The document discusses approaches to implementing lean manufacturing through warehouse execution systems. It outlines some traditional approaches that fail, such as lack of management support and ineffective communication. Root causes of lean gaps are identified as reactionary decisions, uncertain workforces, shifting supply chains, and a lack of clear direction. The document recommends taking a lean approach through performance management to eliminate chaos and allow identification of problems and opportunities. Real-time information systems are also recommended to manage operations, customer demand, supply chains, workforces, and logistics. RFID, wireless mobile computers, barcoding, and dashboard technologies can help provide this real-time information. Overall, the key is to set goals and objectives and then continuously monitor and manage performance across the organization

1. Approaching Lean Manufacturing
with Warehouse Execution Systems
Software, Hardware and Business
Concepts

2. Presented by:
Michael Armanious

3. Retrospective
• Has your company implemented lean
technology based concepts?
• Are you getting all you expected from it?
• Do you see other organizations achieving
greater productivity, profitability and market
share from their strategies?
• Do you perceive room for improvement?

4. Real Time Process and Function
In order to achieve the proper strategy one
must evaluate the entire enterprise to achieve
optimal execution.

5. Traditional Approaches
•
•
•
•
•
•
•
•
Lack of management support
Poor metrics
Not enough training
Resistance to change
Ineffective communication
Not able to sustain initial efforts
No buy-in from supervision
No buy-in from workforce

6. Traditional Approaches
• Not involving stakeholders in the
planning process (primary cause of
resistance)
• Not considering the entire organization
as a system
• Not understanding the real purposes for
the initiative

7. Root Causes for Lean Gap
•
•
•
•
Reactionary Decisions
Uncertain workforces looking for leadership
Shifting supply chains
No clear direction, fuzzy and changing targets

8. Reactionary Decisions
• The need to hit quarterly numbers
• The need to appease shareholders’ current
expectations
• The need to hit analyst targets
• Focusing on short term goals

9. Reactionary Decisions
Manufacturers
Capital Equipment
investment
Information Technology
Process Improvement
Initiatives
Business as Usual

10. Uncertain Workforce
• Coaching and communication hit rock bottom
with downsizing
• Relationships are severed between employee
and management
• Employee becoming more anxious
• Undefined or unclear roles for employees

11. Shifting Supply Chains
• Key vendor failure of critical raw materials or
components
• Major customers cancel or slash orders
• Cash flow management as only measurements
• Main problem becomes a glut of inventory

12. No Clear Direction
• Reactionary, short term decisions that
do not consider what might lie
beyond the horizon
• Employees without guidance
• Supply chain without collaboration
• Main problem becomes a glut of
inventory

13. NO CLEAR DIRECTION
Regardless of current
conditions, manufacturers need the
ability to see, react, and change
instantly– while adhering to the goals
and objectives that guides them.

14. What needs to be done

15. Lean through Performance Management
Methods, systems and personnel that
enable an organization to set goals and
the assess progress toward those goals on
an individual, department, and
companywide basis.

16. Performance Management
Manufacturing Processes and Objectives
Eliminates chaos and takes
the guesswork out of
strategic planning, allowing a
manufacturer to continually
identify problems and
uncover opportunities across
the entire organization

17. Lean Checklist
• Strategic vision in place
• Performance management readied
• Process and functional targets monitored and
acted upon
• Companywide goals and objectives monitored
and acted upon

18. Real Time Information Systems
•
•
•
•
•
Operations management
Customer demand management
Supply chain management
Workforce management
Logistics management

19. Operations Management
How are operations performing, day-in, day-out, hour
by hour?
• Computer based customized dashboard tracking key
performance indicators (KPIs)
–
–
–
–
Historical KPI analysis
Links to reports
Day to day tasks
Standardized work instructions
• Pushing the right information in front of the right
managers at the right moment

20. Operations Management
•
•
•
•
•
•
•
Solve problems at an early stage
Reducing the need to escalate problems
Reducing missed production targets
Reducing missed delivery targets
Improving the quality of production
Reducing equipment failure
Increasing revenue

21. Customer Demand Management
Manufacturers need real-time customer information
such as:
• Accessing customer histories
• Accessing customer buying patterns
• Aligning sales efforts to current production
capabilities
• Efficiently translate demand into level production
schedule
Real time information can only be accomplished by
capturing the data as transactions occur

22. Supply Chain Management
Manufacturers monitor their supply base for
productivity improvements and hidden costs:
• Identifying supplier risks as early as possible
• Deliverability of raw/component materials on time
• Maintaining consistent raw/component quality
• Assessing financial stability of suppliers
EDI or an electronic integration with your suppliers
would increase visibility for both the supplier and the
manufacturer allowing for proactive responses

23. Workforce Management
Manufacturers recognize that they must develop people
in order to develop better products and processes:
• Provide necessary training for the technology and
software being implemented
• Placement of the correct resource for the proper task
• Strive for productivity improvement through incentives
• Foster the right amount of pressure and urgency
Workforce management can only be achieved with proper
tracking software with flexible process mapping making
the business and product flow second nature to the
workforce.

24. Logistics Management
Manufacturers can damage customer satisfaction and
profits if logistics performance is poorly managed
• Efficient design of a warehouse and distribution network
• Freeing up cash by better coordinating inventories from
suppliers through to customer
• Accurately hitting lead times and avoiding late-delivery
charges
• Reducing transportation costs
• Flawless compliance with customers, suppliers and
regulating agencies such as FDA, USDA
Monitory of your logistics process requires the capture of
real time data translated into useful information

25. Implementing Lean Manufacturing
Lean on the plant floor through flow manufacturing
using technology:
• Work moves through the plant in predetermined
quantities (lots or batches)
– Arriving at the work area
– Waiting for other work to complete
– Moving on as a unit to the next work area
Work is scheduled through production lines that
contain a variety of resources arranged efficiently and
tracked using hardware and software technologies.

26. RFID Implementation

27. Wireless Mobile Computers

28. Data Rich Barcoding in Manufacturing

29. Dashboard Technology

30. Summary
• Focus on identifying your own goals—one that articulates
the value your company provides to customers and its
competitive advantages in today’s volatile markets
• Cascade those few, key objectives that support the goals
throughout the organization, translating them into
meaningful goals for every function, department, and
employee.
• Monitor and manage performance vertically within
processes and functions and horizontally across the
organization.
• Do it all again, over and over, recalibrating the organization
based on the latest planning, goal-setting, failures, and
achievements

31. Contact us today
Demo
800.933.2839
marketing@datexcorp.com
Web Chat
Datex Corporation
@Datexcorp