A Case Study With iBASEt

Lean manufacturing is built on the premise that reducing waste, eliminating redundancies, and operating with precision are key to succeeding in the marketplace. 

In this model, extra inventory equals wasted resources. It assumes a supply chain that is always on, always available, and always responsive.

But as we’re seeing, that assumption doesn’t always work. For manufacturers that create things like parts for cars, planes, machinery, and other major equipment, a “just-in-time” inventory model—in which you keep only the bare minimum of additional inventory you need to meet customer demand—can’t operate if plants are shut down for three weeks, say, due to a global pandemic. 

This new reality is a challenge to lean manufacturing, but it doesn’t mean the model itself is no longer relevant. What it does mean is that transparency and real-time visibility are critical if companies are to continue operating on lean principles. 

One company, iBASEt, has been working in the supply chain visibility tech space for some time, and over the past year, the need for their services has skyrocketed. I recently spoke with iBASEt’s CEO, Naveen Poonian, on how lean manufacturing is changing in the wake of the pandemic. Here’s what he had to say. 

The challenge for lean companies

The biggest challenge for manufacturers in industries like aerospace and automotive, as we emerge from the pandemic, will be this: Finding ways to keep their lean practices from negatively impacting their recovery. 

“What we know is that when demand comes back, it’s going to come back quickly,” Poonian says. “There’s so much pent-up demand for travel, for new cars, for example. If manufacturers wait to get their supply levels up until it’s very obvious that the comeback has occurred, you’re in trouble. Other companies will have moved in first.” 

In other words, if you’re operating on the principle that you want as little idle inventory as possible, you won’t be prepared to ramp up as quickly as you need to. 

Real-time information is key

One way to balance lean processes with the “next to normal” that we’ll emerge into as the pandemic wanes is to invest in technologies that offer real-time visibility into everything from your supply chain to your orders. 

This not only allows you to prepare for the future with more and better information. It also allows you to react more quickly when you do see demand speed up or slow down, which will give your company a real competitive advantage. “Companies need to improve their real-time visibility so they can see the metrics that matter,” says Poonian. “Seeing all your results in real-time is very different from seeing it in a report at the end of the week.” 

Cloud-based tech allows for greater interoperability and systems integration

G Suite, Microsoft Office, and other cloud-based programs that we’re all familiar with have made fast, easy software updates the norm. Since everything is based in the cloud, updating the software can happen frequently, automatically, and without disrupting users’ workflow. 

This is not, however, the norm in manufacturing, which in many cases is tied to monolithic, server-based systems that are extremely costly to maintain, in terms of both time and money. What’s more, these programs often are difficult to integrate with other systems that come online as the plant’s needs change or mature. 

The problem here—in addition to the strain on resources—is that real-time visibility and performance can only be achieved if you have interoperable, integrated systems. 

iBASEt is the first in the manufacturing tech world to adopt this cloud-based, microservices architecture model, following in the path of Amazon, Netflix, and Spotify among others. “With this model, you don’t have to rip out the old and put in the new—you just keep improving it. You’re continuing to update and modify without any impact on the user experience,” says Poonian. “It’s perfectly primed to meet the need for real-time data. And there’s no problem connecting one cloud app to another, as it’s done through APIs.” 

Lean manufacturing will have to adjust in order to meet this “next to normal,” and soon. Companies that wait until they can be certain the demand is there will find themselves out of the running—while those that invest in tech that creates more transparency and real-time visibility will come out ahead.