The last resource to evaluate, and one of the
most important, is management. Management is the group of people
within your business who are responsible for setting clear goals,
and making commitments. From this group we expect a mission
statement that includes operating goals for at least one year. We
expect them to have a general business plan that is reduced then
to a production plan, which in turn becomes the master production
schedule. Management is required to lead, not simply to tell. We
cannot have management operate as authoritarians, who only focus
on power, and do not lead or support. On the other hand, we can't
have management that is overly permissive, because they only want
to be liked by the people. Permissive managers tend to give away
power, make no decisions, and yet accept all the responsi≠bility.
This is an untenable position as well. We want our management to
be like a coach. One who is interested in our success, who will
give us very honest and critical feedback, and help set goals that
we participate in. Good management should be leaders and
supporters. They should jointly establish common objectives and
certainly share the responsibility for those objec≠tives. We want
to believe that our management is always striving for the best.
You are part of management if you participate in any of those
A second area of management that is essential
to successful business operation is the sharing of information.
From the day we begin establishing common data base systems, the
focus has been that the information should be correct, the system
should be open, and it should be truthful. We have always fought
the issue of the informal system versus the formal system,
recognizing that only though formal operation of a business can we
be efficient and productive. At the same time, we fail to
stringently focus on good information. When the information
through the data base fails the people, the informal information
system will once again establish itself. If our people utilize
this methodology to gain information they become very unproductive
and ineffective. We must mandate that there is a good, common data
Third, management must make things happen. You
must make things happen within your business. Any business that is
standing still is actually going backwards. We all need to be
movers and shakers. We cannot tolerate, nor accept the status-quo.
We must learn the techniques and support the people of our
company. We look to management but we should also look to
ourselves to create a vision and support the people as we go
forward in our quest for productivity and efficiency. And we must
make sure that a system exists to reward us for those
accomplishments or else we will have little motivation to do so.
What of the future? What does it hold for us? Gene Hanson in
his annual newsletter for the Small Manufacturing SIG group said
when looking to the year 2000, "As the labor force ages,
wages and total compensation reflected in the additional cost of
benefits are both expected to increase significantly relative to
increases in labor productivity. Since productivity per worker is
lagging well behind wages, nominal wages will increase. This
reflects the general increase in inflation expected to average
about 4% per year through the year 2000. All business will face
rising nominal wages and those businesses that succeed in raising
productivity to a greater than average extent, will clearly be
able to compete more effectively because their total cost and
presumably their prices will be rising less rapidly than
average." Productivity in the 21st century will be the key.
It will be the source of economic and political power throughout
the world. No longer will weapons be a source of power for
nations. If you doubt this, simply lookat the events in Russia
The United Sates needs continued increase in productivity. We
need this to insure that the standard of living will once again
begin to increase in this country. We need productivity to insure
future opportunities for our children and our grandchildren. We
also need productivity increases to offset the effect of shrinking
human resources in the future. In other words, we need
productivity increases to survive.
stay current on bullet-proofed manufacturing solutions, subscribe to
ezine, "The Business Basics and Best Practices Bulletin."
Simply fill in the below form and click on the subscribe button.
also send you our free
Special Report, "Five Change
Initiatives for Personal and Company Success."
personal information will never
be disclosed to any third party.
leaders have a responsibility to educate and train their team
members. Help for developing a self-directed, World Class
Manufacturing training program for your people is just a click
are welcomed to print and share this bulletin with your
manufacturing teams, peers, suppliers and upper management ...
better yet, have them signup for their own copy at:
the escalating spam-wars, it's also a good idea to WHITELIST
our bulletin mailing domain via your filtering software or
This will help guarantee that your bulletin is never deleted
Knowledge youíll not find at offsite
seminars nor in the books at Amazon.com
Lean Manufacturing - Balanced Scorecard
ISO 9000:2000 - Strategic Planning - Supply Chain
Management - MRP Vs Lean Exercises - Kaizen Blitz
Lean Six Sigma - Value Stream Mapping
All at one Website: Good
Six Sigma Training Thinking
Out of the Box
Supply Chain Inventory Management Total
Quality Management Principles
Manufacturing Implementation Lean