One of the major area where every manufacturing concern focus is on production optimization because almost 70 to 80% of cost in COGS is incurred during production. Industry is working on this subject since few decades, as a result we could see many theories and principles being evolved and practiced. But still there is a something missing, every time you achieve a targeted perfection we can gage a small percentage of error. Reason for such error may be external or internal factors, some are within our control and some are beyond our control.
Now let’s think of something which is within our control, internal operation. Planning, scheduling, executing and reviewing internal operation is very much necessary to narrow down the variances between standards and actual. Advance planning is the general trend in manufacturing. But today, manufacturers prefer demand based manufacturing to reduce business risk.
“Demand driven approach to production gives 92% perfect order against 81% of those who do not” - AMR Research
Demand based manufacturing is a complex process because while planning in such scenarios
management has to consider many factors other than Man, Material and Money. Such complexity can be handled by using a comprehensive solution like Sage Auto-Simply, which is
exclusively developed with an objective to handle complex calculations and probabilities while forecasting and planning. Greytrix, in its implementation practices had always leveraged the
power of simplicity in Auto Simply and over a period of time this had delivered tremendous result to their clients.
We could see that most of them had:
• Reduced their inventory by 15%.
• Improved their POP (Perfect Order Performance) by 17%.
• Reduced CtC (Cash to Cash) cycle by 35%.
This had helped them to reduce working capital, increase capital utilization, inventory
optimization and mainly maintained a flexibility to change over between SKUs as per trend. Auto-simply modules like Production Planning & Manufacturing Order can help you to get summarized Availability Report, Order Projection Report, Production Schedules, ability to check on implication of changing scenarios on profitability, CoP (Cost of Production) & COGS (Cost Of Goods Sold).
In long run a manufacturer can expect business benefits like, Increased Customer
Service with on time delivery, optimal Capacity Utilization, Reduced Wastage,
Reduced Transportation & Warehousing Cost if opts for automation of the end to end production process.
1 comment:
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Thank you for taking the time to provide us with your valuable information.
Kindly keep update like this.....
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