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 https://www.youtube.com/watch?v=dGBIFL_RXkw&noredirect=1 and of course take a look at our total control of materials solution.