Product Type: Market Research Report
Published by: Datamonitor
Published: April 2006
Product Code: R313-15787Description Introduction
As manufacturing becomes more global, low-cost regions are seeing manufacturers come under increasing competition and margin pressure as they try to keep pace with shortening customer demand cycles.
Scope
- Looks at strategies such as lean manufacturing as a method to reduce the impact of market pressures.
- Concepts such as demand driven manufacturing are highlighted as manufacturers try to increase business agility.
Highlights
Manufacturers are turning to multiple strategies to improve their production performance. Among these, lean initiatives have proved to be some of the most popular. By removing excess waste from processes, manufacturers can theoretically operate at a more efficient level.
Manufacturers have traditionally employed a formulaic approach to forecasting future demand. This has required businesses to often overproduce as they try to offset the impact of unexpected demand. Demand based forecasting is a concept that is not new to the manufacturing industry, yet has proved difficult to implement in the past.
Reasons to Purchase
- Understand how manufacturers are using lean strategies to lessen the impact of market pressures.
- See how demand driven manufacturing can affect manufacturing business and drive revenues.
Table of Contents - DATAMONITOR VIEW
- CATALYST
- SUMMARY
- METHODOLOGY
- ANALYSIS
- Lean initatives help manufacturers trim waste from their processes
- Total productive maintenance aims to minimize production line down time
- Six Sigma focuses on production quality
- Just in time manufacturing 'pulls' production processes
- Kaizen (continuous improvement) ensures manufacturers continue to experience strategy driven benefits
- 5S streamlines cleanup processes
- Quick change over (SMED) ensures that reconfiguration of production lines flows smoothly and quickly
- Adoption of lean strategies will vary by region, industry and individual company
- Demand driven manufacturing seeks to lower costs while improving customer satisfaction
- Demand driven manufacturing removes the need for traditional forecasting
- Employing demand driven manufacturing reduces the cost of holding inventory
- Demand driven manufacturing can be challenging to implement
- Production must be flexible enough to deal with changing demand cycles
- Visibility into the supply chain is required for demand driven manufacturing
- Real time operation leads to the most significant benefits from demand driven manufacturing
- Managing information pertaining to demand driven manufacturing is critical
- Demand driven manufacturing will grow in popularity, but manufacturers will need help
- Increasing supply chain visibility allows optimization of core and peripheral processes
- Production visibility allows manufacturers to hone their core competency
- Supplier interaction is an important element of a manufacturer's business
- Customer interaction directly affects revenue, and costs
- APPENDIX
- Definitions
- Extended methodology
- Further reading
- Ask the analyst
- List of Figures
- Figure 1: Which of the following strategies are you implementing?
- Figure 2: Are your manufacturing operations lean or traditional? (1 = traditional, 4 = lean)
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