Achieving Lean Transformation in High-Variation Environments
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1 Achieving Lean Transformation in High-Variation Environments
2 MAKING LEAN MANUFACTURING WORK IN A COMPLEX ENVIRONMENT While lean manufacturing is a proven best practice in high volume manufacturing such as automotive, it has proven challenging for companies with complex products and high variation. Areteium Lean Transformation Software is designed specifically to support lean transformation for the most complex of manufacturing environments. This proprietary software solution available exclusively from mcaconnect enables bottom-line performance improvement from lean transformation. CUSTOMER SUCCESSES WITH ARETEIUM Specialty Steel, OH Inventory reduced 42%. 60 days to implement. Metal Manufacturer, RI Lead time reduced from 72 days to 7 days. 97% on-time delivery. 67% reduction in inventory. 15 month project. Industrial Equipment, MI Lead time reduced from 21 days to 7 days. Inventory reduced 50%. Profitability by value stream. 24 month project. Chemicals, TX Lead reduced from 42 days to 7 days. Inventory reduced 50%. 30 days to implement. Electronics, FL Overtime reduced 85%, lead time reduced 14 days. 5 month project. Electronics, Poland Identified $2MM reduction in overtime and 45 FTE savings. 2 week assessment. page 2
3 HOW ARETEIUM DRIVES BUSINESS VALUE FOR MANUFACTURERS FACT-BASED DECISION-MAKING BASED ON QUANTITATIVE MODELING How do you forecast savings when there are an abundance of variables? Areteium allows you to run an unlimited number of what if scenarios so that you can make informed decisions - even before you make big investments or re-engineer your business processes. Some of common modeling our clients run using Areteium include: Comprehensive modeling of manufacturers of any complexity Make to order Configured products Calculate takt time and every part, every interval Dynamic, graphical capacity analysis Calculate inventory reorder points and supermarket sizes Plan for high season/low season staffing with playbooks Monetize value stream profitability with lean accounting Calculate inventory turns and lead times Understand and calculate shared resource requirements Lean-oriented sales and operations planning (S&OP) to synchronize Sales, Marketing, Materials, Operations and Finance page 3
4 ENTERPRISE-WIDE LEAN REPOSITORY FOR MASTER DATA MANAGEMENT Master Data Management (MDM) is the discipline comprised of business standards, rules, policies, and methods enabling the integration of data from multiple sources to deliver consistent, current, and authoritative data across an enterprise. When used for Master Data Management, Areteium can be set up to support individual production lines, entire plants, or an entire extended supply chain all with a common set of enterprise product and process information. Lean data at the process level geared toward the Industrial Engineer, not the Cost Accountant Retain data from every kaizen event System of record for manufacturing operations Data model deeper than ERP Manage data more simply than ERP routings page 4
5 BENEFITS OF ARETEIUM RAPID AND FOCUSED TIME TO BENEFIT Generate value stream maps automatically Identify make-to-stock and make-to-order product families Visual analysis tools Get strategic with kaizen opportunities for bottom-line impact FREE MOST CRITICAL RESOURCES TO MORE STRATEGIC WORK Eliminate days of non-value added Excel manipulation What-if analysis and modeling new scenarios in minutes, not days Defined data needed for all lean tools and calculations Quickly make changes and understand impact QUICK TO LEARN, EASY TO USE, STANDARD LEAN Start simple and grow as needed Hosted solution, no IT required Easy to import data from any ERP Standard lean concepts, terms and calculations Value stream map is the user interface DYNAMICS AX INTEGRATION Complete integration with the leading lean ERP Design and modeling in Areteium, execution in Dynamics AX Areteium-based data migration from any legacy ERP page 5
6 ABOUT THE AUTHOR Phil Coy is Managing Director, Strategy Services of mcaconnect focusing on manufacturing excellence. Phil is a thought leader advocating the use of technology to enable lean manufacturing and sustainable operations. ABOUT ARETEIUM Areteium is a cloud-based software tool that creates a complete model of future state operations, providing quantifiable data supported by what-if analysis. This allows you to make valuable, data-driven decisions to improve lead time, reduce waste, and deliver greater profits. With Areteium, you can achieve the benefits of your manufacturing operations transformation significantly faster! Your executive team will have confidence that your plans will achieve the expected results. Request a FREE 30-Day Trial of Areteium by ing solutions@mcaconnect.com! ABOUT MCACONNECT mcaconnect is a Global Systems Integrator and Microsoft Dynamics Partner (AX & CRM) that delivers and supports operational transformation to help customers achieve competitive advantage. By combining product and industry expertise with proven strategic alignment methods, mcaconnect is able to consistently deliver innovative solutions that help clients realize their vision, as evidenced by our repeated recognition from Microsoft and the millions of dollars we ve helped customers add to their bottom line. In 2015, mcaconnect was named Microsoft Dynamics U.S. Manufacturing Partner of the Year, Microsoft Enterprise Resource Partner of the Year and was a finalist for the Microsoft Customer Relationship Management Partner of the Year. page 6
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