In
examining the critical trends that shape our strategies in running a
manufacturing business, six key changes are occurring:
1.
Suppliers have lost control of the parameters of the business
relationship with customers.
2.
New products are evolutionary versus revolutionary and are copied
readily by competition.
3.
There is a need for more custom products that have a shorter
product life cycle to meet the exact needs of the customer.
4.
The strategies of downsizing are being used to reduce the costs of
doing business.
5. Direct labor rates
are becoming a non-issue.
6.
Companies cannot afford to automate their way to prosperity and
must think their way to prosperity.
By
applying the world class manufacturing strategy, manufacturing
firms will be able to proactively attack the changes and profit
short-term and long-term from the efficiencies and cultural changes
that occur with the implementation of world class elements.
Truly,
if business decisions are logical, the number one priority for all
manufacturing firms should be to become a world class company. The
difficulty has been to develop this fervor on behalf of senior
management, hence this presentation and paper.
In numerous companies
from various industries, the results of world class manufacturing
projects have been astronomical. In companies changing the way they
operate their businesses and supporting this new way of doing business
by using the appropriate technology, the return on investment
exceeds 250% and the monetary impact is millions of dollars.
Combine
this proven success with the previously outlined immediate need of
customers for higher quality, lower price, smaller orders, and more
frequent deliveries, and it becomes obvious that achieving world
class is mandatory to survive.
The
basic fact is that if manufacturing companies do not improve
significantly in the very near future they may not have the
opportunity. This is evident in many industries. The '90s recession
has many scenarios in which one company grows and prospers and
others in the same industry struggle, and losing profitability and
market share. Some die.
The
fault lies in the application of World Class manufacturing
principles to our business or, more accurately, the misapplication
of World Class manufacturing. The failure to achieve significant
business improvement through application of World Class
manufacturing principles rests squarely on the shoulders of senior
managers. The fact that most of us have struggled mightily to
improve our business, and failed, should not be taken as a personal
affront. Most senior and middle managers work harder and longer each
week than the factory workers. We have a genuine desire and
motivation to succeed and to see our operation succeed.
In
examining the root causes of project problems, the following are
present:
• Ego and inability
to look at yourself and find fault
•
Technology trap—trying to buy Manufacturing Excellence with
technology, and/or downsizing as the solution
• Inability to manage
change
•
Unclear vision of project scope and steps to success and benefits
•
Not knowing or having a clear vision of better way to run the
business
World
Class Manufacturing Menu
World
Class Manufacturing Menu
lean
six sigma six
sigma presentations
balanced
scorecard training performance
management training
total
quality management iso
9000 2000 training
lean manufacturing
training lean
manufacturing implementation
strategic
tactical planning strategic
planning model
supply chain
management training inventory
reduction techniques
manufacturing
simulation game lean
manufacturing certification
thinking
outside the box
• Ego and inability
to look at yourself and find fault
There
is a need for a management team to understand the powerful
psychological factors that affect a project. People continually
justify their performance, their department performance, and their
company performance. It is self-preservation in many companies to do
so. Finding fault in performance or challenging the givens is
paramount to asking your boss for a pink slip. What often times
happens is we blame poor performance on others, using a foxhole
management style, or not having the tools to be successful. In their
minds the economy is the reason. The lack of information is the
culprit: The software is old, and of course, if we buy a new CNC
machining center, everything will be okay. Sure! Simply put, it
takes an extremely strong management team to look at themselves and
its
management of the
company and acknowledge the need for significant improvement.
Looking at themselves is threatening and when they look, they
might not like what they see. To feel better, they rationalize
performance and egos run rampart. What even intensifies this
reaction is that they instituted the current management policy and
procedures and the justification is personal. Each senior
management team member has a stake in the status quo. These issues
must be addressed in the project approval stage or else they will
fight continually to institute the changes required.