WBlogs

Using Enterprise Resource Planning (ERP) to lean the manufacturing supply chain

2011-03-08T04:20:55Z

Within any manufacturing environment there are methods of ‘leaning’ the supply chain, focusing on a holistic view of procurement, distribution and sales processing. However, perceiving the enterprise holistically requires suitable enterprise applications.

1. The needs for production efficiency and responsiveness to customers are often conflicting. Formal disciplines designed to link production and sales forecasts, such as sales and operations planning, can help. Yet by tying manufacturing schedules into sales projections within an ERP system you will manufacture more of what customers currently require, thereby improving customer service and responsiveness. You will also increase inventory turnover, which reduces capital tied up in inventory and obsolescence.

2. A major bottleneck to improving supply chain efficiency is the disconnect between internal scheduling processes and external suppliers. One solution is a portal enabling suppliers to view production plans and prepare their schedule accordingly. This removes all manual delays and allows vendors to manage their own inventories according to anticipated demand. As this means you are effectively operating in a multisite environment, ensure that your ERP system provides for multisite operations regardless of how many sites you manufacture at.

3. It is important to delay the commitment to manufacture until demand is visible or certain. Few manufacturers have the luxury of flat demand, thus virtually any manufacturer operating in a make-to-stock (MTS) mode should run in multiple modes. A parallel make-to-order (MTO) system will avoid stockpiling large numbers of items that are more effectively handled in MTO mode, freeing up both capital and production capacity for other products without sacrificing responsiveness or service. So, to maximise efficiency, ensure your ERP system supports multiple modes including MTO and MTS.

4. The more accurate a demand forecast is, the better position you are in to meet market needs, decrease inventory and improve customer service. This task tends to fall between roles in many enterprises, making an integrated ERP system essential to gaining a holistic view. Ensure that demand planning functionality allows simultaneous editing and reviewing by multiple users, thereby shortening review cycles and increasing accuracy.

Ultimately, you cannot improve what you cannot measure, so visibility into processes company-wide is necessary for lean supply chain improvements. Integrated ERP will allow for accurate performance analysis on every batch you manufacture through statistical process control. You can then check how your process aligns with your ideal lean values, and this commitment to lean should soon materialise on the bottom line.

Sustaining manufacturing recovery with energy-efficient equipment investment

2011-03-08T04:07:07Z

After suffering a remarkable 16 percent plunge in output during the economic downturn, the manufacturing sector in the UK has been continuing its recovery since last year. Official figures from the Office for National Statistics showed that manufacturing output rose by 0.6 percent in November and was up by 5.6 percent compared to the same month in 2009, the fastest year-on-year pace of growth since 1994, sustaining the upward trajectory of the sector.

With surveys expecting its growth to outperform the wider economy in 2011, manufacturing recovery is clearly gaining momentum. To seize the upswing, manufacturing companies have to achieve efficiencies in costs and resources in order to secure long-term survival and sustainability. Investing in energy-efficient equipment is thus imperative since it allows operations to reduce energy consumption and the subsequent energy costs, resulting in lower operating expenses. Indeed, nearly half of the leading manufacturing firms now recognise the economic benefits as energy-efficient equipment investment has become mainstream in the UK. According to the latest research study from the financial services division of Siemens (SFS), 49 percent of British companies in the industrial sector confirmed that over half of their equipment is energy-efficient.

However, the momentum of investment has hit an affordability obstacle with a significant proportion of these businesses (76 percent) delaying further investment due to scarce working capital. There are, however, financing alternatives which can help enterprises overcome the financial barrier. Forward thinking organisations are using asset financing techniques to align monthly costs with monthly energy cost savings. In some instances, payback periods can already be achieved in as little as two years.

Such financing options are especially beneficial for manufacturing plants and factories since the most considerable savings can be made in the areas of industrial motors and drives, along with heating, ventilation and air-conditioning (HVAC). Drive technology alone accounts for 60 percent of industrial electricity consumption. As there are approximately 20 million industrial motors worldwide, replacing drives and motors with the energy-efficient alternatives will present an enormous potential for energy costs saving.

At the moment, Britain’s manufacturing sector seems to be enjoying an industrial renaissance; however, its growth is still lagging behind most other European countries. To ensure that the sector’s recovery is more than just an early cyclical upswing, it is crucial that manufacturing businesses maintain the momentum of investment so that the economic efficiency of British industry can remain competitive and sustainable in the long run.

Is hydrogen fuel the new petrol?

2011-03-08T03:56:15Z

The soaring cost of petrol is a constant source of conversation here at Manufacturing Digital HQ.

At the time of writing this blog, the price of fuel at UK pumps has just surpassed a record-high and the cost globally is continuing to inflate at a rapid rate.

Reports that scientists are developing ‘artificial petrol’ costing just 19 pence per litre therefore are sure to excite motorists and businesses all over the world.

The hydrogen-based fuel is much more eco-friendly than standard petroleum and will not produce any harmful emissions during production.

The first road tests for the alternative petrol will take place in 2012 and if all goes well it could be on sale in three to five years.

The team of UK scientists, headed by Professor Stephen Bennington from Rutherford Appleton Laboratory, said: "In some senses, hydrogen is the perfect fuel. It has three times more energy than petrol per unit of weight, and when it burns, it produces nothing but water.

"Our new hydrogen storage materials offer real potential for running cars, planes and other vehicles that currently use hydrocarbons."

The biggest obstacle for hydrogen fuel has been finding a practical solution to storing it. Up to now, it has required either high-pressure storage cylinders at up to 700 times atmospheric pressure or super-cooled liquids at minus 253 degrees centigrade.

“Neither is practical on a large scale as these hydrogen storage methods both require large amounts of energy to either pressurise or cool the hydrogen, and present significant safety risks," the company claims.

But Stephen Volker, CEO of Cellar Energy, says it has discovered a low-cost way to trap the hydride compound inside a nano-porous polymer micro bead. The synthetic fuel it creates can be poured and pumped like a liquid.

“We have developed micro-beads that can be used in an existing gasoline or petrol vehicle to replace oil-based fuels.

“Early indications are that the micro-beads can be used in existing vehicles without engine modification.
The materials are hydrogen-based, and so when used produce no carbon emissions at the point of use, in a similar way to electric vehicles.”

This is not the only development in eco-friendly fuel. In the US, farmers are processing ‘E15’ - 15 percent ethanol fuel that can be used in vehicles made within the last ten years.

Last year, hydrogen buses were introduced in London containing batteries that can store electricity generated by the hydrogen fuel cell. The device combines hydrogen and oxygen to produce power and water as a by-product in addition to energy generated during the braking process.

The buses produce water vapour from the tailpipe and can operate for more than 18 hours without needing to refuel. Pretty impressive I think you’ll agree.

If the hydrogen fuel testing fails to indicate any hitches, this alternative petrol could revolutionise how the world travels from A to B.

Until then I guess we will all just have to hold our breath and fork out the rising expense on the forecourts.

Flip Phone: The next generation of smartphone design?

2011-03-07T23:32:32Z

If you are in the market for a smartphone, you really are spoilt for choice. Apple’s iPhone, the HTC Desire HD and Samsung’s Google Nexus S all offer extreme processing ability facilitated through elegantly designed interfaces. These devices push the boundaries of what is possible by offering multi-task solutions through a plethora of carefully created applications. While time and attention has been paid to the functioning power and interactive aspects of these devices, the standard design of smartphones has remained relatively straightforward. Until now...

Kristian Ulrich Larsen, an interaction designer and MA student at Kolding School of Design has created Flip Phone; a three-screen display smartphone concept with QWERTY keyboard that can fold and move into different shapes.

“After the introduction of the smartphone, the industrial design of the devices has converged into all looking more or less the same. Due to the touch-based interaction, every smartphone device is now a flat rectangle with a screen on it, making it difficult for both the user and the manufactures to differentiate the devices from each other. This phone is trying to change that,” says Larsen.

Okay, I know it is only a concept, but I believe this unique and innovative design could revolutionise the way phone manufacturers go about future smartphone development. If the pictures are anything to go by then bring it on!

According to Larsen: “The unique form and unique way of interacting with it is supposed to set it apart from other phones, but more importantly, is supposed to add value for the user, making the experience of using a smartphone even more exciting and engaging.”

Flip Phone features include three flexible super AMOLED screens, full QWERTY keyboard, a gorilla glass screen cover, LED lid coloured lines, an aluminium case and steel mesh links.

Although the phone performs regular smartphone functions like music playback, internet browsing and webcam functionality, it also enables greater multi-tasking possibilities with a cleaner, more efficient user interface. The Flip Phone encourages practicality while remaining creative.

With the ability to expand content over multiple screens, share information and interact with other Flip Phone users, and read e-Books like a traditional publication, this concept certainly recognises current industry trends geared towards social media networking and e-reader tablet technologies.

Flip Phone has truly pushed the boundaries of future smartphone design; it increases practicality, encourages creativity and facilitates greater efficiency. My only disappointment is that I can’t buy it right now!

Confronting environmental issues head-on

2011-02-07T00:04:32Z

A recent report, The Future of Energy Management, commissioned by Schneider Electric, assessed the state of energy management in the UK, revealing that overall, the country has taken a few steps back in terms of its willingness to realise the importance of environmental performance. The statistics from the research among manufacturers illustrates this problem.

Going forward, manufacturers will need to up their energy management programmes to deal with some of the energy issues set to influence them over the next few years.

For example, under the CRC Energy Efficiency Scheme, companies will no longer see financial rewards and instead the revenue raised by carbon allowance sales will be used to support public finances.

The cost of allowances - currently £12 per tonne of CO2 - will be decided through the budget process. This effectively makes it a new carbon tax on larger companies.

While organisations will not need to purchase allowances for 2011/2012 until next year, businesses need to prepare for the scheme now by accurately monitoring and managing energy usage.

The second issue relates to energy productivity. Targets filtered down to specific manufacturing sectors from the EU Emissions Trading Scheme means the industry will be judged on the production of one unit of output for a set number of units of input. As such, there is going to be a greater focus on the amount of energy used by processes to produce goods.

In addition, there will also be a greater focus on maximising available energy capacity to improve efficiencies, particularly within the electrical network.

Synergy within the manufacturing environment will also become more prevalent. This means bringing together four domains of process and machine management; power management; building management; security management; and critical power management through the use of a common network that integrates hardware, software and communications.

Finally, perhaps an issue that is deemed too distant but needs addressing now, is the integration of the Smart Grid - an electricity grid equipped with information and communications technology alongside control mechanisms to integrate the actions of all users connected to it.

Achieving a smarter grid means that manufacturers need to look at both their contribution to the grid and absorption of energy as the classic linear energy grid becomes an intelligent and interactive network.

The Top 5 Challenges of Lean Implementation

2011-02-06T23:56:24Z

Lean manufacturing is a process of removing waste that was developed by the Toyota Production System. The concept behind lean manufacturing is defined by three different forms of waste: "muda" or non-value-added work, "muri" or overburden, and "mura" or unevenness. By eliminating waste, overall quality can be improved and production time as well as cost can be reduced.

Implementing Lean - or for that matter any change initiative - is difficult. If it was not, everyone would be doing it, but they are not. Here are some of the most common challenges manufacturing businesses face when implementing Lean.

#1- Resistance to change
Resistance to change can manifest itself at any level within the business but is often seen in first line management. This may be overcome by taking additional time to fully explain the benefits of Lean manufacturing to any individuals challenging its effectiveness on a one-to-one basis.

#2 - Failure to empower people
The key to empowering your people is to not only have them generate the improvement ideas but to also be part of the team that solves them. It also means to work through a structured ‘Plan-Do-Check-Act’ approach with guidance and support, such that in time they adopt improvements as part of their day-to-day work.

#3 - Lean cannot be learnt by reading a book
While Lean techniques can be explained in books, personal guidance is often needed to identify and implement the best approach for an individual organisation. It is about understanding the key principals, not just the tools and techniques.

#4 - Lean is not limited to manufacturing
Lean has typically focused on adopting tools and techniques to improve the manufacturing process, with very little emphasis on non-productive areas.

However, when we consider that at least 60 percent of the total lead time and costs associated with production come from outside of production areas, true benefit comes through becoming a Lean 'organisation' where admin, the supply chain, and non-production areas also become involved.

#5 - Recognise Lean as a whole philosophy
Lean is a whole philosophy and not just a few tools and techniques. While the tools by themselves can yield some benefit, the true gains come from changing the way the whole organisation runs. This can be done by adopting Lean as a system and changing the whole culture of the business - from top down.

Now that we know the challenges, read this complimentary whitepaper on 5 Ways to Implement Lean

3D technology - the future of entertainment or a passing fad?

2011-02-06T23:25:01Z

Discussions have been rife in the Manufacturing Digital office as to whether 3D is simply a passing fad or a technology which is here to stay. It certainly seems like technology manufacturers are keen to profit from this latest craze, producing televisions, laptops, gaming accessories and mobile phones which are all capable of 3D.

However, with a lack of content available to most consumers, 3D sales have failed to live up to expectations for several manufacturers and retailers. Masaaki Osumi, head of Toshiba's television division, confirms sales have struggled.

“We had wanted 3D sales to make up about half of large-screen TV sales, but it's proving difficult,” he reveals. “Sales of 3D TVs with glasses have not lived up to expectations."

With this in mind, Toshiba has now developed glasses-free 3D technology which uses small lenses in front of a television screen to disperse light to different points in the room. If sat in the right position and at the right angle, the viewer is able to see the 3D effects.

Wearing glasses clearly hasn’t put rap star 50 Cent off 3D technology though as last year he invested in a new company called Gunnar Optiks. The company specialises in manufacturing 3D glasses and in making sharper images that help reduce eye irritation and headaches.

Personally, I’m not too sure 50 Cent’s investment is a wise one and nor does Sir David Attenborough, who believes the introduction of 3D television will be focused on ‘event TV’, covering international sports and action programmes for example. I can see how 3D will completely revolutionise the viewing experience of documentaries and certain films but I cannot see a place for it with everyday programmes.

One media form that requires a huge amount of attention is gaming. Nintendo's 3DS can also produce 3D effects without the need for special glasses through a process called autostereoscopy. Set for release in Japan later this month, the portable gaming console will look to revolutionise the market.

Whatever your opinion, 3D technology manufacturers look to cash in on this latest phenomenon. 3D may not have found its ideal market yet, but manufacturers are going to pursue every avenue in order to find it.

The future of urban mobility: A car that drives itself

2011-02-06T23:17:20Z

As a female who drives, I am more than aware of the stereotypical view that women have much greater difficulty parking than men.

Whether or not this is a fair assumption however may not even be relevant in 20 years time, thanks to General Motors’ (GM) latest concept car.

The US company has developed an electric networked-vehicle, or EN-V as it has been named, that is not only able to drive automatically but also park itself, too. It has been described by GM as a ‘vision for future urban mobility’, needed in 2030 when 60 percent of the world’s eight billion people will live in urban areas.

The EN-V was first unveiled as a concept at the World Expo 2010 in Shanghai, but it was at the Las Vegas Consumer Electric Show in January where it was fully functional.

The car itself resembles a bubble, like a Smart car only half the size. With just two seats and two wheels, it is powered by a lithium-ion battery pack - an environmentalist’s dream with zero emissions.

If you drive an EN-V, you could charge it up in your own home and forget about those traffic jams that make you late for work in the morning as it is able to select the fastest route based on real-time traffic information.

Using sensors and cameras, the EN-V can ‘sense’ what is around it, allowing it to drive itself. If someone were to step out in front of it, the EN-V would automatically decelerate to a slower and safer speed and stop sooner than cars on the road today.

Doubtless that the EN-V is an amazing development in the automotive industry – but the thought of millions of us driving around in one reminds me of a scene from the futuristic film Fifth Element, perhaps a little too futuristic to be practical. I don’t know about you but I could never fit the contents of my car into a two-seater pod with no boot, and that’s without a trip to the supermarket.

In the last issue of Manufacturing Digital, we looked at the world of robots and how the possibility of a walking, talking, feeling android may become a reality in the future. Although no launch date has been scheduled yet, with this latest development, we could even see a robot being chauffeured in a self-automated car. Now that is a scary thought.

Watch a YouTube video of EN-V in action.

Media Tablets a bitter pill for PC manufacturers to swallow

2010-12-23T01:20:08Z

Media tablets are fast becoming the latest global trend and with PC sales falling, the future looks very bright indeed for alternatives such as tablets and e-readers.

Summing up the tablets’ popularity perfectly, research firm Gartner’s recent report states: “Media tablets are fast finding favour with PC buyers attracted to their more dedicated entertainment-driven features and their instant-on capability.” Indeed, online publications and websites are increasingly tailoring their web design to suit tablet screens rather than conventional PC screens.

PC partner?
iPads and other tablets will be increasingly embraced “as complements if not substitutes for PCs,” says Raphael Vasquez, a Gartner analyst.
Vasquez also foresees media tablets becoming more “PC-like” in future years, displacing large numbers of PC shipments, particularly in the mini-notebook category. Already this year, Apple has recorded a reduction in MacBook sales against a huge increase in iPad sales.

With billions of innovative new apps saturating the market, tablets and e-readers can provide owners with more for their money. The way technology is moving, people will soon have all of their information stored in the cloud and all their operational systems downloaded via apps. Tablets provide a much better platform to host these new and emerging technological trends.

Tablet, e-reader sales to triple
In-Stat Research has taken a new look at the future of e-readers, predicting that shipments from key suppliers such as Barnes & Noble, Amazon and Sony will rise from 12 million units by the close of this year to 35 million units in 2014.

Global sales of media tablets are expected to reach 19.5 million units this year and as much as 208 million units in 2014, according to research.
Analysts expect the market to boom over the next few years, driven by the success of the iPad. Forecasts suggest that 2011 will see a 181 percent increase to 54.8 million, primarily due to the flood of iPad rivals that are expected next year.

Can tablets and e-readers co-exist?
“While electronic tablets have created lots of buzz amid increased competition in the market, e-readers continue to be very popular devices,” says Anne Marie Kelly, senior vice president at In-Stat Research.

Yet, not everyone thinks that tablets can continue on such an upward curve without eating into sales of e-readers and PCs alike. Gartner predicts that because of their all-in-one nature, tablets “will result in the cannibalisation of other consumer electronics devices such as e-readers, gaming devices, and media players.”

Understanding Lean transformations

2010-12-22T23:53:01Z

Large-scale Lean and Six Sigma transformation projects are notoriously difficult to make work. With boards still wary of a fragile economic recovery and therefore less likely to sign off on major expenditure, the situation remains challenging.

Nevertheless, manufacturers cannot afford to stand still either. By following a few guidelines, companies can co-ordinate their lean and six sigma efforts to unlock the full potential of their operations and achieve genuine transformation. Some lean transformation guidelines to think about include:

• Connect the lean transformation to the company’s business goals. This requires a clear articulation of the strategy and future vision for the business using measurable objectives that can be accomplished in a two to three-year timeframe. Given that lean transformation can be powerful when applied correctly, senior leaders should not shy away from making their chosen objectives challenging.

• Re-examine all the current initiatives in the pipeline in the light of the objectives and determine those that align with them. It is imperative at this stage to identify those initiatives that are necessary to hit targets (and the critical processes that support them) in order to make sure the corporate strategy and objectives can be executed.

• Think about budgets. To make sure the right targets and behaviours are being encouraged, the budgeting process must be connected to the strategy. This will help remove sentimentality from the discussion and enable everyone in the company to view the bigger picture. The right metrics will help to determine how well initiatives are being executed and whether breakthrough changes are being delivered.

Without doubt, Lean transformation can lead to significant operational improvements in many companies. The key is for Lean transformation to contribute to the strategic agenda. The Lean transformation approach provides a framework for ensuring that initiatives on the ground floor can be aligned with the business strategy at the top levels and, in doing so, deliver their expected value.

Is ‘green' becoming the new ‘black'?

2010-12-22T23:30:47Z

If you believe what you read, ‘green’ is well and truly on its way to becoming the new ‘black’. And this could well be good news for UK manufacturing.

The fact is it hasn’t always been easy. In fact, many management teams continue to bemoan the stringent legislation placed on the industry over the last decade – only this week I visited Westfield Sportscars and its emission test costs were truly eye-watering. However, the pain is now turning into gain, with manufacturers reporting cost savings and greater efficiencies and the best is yet to come.

Our industrial base – possibly more than any nation in the world – is ahead of the game when it comes to embracing the low carbon agenda, reported to be worth more than £4.5 trillion by 2015. That is £4.5 trillion opportunities in green vehicle and aircraft production, nuclear and marine energy, and offshore wind generation - all markets our companies are winning new orders in.

The world’s major players are also demonstrating their commitment to investing in the UK. JLR’s Indian owners TATA are already taking advantage of our existing knowledge base, Ford is channelling £1.5 billion into developing eco-vehicles at its four facilities and, only last week, a carbon partnership was signed by Rolls Royce and China Eastern Airlines as part of a $1.2 billion deal.

Why is there this sudden desire to make the UK a global capital of green technologies? Put simply, we have the innovation, the R&D, and indeed the manufacturing knowledge to push boundaries faster than any other country. This solid base is then supported by an expansive supply chain and world-class universities just itching to apply their academic expertise to commercial applications. One such example is the European Bioenergy Research Institute based at Aston University, where there are some truly world-beating low carbon developments underway.

It is important not to forget the government here, which has been doing its bit to make the UK a desirable place to invest in low carbon technologies, through its international promotion campaign and also through initiatives like my organisation, the Manufacturing Advisory Service, West Midlands. Just in our region alone, we have more than 20 dedicated advisers helping 2,000 manufacturers with support ranging from a hotline and online resources to specialist assistance and supply chain development. In a nutshell, the ingredients are in place for UK Manufacturing to capitalise on this head-start and continue to lead the race for the low carbon industry.

It's a robotic world

2010-12-22T23:18:22Z

With advances in computing speed, battery capacity, camera and motor miniaturisation and software capability, the progress made in the past 15 years of robotics alone has been phenomenal. There are now very human-looking robots that can get around on two legs, dance, sing and even participate in simple conversations. Only recently, reports surfaced of the eerily human-like Germinoid-F robot starring in a play alongside a human actress in Japan.

Miss Rong Cheng – designed by the Chinese Academy of Sciences in 2006 – has been specifically made to take on receptionist work. Whilst in Vietnam, inventor Le Trung has created a fembot called Aiko that is capable of everyday household chores and can read the newspaper. She will even slap you if you touch her inappropriately. It is both scary and intriguing to imagine how robotics can and will develop further in the future.

Over the past few months Manufacturing Digital has seen some fascinating and deeply disturbing creations in the world of robotics. The 5ft 6inch sex robot, Roxxy, is perhaps the most outrageous with its moveable limbs, fixed-stare, and ability to stimulate an orgasm.

Created in the US, it is heading to Britain following increased demand from robot fetishists. The disturbing thing is that there is a market for these robots at all. Even more worrying is that one woman has reportedly requested a sex-bot to be made in the likeness of Graham Norton. I guess the saying is true; it really does take all kinds of people to make this world.

In Germany, designer Stefan Ulrich has created a pillow-like robot called Funktionide. The ‘love robot’ reacts to pressure, skin temperature and colour to produce a human-like response. The conceptual shape-changing robot is used to relieve loneliness, using artificial technology. Its special sensors react to human touch to show when it is happy or in love. Apparently the love-bot could eventually replace the need for a boyfriend or girlfriend.

Now, my partner drives me crazy on occasion, but no matter how bad things get I could never think of replacing him with a piece of plastic. The concept and technology of the robot is truly amazing but in my eyes it is ludicrous to even suggest that a robot will be able to replace the need for human companionship. What will be next, robotic pets? Well yes, actually. In Japan, robotic pets are being used as companions. Some robot pets are even used to remind the elderly to take their medication. It seems like there really is a robot to cater for every need.

How Datamatrix Barcoding could benefit the pharmaceuticals industry

2010-12-09T00:48:28Z

The French pharmaceuticals industry is adopting a Datamatrix system to meet new regulations on the traceability of products, with the aim of improving patient safety and the UK and other countries could soon follow suit.

New regulations, created by the AFSSAPS (French Agency of Sanitary Safety and Health Products) this year, have established an improved coding standard for the French pharmaceuticals market, designed to improve the traceability of medicines distributed in France, as well as increase consumer safety. A Datamatrix barcode, containing the new CIP 13* code, a batch number and the medicine expiry date, will be printed on the production line as a replacement of the current French pre-printed CIP 7 standard.

The Datamatrix marking system encodes more information on each label but maintains a print size small enough for pharmaceutical products cases. Datamatrix marking allows a large storage capacity on minimal physical dimensions, thanks to 2D coding. The Datamatrix code facilitates the electronic automation of product monitoring in the supply chain allowing batch recalls or automatic detection of out-of-date products.

Avery Dennison offers three innovative solutions for Datamatrix bar-coding technology.

The first solution upgrades an existing labelling machine, without affecting the dimensions. The update of the AVL labeller is a cost-effective upgrade of a proven labelling machine, but with new features added. Avery Dennison equips the machine with a unique interface that centralises the management of all functions of the machine: marking, labelling and Datamatrix control.

The second solution updates the production line by adding a dedicated Datamatrix module. Avery Dennison offers a compact independent module (600 mm) dedicated to Datamatrix marking. The accurate and consistent movement of product cases through the labelling area ensures the best print quality.

Finally, if a manufacturer is establishing a completely new production line, Avery Dennison proposes the latest version of its AVL-DM labeller, which integrates the printing of the Datamatrix and control over the Datamatrix code, in addition to the classical functions of deposition and inspection of the social security label. The use of a single interface makes it possible to easily manage the different functions of the machine and maintain a reasonable load (1,000 or 1,300 mm).

New Approach to Environmental Performance

2010-11-22T01:48:09Z

The process, called Envirolean, is built on the principles of Lean and provides a systemic approach for optimising the use of valuable resources and reducing defects in a process or product.

The competitive advantage and cost savings associated with environmental improvements are well-documented, although for many manufacturers the scale of benefits has not always justified the investment. However, increasing penalties for not making environmental improvements combined with a growing range of solutions now available means that progressive companies are implementing processes such as Envirolean in order to meet both their customers’ and legislative needs.

For many years, lean manufacturing has been a recognised practice that delivers improvements in cost, quality and delivery - but the connection between Lean and environmental improvements has only been applied mainly on a theoretical basis.

The foundation of Envirolean is the identification and then reduction of non-value adding activity which either consumes scarce resources such as energy, water and materials, or produces defects in the end product. This is done by measuring the amount of resource that is put in to a process and how much is consumed in the value-adding steps of the process until it reaches the customer. By definition everything else is non value-adding and should be removed.

Based in Sevenoaks, Kent, H+H UK is the largest manufacturer of environmentally-friendly aircrete blocks and just one of the companies that have already benefitted from Envirolean.

The process immediately identified potential savings such as:
• Overall defects reduction
• Potential 1.4% scrap reduction representing an additional £300k of saleable product
• Significant reduction in energy consumption during reprocessing
• Potential reduction in landfill material (very low anyway due to material being recycled back into manufacturing process)
• Potential 3% reduction in amount of cement required, equivalent to a reduction in CO2 of 2790te/year

Link: www.footworkfirst.co.uk

Home-Sourcing Makes a Comeback

2010-11-22T00:13:58Z

For all manufacturers who watched their businesses decline as original equipment manufacturers opted to ship their supplier relationships to cheap-labour countries such as China and India, there is now a solid piece of advice: Those contracts are coming back home, and it will pay to get ready.

I have heard over and over from manufacturers that the off-shoring fad is quickly losing its appeal for OEMs. Long gone are the extraordinarily inexpensive costs of overseas labour paired with favourable exchange rates that made hiring foreign suppliers such a no-brainer.

There have been other issues for the off-shoring OEM set as well: product quality is sometimes suspect, intellectual property frequently lacks any legal safeguards, and linguistic and cultural barriers can often complicate training workers overseas – not to mention the frustrating lags in turnaround time.

The suppliers that are benefitting most from home-sourcing are those that have spent time recalibrating their businesses early in this recent downturn. They did some deep strategic thinking and developed a plan to become better suppliers, to find new customers, and to make sure they were not squeezed out of work during the recession.

They have worked hard to manage up their supply chains and provide more value-added capabilities to their biggest and most important clients.

Many manufacturers opened the door to make gains from home-sourcing as OEMs similarly re-evaluated their relationships and business dealings with suppliers. When the economy was good, OEMs were not so concerned with inventory and total cost of ownership; they were negotiating more on price and tactics instead of high value and strong relationships.

Home-sourcing plays a large role in the total cost of ownership because it means OEMs are moving beyond price to select their vendors based on just-in-time manufacturing, ease of problem-solving, proximity and quality. When they take the discussion away from price, the design and production issues are easy to work out and efficiencies are easier to realise.

OEMs keep only 20 components in stock instead of 200, knowing that extra inventory is only a short trip away instead of across an ocean. They have eliminated the soft costs of travelling to the vendor and working out any finished quality issues, saving time for rework and stocking up with inventory and product.