Resources for inventory management

Improve Performance with a Storeroom Makeover

2011-12-28T09:35:54-06:00

If you’ve ever watched the TV show “Extreme Makeover: Home Edition,” you may have gotten a little teary-eyed as the narrator tells the story of the family’s plight. Perhaps your eyes got a little misty again at the end of the show as the bus moves forward and everyone cheers when the family sees their new home filled with features they need to improve their lives.

It would be understandable for managers or corporate leaders to get a little emotional when they realize the excess and waste in their maintenance, repair and operations (MRO) storeroom and operating practices. Reviewing the waste in a single storeroom can be chilling. If there are multiple storerooms, the investment and waste can be staggering. In a recent survey of Grainger Industrial Supply’s clients, respondents indicated that 73 percent of customers believe they have too much inventory, 87 percent see substantial cost-savings opportunities in their storeroom inventory “makeov

The Hidden Costs of Manual Tool Tracking

2011-10-26T08:27:48-05:00

I recently had a fascinating discussion with a friend who performs materials inspections for one of the world’s largest suppliers of aircraft parts and assemblies. His company had just switched from manual materials tracking to radio-frequency identification (RFID)-based tracking, and he calculated that the changeover had already saved them hundreds of thousands of dollars — maybe more.

Before they adopted RFID, materials frequently left his inspection facility and failed to make it to their intended destinations. Sometimes they were tracked down, and other times orders valued at as much as $300,000 vanished forever. RFID has entirely solved this problem.

This is an excellent example of the savings RFID can bring to a large operation. Although his story relates to materials inventory, tool tracking offers similar opportunities to reduce losses.

Material losses are easier to measure. When one-third of a million dollars’ worth of composite fabr

Royal Bearing Acquires GM Plant Inventory of Bearings

2011-09-01T16:35:04-05:00

Royal Bearing Inc. recently announced that it has acquired the entire inventory of unused machinery bearing spares of the General Motors transmission plant in Ypsilanti, Mich., which closed its doors at the end of 2010. Royal Bearing now has fully integrated the complete inventory purchase into its extensive bearing database.

Acquired during the four-day auction at the 5-million-square-foot Willow Run plant, which was originally constructed as a B-24 bomber manufacturing facility during World War II, were a broad range of bearings from manufacturers such as Timken, Fafnir, Sealmaster, McGill, NTN and SKF, including many precision bearings.

“We are very pleased that we were the successful bidder in the GM purchase,” said Clarence Hopkins, president of Royal Bearing Inc. “Since the GM plant is so close to our warehouse in Livonia, we were able to incorporate the bearings into our existing inventory very quickly and make them available from our Michigan br

Husqvarna Turning to Lean Manufacturing

2011-04-08T14:10:29-05:00

Stainless steel hoist available for clean rooms

2011-04-05T16:21:55-05:00

Philadelphia area manufacturing activity continues to expand

2011-01-21T08:41:36-06:00

Results from January's Business Outlook Survey suggest that the Philadelphia regional manufacturing activity continues to expand. The diffusion index of current activity edged down slightly to 19.3 in January from a revised reading of 20.8 in December. In the special questions, firms were asked about the factors that are influencing their hiring plans.

Trico Lift closes on Modern Group asset deal

2011-01-19T13:14:26-06:00

Trico Lift, a privately owned full-service aerial lift company based in New Jersey, on January 19 announced the final closing of a unique asset purchase agreement with the Modern Group Ltd., one of the nation’s largest industrial equipment distribution firms.

‘Pruning’ your inventory: Setting MRO stocking levels

2011-01-10T13:36:44-06:00

Is three widgets enough? Is six gizmos too many? Author Doug Wallace often get asked: “How do we determine the right stocking levels for our parts?” People want to know what the “magic formula” is. Unfortunately, the answer often is: “it depends.” Throughout this article, Doug will address some of the considerations involved in making these difficult decisions and then suggest one method for helping to determine the appropriate stocking levels for your own materials.

Tips on maintaining the maintenance spare parts database

2011-01-05T14:10:50-06:00

Groups really struggle with managing their spare parts data due to years of neglect and lack of ownership. On the initial CMMS implementation, the data may have been properly described with a noun/qualifier/qualifier approach for the short text description. As time passes, people move on and someone else takes over the database. They may not receive training or understand the naming concepts. Soon, the users of the data can’t find the parts housed in the storeroom due to the way items have been named. The storeroom inventory value goes up, too, as parts become duplicated since no one could find the stocked item. How do you straighten this mess out?

U.S. non-manufacturing sector grew in December; NMI improves to 57.1

2011-01-05T13:49:16-06:00

Economic activity in the United States non-manufacturing sector grew in December for the 12th consecutive month, say the nation's purchasing and supply executives in the Institute for Supply Management's latest Non-Manufacturing ISM Report On Business. The report was issued January 5 by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee.

ARC examines MRO inventory rationalization and optimization

2011-01-04T09:24:36-06:00

Inventory optimization directly affects C-suite metrics by providing a positive impact on the P&L statement (lower inventory carrying costs and reduced spend) and balance sheet (less inventory and increased cash). Making your boss look good is always a good career move.

ISM: U.S. manufacturing continues growth trend; PMI moves 0.4 points higher to 57.0

2011-01-03T09:12:22-06:00

Economic activity in the United States manufacturing sector expanded in December for the 17th consecutive month, and the overall economy grew for the 20th consecutive month, say the nation's supply executives in the Institute for Supply Management's latest Manufacturing ISM Report On Business. The report was issued January 3 by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee.

Managed inventory services save food processors time and money

2010-12-16T09:14:22-06:00

Severe economic conditions facing most every manufacturer in North America have food and beverage plants racing to reduce costs and improve in-plant efficiencies. Many in the industry haven't been sheltered from this downturn. In addition, ensuring that they have the right outsourcing processes and parts providers is a major area of focus. Barnes Distribution, a leading full-service distributor of maintenance, repair, operating and production supplies, is providing proven solutions to its food and beverage customers facing these tough economic times.

U.S. factory orders dropped 0.9% in October

2010-12-03T09:28:46-06:00

New orders for manufactured goods in October, down following three consecutive monthly increases, decreased $3.6 billion, 0.9 percent, to $420.1 billion, the U.S. Census Bureau reported on December 3. This followed a 3.0 percent September increase. Excluding transportation, new orders decreased 0.2 percent.

U.S. manufacturing expanded in November; PMI fell 0.3 percentage points to 56.6

2010-12-01T09:24:35-06:00

Economic activity in the United States manufacturing sector expanded in November for the 16th consecutive month, and the overall economy grew for the 19th consecutive month, say the nation's supply executives in the Institute for Supply Management's latest Manufacturing ISM Report On Business.

Got hoarders? Squirrels? How to overcome hidden stores

2010-11-29T13:57:22-06:00

If you spend much time opening cabinets, drawers and looking behind locked doors in facilities and plant sites, it is almost guaranteed that you will come across someone’s stash of parts and consumable materials. When you begin a maintenance best practices implementation or storeroom improvement effort, one of the first things is to go and collect up all of those parts and materials to put them back into the storeroom. After all, there is a lot of money just laying around out there in those “hidden stores” locations, right?

Inventory optimization in lean manufacturing environments

2010-11-29T07:58:15-06:00

Companies adopt lean manufacturing techniques in order to reduce waste, remove cost, and improve agility — but it doesn't eliminate buffer stocks! This video explores how inventory optimization makes "lean" successful.

Industrial distributor MSC acquires Rutland Tool & Supply

2010-11-10T09:18:57-06:00

MSC Industrial Direct Company Inc., one of the largest direct marketers and premier distributors of metalworking and maintenance, repair and operations (MRO) supplies to industrial customers throughout the United States, on November 10 announced that it has signed a definitive agreement to acquire the assets of Rutland Tool & Supply Company, a subsidiary of Lawson Products Inc., for approximately $11 million in cash. The acquisition is expected to close in the fourth quarter of calendar 2010, subject to customary closing conditions. The company will finance the acquisition using available cash, and expects the acquisition will become accretive to earnings in late-fiscal 2011 or early-fiscal 2012.

Best practices for storeroom cycle counting

2010-11-01T15:58:15-05:00

Doug Wallace, materials management subject matter expert at Life Cycle Institute, describes the basics of an effective cycle counting program, and explains how it can benefit your storeroom processes and improve the reliability of your inventory balances.

Bad part descriptions can gum up storeroom processes

2010-10-22T09:45:22-05:00

When it comes to storerooms and materials management, one of the struggles that Jeff Shiver repeatedly sees in organizations is the issue of effective part descriptions, especially the short descriptions. This food industry veteran says that it is especially true when you consider the domino effect these descriptions can cause.

Is your MRO storeroom a productivity trap?

2010-09-29T08:30:00-05:00

Forty to 50 percent of all maintenance departments have an "open" storeroom, where the "honor system" is in effect. Is this the right thing to do? The author of this article says "no". Allowing mechanics to focus on equipment maintenance and reliability while having storeroom personnel manage the materials will not only optimize the productivity of the workforce, but it can also have other significant benefits.

Backgrounder on Toyota Material Handling USA

2010-09-28T14:00:33-05:00

Celebrating more than 40 years of established operations in the United States, Irvine, Calif.-based Toyota Material Handling USA Inc. (TMHU) has been the No. 1-selling forklift supplier in the U.S. since 2002 and currently offers a full line of high-quality lift trucks sold under the Toyota brand.

Sales of durable goods in July improved 0.5 percent vs. 2009

2010-09-10T09:55:54-05:00

The U.S. Census Bureau announced September 10 that July 2010 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $350.1 billion, up 0.6 percent (+/-0.5 percent) from the revised June level and were up 12.7 percent (+/-1.6 percent) from the July 2009 level. The June preliminary estimate was revised upward $600 million, or 0.2 percent. July sales of durable goods were up 0.5 percent (+/-0.9 percent) from last month and were up 14.8 percent (+/-1.6 percent) from a year ago. Sales of machinery, equipment and supplies were up 3.3 percent from last month. Sales of non-durable goods were up 0.6 percent (+/-0.7 percent) from last month and were up 10.9 percent (+/-2.3 percent) from last year.

Report: Commonly purchased maintenance, repair and operating goods cost more

2010-08-17T08:48:05-05:00

Based on the results of the 2010 CAPS Research survey that measures the cost of a market basket of commonly purchased MRO Goods, the total market basket costs are about 5 percent more this year than last. Costs associated with purchasing maintenance, repair and operating goods, commonly referred to as MRO goods, can account for a large percent of a company’s annual spend. The recently released the 2010 market basket report looks at the average and median costs of 45 items, each of which is identified by a commonly referenced part number. Although the costs are up for most of the items listed, more than 80 percent of the survey participants reported they purchased the items identified on the survey by name and unique part number rather than equivalent items. This is the third year in a row that has shown an increase in market basket’s total cost.

Northrop Grumman receives award for FOD control and tool tracking

2010-08-11T13:42:50-05:00

CribMaster user Northrop Grumman Technical Services received a PM100 award from Managing Automation for its comprehensive tool control program. This video interviews the key players from WinWare Inc. (the makers of CribMaster), Stephen Gould Corporation (the integrator involved) and Northrop Grumman's Tod Bushnell, who led the project.

New Crown forklift heats up productivity in cold temperatures

2010-08-11T09:08:48-05:00

Crown Equipment Corporation, one of the world’s leading forklift manufacturers, today introduced the Crown SR 5000 Series moving-mast reach truck for cold-storage environments. The Crown SR 5000 features a cold store cabin that allows operators to remain productive in harsh environments where temperatures can reach as low as minus-20 degrees Fahrenheit. The truck is designed as a perfect fit for food and beverage applications where lift heights up to 450 inches are often required.

U.S. non-manufacturing sector gained ground in July; index rises 0.5 points to 54.3

2010-08-04T12:57:17-05:00

Economic activity in the United States non-manufacturing sector grew in July for the seventh consecutive month, say the nation's purchasing and supply executives in the Institute for Supply Management's latest Non-Manufacturing ISM Report On Business.

Applied Industrial Technologies acquires MRO products distributor

2010-08-03T14:03:32-05:00

Applied Industrial Technologies on August 3 announced it has acquired the assets of UZ Engineered Products of Cleveland. UZ is a distributor of high-quality products for maintenance, repair and operational needs. The business was acquired from State Industrial Products Corporation, also located in Cleveland. Terms of the sale were not disclosed.

Report: RFID technology's potential opens up numerous application sectors

2010-08-03T10:14:11-05:00

With several radio frequency identification (RFID) initiatives getting underway across diverse verticals in the South East Asian and Australia New Zealand region, RFID is all set to live up to its billing as a breakthrough technology. In line with this technology's capabilities to enable greater security and efficiency, more end users are considering it a tool that will help them gain a competitive edge.

ISM: U.S. manufacturing grows at slower pace; PMI falls 0.7 points to 55.5

2010-08-02T09:38:48-05:00

Economic activity in the United States manufacturing sector expanded in July for the 12th consecutive month, and the overall economy grew for the 15th consecutive month, say the nation's supply executives in the Institute for Supply Management's latest Manufacturing ISM Report On Business.

Researcher says companies are rebuilding inventories

2010-07-26T16:57:47-05:00

“A good sign for our economy is that companies are slowly beginning to rebuild inventory,” says Julie Niederhoff, assistant professor of supply chain management in the Whitman School of Management at Syracuse University. “But the recession walloped a number of suppliers – those that are still in business worked hard to reduce their inventory investments and free up capital and now don’t have the goods they once did to pass on to their clients.

Airbus lauds suppliers for performance excellence

2010-07-20T13:35:56-05:00

On the occasion of the annual Airbus Suppliers Awards ceremony held during the Farnborough Air Show, Didier Lux, Airbus executive vice president for customer services, presented awards to recognize those Systems & Equipment suppliers who have achieved outstanding levels of customer satisfaction. To determine the shortlist, the rating process included inputs from 117 participating Airbus operators – more than ever before. The announced winners are as follows:

MIT-modified lift truck to perform unmanned robotic pallet manipulation

2010-07-19T15:42:59-05:00

Routine use of robotic lift trucks is not far off, according to Toyota Material Handling USA Inc. (TMHU). Innovative lift truck applications involving unmanned operation are being increasingly explored for high-risk work environments, such as those in the military. Over two days this June, the U.S. Army Logistics Innovation Agency (LIA) hosted demonstrations at Fort Lee, in Virginia, of an MIT-developed prototype unmanned robotic Toyota lift truck capable of locating, lifting, moving and placing palletized supplies within an existing outdoor supply depot. The demonstration included review of the robot's safety features, sensor capabilities and human-robot interface based on voice and gesture commands.

Quality assurance in MRO materials management

2010-05-17T13:32:13-05:00

Engineers, buyers and others often go to great lengths and significant expense to design and purchase new equipment, critical spares or other key maintenance, repair and operations (MRO) materials. Yet many times, a critical element of the procurement process – quality assurance – is overlooked or sub-optimized.

H.J. Heinz recognized for mastering its supply network

2010-05-07T14:04:09-05:00

Sterling Commerce, an AT&T Inc. company, announced May 7 that H.J. Heinz Company, one of the world's leading marketers and producers of healthy and convenient foods, has been named to the sixth annual Progressive Manufacturing 100 (PM 100) by Managing Automation Media. The prestigious listing recognizes the top 100 manufacturers who have achieved business transformation through the use of technology across eight categories. Heinz topped the Supply Network Mastery category in the area of Supply Chain Execution for its efforts to transform its logistics operations by creating synergies between its raw goods and finished goods sides of its business.

United Natural Foods warehouse gets environmental makeover

2010-05-04T13:11:41-05:00

Air Products' hydrogen technology will fuel 65 fuel cell-powered lift trucks that will be mobilized at United Natural Foods' distribution facility moving consumer goods on a daily basis. The equipment for the 352,000-square-foot Sarasota facility, which serves as a regional distribution hub for customers in the southeastern United States, is targeted to be operational by the end of June.

What’s the real cost of spare parts inventory?

2010-04-30T10:48:45-05:00

It's always disappointing, but no longer surprising, to find people who actually believe that once you pay for material and put it on the shelf in the storeroom, it no longer costs anything to keep it there. The fact is, there are significant costs associated with holding spare parts on the books.

RFID enables Mission Foods to improve traceability, reduce costs

2010-04-15T08:20:41-05:00

Intermec Inc. on April 15 announced that Mission Foods, one of the nation’s largest tortilla manufacturers, has deployed Intermec RFID technology to improve its warehouse operations. To enhance the tracking of its reusable containers, Mission Foods’ pilot consisted of deploying Intermec IF61 readers, along with Intermec antennas, labels and PM4i printers across three plants, with each plant processing 20,000 containers daily.

U.S. business inventories jumped 0.5% in latest report

2010-04-14T13:29:36-05:00

The U.S. Census Bureau announced April 14 that the combined value of distributive trade sales and manufacturers’ shipments for February, adjusted for seasonal and trading-day differences but not for price changes, was estimated at $1,041.9 billion, up 0.3 percent (±0.2%) from January 2010 and up 6.8 percent (±0.4%) from February 2009.

Utilities can improve financial performance of MRO functions

2010-04-14T10:31:02-05:00

The direct correlation between high uptime and profits is obvious – revenue stops when the equipment stops. For a utility, the key to a good profit-and-loss statement and profitability is effective maintenance – including MRO materials management.

Boeing names 14 companies as its Suppliers of the Year

2010-04-14T08:03:49-05:00

Wholesale inventories, sales rose in February

2010-04-09T10:46:06-05:00

The U.S. Census Bureau announced April 9 that February 2010 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $338.7 billion, up 0.8 percent (+/-0.7 percent), from the revised January level and were up 9.8 percent (+/-1.2 percent) from the February 2009 level. The January preliminary estimate was revised downward $1.0 billion, or 0.3 percent. February sales of durable goods were up 0.2 percent (+/-0.9 percent) from last month and were up 6.5 percent (+/-1.4 percent) from a year ago. Compared to last month, sales of motor vehicle and motor vehicle parts and supplies were up 2.4 percent, while sales of hardware, and plumbing and heating equipment and supplies were down 3.1 percent. Sales of non-durable goods were up 1.4 percent (+/-1.1 percent) from last month and were up 12.6 percent (+/-1.8 percent) from last year. Sales of petroleum and petroleum products were up 3.7 percent from last month.

U.S. manufacturing in March grew at fastest rate since July 2004; PMI soars to 59.6

2010-04-01T09:16:26-05:00

Economic activity in the United States manufacturing sector expanded in March for the eighth consecutive month, and the overall economy grew for the 11th consecutive month, say the nation's supply executives in the Institute for Supply Management's latest Manufacturing ISM Report On Business.

New ISM Manufacturing Report on Business coming April 1

2010-03-30T07:57:17-05:00

The Institute for Supply Management will release its new Manufacturing Report on Business, featuring all data from March, on April 1.

Tylenol recall: True root cause begs further examination

2010-03-23T16:49:11-05:00

After 18 months of complaints, drug recalls and a warning letter from the Food and Drug Administration for its "Failure to thoroughly investigate," McNeil Consumer Healthcare has proposed remediation measures that will do nothing to avert future contamination.

Grainger earns spot on Fortune's 'Most Admired Companies' list

2010-03-23T11:57:30-05:00

Fortune magazine has named Grainger the “most admired” company among diversified wholesalers in the publication’s annual listing of the world’s most admired companies. The recognition appears in the March 22 issue of Fortune. Grainger is the leading broad-line supplier of maintenance, repair and operating (MRO) products serving businesses and institutions.

3M introduces asset and inventory tracking system

2010-03-11T13:58:29-06:00

3M Track and Trace Solutions introduces the Asset and Inventory Tracking System, a flexible, easy and secure method of tracking, locating and managing assets. Composed of 3M software, RFID or barcode tags and their corresponding readers, the Asset and Inventory Tracking System allows businesses to streamline their operations by efficiently monitoring and managing assets and inventory.

Survey: What motivates businesses to purchase green products?

2010-03-09T16:06:49-06:00

Eighty-eight percent of U.S. businesses choose to purchase green products because they care about the environment, according to a survey of more than 1,000 business decision-makers commissioned by SCA Tissue North America’s Tork brand. Despite possible misgivings that environmentally friendly products are more costly than their counterparts, most respondents (82 percent) reported either an increase or no change to their bottom line due to their choice to purchase green products.

Airgas and ITW renew, expand supply agreement

2010-03-09T08:22:52-06:00

Airgas Inc. on March 9 announced it has signed a new supply agreement with Illinois Tool Works, the Glenview, Ill.-based Fortune 500 company that produces engineered fasteners and components, equipment and consumable systems, and specialty products. With the new agreement Airgas will continue to be the preferred supplier of welding hardgoods and safety products for all ITW facilities in the U.S. and is now named as the preferred supplier of industrial gases for ITW U.S. facilities. The two-year agreement is part of the Airgas Strategic Accounts program, established specifically for multi-location customers who benefit from sole-source supply and supply chain management services.

Food flavoring recall highlights need for better tracking in food supply chain

2010-03-08T16:19:47-06:00

A string of recent food recalls due to possible Salmonella contamination underscores the importance of better tracking within the food supply chain in order to quickly trace and contain such outbreaks before they become a serious public health threat.

Kaman Industrial announces distribution agreement with ASCO Numatics

2010-03-08T15:50:57-06:00

Kaman Industrial Technologies Corporation announced March 8 a new distribution agreement with ASCO Numatics, a division of Emerson Industrial Automation and a leader in providing comprehensive fluid automation solutions for a variety of industrial applications. Kaman now has the ability to distribute ASCO Numatics’ broad spectrum of more than 50,000 solenoid valves, and an extensive selection of advanced technology electro-pneumatic products as the only nationally authorized distributor of these products.

RFID market to reach $5.35 billion this year, says ABI Research

2010-03-05T12:40:26-06:00

Despite the economic doldrums which required downward adjustments to ABI Research’s RFID forecasts for 2009 and 2010, the outlook is good for steady growth through the next five years, according to new market data just released by the firm.

First Jungheinrich warehouse products roll off the line at MCFA plant

2010-03-04T14:12:51-06:00

The first Jungheinrich brand products manufactured by Mitsubishi Caterpillar Forklift America Inc. (MCFA) for Jungheinrich AG are off the line and ready for distribution as a result of the August 2009 manufacturing and distribution agreement between the two companies.

ISM: U.S. manufacturing economy growing; PMI slips 1.9 points to 56.5

2010-03-01T09:18:28-06:00

Economic activity in the United States manufacturing sector expanded in February for the seventh consecutive month, and the overall economy grew for the 10th consecutive month, say the nation's supply executives in the Institute for Supply Management's latest Manufacturing ISM Report On Business.

Grainger recognizes top suppliers with Partners In Performance Award

2010-03-01T09:00:13-06:00

W.W. Grainger recognized its 25 top-performing suppliers with its Partners in Performance Award last week during the company’s annual supplier conference held in Schaumburg, Ill. Less than 1 percent of Grainger's 3,000 suppliers receive this award each year.

Research provides benchmarking tools for supply management groups

2010-02-18T16:20:51-06:00

CAPS Research updated its highly regarded Cross-Industry Report of Standard Benchmarks in 2009 to include several new key performance indicators. New metrics include the percent of supply management employees that are strategic or operational, employee retention rates, and purchase order cycle time for both direct goods and indirect goods.

Grainger launches 2010 catalog, featuring broadest product offering to date

2010-02-08T16:06:31-06:00

Grainger, North America’s leading distributor of facilities maintenance supplies, on February 8 announced the release of its 2010 catalog including more than 300,000 maintenance, repair and operating (MRO) products, the company’s largest offering yet.

Toyota Material Handling scores high in survey

2010-01-27T14:17:20-06:00

The Toyota Material Handling USA Inc. (TMHU) annual Voice of the Customer (VOC) survey shows customer satisfaction levels with Toyota sales and delivery, service and parts, and overall product experience through Toyota’s dealer network in the 90th percentile.

Hidden dangers of wood pallets escalate

2010-01-27T08:23:45-06:00

Coming on the heels of the sweeping Tylenol recall, new scientific data from independent tests reveal more about the hidden dangers of wood pallets and the threat they pose to the foods we eat and the medications we rely on every day.

Competition challenges teams to stack a better pallet

2010-01-27T07:12:14-06:00

The National Institute of Standards and Technology (NIST) is seeking university teams to participate in a May 2010 Virtual Manufacturing Automation Competition to simulate an industrial robot performing a common but complex shop floor task – stacking odd-lot boxes on a shipping pallet.

14 things to keep in mind when implementing kanbans

2010-01-27T13:52:33-06:00

Author Larry Rubrich says that of all the lean tools, kanbans are most likely to have implementation difficulties. By this, he means implementations that are using far less than a kanban's full process improvement potential, or implementations that are started and then abandoned. In this article, he presents considerations, guidelines and rules when implementing kanbans.

RFID technology may help in keeping foods safe

2009-10-21T00:00:00-05:00

The October 2009 issue of the Journal of Food Science reviews the key concepts of radio frequency identification technology and its food safety applications to the food industry.

RFID technology has led to better safety handling of raw materials and finished products in the food industry and is used to speed up the processing of manufactured goods and materials. RFID technology enables identification of an object from a distance without requiring a line of sight. RFID tags can also incorporate additional information such as details of the product and manufacturer and can transmit measured environmental factors such as temperature and relative humidity.

Scientists from North Carolina State University detail the numerous applications of RFID technology in the food industry:

Within supply chain management, RFID tags can be used to track food products during distribution and storage.

Multiple tags can be read simultaneously and RFID te

New Balance selects Optiant for inventory optimization

2009-10-21T00:00:00-05:00

Optiant, a provider of inventory optimization solutions, on October 21 announced that New Balance, a leading manufacturer of high-performance athletic footwear and apparel, has purchased and will be deploying Optiant's PowerChain inventory optimization solution within their make-to-stock product lines to optimize inventory levels and maximize profitability. Both Optiant's PowerChain Inventory and PowerChain Planner modules will be used to optimize inventory targets, improving product availability and service levels while reducing total inventory.

How to implement a replenishment pull system using kanban

2009-10-20T00:00:00-05:00

Pull is one of the key principles of lean thinking. There are essentially two different types of pull systems: sequential pull and replenishment (or supermarket) pull. In sequential pull, the downstream customer pulls parts from the upstream supplying process in the sequence in which the supplying process produces; that is, the supplying process dictates the sequence of work. Sequential pull limits the amount of inventory between the two processes. In replenishment pull, the downstream customer pulls from a supermarket according to what it needs (based on a schedule dictated by its customer). The supermarket is replenished by the supplying process. In this article, I will describe a case study in which a California manufacturer implemented replenishment pull between an injection-molding operation and two assembly cells.

The company in question had 12 plastic injection-molding machines. Each produced a number of components that were assembled into a finished product by the assembly cells.

How pallet manufacturer iGPS is using RFID

2009-10-14T00:00:00-05:00

This video shows how iGPS is using RFID to change the pallet industry.

Access this 3-minute, 35-second video by clicking on the link below.

Pepsi improves equipment reliability, cuts spare parts inventory

2009-09-22T00:00:00-05:00

In most established markets around the world, soft drinks rank first among manufactured beverages, surpassing even milk and coffee in per capita consumption. With product demand continuing to increase, soft drink manufacturers have shifted to faster, more automated machinery. However, as production lines become faster and more complex, many plants are struggling to keep maintenance costs in check. This was precisely the problem that managers at Pepsi Bottling Group’s Detroit facility battled for several years.

Pepsi Bottling Group is the world’s largest manufacturer, seller and distributor of Pepsi-Cola beverages. With annual sales of nearly $11 billion, the company’s fastest growing segment is non-carbonated beverages, including the number one brand of bottled water in the U.S., Aquafina, as well as Tropicana juice drinks and Lipton Ice Tea. As part of a 24/7 production operation, the company’s Detroit plant ships about 27 million cases per year.

Production at the plant begins a

Maxtek outlines results of lean manufacturing project

2009-09-16T00:00:00-05:00

Maxtek Components Corporation, a Tektronix Inc. company and a provider of turnkey packaging services for microelectronics, on September 15 announced the completion of a year-long project to apply lean manufacturing principals throughout their 32,000-square-foot assembly facility. While this change to lean has already resulted in strong improvements in productivity and efficiency, it is more importantly a reflection of the organization's commitment to continuous improvement and the goal of ensuring each manufacturing step is providing value to the customer.

3D applications in inventory, warehousing systems

2009-09-12T00:00:00-05:00

Alan Morris, vice president of A3 Technologies, explores ideas and applications for 3D applications within the inventory management and warehousing systems.

Access this 6-minute video by clicking on the link below.

RFID significantly improves item-level inventory accuracy

2009-08-26T00:00:00-05:00

A new study on the use of radio-frequency identification tags on individual retail items shows that inventory accuracy decreases or diminishes over time with conventional systems that rely on barcodes and/or human counting to track inventory. The research, conducted by the RFID Research Center at the University of Arkansas, also demonstrated that the use of an RFID-enabled system could improve inventory accuracy by more than 27 percent over a 13-week period.

“This project was part of a larger research effort to demonstrate and quantify the business value of RFID item-level tagging for day-to-day operations in a retail environment,” said Bill Hardgrave, director of the research center and professor of information systems in the Sam M. Walton College of Business. “The results can guide companies as they investigate whether, and to what extent, to implement RFID. The findings provide insight on how RFID can help retailers increase efficiency and thus significantly reduce expenses, which is always

J.L. French sees benefits from inventory management system

2009-08-11T00:00:00-05:00

Die castings are among the highest-volume mass-produced items manufactured by the metalworking industry. J.L. French, headquartered in Sheboygan, Wis., is a global supplier of quality aluminum die castings, specializing in powertrain and automotive components. The company has three manufacturing plants in the United States and one in Spain.

It’s not uncommon for large manufacturers such as J.L. French to spend millions of dollars every year on the MRO (maintenance, repair and operations) side of manufacturing. In 2005, J.L. French realized that controlling these types of costs on MRO, spare parts, tooling and other indirect material used in the secondary machining operations should be a priority, according to Warren Hacker, manager of North American MRO purchasing for the company. Being naturally analytical, Hacker had numerous questions regarding asset management and inventory control. Questions such as:

"Where is all this material going?"
"Why do we have so much o

Pull system and kanban demonstrated

2009-08-08T00:00:00-05:00

The pull system and kanban inventory management are demonstrated by The Sailboat Company of Naples simulation. This is an example from an e-Learning course at EducateVirtually.com.

Access this 6-minute, 35-second video by clicking on the link below.

Bally Technologies raises its inventory accuracy

2009-07-16T00:00:00-05:00

World-class gaming manufacturer Bally Technologies increases inventory accuracy, reduces warehouse headcount and improves manufacturing efficiency with Intermec CK31ex mobile computers and PB50 mobile label printers.

Access this 5-minute, 7-second video by clicking on the link below.

Chocolate factory handles picking, packaging challenges

2009-06-22T00:00:00-05:00

The Hollywood version of Willy Wonka’s chocolate factory is far removed from the realities of contemporary candy manufacturing, but Willy Wonka might find some things in common with the Zaini S.p.A. chocolate and confection plants in and near Milan, Italy.

For one thing, Willy Wonka’s phantasmagorical sweets sprang from ingenious contraptions operated by his workforce of Oompa Loompas. Luigi Zaini’s original factory, established in 1913, produced hand-crafted chocolates, cocoa and candies, but as the business grew, machinery was incorporated to help employees meet the growing demand.

Willy Wonka’s product mix included inventions such as ice cream that never melts or chewing gum that never loses its flavor. Zaini produces a vast range of chocolates, confections, sugar-free candies, and seasonal items (such as Christmas candies, Valentine hearts and Easter eggs) at its two plants in Milan and Senago, Italy.

In the economic boom following World War II, the company’s productio

Poll: Inventory optimization is top priority for supply chains

2009-06-12T00:00:00-05:00

According to a new report from IDC Manufacturing Insights, The Modern Supply Chain: Inventory Optimization Competitive Assessment (Document # MI218001, May 2009), inventory optimization (IO) is now among the top three priorities for many supply chain organizations as they seek to create increased efficiencies during the continued global recession. Over the next five years, IDC Manufacturing Insights expects to see an increased focus on supply chain modernization, network "rightsizing," and asset optimization. The company estimates healthy growth in global IO application spending in

Slashing inventory may leave you unprepared for upturn

2009-05-19T00:00:00-05:00

In the face of today's unprecedented credit crunch and volatile economic environment, companies must do everything they can to free up working capital. Optiant, the premier provider of inventory optimization solutions, finds that many leading-edge organizations can look within their supply chain operations to find working capital, even if lean initiatives have been put in place.

"If management mandates lowering operating costs, running leaner, streamlining operations, reducing workforces, and canceling projects, companies can still find cash wit

Inventory rationalization & right-sizing strategy

2009-04-07T00:00:00-05:00

When examining the crucial factors that are influencing operations performance during these tough economic times, inventory exposure is a topic raised frequently.

Appropriately rationalizing your company’s inventory management strategies is of vital importance to business performance. Too much inventory, or inventory which is poorly positioned, can result in impacts on cost and cash flow that can be potentially fatal in the current business climate. The goal of an appropriate inventory strategy is to ensure that you can maximize your opportunities in the market place with as little inventory as possible. This takes a clear understanding of the various factors that should be considered including product positioning, demand volatility and supply chain disruption risks.

Access this 5-minute, 50-second video by clicking on the link below.

Inventory reduction sets stage for industrial rebound

2009-03-24T00:00:00-05:00

The news about global manufacturing is so bad, it might be good.

As factory production collapses around the world, excess inventories that stand in the way of an eventual recovery are disappearing even faster. That may allow manufacturing to stabilize later this year, providing some relief for a global economy that is contracting for the first time in six decades.

Grainger maintenance inventory solutions

2009-03-12T00:00:00-05:00

This is a Grainger video about inventory solutions, maintaining inventory, maintenance, repair and operations, and keepstock.

Access this 3-minute, 30-second video by clicking on the link below.

Electricity provider finds solution to optimize inventory

2009-01-23T00:00:00-06:00

Click Commerce Inc., a leading provider of service network solutions, on January 22 announced that it has signed a three-year agreement with Southern Company, a leading U.S. electricity company based in Atlanta, that will enable it to reduce its parts inventory and replace legacy systems with Click Commerce’s user-friendly solution.

Toyota, Honda may have to modify JIT system

2008-12-31T00:00:00-06:00

Japanese automakers Toyota Motor Corporation and Honda Motor Company Ltd. are likely to modify their "just-in-time" manufacturing system to avoid possible supplier bankruptcies disrupting production, Bloomberg reported on December 30.

Read the full article from RTTnews by clicking on the link below:

http://www.rttnews.com/ArticleView.aspx?Id=812640&SMap=1

Model predicts a system's remaining life, links to inventory

2008-10-28T00:00:00-05:00

New research at the Georgia Institute of Technology could soon make predicting the degradation and remaining useful life of mechanical and electronic equipment easier and more accurate, while significantly improving maintenance operations and spare parts logistics.

Nagi Gebraeel, an assistant professor in Georgia Tech’s H. Milton Stewart School of Industrial and Systems Engineering, has developed models that use data from real-time sensor measurements to calculate and continuously revise the amount of remaining useful life of different engineering systems based on their current condition and health status. These predictions are then integrated with maintenance management and spare parts supply chain policies as part of an autonomous “sense and respond” logistics paradigm.

“Recent advances in sensor technology and wireless communication have enabled us to develop innovative methods for indirectly monitoring the health of different engineering systems,” said Gebraeel, who started w

Kanban and the two-bin JIT system

2008-09-12T00:00:00-05:00

This video provides an overview of kanban and an innovative just-in-time two-bin system. See how this system can provide benefits to your lean manufacturing initiatives.

Access this 3-minute, 37-second video by clicking on the link below.

Why inventory optimization doesn't optimize

2008-08-28T00:00:00-05:00

So, you have finally got hold of that software you have been looking for. The boss has been on your back about inventory and wants your assurance on availability while also reducing the cash investment. You researched the market and decided on a program of inventory optimization. Optimization, surely that is what you need; after all, optimization is the ultimate outcome, is it not? Optimization means that everything is working at maximum efficiency, right? Wrong.

Optimization is probably the most overused word in management today. But, what is optimization? The Concise Oxford Dictionary defines optimization as: “the most favorable condition; the best compromise between opposing tendencies; best or most favorable”1. Before exploring the implications of that definition, let’s go back and understand MRO (maintenance, repair and operations) inventory.

MRO inventory includes:

all of the maintenance spares carried for responding to both breakdowns and sc

Sustain the gains of lean improvements

2008-08-12T00:00:00-05:00

If your company uses lean practices to improve plant operations and business performance, or if you’re considering a lean transformation, you’re not alone. In recent years, more companies have adopted lean as a continuous improvement method to improve profitability, enhance customer satisfaction and maintain a competitive edge in the marketplace.

Within lean practices is a growing concept called “visual workplace,” also known as visual factory or visual management, and it’s a critical part of any lean initiative. Visual workplace helps sustain lean operations by using visual tools to ensure that improvements remain clearly visible, readily understood and consistently adhered to long after the lean event is over.

Opportunities to Reduce Waste
Businesses are often surprised to learn that only a small fraction of their activities actually add value for their customers. In a lean workplace, “waste” is any activity that adds no value for a customer. It’s n

Reaching for the just-in-time ‘brass ring’

2008-08-06T00:00:00-05:00

Imagine the reduced warehousing, more efficient use of labor, increased customer satisfaction, and ultimately greater profit margins achievable with perfect, just-in-time delivery.

But while 100 percent JIT rarely meets reality except for behemoth-sized manufacturers, those of lesser stature now stand a chance by embracing enterpris

Cool tool solves slippery forklift problem

2008-08-06T00:00:00-05:00

ForkGrips solve the common problem of forks being too short and too slippery to unload cargo that is barely within reach. ForkGrips allow cargo to be dragged closer to the edge of the truck by using just the tips of the forks without the cargo slipping off. With the cargo closer, the forklift is now able to reach safely under the load to easily remove it from the truck.

Expensive damage can happen to the cargo and the truck when the cargo slips off the ends of the forks. More importantly, trying to get the load off the truck in this situation can seriously injure the workers. ForkGrips reduce the chance of truck drivers and other employees getting hurt in accidents. Employees won't be injured by falling from the truck bed or from cargo falling onto them while assisting the forklift driver in getting cargo off the truck.

ForkGrips are placed around the ends of the forks when needed and fit all standard forks up to six inches wide. They eliminate the need to wait for chains or straps to be wrapped around the cargo so it can be dragged closer. ForkGrips also eliminate the damage to the product caused by chains and straps. ForkGrips allow cargo to be unloaded without a pallet jack or waiting for a dock to become available.

Access this 1-minute, 27-second video by clicking on the link below.

Three engineers, hundreds of robots, one warehouse

2008-06-24T00:00:00-05:00

Two dozen squat robots scurry on the warehouse floor. They park underneath man-high inventory racks and activate a lifting mechanism that jacks the racks off the ground. One robot hauls shelves with 12-packs of Mountain Dew; another carries bottles of Redken shampoo. They move along straight lines and make 90-degree turns. It's a bit like Pac-Man.

RFID tool tracking solutions

2008-05-01T00:00:00-05:00

This 4-minute, 5-second video provides a look at how manufacturers are using radio frequency identication to solve tool tracking issues.

Find the entire video at http://www.sme.org/mi.

Access this video by clicking on the link below.

Creating solutions to unique handling, storage problems

2008-04-14T00:00:00-05:00

Creating solutions to unique handling, storage problems
Virtually every manufacturing plant, fabricating shop, machining facility, assembly location, even warehouse has one – the unique material handling or storage challenge with no practical structural solution offered. The maintenance job that needs to move tools and repair parts into limited access locales. Transporting an awkward shaped part, or storing a fragile component. Infrequent but necessary janitorial duties handling scrap or refuse. Hazardous, laborious or unpleasant tasks, and a myriad of other chores that conventional, standard equipment can’t perform, jobs that make it difficult to justify high investments in custom-made structures, yet jobs where the convenience, safety and enhanced operation require some level of resolution.

RFID improves inventory accuracy, Arkansas study finds

2008-04-11T00:00:00-05:00

A preliminary analysis of the effect of radio frequency identification on retail-inventory accuracy demonstrated that an automated, RFID-enabled inventory system improved accuracy by about 13 percent in test stores compared to control stores. The investigation, conducted by researchers in the RFID Research Center, a research unit of the Information Technology Research Institute in the Sam M. Walton College of Business, also revealed that manual inventory adjustments by store personnel sig

Vodcast: The advantages of a JIT inventory system

2008-04-09T00:00:00-05:00

This 1-minute, 13-second vodcast provides a quick list of six reasons why you should implement a just-in-time inventory system.

To learn more, visit www.leanmanufacturingsecrets.com.

Access this vodcast by clicking on the link below.

Professors design new warehouse for generator plant

2008-03-25T00:00:00-05:00

An innovative, alternative warehouse-design concept developed by a University of Arkansas researcher and his colleague at Auburn University has been implemented by a Wisconsin generator manufacturer. In its newly designed warehouse in Whitewater, Wis., Generac Power Systems built a non-traditional aisle and rack system based on concepts created by Russell Meller, professor of industrial engineering, and Kevin Gue, engineering professor at Auburn.

“To our knowledge, this is the first implementation of non-traditional diagonal aisles anywhere,” Meller said. “We are very excited.”

Research shows RFID improves inventory accuracy

2008-03-14T00:00:00-05:00

Making a smarter, high-technology forklift

2008-02-19T00:00:00-06:00

Two plant employees discuss retrofitting a forklift for an RFID system and find a better way.

Access this 2-minute, 13-second video by clicking on the link below.

Get with the program: 12 steps to inventory recovery

2008-02-13T00:00:00-06:00

The original 12-Step Program was developed in the 1930s and incorporated by Alcoholics Anonymous to help people deal with their “powerlessness” to stop drinking. Since then, the 12-Step Model has been adopted by many other groups dealing with an array of issues that all have one thing in common: a desire to stop.

Google “12-Step Model” and you’ll find all kinds of variations on the theme that deal with social problems, scientific techniques, religious issues, medical maladies – even one on how to partition half-inch tape in a cartridge tape unit! Nowadays, it seems like almost anything can be solved in 12 easy steps.

What about bloated inventories? What about warehouses overstocked with inactive and unusable parts? What about investment that is literally “going through the roof?” These are all indications of poor inventory management, yet there are still some people out there who, despite these symptoms, continue to cram more and more material into every available nook and cran

Forklift-free plants: Considerations for success

2008-02-05T00:00:00-06:00

Increasingly, companies are mandating the move to forklift-free production floors on the basis of highly visible macro issues like safety improvements, reduced forklift lease and maintenance costs. However, there are many other less visible advantages with direct and secondary benefits that may play an important role in reducing costs and improving customer response. Identifying these benefits requires a big-picture overview of the project as well as an understanding of how each department and suppliers, both internal and external, will be impacted.

Implementation of the forklift-free factory plan can be extremely challenging and, at times, frustrating. Many familiar habits of both the material handling support and production assembly personnel will be changed. Physical plant, assembly line and storage constraints, packaging changes, budget limits, ergonomic issues and project completion time add additional complexity. Working through these difficult problems will require unabridged inp

HK Systems takes charge of Caterpillar plant inventory

2007-11-05T00:00:00-06:00

Workers driving computer-equipped forklifts dart through the aisles of a massive warehouse on the grounds of a Caterpillar Inc. production plant just outside Peoria, Ill.

New Berlin-based HK Systems Inc. bought this 570,000-square-foot facility from Caterpillar in late 2006, and a new division of the company is handling the majority of parts going into engines that the Caterpillar plant produces for tractors, semis and other vehicles.

Access this neat article from the Milwaukee Journal Sentinel newspaper by clicking on the link below:

http://www.jsonline.com/story/index.aspx?id=681998

Tracking the elusive shipping container with asset tagging

2007-09-24T00:00:00-05:00

The world is a very different place out beyond the horizon. Even as you read this, there are some 40,000 large cargo ships plying the world’s waterways and oceans, not to mention innumerable smaller merchant craft, all pulling in and out of ports, loading, unloading, changing out crews and cargos, and steaming from one location to the next.

In what can be a very murky world of shadowy ship registry offices, lengthy manifests and dockhands who change out faster than Barbosa’s crew, how all these ships come by their cargo, how that cargo is loaded, by what polyglot seamen and in what untamed ports, can be an amazingly scrambled and trackless story rivaling the Pirates of the Caribbean.

Scenario: A single ship starts out in Singapore with containers filled with electronics, passes through Indonesia where it picks up spices, sails to Calcutta to load cotton, Port Said where it boards an Egyptian crew, Piraeus where it stops for fuel, Tangier where it picks up leathers, Sco

Beyond the tag: Finding RFID value in manufacturing

2007-09-05T00:00:00-05:00

Radio frequency identification (RFID) has always been considered a forward-looking technology. Today, most of the focus is on how emerging Electronic Product Code (EPC) RFID tags can help connect trading partners and align supply chains. However, to see the immediate benefits RFID can provide, manufacturers should look inward at their operation’s own business processes, not forward into just supply chain customer’s compliance requirements. RFID provides a quick return on investment in many factory and warehousing industrial operations, without as much coordination and complexity as supply chain implementations require. Manufacturers that consistently experience bottlenecks, desire traceability, or who want to reduce the labor required for costs associated with materials management and replenishment, are excellent candidates to save money with RFID.

A major reason manufacturers can gain a rapid return on RFID investment is because industrial applications use currently

Global supply chain woes from the pros

2007-08-29T00:00:00-05:00

Despite all the fancy supply chain technology that firms have implemented, or in some cases, tried to implement, there seems reason to be very concerned that even "leading-edge" manufacturers still can't get their arms around what appear to be basic concepts of supply meeting demand.

Case in point: Persistent delays in laptop shipments caused by paint problems and supply constraints have put a crimp in Dell Inc.’s turnaround efforts. So much so, in fact, that some Dell customers might be waiting until October before they receive their orders, thanks to “supply chain problems” in addition to some sort of painting malfunction, according to The Financial Times (via MarketWatch).

What gives? According to FT:

The delays, which sur

Learn how to maximize your inventory investment

2007-08-29T00:00:00-05:00

The Life Cycle Institute, the learning source for optimizing asset reliability and performance, is now accepting registrations for the Materials Management Best Practices Course. Participants will improve the return on their inventory investment by applying the sound storeroom operations principles taught in this five-day course. Life Cycle Engineering’s materials management gurus will help participants create a materials management master plan that includes key elements like kitting best practices, KPIs for storerooms and purchasing, ABC analysis and effective work control processes. The course is designed for materials managers, maintenance managers, storeroom supervisors, storekeepers, and maintenance supervisors and maintenance planners and schedulers within global manufacturing organizations.

Manufacturers have big inventory reduction opportunities

2007-08-09T00:00:00-05:00

Threatened by a potential credit crunch or not, manufacturers usually have significant opportunities to generate cash by reducing excess inventories, increasing throughput and lowering costs with better customer satisfaction.

According to management consultant R. Michael Donovan, “Most manufacturers utilize ineffective methods to reduce inventories. Truly effective inventory reduction techniques find the irrational conditions that cause inventory excesses to exist so you can permanently eliminate the causes. The payback can be tremendous.”

Integrated Inventory Management

2007-06-25T00:00:00-05:00

From an operational perspective, the primary goal of the materials management organization in a maintenance, repair and operations (MRO) environment is to provide unflinching material support to plant maintenance and production. In other words, have the right parts at the right place at the right time.

Assuring supply can easily be achieved by stocking the shelves with every imaginable spare part in such enormous quantities that almost any combination of required materials is in stock at any given time. This will surely satisfy service objectives, but is this the best approach?

Unfortunately, nothing in life is free. Materials cost money and take up plenty of space, and very few materials managers have access to unlimited funds. Finance and plant management are responsible for making sure that purchasing budgets are monitored and controlled, and inventory investment levels are optimized.

Uncontrolled spending leads to bloated inventory, which in turn often results in m

Optimizing your lube inventories

2007-06-25T00:00:00-05:00

I've performed a significant number of lubrication surveys and audits in every conceivable industry, from food production to steel mills, cement plants to pharmaceutical manufacturers. While the industry may change, one common problem I see is a lack of understanding when it comes to insuring that the proper lubricant has been selected for a given application, while at the same time insuring that the optimum number of required lubricants is inventoried. This process is a careful balance of two needs: the application of lubrication engineering logic to select the correct lubricant and a focus on product consolidation (or deconsolidation if an insufficient lubricant exists) to insure that a proliferation of different lubricants of a similar nature occurs. This column will address the act of lubricant consolidation or optimization.

Lubricant consolidation is a straightforward process. The first step is to assess each oil or grease lubrication point to determine the technical requi

RFID and its ‘evangelist’ are still spinning wheels

2007-06-20T00:00:00-05:00

For many, radio frequency identification (RFID) is still a scary technology. Having been around for decades but re-ignited a few years ago when a little company called Wal-Mart started bullying its suppliers with a flaky RFID “mandate,” the unfounded hype surrounding RFID has done much more harm than good.

According to Eweek.com, beyond question, this is a concept that looks great on paper but still struggles to find any type of traction out in the field.

One of RFID’s greatest proponents on the manufacturing side is Dick Cantwell, Procter & Gamble vice president and RFID/EPC leader. Cantwell comes from Gillette and did a lot of RFID research there, partaking in some mildly interesting RFID pilots before P&G bought them. In essence, Cantwell has always had a pretty darn big war chest on his side to mess around with RFID stuff.

So, what if you aren

Slash inventory costs in half with this novel strategy

2007-06-12T00:00:00-05:00

It's no secret that maintaining inventory costs money. Some industry estimates place stock carrying costs between 25 to 65 percent of the original acquisition expense. No wonder manufacturers constantly look for new and more effective ways of eliminating idle supplies.

Now a growing number of manufacturers are adopting a novel approach for cutting inventory costs borrowed from the airline industry. Rather than maintaining traditional reserves of spare parts to support repairs and maintenance of finished goods, these pioneering companies are using modern information systems to manage central pools of parts shared by multiple companies.

More Important Than Stocking
"There's a proliferation of interchangeable parts, standard equipment configurations and SKUs, along with the need to have spare parts readily available anywhere in the world," says Stephen Slade, senior director, Oracle applications and industries marketing. "As a result, many manufacturers have realized th

Helpful hints on adjusting inventory

2007-05-30T00:00:00-05:00

How do you adjust inventory so that you never lose customers due to delays while minimizing excessive inventory that isn't generating profit? Here is a simple view of how to forecast demand.

Let’s say you have mastered the path toward becoming a lean manufacturer (it’s ongoing) and how to minimize waste through Six Sigma, etc. Let’s say you’ve figured out how to manage supply chains, providing detailed accurate data. And, let’s further surmise that you’ve tried various methods for getting your product to market and you know which companies provide the best value while assuring that your customers get their products more quickly than through your competitors.

Another challenge remains: How do you adjust inventory so that you never lose customers due to delays while minimizing inventory so your company’s capital is not tied up and not generating profit?

In other words, how can you maximize turns? The answer isn’t easy, as predicting demand involves forecasting and predic

Inventory management gears for process improvements

2007-05-14T00:00:00-05:00

Maximizing weapons system availability and performance means smart management of safety levels and inventories. To do this, Air Force officials strive to optimize inventory levels and cost without sacrificing support to the warfighting commanders.

"Based upon the fact that we are maintaining systems that have exceeded their expected lifetime, in harsh environmental conditions and at extraordinary operational rates, materiel management has become increasingly complex," said Major General Gary McCoy, Air Force logistics readiness director. "If you add to that the long lead times it often

Warehousing: Boost profits with ship-it-now mentality

2007-05-10T00:00:00-05:00

Between storage, tracking, billing and hiring, warehouse managers face a myriad of challenges. Although most warehouse managers strive to reduce costs for customers, 60 percent were unable to accomplish this goal between 2004 and 2006. The following are some actions you can take to be in the other 40 percent.

The median cost of warehousing is 4 percent of sales annually, according to Aberdeen Group's recent

Indirect procurement: The challenges and how to make it work

2007-03-13T00:00:00-05:00

In many organizations, indirect procurement has been a low priority compared with direct procurement, according to NelsonHall, a Boston-based business process outsourcing (BPO) analyst firm whose recent study reveals that more than half of companies think reducing costs and managing large numbers of suppliers were the bigger challenges of indirect procurement.

According to NelsonHall research, the major indirect procurement challenges for organizations are as follows:

• A strong corporate requirement to reduce the cost of indirect goods and services;
• Difficulties in managing large numbers of suppliers in the absence of adequate breadth of internal category management expertise;
• Difficulties in managing large numbers of suppliers in the absence of common indirect procurement systems, processes and interfaces; and
• Lack of

Lean inventory control solution saves Boeing time and money

2007-02-21T00:00:00-06:00

If information is the key to the future of manufacturing inventory control, then Boeing has unlocked the door.

Boeing’s Mesa, Ariz., plant has established control and accountability in its tool cribs, drastically cut issue and return time for tools, and created an extensive database of crib transactions that is used in the cribs, as well as in purchasing, receiving, accounting and other departments on the campus where Apache helicopters are assembled.

Boeing accomplished this with CribMaster, a state-of-the-art inventory management system created specifically for managing tools and inventory in the manufacturing environment. At Boeing, the all-inclusive, Windows-based CribMaster system uses bar coding and a collection of manned tool cribs and point-of-use dispensers to monitor tool inventory and usage, track consumption, issue purchase orders and provide numerous reports at the touch of a button.

“It’s the tool crib attendant of the future – being able to electronicall

Lean-based material handling

2007-02-12T00:00:00-06:00

For nearly all manufacturing plants, an efficient maintenance, repair and operations (MRO) process is a fundamental requirement for success. From storage of strategic spares, to facility maintenance, to support of scheduled service, a disciplined maintenance operation - integrated with product and overall company schedules - should be the goal of every company. However, for a surprising number of organizations, this is not the case. Many companies operate without an integrated computerized maintenance management software system in place, or in some cases without any systematic maintenance package.

At the same time, an even greater percentage of organizations have given little more than cursory thought to the efficient storage and retrieval of MRO parts. While many - even the majority - of manufacturing and distribution divisions have invested heavily in advanced material handling equipment (MHE) such as automated carousels and vertical lift modules, most maintenance stores are still hel

Enterprise flexibility cuts inventory, lead time, cycle time

2007-02-06T00:00:00-06:00

Aberdeen Group, a Harte-Hanks company, has put a stake in the ground with its latest report, “Manufacturing Flexibility: Synchronizing the Shop Floor and Supply Chain,” by defining manufacturing flexibility as the convergence of supply chain visibility, production process capabilities and dynamic decision-making. Competency in these business processes is established by performance in three key performance indicators (KPIs): finished goods inventory, on-time delivery and manufacturing cycle time. Based on the analysis of responses from over 200 manufacturers, results show that best-in-class manufacturers are:

Three times m

The pluses of outsourcing inventory catalog management

2007-01-15T00:00:00-06:00

Outsourcing your catalog management is a big step for any manufacturing organization. It sounds great in theory, but the execution is not always clear. What exactly can you expect from the service provider? How does it really work? … And most importantly, is it the right thing to do?

Often the decision to outsource your inventory catalog management function can turn out to be more advantageous than you had ever imagined. Not only is your data integrity maintained, but some additional unexpected side benefits may also be realized.

Catalog management companies have dedicated staff that are constantly working with parts data and manufacturers’ catalogs all the time. Many of them are former trades people with the expertise to also know part applications. In other words, they truly are knowledgeable experts in inventory parts. And when you outsource, they start to work for you. Not too many organizations can boast that they man their catalog team with such expertise.

Complemen

Cribmaster feature helps eliminate surplus inventory

2007-01-09T00:00:00-06:00

If you have surplus or dead-stock inventory that you just can’t get rid of, then CribMaster has a solution for you. One of CribMaster’s newest features is CBAI, the CribMaster Broker Auction Interface. With CBAI, CribMaster can guide you through the process of selling your extra inventory on SourceApp.com.

SourceApp is the world’s leading on-line technical resource for selling surplus MRO materials. This Cleveland-based

Warehouse system solutions not fully utilized, survey finds

2006-12-05T00:00:00-06:00
A recent Supply Chain Consortium benchmarking and best practices survey of 100 top retail and related companies reveals that too many organizations under-utilize their Warehouse Management System (WMS) investment or do not make sound upgrade and replacement decisions.
The survey also finds that WMS solutions vary in cost and complexity, but there are three basic sources:

Best-of-breed software vendors, such as Manhattan Associates, RedPrairie, and HighJump Software, which offer standalone WMS products or extended supply chain execution software suites;
Enterprise Resource Planning (ERP) vendors, which offer integrated warehouse management modules; and
Custom solutions developed by the end-user organization or a third-party contractor.

Thyssen Krupp boosts uptime through replacement part maintenance

2006-11-14T00:00:00-06:00

Thyssen Krupp is a major producer of automobile coil springs, serving a number of major manufacturers. Operating in a modern, 30,000-square-foot plant and employing 80 70 people, maintenance coordinator Philip Ryan was given the responsibility of solving a pressing problem. Production machinery had an uptime performance of 55 percent. This was severely affecting operating profitability. Ryan was challenged to improve to a minimum of 90 percent uptime.

It became apparent that a major component of the problem dealt with the amount of time it took to locate replacement parts needed to keep two five distinct production lines up and running.

Key to that issue was the matter of part availability. While records indicated that the dozens of bearings, pneumatic and hydraulic elements, valves, fittings and cylinders which were needed were in stock and available, they often could not be located. The system with which Ryan Ryan was confronted consisted of poly bins on wall-mounted louvers

Show me the money: an MRO inventory analysis

2006-11-01T00:00:00-05:00
You don’t have to be a genius to recognize that a lot of money is tied up in MRO inventory … especially if your business requires the use of capital-intensive equipment. Literally millions of dollars are tied up in spare parts for day-to-day plant maintenance, repair and operations.
Historically, no one ever really “owned” inventory, so stocking another item “just in case” had very few, if any, repercussions. Inventory was often seen as a necessary evil of doing business. The term “inventory management” was almost an oxymoron. There were few procedures for setting up an item, no standard structure or format. Item information was written in the manner of each individual … first onto cards, which were later transcribed into a computer system. More often than not, there were no stock review processes. The only management of inventory came with its annual physical count undertaken for financial reporting purposes.

Typically over time, stores inventory grew … and grew

Using RFID solution, Crown Equipment tool crib is open 24/7

2006-10-05T00:00:00-05:00

There are some things we all wish we could have 24 hours a day. Like a nice meal, or a quality TV program in the middle of the night. Much like the rest of the manufacturing world, Crown Equipment, the makers of the No. 1-brand electric lift trucks in the United States, is no exception. Employees at this company require access to plant inventory 24 hours a day, 7 days a week. But unlike their peers, Crown took the necessary steps to ensure these employees could access what they needed, no matter what time it was.

Crown is a corporation which has received more than 50 product design awards, been nationally recognized for their DP (Demonstrated Performance) QuickStart training program, and honored by the Environmental Protection Agency for their waste minimization efforts. This is a company with innovation and efficiency at the heart of its design and manufacturing philosophies.

There must be a better way

It became apparent to Crown that there mus

The pitfalls of min/max ordering, and what to replace it with

2006-09-04T00:00:00-05:00

For many years, companies have struggled to find the magic number for their inventory levels. Any level for an item seems to be an unsatisfactory compromise. The classic conflict can be represented as follows:

However, the real culprit is not the inability to find the magic number; rather, it is ordering practices that have too often gone unquestioned. In an attempt to find the elusive correct inventory level, many companies have utilized a reorder point (ROP) system for managing inventory. This inventory replenishment technique considers forecasted demand over the replenishment lead time, plus an allowance for safety stock to set the ROP. For example, inventory for an item may be set at 110 percent of forecasted item demand over the lead time, rounded up to the next logical container size. When the available inventory of an item drops below the ROP, a replenishment

Alternative warehouse design reduces costs by 20%

2006-07-31T00:00:00-05:00

The Internet and shift toward a service economy have led to an intense examination of logistics and supply-chain management: Customers order products online, and they expect to receive their items as soon as possible. Smart companies know that if they want to be competitive, they must change the way they store and distribute goods. In this new environment, warehouses – now referred to as distribution centers – have become more than a place to store extra product; they are an essential part of the supply and distribution chain.

Taking control of your power tools

2006-05-31T00:00:00-05:00

Manufacturing plants use a wide variety of power tools. From electric drills and impact wrenches to reciprocating saws and air chisels, power tools are utilized throughout the facility by maintenance and production workers. But, how are your power tools distributed to these plant-floor employees? How are your employees using a particular tool? How are they expected to access it? And, how does an employee find a tool when it isn’t where it’s supposed to be?

An electronic locker system can house power tools, hand
tools and a myriad of other MRO (maintenance, repair and
operations) products.

Speeding up the process of distributing power tools on the shop floor eliminates a great deal of downtime. Effectively tracking where the tool was used, who used the tool and what it was used on can t

New book says excessive inventory costs plants millions

2006-05-24T00:00:00-05:00

Most companies waste more than $1 million a year in every plant they operate by purchasing unnecessary spare parts, according to three prominent authorities in the field of inventory management who teamed to write "Production Spare Parts: Optimizing the MRO Inventory Asset" (Industrial Press Inc., $42.95).

Eugene C. Moncrief, Ronald M. Schroder and Michael P. Reynolds have more than 100 years of combined experience as business executives and management consultants. Among them, they have analyzed billions of dollars of inventory at hundreds of plants worldwide.

Making Things Easier at Steam Flo Industries

2005-11-09T00:00:00-06:00

At Stream Flo Industries, machine shop supervisors knew there had to be an easier way to keep track of tool inventory and replenishment. The task cost the oilfield production equipment manufacturer too much time that could have been spent on more productive things.

Tool crib managers at the

Inventory reduction: Getting results . . . and fast

2005-08-07T00:00:00-05:00

This column is devoted to a discussion about the Inventory Quality Ratio (IQR) methodology, which is supported by a software product that I believe you should be aware of. Keep in mind, as you read this, that I am totally familiar with the methodology and have very successfully applied it on numerous occasions.

Management’s dilemma

According to Harold Geneen, the legendary, former chairman of ITT and the founding father of the IQR methodology, “All the problems of business end up in inventory.” He was fully aware of the impact of such things as poor sales and operations planning, overstated master production schedules, engineering changes, shortages, long cycle times, large order quantities, overzealous buying, early material receipts, poor scheduling among the many other possible causes for excess inventory problems.

Most CEOs and CFOs agree that their companies consistently carry 25 to 40 percent more inventory than n

Inventory efficiency in the supply chain

2005-08-07T00:00:00-05:00

Lowering inventories is one of the quickest ways to decrease working capital needs. Performance measurements, such as the old standby ROA (return on assets) and the newer EVA (economic value added), as well as other measures that gauge how efficiently capital is used, have become more common organizational drivers.

In fact, many an executive’s bonus depends, at least in part, on how efficiently capital is used.

Couple the drive for efficient capital use with the need to respond more quickly to changes in customer demand, with shorter and shorter order-to-delivery cycle times, and you have a problem that is challenging many manufacturers. In the past, manufacturers would stockpile large quantities of raw materials, load up the shop floor with work in process and pack warehouses with finished goods.

Not only do those old ways increase working capital needs, they contribute in a big way to erratic and longer lead times and increasing overall costs.

Valve manufacturer finds productivity gains, inventory reductions

2005-08-07T00:00:00-05:00

Ross Controls, headquartered in Madison Heights , Mich. , has been a manufacturer of pneumatic valves since 1921. It has grown into a global supplier involved in all industries. Since every piece of equipment that moves has a valve on it, chances are excellent that the valve is produced by Ross Controls.

Last year the company implemented lean manufacturing principles into its environment, working with The Lean Learning Center in Novi , Mich. , to transform its organization into a company prepared to meet the challenges of the future.

The journey has been interesting, and the successful experience is one that the folks at Ross enjoy sharing.

History: Founded on a fire

Charles A. Ross, founder of Ross Controls, was a process engineer at Detroit Seamless Steel Tube Company when the plant caught fire in 1919. Due to World War I, the German-made air valves he used to make a new steel tube piercing process wer