Leveraging Shop Floor Management Software to Weather the Recession By Carmen Fontana At Isnare.com Ezine Articles

The shop floor isn’t the most inviting place to be these days if The Financial Times Limited’s recent report bodes accurate. When the publication reported, “Conditions on the shop floor look treacherous, it pointed out, “Many companies have already shut up shop. The final branches of Woolworths closed this week and a number of companies have fallen into administration. Waterford Wedgwood became the latest household name to collapse this week, following, among others, Zavvi, the music retailer, and Adams, the children's clothing chain.”

Matters look no more promising across the pond in the United States, where electronics giant Circuit City, low-cost clothing retailer Steve & Barry’s and bedding specialty Linens ’n Things are just the latest casualties in a long line of retail closings. And this dire shop floor situation doesn’t look to improve anytime soon. “Also, as banks remain reluctant to lend, many more retailers could run out of funds and have no choice but to close or offload stores.”

One cited expert believes that cash flow will be the one factor that will separate the best and worst shop floor performers. “Cash flow implications from being overstocked are worse than most people think and could question the survival of even large retailers. I’d back a strong balance sheet and a management that has planned its stock cautiously.”

The more shops dwell on this trend, they less likely they’ll be able to focus on the strategies that will keep them from becoming the next shop floor victim. So what can they be doing to keep their heads above the water? A real-time data collection system that provides job tracking and shop floor control can provide seamless oversight, so that shop floor managers can concentrate on their bottom lines.

Shop floor management software affords better scheduling, work in progress (WIP) tracking, data collection, and time and attendence labor management. And shop floors that meet or beat schedules, stay ahead of the curve in their workload, track their expenses like a hawk and have a team of laborers who are committed to putting out a stellar product each and every day will be the most likely to weather the dismal retail storm.

The easier it is for a shop floor manager to see what is going on in the factory, the easier is is for him or her to maintain control. A Manufacturing Execution System (MES) puts a visual factory right before the shop floor manager’s eyes. From that perspective, he or she can make sense of all the shop floor data that is being collected. As a result, he or she can see how effectively labor time and machine resources are being used. From there, the shop floor manager can identify areas for making process improvements.

Then, when unanticipated changes arise, effective decisions can be made by the shop floor manager on the spot. Decision support is provided by “seeing” each and every part and process in real time. This viewpoint helps reduce the need for expensive outsourcing, safety stock and premium transportation, while improving shop floor labor efficiency and machine utilization. And in today’s retail climate, shop floor survival depends on ultra-efficiency.

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