The Problem
A manufacturer operating in a high-mix, low-volume environment needed to optimize their supply chain and assembly operations for mass customization. Material replenishment was managed manually, creating delays and inventory inaccuracies. There was no systematic way to manage demand pull across the shop floor, and purchasing had no real-time visibility into material consumption at the point of use.
The Approach
Capnetix designed and implemented a proprietary algorithm for mass customized assembly with real-time demand pull, enabling the facility to manage a lot size of one in a lean manufacturing environment. An Electronic Kanban system was deployed across the shop floor to automate material replenishment signals, replacing manual processes with a digital system that bridged purchasing and the shop floor in real time. The solution integrated with existing ERP systems to synchronize demand signals with procurement automatically.
The Result
The facility achieved real-time material replenishment across all assembly operations, eliminating manual Kanban management and reducing inventory inaccuracies. The Electronic Kanban system gave purchasing real-time visibility into shop floor consumption, enabling proactive procurement rather than reactive restocking. The proprietary demand pull algorithm successfully supported mass customized assembly at lean lot sizes, improving throughput and reducing work-in-process inventory.