Throughput #22
/
The missing link for more productivity & profitability
Every manufacturer wants more growth, more productivity and more profitability.
There are a lot of software and AI tools that promise to get you there.
But at the end of the day, it’s what method you deploy and follow to manage your business that makes the difference.
That starts with deciding what method you’ll use to run your operation, and if the software you’re using can support this method at scale.
At Montera, we help our clients replace traditional, MRP-driven manufacturing methods with Theory of Constraints (TOC) and Lean principles to get better results.
Years ago, we also realized that clients needed integrated software tools to easily deploy these methods in order to plan, schedule, and execute production as well as to manage supply and demand, measure performance, and continuously improve.
We responded by developing the Roadrunner software suite for supply chain and manufacturing production management based on TOC & Lean Thinking principles.
The difference is in the method
Traditional business software (your ERP, for example) can help you automate many processes, and monitor machines, departments and the plant.
But rarely does the ERP software help you improve the overall system flow for better overall performance.
That’s the missing link, and it’s why ERPs typically don’t deliver the results that manufacturers expect and need.
Unlike an ERP / MRP, Roadrunner is built to support a TOC/Lean manufacturing approach that starts by dividing the operation into flow (value) streams, a process that involves:
- Defining the Control Point (Drum) for each flow stream – to exploit the system constraint
- Generate a subordinated schedule, based on the Drum resource, for all other work centres – to create synchronization
- Review daily Drum Schedule Adherence and its Efficiency
- Monitor, review and record daily reasons blocking Schedule Attainment
- Create a Continuous Improvement (CI) Process based on the main reasons blocking Schedule Adherence
Instead of trying to optimize every machine or department independently (like the ERP), you focus on what matters most:
Increasing flow through the system and increasing Throughput Dollars (the rate at which you generate money) while driving down inventory investment and operating expenses.
Another plus?
Roadrunner doesn’t require you to replace your existing ERP.
It can work independently or with your ERP/MRP, giving you the flexibility to use the IT systems you already have (e.g., for financial reporting), while applying a different approach to managing your business operations.
Below, we compare Roadrunner and ERP functionality for 4 main processes of any manufacturing business – Operations Management, Measures/KPIs, Sales Management and Supply Chain Management:
By embedding Theory of Constraints, Throughput Economics and Lean principles into the software itself, Roadrunner enables manufacturers to make the leap to managing for better flow and maximizing Throughput.
It’s not just software that manages and improves manufacturing. It’s an integrated software with built in TOC & Lean methodologies in combination with a management team driving the new operations approach that always delivers staggering results.
If you’re curious about how that could help your operation grow and be more productive and profitable, get in touch and let’s start the conversation.
Thanks for reading!
— Jack Warchalowski, Montera CEO
[email protected]
Connect with me on LinkedIn
P.S. Need better plant performance? Start with our free inventory imbalance report as the first step to greater efficiency, higher margins and long-term profitability.
Subscribe to Throughput, Montera’s manufacturing performance newsletter.