Competitve Forces Driving Manufacturers to CI Systems
The Continuous Improvement programs used most often by manufacturers are Lean Manufacturing, Six Sigma, Total Quality Management (TQM), and Theory of Constraints (TOC). The applications used to support these programs are in this study and include electronic Kanban (eKanban), Statistical Process Control (SPC), Finite Capacity Scheduling (FCS), Advanced Planning and Scheduling (APS), Overall Equipment Effectiveness (OEE), TQM, and Value Stream Mapping (VSM).
Globalization is exerting extraordinary pressure on manufacturers, causing most to adopt Continuous Improvement (CI) programs. Applications for CI systems
have “crossed the chasm” and leaders are starting to emerge for the key segments of this market. Adoption of technology to enhance continuous improvement programs is allowing manufacturers to take their businesses to a higher level of financial performance in both their P&L and balance sheets.
ARC has conducted surveys among manufacturers who have Continuous Improvement programs. Reports containing the key findings are included in a special chapter with their recommendations.
Strategic Issues
Manufacturers are looking to CI systems to improve operational and financial performance. Incremental changes combine and compound to become a clear competitive advantage and a driver for revenue growth. But some executives lack the patience for a CI program to be effective.
- How can suppliers differentiate themselves while adding value to users?
- What are the key markets and which provide the highest opportunity?
- How can ERP and Best-of-Breed suppliers be positioned for market success?
- What do manufacturers want from CI systems?
- What are the key market drivers and inhibitors?