Internet technology is making available low cost software and hardware to dramatically improve manufacturing productivity by deploying e-manufacturing solutions. The hardware and software infrastructure of the Internet and intranet is established. Generally people think of the Internet revolution as web browsing and email, which are significant features of the Internet. The underlying Internet technologies that make it work are the building blocks to create e-manufacturing solutions. They have been componentized and are available to create a wide range of applications at low cost.

These software and hardware components lower implementation cost dramatically, allowing users to create solutions that previously required expensive software and custom programming. The hype of the Internet and e-anything is settling down and appropriate applications of the technology are in order.

Midrange and smaller companies can really improve quality and productivity implementing solutions they could not justify in the past.

A few examples of high payback applications are included to illustrate the power of implemented solutions based on Internet technology at low cost by deploying simple overlay systems. These systems rely on standard Internet/intranet software and hardware components to perform transactions with databases, present information to operators with standard web pages, send information using email, and a number of other tasks. The systems can be implemented for as little as $30,000 plus $2,000-8,000 per work cell and have high payback.

Real-time Kanban

The Japanese developed the Kanban system to reduce costs in high volume production lines based on manual paper cards and its success is legendary. Kanban was developed more than 20 years ago by Mr. Taiichi Ohno, a vice president of Toyota, to achieve objectives that include:

• reducing costs by eliminating waste/scrap


• creating work sites that can respond to changes quickly


• facilitating methods of achieving and assuring quality control


• insuring purchasing is informed of parts needs before becoming critical to maintaining production.

The paper Kanban card contains all the information required for producing a product at each stage along its path to completion, and which parts are needed at subsequent processes. These cards are used to control work-in-progress (WIP), production, and inventory flow. A Kanban system allows a company to use Just-In-Time (JIT) Production and Ordering Systems, allowing them to minimize their inventories while still satisfying customer demands. Kanban smooths and balances material flows by means of controlled inventories. A Kanban system allows an organization to reduce production lead time, which in turn reduces the amount of inventory required.

Kanban has great benefits, but a manual system requires a great deal of labor and coordination. Using Internet-based technology, a simple overlay system can be added to create an electronic real-time Kanban system. The electronic system performs the functions of the paper system but once installed, there is no overhead cost to make the system work. Communications among controllers, factory floor workstations, and ERP systems make it easy to implement paperless Kanban.

Automated Kanban is highly effective in minimizing inventory levels, shortages, and satisfying customer demand by automatically: a) recalculating the Kanban lot sizes, b) adjusting the number of Kanban cards in the system, c) calculating the flexible work cell staffing levels, and d) providing each supplier with a single-line-per-item forward projection for capacity planning purposes. The principles of manual Kanban methodology remain intact. The only difference is that the process is fully automated, permitting an immediate response to shifts in demand.

Most companies reduce inventory levels 30-65% and experience reductions in part shortages of up to 80%. In addition, these companies normally reduce the typical order/receipt/inspect/issue time by over 85% and significantly lower the overhead expenditures of operations. This is accomplished by the total elimination of non-value-added activities associated with the replenishment system. Those areas where they cannot be eliminated are greatly minimized, enabling immediate response to demand.

Error Proofing

The emphasis on quality continues to be strong for all companies and particularly for lower tier suppliers to OEM customers. In many cases first tier suppliers block incoming parts from being accepted that do not meet standards and levy penalties against suppliers for non-conformance. This is putting a greater emphasis on making sure production and quality problems are found immediately using real-time computing.

In a typical automated configuration when work in process enters a manufacturing cell, the operator bar code scans the order sheet and the system looks up the parts. Instructions, parts required, manufacturing procedures, and test procedures are displayed to the operator. The operator enters confirmation of procedures performed and cannot close the order in the work cell until all operations are completed. Any testing required is displayed to the operator and in many cases the test is done electronically and recorded automatically.

In many cases manufacturers that have primarily manual operations will achieve the greatest benefit from an error-proofing system.

Operators are given just the right information when required and information feedback is compared in a computer, eliminating human error. Testing procedures can be semi-automated at low cost: for example, the operator can be instructed to take a measurement with a handheld gauging device that has serial output and the computer captures the information, verifying it meets specification.

Make-to-Order Manufacturing

Make-to-order manufacturing had been predicted in the 1970s by futurists as a major industry shift, and in the 1990s, large high-volume manufacturers implemented custom systems at high cost. The lower cost and high performance of Internet technologies is making it possible for midrange and small manufacturers to benefit from make-to-order systems. Most ERP systems can be Internet/intranet enabled at low cost without replacement or major upgrade, and then a mid-layer system can be added that connects the factory floor with the ERP, enabling make-to-order manufacturing.

Make-to-order can have a great impact on even simple nonautomated manufacturers. Consider a manufacturer of kitchen cabinets, a configured product. The number of kitchen cabinet modules is less than 100 but the combinations of configured cabinets (unit combinations, hardware, color, etc.) are in the thousands. A paper system of tracking production is prone to many problems, with employees at work cells easily making mistakes, and this is compounded with work order changes.

Using e-manufacturing technology, the work orders for a customer have a bar code that is read at each work cell and the employee is presented with exact instructions and steps for this particular order from a terminal running a standard browser. Work in process information is available immediately and order status is web enabled.

Real-time Maintenance Management

Automation Research Corporation (ARC) reported at a conference last year that studies show a great deal of preventative maintenance done based on calendar time is wasted labor. The implication is that maintenance staff are doing a great deal of things that are not required and do not have time to focus on activities essential to keeping manufacturing running efficiently.

Deploying a real-time maintenance monitoring system that predicts problems as an early warning system is easily done with Internet technology. Monitoring machine performance and deviations of sensors from normal values can now be done at significantly lower cost, with advisories and information made available via the Internet to the appropriate maintenance personnel.

The underlying Internet technologies that make these applications possible are the building blocks to create e-manufacturing solutions. The key to creating a differential competitive advantage is to apply them to dramatically improve manufacturing productivity and quality before your competitors.