When Toyota started looking for ways to improve process flows in their automobile production lines, they came up with the concept of lean manufacturing. Today, the practice has been adopted in various industries to help companies become more efficient and get ahead of competitors. Dynamics 365 supports lean manufacturing principles by providing capabilities that help organizations cut down on waste and optimize their production flows.
The lean manufacturing framework is built around helping companies reduce waste in manufacturing while optimizing production flows. Waste is anything that adds no value and increases company costs in terms of time, labor, or capital. Lean manufacturing methodology covers all information streams and activities. That includes everything that happens from the receipt of raw materials to the time a customer receives a product.
Dynamics 365 offers multiple features that organizations can use to support lean operations. Businesses can set up a lean foundation by modeling various logistics processes within the platform. Users can set up a lean pull system using available kanban boards to track requirements, jobs, and associated tasks.
The lean manufacturing tools within Dynamics 365 let organizations arrange their supply chain management processes in ways that make sense to their business structure. Companies can incorporate strategies for supply chain management, production, and order handling.
Once customers let businesses know how they judge the value of a product, companies can use Dynamics 365 for lean manufacturing support. In addition, the platform makes it easier for organizations to spot inefficiencies and waste in various production flows.
While there are some similarities between Lean and Six Sigma, they take different approaches to eliminating waste. Six Sigma takes a top-down approach to handling waste, while lean principles focus on improving processes starting at the bottom. The framework looks for ways to enhance the performance of individual workers, which translates to more efficiency within an organization.
Dynamics 365 supports the core lean manufacturing principles outlined below:
Let’s take a closer look at capabilities within Dynamics 365 that help support lean manufacturing principles.
Dynamics 365 has a customer relationship management (CRM) module that organizations can use to track consumer preferences. It can also function as a centralized location to keep up with consumer feedback or new requirements.
Businesses can also use the sales order module to keep up with new orders. It’s an excellent way to determine which products are successful, giving companies insight into optimizing production to keep up with demand. They can support those efforts with Dynamics 365’s production scheduling module using data collected from customers versus old-school forecasting.
Dynamics 365 provides tools that help companies manage quality levels and track essential metrics like defects, cycle times, and production yields. It also provides analytics and reporting capabilities. Businesses can produce reports that provide critical feedback like customer preferences and production efficiency. Company leaders can spot areas of improvement and find ways to improve their manufacturing processes.
Producers can use the value stream maps provided by Dynamics 365 for lean manufacturing needs. They let organizations visualize how materials and data flow from one point to another during the manufacturing process. It’s another way for organizations to locate inefficiencies and develop strategies for eliminating waste.
One way of doing that is by using Dynamics 365 to automate many of the manual tasks involved in manufacturing. That helps streamline processes, reduce costs, and cut down on lead times. In addition, the platform lets users track inventory in real time, which helps businesses maintain optimal inventory levels.
Dynamics 365’s real-time data monitoring capabilities help businesses quickly locate any bottlenecks that could slow down production and impact their ability to meet customer demand. The production scheduling module also makes it easier for producers to ensure that they’re using all company resources efficiently.
Using a pull system helps companies optimize production flows around actual consumer demand. They avoid the waste that often occurs with forecast modules by only initiating production when there is a clear demand for products and services.
Dynamics 365 supports pull systems by providing Kanban boards as a visual signaling system. They let businesses know when to ramp up production or replenish their inventory. Organizations can support Kanban boards by connecting to information within other modules like sales order management and production scheduling.
Kaizen events are vital in helping organizations ensure they stay focused on finding ways to improve their lean manufacturing processes. Dynamics 365 supports Kaizen events by providing collaboration tools. Teams can establish each event’s scope, develop goals and objectives, set delivery timelines, and ensure they have all the necessary resources.
After outlining a Kaizen event, teams can use Dynamics 365 to ensure proper implementation of lean manufacturing improvements using the tools provided for process mapping and root cause analysis. From there, teams can verify the effectiveness of any new improvements and set up new operating standards.
Internet eBusiness Solutions (IES) guides businesses looking for ways to optimize process flows. We help companies find the tools and resources needed to support their objectives. Learn more about how we can help by contacting one of our representatives.