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Making Headway with Work-In-Process (WIP)
Shoplogix – Real-time Performance Improvements Making Headway with Work-In-Process (WIP) PR9.NET May 30, 2006 - Canada, Oakville, ON - According to Steve Celestini, Shoplogix VP Strategy and Chief Technical Officer, "Monitoring work-in-progress increases real-time visibility with automated status notifications on semi-finished goods throughout the production process. Plantnode reduces the likelihood of material shortages, minimizes routing time, and allows for reductions in total inventory." Without Plantnode • Best estimates of real-time material consumption rather than actual based on manual inputs • Purchasing and material handling become aware of material consumption when the supervisor notices stock levels are below the 're-order point' • Large buffers of inventory in place to minimize stock outs (ex. Increase re-order point) RESULT: • Greater probability of unplanned downtime and idle time from stock outs or material shortages • Dependency on manual processes to increase reporting accuracy With Plantnode • Improved Workflow: Minimizes waste between stations or work cells due to better coordination of processes with a clearer understanding of pace and completion times at each independent operation. • Accurate Production Counts due to real-time monitoring at the machine level allows tracking for 'actual' production rather than best estimates. • Increased Machine Availability: Accurate monitoring coupled with a clear understanding of the pace of production ensures machine availability for the next stage in production. • Increased Lead Times: Email alerts are sent to material handling and purchasing to provide advanced notice of material consumption. Reorders are just in time to reduce inventory and eliminate material shortages. • Accurate Re-ordering: Automated notifications provide the purchasing department with specific re-order requirements and material consumption rates to increase accuracy of re-fill orders with suppliers with the ability to gauge reorders based on anticipated needs. RESULT: • Less Probability of Down time and Idle time: Dramatic decrease in lag time between processes for material handling, ordering, and delivery with less chance of line stoppages through email alerts and warnings generated real-time based on actual production. • Decreased Inventory Carrying Costs due to better inventory management – reduced inventory buffers because of more accurate consumption monitoring and automatic email notifications to increase response times President and CEO Kevin Dwyer asserts, "Plantnode streamlines work-in-progress and increases efficiency because production no longer stops due to material shortages, less supervision time is required due to automated task monitoring, and total carrying costs are decreased as a result of lower levels of inventory." # # #
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