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The Business Of Supply Chain Issues

At APEX this year, I was talking about material inventory integrity across the factory shop-floor and warehouse infrastructure, and the huge effect that it can have on the bottom line of any manufacturing business. You can see this on YouTube:

The ERP system is one of the largest investments made in electronics manufacturing. It is responsible for managing the most expensive and most critical production resource, materials. Unfortunately, ERP continues to have great difficulty in keeping track of materials beyond the walls of the warehouse.

As a result of many issues in production, inventory accuracy cannot be maintained, huge quantities of materials remain “lost” on the shop-floor, requiring more and more excess buffer stock to be ordered by MRP in order to keep the plant running, avoiding unexpected internal material shortages. Inventory accuracy can be as low as 60% in a high mix environment and only 80% in high volume, no wonder then that literally millions of dollars of materials have to be written off the books when the inevitable manual stock count takes place.

Traditional MES implementations have limited success to help these issues, adding many expensive manual procedures to the operation.

Valor Materials Management brings lean solutions as enhancement to ERP. Managing individual reels and storage areas, automated guided logistics using PDA. Lean protocols such as Kanban and Just In Time, Valor provides the ultimate missing piece in the manufacturing supply chain, linking right down to the live machine level, automatically collecting and analysing the key critical data needed.

If you have an interest in shop-floor material management and the excess materials issues, please take a look at the interview and of course take a look at our total control of materials solution.

Material Turns, Inventory Accuracy

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About Michael Ford

Michael FordMICHAEL FORD SENIOR MARKETING DEVELOPMENT MANAGER, VALOR DIVISION, MENTOR GRAPHICS Michael started his career as a computer software and hardware engineer in 1982. Working for Sony in the UK, Michael became one of the first successful adopters of computer technology into the manufacturing shop-floor, going on to manage in Japan Sony’s global Lean Manufacturing solutions. Joining Valor Computerized Systems in 2008 gave Michael the opportunity to apply his experience into the main-stream of the industry. With almost 30 years’ experience, Michael’s key strength is the instinct of finding solutions and opportunities where there had been challenges and problems. Michael is currently working as part of the Marketing Development team within the Valor Division of Mentor Graphics, focussing on the realisation of real and practical solutions for manufacturing based on the application of Lean Thinking, end to end, from design through the entire manufacturing process. Visit The Michael Ford Manufacturing Blog

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