Digital Kanban and ETO Manufacturing According to Stephen Parker CEO of Datacraft

Datacraft Solutions (www.datacraftsolutions.com) delivers a revolutionary digital kanban process of automation solutions to lean manufacturers through a secure Internet gateway, eliminating the need to install and maintain a complex IT infrastructure. The company has experienced significant growth in the past twelve months by eliminating complicated, expensive, time-intensive software implementations as well as extensive training regiments and the need for internal support. The Datacraft Solutions' demand driven supply chain digital kanban lean system allows customers access and fully utilize powerful lean benefits immediately for a low, predictable monthly fee. Services are scalable so manufacturers can design an appropriate digital kanban solution.

According to leading manufacturing journalist, Thomas R. Cutler, in the May issue of Business Excellence in a feature article titled, An Order of One, much of the (manufacturing) waste is invisible to the naked eye, so identifying and eliminating it is not always easy. Lean manufacturing uses standardized processes to remove waste from repetitive tasks, but its main principles are still relevant to ETO (engineer-to-order) manufacturers, including:

* Pull scheduling (digital kanban) to reduce inventory and reduce cycle times * Rapid setup - to reduce lot sizes and inventory * Team development - to implement the new processes * Value stream mapping - to identify value added and non-value-added activities * Cellular and flow manufacturing - to reduce travel distance and simplify routings.

Dramatic improvements can be achieved from lean manufacturing implementations and continued process improvement, including 40-60 percent increases in productivity, inventory reductions in the region of 50-75 percent, lead times down by anything from 25-75 percent and quality improvements between 50-70 percent.

One of the biggest opportunities for improvement in ETO manufacturing is in the supply chain, where procuring the right materials more quickly and accurately has a direct effect on lead times. According to Stephen Parker, CEO of Datacraft Solutions: "The role of digital kanban in the ETO environment is critical because of the complex and time sensitive nature of engineer-to-order projects. Companies are battling rising costs, fluctuating exchange rates, and increased overseas competition. Customers expect and demand quality products, short on-time deliveries, and competitive prices. Only the most efficient and flexible survive. Digital kanban is a key component that provides companies with a tool to manage costs and shorten cycle times." Because digital kanban offers real-time information, it allows a company to produce what customers require as they require it, which is exactly what engineer to order is all about.