PCB007 Magazine

PCB-Jun2018

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80 PCB007 MAGAZINE I JUNE 2018 What program have you selected? Let's look at different supply chain programs and their methodological framework. Lean Manufacturing Lean manufacturing is focused on preserv- ing value with less work. The focus is on re- duction of the original Toyota seven wastes to improve overall customer value, but there are varying perspectives on how this is best achieved. Two aspects include: Reduction of time: Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs. Reduction of total costs: To minimize cost, a company must produce only to customer de- mand. Over-production increases a company's inventory costs because of storage needs [3] . Just in Time Just in Time (JIT) is a production strategy that strives to improve return on investment by reducing in-process inventory and associated carrying costs. To meet JIT objectives, the pro- cess relies on signals (Kanban) between differ- ent points that are involved in the process and tell production when to make the next part. JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency. To achieve continuous improvement, key areas of focus could be flow, employee involvement, and quality [4] . Kanban This is a method for managing knowledge with an emphasis on JIT delivery while not overloading the team members. In this ap- proach, the process, from definition of a task, to delivery, to the customer, is displayed for participants to see as team members pull work from a queue [5] . Consignment Stock With consignment stock, a supplier places its stock in the customer's warehouse and the ownership of the consignment stock is passed to the customer when the stock is used (issued or sold in the case of a shop). Unused stock in a warehouse may be returned to the sup- plier when it concerns standard manufactured products. With customer-specific items, agree- ments concerning returning products should be negotiated [6] . Continuous Replenishment Program (CRP) CRP includes the same aspect as Lean manu- facturing from the perspective of warehousing and handling. Vendor Managed Inventory With vendor-managed inventory, the buy- er of a product (business) provides informa- tion to a supplier (supply chain) regarding the sale of a product, and the supplier takes full re- sponsibility for maintaining an agreed invento- ry of the material, usually at the buyer's con- sumption location (e.g., a store) [7] . Irrespective of the program selected, you are quickly presented with the same challenge: How can a rigid and homogenous manufactur- ing process system address non-standardized products that are unique and customer-specif- ic? If the systems are designed for optimization and volume production, does that imply they cannot handle non-standardized products? Non-Standard Products Supply chain programs are designed to re- duce the impact on inventory, space, lead time and quality defects. These elements are anal- ysed here and demonstrate that this is not ap- plicable for non-standard products. Inventory Supply chain programs focus on the idea of a small stock with continuous replenishment of orders, often divided into a staged ware- house. As soon as your demand for produc- tion increases or decreases, you adjust the cur- rent and planned orders, making sure the in- ventory stays at a minimum. Even though you lose out on the advantage of placing volume orders and you will probably get some upset suppliers, you still end up saving money. Or do you? Studies show that your suppliers will start to adapt to this kind of order frequency

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