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Are you paying too much for your mortgage insurance?
Most of us, struggling to make our mortgage payments, realize the importance of financially securing our home and our lifestyle by putting in place some life insurance. Your bank or lending institution does too! They will usually require that the...
Business Plans Revealed - How to Write Your Plan and Why
A business plan is your vision of where you want your business to go and how you’re going to get there. It’s a road map and, like a map, it helps to document the route on paper, rather than simply commit it to memory. A coherent, written plan is as...
Does the Moon Have Covers?
Recently, one late winter night, my four-year old son and I counted stars with one another. After a few minutes, he pointed to the bright moon and asked, "Why doesn't the moon have covers?" "Covers? What do you mean?" I inquired. And in his own...
Double Your Sales Potential With Double-sided Business Cards
Swapping business cards is one of the most basic and common forms of networking in the business world. With something that is so common practice, people often hand out cards blindly while not really thinking about what the card does AFTER you hand...
Right PR Empowers a Manager
Business, non-profit and association managers are in a stronger position to succeed when they use their public relations resources in a way that alters individual perception leading to changed external stakeholder behavior.
A mouthful, but...
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E-Kanban: Blanket Purchase Orders and Lean Manufacturing
Blanket Purchase Orders are a “best practice” in the well-oiled kanban process. They minimize the flow of information between buyers and their suppliers, while maintaining the terms, conditions and integrity of the business relationship between the two parties. Datacraft Solutions (www.datacraftsolutions.com), the leader in e-kanban, found that while managing a large number of suppliers with many part numbers, managing the integrity of blanket purchase orders become an issue. For every given kanban release it is important to make sure that: an open purchase order still exists, and that there was enough remaining balance on the purchase order to cover the current purchase. The new Best Practice was “integrating the electronic kanban system” with a manufacturers current purchasing system. Kanbans are now guaranteed never to be sent to supplier unless there is a valid blanket purchase order.
FAX KANBAN is NOT Efficient and NOT Lean
At ten minutes per fax,
someone is spending 3.5 hours per day in administration time. That inefficiency results in less time to utilize more suppliers or improve the relationships with existing suppliers.
Furthermore, even if 99% of those faxes are trouble free procurement signals, four faxes per month are going to be problematic and dilute the entire rationale for a lean manufacturing operation. Suppliers claim they did not receive the fax kanban; suppliers cannot make the shipment date requested and expedited shipping fees are incurred, or worse, there will be a stockout which will negatively impact customer service levels.
According to Sam Bayer, President of Datacraft Solutions Process improvements with existing suppliers will further reduce lead times and inventory levels and bring more suppliers onto the system.
Datacraft Solutions www.datacraftsolutions.com Sam Bayer sbayer@datacraftsolutions.com 919-667-9804
About the Author
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