New ‘lean’ software for manufacturers

For manufacturing firms trying to introduce ‘lean’ manufacturing or Kanban-style operations, but who are struggling to balance customer demand for multiple products, new software firm, DemandStream, might have the answer. Launched last month across Europe by parent company SoftBrands (which also includes Fourth Shift and evolution), the software is all about reacting fast to changing customer demand and is a supply chain execution (SCE) and communication product that supports Kanban and demand ‘pull’ processes, optimising stock and scheduling across the business and multiple sites. Ric Sharp, DemandStream’s direct sales manager, commented: “It bridges the gap between the ideal goals of lean manufacturing and the practical realities of today’s manufacturing environment.” There are four parts to the software which customers can buy in modules or as one complete package: dynamic Kanbans or material replenishment signals; supply chain event messaging (reacting fast to a new or changed customer order, a supplier delivery of material to the factory or an overloaded work cell); supply chain planning and scheduling; and ERP software integration (demand and replenishment data is taken from the ERP system and translated into pull requirements and dynamic Kanban levels). “Many firms have become frustrated with MRPII and ERP systems that are based on a push model for managing inventory and demand. Manufacturing orders and purchase orders are generated based on pre-determined schedules,” said Sharp. “This can lead to excessive WIP [work in progress], long production lead times, inflexible production capacity and ‘nervous’ schedules.” Sharp says that moving to a pull environment is all very well and good but creates new challenges for manufacturing managers. “The prospect of regularly changing and optimising Kanban quantities to handle ramp-up and ramp down situations is daunting [for managers]. In high-mix, low volume manufacturing, the sheer number of SKUs [stock keeping units] makes Kanban quantity optimisation unrealistic for more than a small percentage of parts,” explained Sharp. He continued: “The software manages this process to ensure that optimal stock levels are maintained even in high product mix environments. This means if you have already implemented demand pull operations in a manual environment, you should expect another exponential inventory improvement.” Globally, DemandStream already has ten customers including Quality Safety Systems (a subsidiary of Toyota) and a proximity sensor manufacturer, Turck.