Abstract
In a world of global competition and demanding customers, putting production 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 much and what is needed, and also when it is needed. A leading multinational company in oral care products produces toothbrushes through contract manufacturers (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 pressures 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 inventories to continuous flow manufacturing system enables the achievement of improved customer responsiveness, greater efficiencies, lower inventories and lower operating costs. This paper describes the way in which one such contract manufacturer was moved towards the CFM system and the benefits achieved through it.
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