Collecting Good Data:
Looking at data in new ways – changing the way you squeeze profit from your enterprise.
"WIP is Waste Made Visible"
The process begins with data collection. Technical measurements are taken on physical quantities at various locations throughout your enterprise.
And, categorized according to their contribution as value or waste.
For each work resource on the shop floor and for the entire enterprise, data is identified that reflects demand from a proceeding resource and capacity in the current one. Accumulating WIP is the result of inequalities between capacity, demands and uneven workflows caused by batch processes. So depending upon supply, demand and capacity, each resource makes its own contribution to value or waste.
LeanFlo, in partnership with you, will collect raw data to fit the model. Collecting data backwards - from the end Customer to raw material receipts. Focusing on how demand is pulled through the enterprise.
Tailoring the Tool Set to Your Situation
All enterprises are not the same. Each however is a combination of batch and direct labor processes that generally operate at different rates of production. Material is generally ‘pushed’ along the shop floor, collecting in WIP locations while waiting for the next operation to digest it.
And – the flow of inventory on the shop floor is a reflection of the efficiency of your enterprise.
The LeanFlo Partnership will tailor a specific set of algorithms that reflect your operation, starting from the Customer and backtracking to raw material receipts.
Incorporate Metrics and Data into Base LSM Model and Run
Once the data is collected, the metrics are developed. Then we run the LSM model with your data – paying particular attention to the differences between pushed and pulled demand. Initially we use Excel spreadsheets. In some cases, however we will incorporate the models into ERP software systems. In fact we have done this with Vantage and DataFlo – Products from Epicor Software.
Reflect Results into Written Case Study
The final phase of our tenure with a client is the written case study that reviews results and interrupts – and ties it all to Gross Margin.
Some LeanFlo Partnership Case Studies are included in this web page. Feel free to review them. Just click on What Are the Results.