manufacturing companies have been using a Manufacturing Resource
Planning (MRP II) system for years. How often have these same
manufacturing companies audited and reviewed all the business
management processes under the MRP II umbrella to see if they are
under control, well managed, producing the desired results, simple
and reliable? Probably never! This is unfortunate because there may
be many golden nuggets of opportunity just waiting to be mined.
the current manufacturing business management processes and MRP II
systems will show a manufacturing company where they can
"reengineer," streamline, enhance, and simplify these
processes to reduce and eliminate the non-value-adding
activities/steps and unnecessary costs. Manufacturing companies
throughout the world are facing the same basic manufacturing
problems: balancing the Demand = Supply equation and managing the
Supply chain link. At the same time:
• Markets are
continues to rapidly improve.
• Competition is
getting tougher, leaner and meaner.
Customer's wants and needs are constantly changing—they
continue to raise the high bar of excellence— not by inches, but
of the above elements change, manufacturing companies need to
"rethink" the existing business strategy to remain a
competitive force. Manufacturing companies can no longer afford a
"business as usual" attitude—this will only cause
"results as usual."
New Strategic Approach
"new" strategic approach to reengineering contains ten key
Review each and every business management process (from receipt of
customer order through shipment) to make sure it can handle the
required change with speed and flexibility.
Products and services may have to be repositioned to remain
Silos of excellence have to be broken down. The traditional
functional walls and barriers within an organization must be
torn down and replaced with horizontal processes that are
streamlined and cut across the traditional silos.
Companies must utilize their most precious and talented resource—people!—to
implement the new business strategy and take ownership of the
new streamlined processes.
"Think outside the traditional box" when it comes to
changing the business strategy and processes.
"stretch" goals and objectives.
Have flexibility (speed) in all aspects of the business processes.
Allocate the required critical resources (money, time and people)
to implement the new strategies and change the processes.
Management throughout the organization must provide "guided
discovery." They must also delegate authority and assign
accountability and responsibility for reengineering the
manufacturing business management processes.
10. Follow up to ensure
results were achieved.
Class Manufacturing Menu
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scorecard training performance
quality management iso
9000 2000 training
tactical planning strategic
supply chain management
simulation game lean
outside the box
Obstacle to Success
just understanding and agreeing to the new strategy aren't enough.
The organization needs to ensure there is support, ownership, buy-in
and commitment throughout the organization from top to bottom.
People must view "change as the status quo" and understand
"The definition of insanity is doing things the same way and
expecting different results." The biggest obstacle is the
acceptance of the need to change because:
• Change is stressful
and takes time.
Change isn't easy because old habits and mindsets are hard to
• Change is usually
poorly implemented and managed.
Change is resisted. An excellent quote is "No organization is
so screwed up that someone doesn't like it as it is."
People cling to the past and hang on to what they know and
People fear change because they don't understand why change is
• Poor communication
causes myths, misconceptions, and misunderstandings about why the
change is needed.
To be Continued
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