Product category:
OEE and Lean Manufacturing in process control
News Release from: ARC Advisory Group | Subject: CI systems
Edited by the Processingtalk Editorial
Team on 04 September 2006
Continuous improvement systems to grow
12.7% pa
Globalisation is exerting extraordinary pressure on manufacturers, causing most to adopt their own continuous improvement programmes: the market is forecast to grow at 12.7%pa to US$403M by 2010
The market for continuous improvement (CI) systems was US$211.5 million in 2005 It is forecasted to grow to US$402.8 million by the end of 2010 with a strong compounded annual growth rate (CAGR) of 12.7%
This article was originally published on Processingtalk on 21 Nov 2003 at 8.00am (UK)
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Globalisation is exerting extraordinary pressure on manufacturers, causing most to adopt their own continuous improvement programmes.
Applications for CI systems have "crossed the chasm", and leaders are starting to emerge for the key segments of this market.
"Adoption of technology to enhance continuous improvement programmes allows manufacturers to take their business to a higher level of financial performance in both their P+L and balance sheets," according to ARC Research Director Ralph Rio, the principal author of the report "Continuous improvement systems worldwide outlook".
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ARC has conducted surveys among manufacturers on their CI preferences and practices.
The results show that 80% of manufacturers are applying one or more CI methodologies.
The continuous improvement programs used most often by manufacturers are lean manufacturing, six sigma, total quality management (TQM), and theory of constraints (TOC).
Manufacturers are looking to CI systems to improve operational performance in the areas of labour utilisation, inventory levels, quality, asset utilisation, and cost of goods sold.
Some traditional lean manufacturing proponents avoid systems and recommend a manual approach in order to keep people close to the process.
However, many manufacturers are using technology to enhance their programme effectiveness.
Abundant, well published successes provide executives with the confidence to invest in CI systems.
This study examines the market for applications that manufacturers use to bring their programmes to a new level of performance.
The types of applications include electronic Kanban (eKanban), Statistical Process Control (SPC), Finite Capacity Scheduling (FCS), Advanced Planning and Scheduling (APS), Overall Equipment Effectiveness (OEE), TQM, and Value Stream Mapping (VSM).
The CI systems market has a multitude of participants who range from small, start-up, best-of-breed companies to established, multi-billion dollar suppliers.
Sixty-nine of the suppliers are profiled in this study.
During the past two years, ARC has conducted surveys among those manufacturers having continuous improvement programmes.
Reports containing the key findings are included in a special chapter with their recommendations.
This chapter exposes many myths and informs readers of the reality.
Suppliers will gain a better understanding of market needs for their product development.
Manufacturers will gain benchmarks for improving their programmes.
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