Very interesting piece, which addresses a problem we often encountered, and was too often not addressed well enough. Every enterprise should have a handle on cleansing and trends in data. Read the whole thing for a solution view. By Cheryl Wiebe, Partner, Applied Analytics, Manufacturing at Teradata
Supply Chain Planning: Garbage In Garbage Out...
Lean manufacturing has been massively adopted over the last 10 years. Lean is driving attention to the notion of supply chain variability and accuracy of planning factors. Kanban, or pull style, says that the impetus for manufacturing activity (e.g., arrival of starting kit to begin assembly) is the arrival of the required materials at your station. This means if we have insufficient material to kit the line, the line goes down.
What this means? Lean assumes your supply chain is infallible. This forces suppliers to plan JIT warehouses at the beginning of the line. A certain disk drive manufacturer (supplier A) had to supply 18,000 drives at the JIT warehouse nearby the customer's PC assembly plant, for example. If they dipped below 18k, the customer would not pull from supplier A, and would pull instead from supplier B, the competitor. This caused supplier A to ensure they always had 25k drives (excess inventory). A short on inventory from suppliers will bring down a Lean manufacturing line. The supply problem has now moved into the JIT warehouse. We have moved the problem upstream. ... "
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