or parts fail to arrive due to an accident or disaster, a company will have to close down its assembly line while waiting for the next shipment. Even a few days of delay can cost companies a significant amount of sales. And because a company employing the JIT system will typically have eliminated its warehousing and fulfillment components, this means it won't have available stocks to fall back on should this occur.

Companies can still achieve their goals of bringing down costs and maintaining efficiency without compromising their supply chain by outsourcing warehousing and fulfillment. Enlisting a third party logistics provider not only eliminates the need for additional space, equipment, and manpower, but also allows companies to access expertise and technology otherwise unavailable to them at a significantly lower cost.

Third parties that offer warehousing and fulfillment services will typically be able to provide just the services a company needs. These services cover various aspects of the supply chain, including but not limited to inventory management; assembly; pick, pack, and ship services; and automated packaging.
Those that use the latest technology can even go beyond simply providing warehousing and fulfillment. Using the latest technology, they can integrate their systems with client websites to begin processing the order as soon as each transaction is made. Some solutions may also allow them to better process bulk or internal orders.

Unlike the JIT system, outsourcing warehousing and fulfillment not only helps to streamline operations; with the right service provider, it can also add value to the entire operation.

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Lean Cell Manufacturing History and the Modern ERP Software Package in Globalization

When industrial visionaries create improvements in manufacturing technique far ahead of their time, reluctance to change is the common response of managers comfortable with traditional, production methods. From Adam Smith's eighteenth century "pin factory" to Frederick Taylor's "scientific management" in the nineteenth century, and Henry Ford's twentieth century "mass production" to Taichi Ohno's contemporary "pull production" model, shop floor operation has been in constant evolution.

In all of these periods of change, it has often been the early adopters of emerging manufacturing techniques who have enjoyed great benefits over their competitors.Those benefits often result in increased market share, profit margins, or both, from enhanced efficiencies in the manufacturing process. In many job shops, make-to-order, or mixed mode manufacturers, these efficiencies in production are found in the elimination of waste-a technique commonly referred to as lean production. It was Ohno who, in the post-war period of the late 1940's, developed the lean system as an operations management philosophy centered around reducing waste in the manufacturing system. 

His idea was to make the process more efficient and less expensive by producing a higher quality product in less time.By the 1980's, the lean production concept in manufacturing replaced older batch production methods that sought to save on the number of times set-ups needed to be made in machinery. These batch production techniques created large (though wasteful) inventories that led to inventory value depreciation, wasted cash flow, and the need for warehousing. Instead, lean operations began to be employed that limited work-in-progress (WIP) inventories through the use of just-in-time (JIT) pull production controls.

With JIT pull production, finite scheduling of resources could finally be engaged to ensure there was adequate space downstream before additional inventories would be processed. By the late 1990's, JIT production techniques began to finally realize the overarching goals of continuous improvement leaning through the elimination of wasted inventory in the system.

Today, these refined lean principals interface well with the rise of total enterprise resource planning (ERP) software packages that integrate all plant departments and functions onto a single computer system that serves all those departments' particular needs.

ERP eliminates individual computer systems in areas such as manufacturing, finance, HR, and shipping. Instead, they are replaced with a single unified software program that is subdivided into several software modules dedicated to each enterprise area. Now, all departments are linked together with the same real-time data. Like the lean principals that it serves, accountability, responsibility and communication are also primary concepts at the heart of the ERP package.

To enhance ERP applications, the lean cell technique is increasingly employed to build efficiencies into the system. With the lean cell concept of production, several operators work in proximity to each other with the principal goal of reducing the unnecessary movement of materials. In a lean cell configuration, everything for assembly is built into the cell and material goes right through the floor-no more maintenance of depreciating raw materials inventory.

Lean cell technique results in the batching of several orders together to buying to the job or project. Then as soon as the order comes in it goes in, it goes straight to the job. You build to a shippable inventory or wait to you get enough orders to make the cell concept viable as a cost savings application. The ultimate benefit is that in lean cell techinque extremely fast lean set-ups are achieved.

In tandem, lean cell and ERP work well in the system flow model of manufacturing now emerging in the 2000's. In system flow models, high volumes of unit production (as repeat items) flow through the plant with ease by the use of lean cells-collections of workstations that physically tie together in a single location all the equipment, materials, and tools, used in the fabrication of an item. With the modern lean cell, set-up times are significantly reduced to ten minutes or less, if not eliminated altogether.

So, from Ohno's 1940's development of lean principals to the contemporary applications of lean in fully integrated ERP operations in the late 2000's, the history of waste reduction in the manufacturing process has been the brass ring for every manager. Modular, robust manufacturing software is now the name of the game when it comes to bringing together all of the elements in manufacturing and the creation of the lean cell production model. In other words, the marriage of ERP software packages and lean operation principals are a match made in manufacturing heaven, and one that makes manufacturers more competitive in the ever-increasing movement toward globalization.

Increase your productivity by using manufacturing software solutions. Talk to our friendly customer service Alenu Group today at +65 6884 5030

ERP in Manufacturing Inventory Software Solutions

Major corporations and manufacturing companies come to mind when one hears of ERP provided by manufacturing inventory software. While major corporations enjoy a great deal of the benefits of using ERP software, small and mid-sized companies benefit from the software especially when the company is ready to expand. ERP software keeps processes in finances, sales and service, and human resource departments organized with a computer or a network of telecommunication devices.

ERP stands for enterprise resource planning; it is an integrated system that operates like an extensive collection of file cabinets for a single company. Implemented in software, this keeps the manufacturing inventory, the flow of resources, and the operations within the company in a comprehensible record with hardware including a clear printer. Customers, management, and employees move quickly and are satisfied with the services.

In any company, perhaps the most important aspect of operations is the financing department. ERP provided by manufacturing software solutions can update the changes within the monetary flow within the company-how much is spent for which and how much is earned within a given period. The software has a filing system that manages the fixed assets, budgeting, and cash management. In the inventory of goods, the purchasing and ordering of goods is also organized by the system.

In manufacturing enterprises, the software can handle the workflow management, quality control, and the manufacturing process of the products. The progress and workflow is updated in the software in real time, so the personnel in charge can efficiently supervise the quality of work each day. The software also calculates the bill of materials, work orders, and capacity of the inventory. There is also the flow of the inventory as they are delivered into the supplies for associated companies for processing.

The software can also handle records updating the human resource departments. This assists the human resource department in recruiting employees, training them, and their payroll. This makes it easier for the management to know who performs well; in effect, the employees tend to become better encouraged to work well when they know they are being monitored. The software also assists the company when it comes to the benefits for their times of need-sick leave, maternal or paternal leave, or health insurance.

These are just some of the manufacturing software solutions that can improve the operations in any company. Major corporations, as well as small businesses, can benefit from this software. Financing, human resource, and manufacture are just among the aspects in business that the ERP software can manage.

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