Accuracy is the key to success
Success in speeding materials flow is insufficient without a parallel effort aimed at capturing and using real-time information, says industry expert John Hill.
By Staff -- Modern Materials Handling, 8/1/1999
Today's supply chain management systems provide great promise in the chase for productivity improvement opportunities.According to John M. Hill of Cypress Associates, the U.S. industry has been making great strides in such improvement opportunities for years.
Speaking at the recent Warehouse of the Future 99 conference, Hill told attendees that supply chain management and integration systems are complementing and strengthening earlier concepts such as just-in-time, quick response, and efficient consumer response.
But, said Hill, in order to achieve the greater desired levels of productivity, the new management systems must ensure the integrity of receiving, processing, assembly, packaging, storage, shipping, and transportation operations through high levels of discipline and control.
The key is to replace historical data and reports with highly accurate, real-time information. Simply speeding up the flow of materials is inadequate, if the accompanying flow of real-time information does not keep pace.
Automatic data capture (ADC) systems, said Hill, represent the major source of the accurate real-time feedback that enables companies to monitor operations, manage resources, and launch the supply chain integration programs that are so important to growing market share and the bottom line. And, Hill said, acceptable accuracy levels of necessity must rise to greater heights than ever before. Hill used the accompanying table to illustrate his point.
He also noted that ADC systems provide the real-time input needed to effectively run information systems such as warehouse, order, and transportation management; advanced planning and scheduling; and forecasting and demand management.
The trouble with 99.9%
One hour unsafe drinking water/month
Two unsafe Chicago O'Hare Landings/Day
500 incorrect surgical operations/week
16,000 pieces of mail lost/hour
19,000 babies dropped at birth/year
20,000 incorrect prescriptions/year
22,000 checks drawn on the wrong account/year
32,000 missed heartbeats/year
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