Forecast Errors
Volume 2, Issue 22, June 8, 2015

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A forecast error is the difference between the actual and predicted value. The consequences are expensive inefficiencies that can be resolved with lean manufacturing technology.

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Kanban Better Choice for Projects than Scrum

Neil A. Chaudhuri recently suggested why Kanban may be a better choice for projects than Scrum.  Scrum is a process. Kanban is more of a metaprocess, asserting key principle without prescribing how to accomplish them. There is nothing about sprints, Product Owners, formal planning meetings or any of the ceremony associated with Scrum. Based on the lean manufacturing model espoused by the “Toyota Way,” Kanban is in a way a superset of Scrum.  The ability to visualize work in an explicit way is vital.  Kanban demonstrates unequivocally where everything is in workflow. It also reveals potential bottlenecks where manufacturers may apply the Theory of Constraints. Establishing pull systems using Kanban as the core underlying methodology, has been critical to the movement toward lean manufacturing processes during the past few decades. Read more.

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Forecast Errors
Volume 2, Issue 8, February 23, 2015

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A forecast error is the difference between the actual and predicted value. The consequences are expensive inefficiencies that can be resolved with lean manufacturing technology.

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Forecast Errors Avoided by Aligning Inventory with Real-time Demand

Increased adoption of automation will help manufacturers create new revenue streams and lower costs. Real-time demand fulfillment will require tight integration of supply chain, production, logistics and marketing. The ability to sense demand in real-time and respond by changing prices or promotions through the utilization of segmented logistics, inventory and performance capacities, will allow for the optimization of integrated responses. Re-shoring will continue but supply chains will remain global, large and complex: Re-shoring will remain a focus as manufacturers search for efficiencies and innovation, but supply chains will still be complicated, requiring increased visibility provided by the industrial IoT. View here.

Reducing Order to Ship Times Also Reduces Forecast Errors

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Forecast Errors
Volume I, Issue 4, December 8, 2014

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A forecast error is the difference between the actual and predicted value. The consequences are expensive inefficiencies that can be resolved with lean manufacturing technology.

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Forecast Errors Reduced by Loops Not MRP

Loops not MRP create a result which is a unique architecture that treats material flow as a series of interconnected loops instead of the MRP architecture of linear process. MRP starts with the finished goods planned demand and then extracts the bill of materials and sends schedules both to the plants and its suppliers. Any change in demand causes supplier to react which has an impact on the upstream value chain. Loops are independent, yet interconnected with each other. One loop is between the supplier and warehouse. This may have a long lead time and lot size can be in pallets. The next loop could be between the warehouse and supermarket locations in the plant.  The lead time could be one day and lot size could be boxes. The next loop may be between supermarket and assembly lines. The lead time could be hours and the lot size could be in small bin quantities. Read more here.

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