Ramlee Ibrahim & Associates

Someone with 25 years experience in operations management starts to believe he’s seen it all. He’s confident his fine-honed skills will solve any and all problems. Such was my state of mind when I accepted an engagement to help a company with its inventory management woes. Little did I know that it would require all my skills, and add several more to my war chest.

I was asked immediately if I would observe the physical inventory of the company’s plants in Thailand and write a critique of the inventory process. I agreed but I realized that this exercise would provide insights into problems that I soon would inherit. To my dismay, I was exposed to a classic lesson of how not to take physical inventory.

Upon arriving, I was surprised to see counting and production taking place in the same area. The activity level in all five plants was the same – people counting and people working. I inquired about cutoffs and was told there were none. I asked if the lines were being purged of work in progress to make counting of the line and finished goods (FG) easier. No, the line would be working through the week. I felt a burning sensation in the pit of my stomach. (more…)

Today’s business world is rapidly changing, bringing a combination of danger and opportunity for materials and operations professionals. Every company is looking at the Internet, some eagerly and some because they are frigthened about being left behind. There are success stories about companies changing how they deal with their customers and their suppliers and how they leverage Web technology to bring their employees together.

However, there are other stories in the press about companies putting in ERP systems that took years of effort and millions of dollars, which ended up failing miserably, or companies losing market share and sales because of computer sustem failures. These events have led to a question quietly being asked: Do we need ERP or is there another way? (more…)

Someone recently wanted me to explain the difference between lean manufacturing and kanban. The difference between lean and kanban according to the Toyota Production System (TPS) architect, Ohno-san, is “….TPS is the production method, and the kanban system is the way it is managed.” To see how kanban fits in, consider the evolution of TPS. (more…)