Thomas R. Cutler Explores Lean Manufacturing in Time Compression Technologies

The Role of E-Kanban Solutions in Lean Manufacturing

Cutler, who is recognized as one of North America's leading voices in manufacturing journalism, highlights the importance of e-kanban solutions in successful lean manufacturing initiatives. Matthew Marotta, the founder of Datacraft Solutions, explains that they do not charge for system upgrades as they incorporate new best practices requested by clients. However, before any request is incorporated, it is reviewed by a lean advisory board to validate its value and potential impact on their partner community. Once approved, the new practice is developed, tested, and implemented.

The Advantages of a Hosted Solution

The hosted solution offered by Datacraft provides customers with their own set of servers, maintained offsite by a team of outsourced administrators. This service includes all administration fees, equipment, support teams, and software updates, all for a monthly service fee that is less than the cost of hiring an internal system administrator.

Manufacturers can benefit from this Application Service Provider (ASP) model as it allows them to pay as they go, reducing risk and facilitating a rapid return on investment (ROI). The only requirement is internet access.

The Downside of Non-ASP Options

Cutler also discusses the drawbacks of non-ASP options, which require manufacturers to invest heavily in communication networks, IT personnel, training, application servers, and system modification consulting. These options also come with hidden costs. The main disadvantage of using an ASP is that the client never owns the system (application), only their own data. This can be a concern for IT departments that want to control all aspects of the e-kanban operation. However, Cutler argues that this desire for control is wasteful and goes against the principles of a Lean Initiative.

ERP Systems and E-Kanban Functionality

Cutler notes that while some Enterprise Resource Planning (ERP) systems, such as QAD, Factory Logic, and Supply Works, offer some e-kanban functionality, it is not their primary focus. As a result, manufacturers often end up purchasing these ERP systems at a high cost, including price increases and upgrade charges. From a lean functionality and immediate ROI perspective, Cutler suggests that these costs cannot be justified unless the manufacturer plans to replace their ERP system.