There was a new LANSA case study released yesterday that really grabbed my attention. LANSA is a Chicago-based developer and IT services provider that is primarily known for its solutions for legacy systems users who generally want to upgrade their systems but are not ready to shake the entire company up with an implementation of brand new software. Companies may feel that after many years their existing system is tuned to the company’s needs and works like a well-oiled machine, whereas there’s no guarantee a new system would work at the same level. Also, new upgrades and development tools of legacy systems can sometimes be so advanced that making a replacement with a new software is unnecessary. Read the rest of this entry »

Part 1 of this blog series started with a discussion of the fact that the ability to sense demand and become a demand-driven (responsive) business is more than just the catch phrase du jour: it has become a recipe for survival. For the past few decades, the providers of a multiplicity of by-and-large integrated manufacturing software solutions have been offering help for embattled manufacturers. From fully integrated business management systems such as Enterprise Resource Planning (ERP) down to more focused modular plant-level solutions, including Manufacturing Execution Systems (MES), and Advanced Planning and Scheduling (APS) systems, manufacturers have been perplexed by how to best combine and deploy these options and islands of information.

My posting concluded that ERP systems are good for long-term planning and transactional accounting, but not necessarily appropriate for scheduling and execution on the shop floor. Only those companies that have infinite (or lots to spare) capacity, low product mix, high customer tolerance for long order lead times, and low inventory holding costs could get by using ERP for scheduling.

In other words, not many manufacturers can be fully satisfied by ERP. The next logical question was whether Lean Manufacturing practices could alleviate the abovementioned ERP shortfalls. Part 2 then acknowledged that lean ERP capabilities are well suited for producing parts with level demand (so-called “runners” in Preactor’s apt lingo) but not necessarily for parts with variable demands and make-to-order (MTO) traits (so-called “repeaters” and “strangers”).

This realization has created a coming-of-age environment for APS systems, whose first generation of products a decade ago has had their share of mixed results. The final part of this series will analyze how APS, as a manufacturing glue of sorts, relates to ERP, lean manufacturing, and MES. Is there a value proposition for integrating all these disparate systems? 

Read the rest of this entry »

Part 1 of this blog series started with the fact that the ability to sense demand and become a demand-driven (responsive) business is more than just the catch phrase du jour: it has become a recipe for survival. Every sensible enterprise is on a quest to deliver on time and as quickly as necessary, with minimum inventory (and working capital), and the highest necessary utilization.

For a few decades, the providers of a multiplicity of by and large integrated manufacturing software solutions have been offering help for embattled manufacturers. From fully integrated business management systems such as Enterprise Resource Planning (ERP) down to more focused modular plant-level solutions including Manufacturing Execution Systems (MES), and Advanced Planning and Scheduling (APS) systems, manufacturers have been perplexed with how best to combine and deploy these options and islands of information.

The article concluded that ERP systems are good for planning and transactional accounting purposes, but not necessarily appropriate for scheduling and execution on the shop floor. Only those companies that have infinite (or lots of spare) capacity, low product mix, their customers’ tolerance for long order lead times, and low inventory holding costs could get by using ERP for scheduling.

In other words, not many manufacturers can be fully satisfied by ERP. The next logical question is whether Lean Manufacturing practices can alleviate the abovementioned ERP shortfalls. 

Read the rest of this entry »

Especially in today’s globally competitive and recessionary environment it is imperative that companies further eliminate waste, become leaner, and become more agile to respond to customer’s demand. The ability to sense demand and become a demand-driven (responsive) business is more than just the catch-phrase du jour: it has become a recipe for survival. Everyone is on a quest to deliver on time and as quickly as necessary, with minimum inventory (and working capital), and highest necessary utilization. 

Read the rest of this entry »