Implementation of continuous flow manufacturing (CFM) system

In a world of global competition and demanding customers, putting productio n requirements ahead of customer's needs inevitably leads to manufacturing inefficiencies, higher inventories, and poor quality goods and services. In continuous flow manufacturing (CFM) system, the manufacturer makes how muc h and what is needed, and also when it is needed. A leading multinational c ompany in oral care products produces toothbrushes through contract manufac turers (CMs). The contract manufacturer makes different stock-keeping units (SKUs) under two options: (i) the contract manufacturing option, in which CM supplies the finished products; (ii) the labour contract, in which CM is responsible only for conversion. Competitive pressure in the market pressu res the company to change the operating system from the push system to CFM for CMs also. Moving from the push system with its high level of inventorie s to continuous flow manufacturing system enables the achievement of improv ed customer responsiveness, greater efficiencies, lower inventories and low er operating costs. This paper describes the way in which one such contract manufacturer was moved towards the CFM system and the benefits achieved th rough it.