According to Microsoft, the most popular supply chain management methodologies are
- Continuous Improvement (70.5% of companies),
- Lean Thinking (41.4% of companies),
- Lean Manufacturing (38.8% of companies).
The concept of Lean arose in the late 1950s/early 1960s, when Shigeo Shingo, was consulting to a variety of companies regarding their inability to eliminate bottlenecks that were in turn driving up production lot sizes. With production lot sizes at the core of Lean, a basic problem for businesses is to determine what quantity of a given item to order and or produce and how much inventory to keep on hand.
With production lot sizes at the core of Lean, a basic problem for businesses is to determine what quantity of a given item to order and or produce and how much inventory to keep on hand. Phitch OC 9.0 provides the tools to implement Lean Six Sigma at your maximum financial performance.
Phitch OC 9.0 is the only QuickBooks compatible software that provides the tools to understand the components to Lean as well as the tools to simulate options to determine which bottlenecks are impacting your business wealth.
Phitch OC 9.0 is also the only software solution that provides Kanban alerts relative to economic profit. Kanban means "visible record" in Japanese, it is a system of notification from one process to the other in a manufacturing system. Kanban cards, which may be multicolored based on priority, are stored in a bin or container that holds the items. Traditionally, they describe the parts, supplier and quantity. When the bin is emptied, the Kanban is used to order more. A two-card Kanban system uses "move" cards to relocate items from one workplace to another and "production" cards to replace the material when it is used or sold. Phitch OC 9.0 uses a four color Kanban system in which are as follows
- Blue items are in surplus
- Green items are good
- Yellow items are approaching shortage
- Red items are short
These color coded flags or cards are based on comparing the inventory available to the reorder point - a reorder point that includes safety stock and maximizes economic profit. Withing these flags, the quantity ordered is that amount that maximizes economic profit. Users can then react to these flags by taking immediate action via email or by submitting a purchase order back through QuickBooks.
