A reduction in inventory and lead-time improves cash flow.
Achieving inventory reduction through high-mix variable-volume production.
High-mix production using mass production methods was once an established practice throughout the manufacturing industry. This method of supply-side production aimed to produce as many products as possible as well as manufacturing several different products while supplying orders from a large inventory. Therefore, we have seen inventory levels increase in proportion to the increase in the types of products produced. In the past, manufacturing more products meant that more products could be sold. Inventory was seen as an asset. However, those days are over. Carrying excess inventory is now a perceived risk which industry-wide management must take into consideration. The conventional method of high-mix production is no longer effective.
The Baby Kangaroo System shortens the fixture change time and enables the flexible control of product types and production volume. This organizes a system for producing only what is needed in the required volume depending on the order (a high-mix variable-volume production system). As multiple types of products are manufactured immediately upon receipt, inventory can be reduced significantly.