In their efforts to move closer to the customers, many manufacturers have focused on what a company should lose the primary success factor - profitable growth. In the modern manufacturing industry, today's environment, it takes more than quick fixes, outsourcing and downsizing for companies consistently achieve their goals of growth and profit. While these options may cause temporary financial relief, they are not the way to long-term growth and profitability. For growing companies, andconsistently exceed expectations on the bottom line, they have to get slim. And you must reject the fundamentals of lean manufacturing champion.
In the last 30 years we were led to believe that computerized systems, the solution to all of our growth and profit targets would provide challenges. Material requirements planning (MRP) and Enterprise Resource Planning (ERP) system gurus assured us that if we were their software programs, the bottom line itself implemented provide. Well, it is nothappened! Like most perceived panaceas, each of these programs received a lot of hype, produced a few successes to help but in general, contributed little to identify companies and their full growth and profit potential.
For a measure of the shortcomings, one needs only some time in an MRP planned production spending - especially in recent weeks, the final financial quarter. In a typical enterprise will be, you will find that the transformation of the quarterlyfinancial perspective, the reality still requires overtime, internal / external to accelerate, last minute "on-the-run" product changes and even a little "smoke and mirrors". Results are scrap, rework, and ensure that the cost of delivering a negative on profitability and the quality and delivery problems is less than acceptable customer satisfaction. The companies have many thousands of dollars in pursuing MRP and ERP only stayed to watch their growth and profits decline due to uncontrolled operating costs thatproduced non-competitive prices.
So, after introducing MRP / ERP computer systems and more, why is it that most companies are still fighting to maintain profitable growth and are not where close to achieving its growth and earnings potential? The first reason is simple - the results of any computer system will be achieved only as good as the people at the controls and the integrity of the data they provide. The second is complex - most manufacturing managers facing major day to dayProblems and constraints are a totally reactive management style. Therefore, their time with "band-aid" and / or paths can be found, to include system and process analysis - they leave little or no time working analyze claims and to eliminate the root causes of ineffective systems and processes. How can you shoot like a classic "cart before the horse" syndrome? What is needed first a company-wide, a deep understanding of the fundamental of lean manufacturing and then a totalCommitment to the consistent and persistent implementation of lean manufacturing principles.
As Vince Lombardi, the successes achieved by his team to concentrate on the mastery of football basics - we need our production teams have focused on the mastery of the lean manufacturing principles. These foundations require proactive planning and execution, the tough requirements of leadership beyond just satisfying "day-to-day responsibilities. Some managers can not imagine the benefits of controlManufacturing bases, while others simply can not find the time. How to practice blocking and fighting in football, it's not exciting, and run like most football heroes, managers prefer to use the ball. But without the tenacious and flawless execution of lean manufacturing basics, companies will seldom achieve their full potential for growth and profit. Delineated below, the main principles of Lean Manufacturing:
Information Integrity: It is not uncommon for front office managementdisappointed with computerized systems results when time schedules and promised repayments are not met. Truism: acceptable systems results can not be achieved if the systems are driven by inaccurate data and early, uncontrolled documentation.
Performance Management: Measurement systems can motivate or de-motivational. The different objectives of the 80s is a good example of de-motivational measurement - it tested one individual or one group against another, and duringSatisfaction of individual egos, if they have little to overall business strategy of growth and profit. Today, the balanced scorecard is the choice of manufacturing process winners.
Sequential Production: It takes more than systems sophistication for manufacturing companies, control of the factory operations to win. To the on-time deliveries to healthy profit margins, companies need to replace obsolete MRPII / ERP shop scheduling method with the simplicity of sequential production.Manufacturing leaders who order their MRP shop start "and expedite" methodology with continuous production lines, which are supported by real-time imagery supply chains replaced ... sequential production. The assertion that sequential production only works in high production, widget-manufacturing environments is a myth.
Point-of-Use-Logistics: Material handling and storage are two of the high cost of production, non-value-added supply chainManagement activities. The removal of the warehouse, as it is known today, was a strategic objective of all manufacturers. The shift of production parts and components from the warehouse, but their production at the time of use is really a return to fundamentals and significant costs associated reducer.
Cycle Time Management: Long cycle times are symptoms of poor performance and high production of non-value added costs. Manufacturers need to focus on the continuous reduction of all cycle times.Together, success requires a specific management style that focuses on "cause" proactive problem solving, but as a "firefighting."
Production Linearity: Companies will never yield their full potential if they are planning more than 25% of their monthly shipment, finished in the last week of a month or more than 33% of their quarterly shipment plan in the last month of the quarter. How do your production departments produce linear The captain of the company's plan? AsCompanies are struggling to remain competitive, one of the strategies by which gains in speed, quality and costs can be achieved, is to follow the form teams of employees and achieve linear production.
Resource Planning: One of the major challenges in the industry today is the timely right sizing of operations. The profit margins are overlooked by non-timely downsizing and market policies and windows are losing customers is not undermined by upsizing the direct labor in a timely manner. TheseActions demand timely, tough decisions, accurate, timely and reliable information is needed for this resource.
Customer Satisfaction: Customer satisfaction is in the eyes of the beholder - the customer. Perceptions are what we have to tackle when it comes to improving customer satisfaction. It does not do us good to have the best products and services if the customer received the perception of our "quality and service is unsatisfactory. We need to plan and implement proactive projectsthat the collapse of communication to create barriers to invalid customer perceptions.
While many companies have one or more of these gurus production as an important basis for the successful pursuit of the classified business excellence ", was the fundamental importance of lean manufacturing principles in the dissemination of losing keywords, and the mania of systems sophistication. We say it is time for companies to conduct an influence on the development of sophisticated systems to ensure that set themselves in debt,Every day the chaos. In its place, they should immediately an action learning program designed to recruit a company-wide understanding and acceptance of the importance of the basics of lean manufacturing. Once buy-in and commitment have been achieved, aggressive planning and tenacious implementation follow. In short, we put the "horse before the cart" - such a program will build a solid foundation for redefining and revitalizing a company's pursuit of profitable growth.
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