Manufacturing Focus: Our Weekly Feature Article on Topics Related to Manufacturing Management  
 
 
  - November 28, 2007 -  

Supply Chain News: Do We Need more Focus on “Manufacturing Logistics?”

 
 

Material Flow Issues often Impact Productivity; Layout and Technology both Play a Role

 
 

 

SCDigest Editorial Staff

With all the focus on the improved flow of materials and goods in the overall supply chain and distribution centers, the impact of constricted material flow within manufacturing operations is too often overlooked.

SCDigest Says:
One key obviously is to look hard to changes to material flow – and barriers that may be created later – any time changes to a plant are being considered, not just on solving the immediate production issue.

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“We’ve been hearing an increasing number of stories from companies that are suffering from material flow issues, or what we like to call “production logistics” problems,” said SCDigest editor Dan Gilmore.

For example, SCDigest recently spoke with one of the largest food manufacturers in the US, which described how in one plant, changes over time to production lines had led to highly inefficient material flow and that cumulatively had a significant impact on cost and productivity.

At the October meeting of the Georgia Tech Supply Chain Executive Forum, Danny Garst, Sr. VP of Supply Chain and IT at Philips Consumer Electronics, described how a Mexican factory the company owned was having similar issues. The interesting solution – help from its logistics outsource provider Ryder to better layout the factory and improve material flows, which had a major impact on improving efficiency.

Theses examples show there is often a gap between material handling and flow expertise, which is often prevalent in the distribution side of the business, and the knowledge and perspective of manufacturing managers.

Problems Creep Up Over Time

While there are sometimes issues with the initial factory layout, for many companies the problem tends to creep up over time, as changes are made in lines and equipment. With space often a constraint, additions and changes can be “shoe-horned” in, leading to real bottlenecks in material flow over time.

 
 
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Jim Tompkins, president of Tompkins Associates, agrees: “Not all companies get the context of lean flow or if they do get it they have created so many barriers to change that they can’t do anything about it,” Tompkins told SCDigest. “For instance, companies want to flow materials through their plants, but still maintain the same receiving and shipping areas. Or they have large pieces of equipment or systems, such as massive presses or paint systems, that they just can’t move. In some instances their products have not changed much in years which also makes altering the process or systems used in manufacturing very difficult to justify.”

One key obviously is to look hard to changes to material flow – and barriers that may be created later – any time changes to a plant are being considered, not just on solving the immediate production issue.

Technology is Also a Barrier

Clearly, overall design is a key determinant of “production logistics” effectiveness. Technology can also play an important role.

Accurate and timely data have big impact, so moving to paperless systems using data collection technologies such as bar coding and RFID, supported as needed by mobile wireless technologies, is a critical first step.

But in many cases, the Manufacturing Execution Systems (MES) in place within a plant cover only a portion of “production logistics” requirements – the movement and tracking of material around the production line itself. The broader movement of materials from inbound to shipping isn’t managed by the MES – and often left to manual approaches that are difficult to optimize.

What’s needed is something like a Warehouse Management System for Manufacturing – even though many manufacturers don’t like the idea of installing a WMS.

Next week, we’ll look at technical developments in this area from leading vendors.

Do we need more focus on “production logistics?” What are the key factors in degrading material flow within a factory? Is it possible to cost justify the improvements after equipment is already in place? Let us know your thoughts at the feedback button below.

 
     
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