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Lean Manufacturing, Basics, Principles, Techniques

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MANUFACTURING BASICS & BEST PRACTICES BULLETIN

Now serving over 7132 subscribers

Competitive Knowledge for Manufacturing People 
==========================================

A SPECIAL OFFER FOR MB&BP BULLETIN SUBSCRIBERS

If your company is interested in mastering the 
basics of lean manufacturing, a good approach would 
be to consider our e-Tutorial, “Kaizen Based Lean 
Manufacturing™.” 

During this week only, MB&BP Subscribers can purchase 
their tutorial at a 25% discount from the Web site 
visitor’s special price of $395.00; or for $297.00. 
Now that’s a savings of $200 from retail and many more 
hundreds of dollars less than attending a relevant 
seminar. Now that’s an offer you shouldn’t pass up.

You can check it out at:

http://bbasicsllc.com/kblm.spl.htm

Do it today because the offer ends: Friday 01-08-2005
and after this week you won’t see this special again 
for another year.

==========================================

January 3, 2005

Hi [[firstname]], welcome back. 

Happy New Year; there’s good news for manufacturers.

The Institute of Supply Management reports released 
last year showed the manufacturing sector continues 
to expand. And the rate of new orders – an indication 
of future production – climbed to new levels. Are you 
and your company prepared to take advantage of this 
situation? 

Now is the time to get back to the serious business 
of running a company. This will require a renewed 
dedication to the continuous improvement of crucial 
business basics. For companies to prosper in 2005, 
they will need to win the "market share" game. In 
these competitive times, I am convinced that there 
is no better manufacturing objective than mastering 
the 8-Basics of Kaizen Based Lean Manufacturing™.

Whether your company is either implementing or thinking
about pursuing lean manufacturing and/or six sigma 
change initiatives, you'll want to be sure to read 
this week's bulletin, "Profitable Growth." 

Have a nice day, keep the faith, and stay connected.

Bill Gaw
Business Basics, LLC
Bg@bbasicsllc.com
760-945-5596

==========================================
MANUFACTURING BASICS & BEST PRACTICES BULLETIN

Now serving over 7132 subscribers

Competitive Knowledge for Manufacturing People 
==========================================

PROFITABLE GROWTH
Mastering the 8-Basics of Lean Manufacturing

In their efforts to draw closer to customers, many 
manufacturers have lost focus on what should be a 
company's primary success factor - profitable growth. 
In today's competitive manufacturing environment, it 
takes more than quick fixes, outsourcing and 
downsizing for companies to consistently achieve their 
growth and profit objectives. While these options may 
yield temporary financial relief, they will not lead 
the way to long-term growth and profitability. For 
companies to grow and consistently exceed bottom line 
expectations, they need to get lean. And, to get lean 
they must master the basics of lean manufacturing. 

Over the past 30 years, we were led to believe that 
computerized systems would provide the solution to all 
of our growth and profit challenges. Material 
Requirements Planning (MRP) and Enterprise Resource 
Planning (ERP) System gurus assured us that if we 
implemented their software programs the bottom-line 
would take care of itself. Well it hasn't happened! 
Like most perceived panaceas, each of these programs 
received a lot of hype, produced a few success stories 
but in general, contributed little towards helping 
companies identify and achieve their full growth and 
profit potential.

For a measure of their shortcomings, one needs only to 
spend some time in an MRP scheduled manufacturing 
facility - especially during the last weeks of the 
final financial quarter. In a typical company, you'll 
find that converting the quarterly financial forecast 
into reality still requires overtime, internal/external 
expediting, last minute "on-the-run" product changes and 
even a little "smoke and mirrors". Results are scrap, 
rework and warrantee costs that negatively impact 
profitability. Then there are quality and shipment 
problems that deliver less than acceptable customer 
satisfaction. Companies have spent many thousands of 
dollars in pursuing MRP and ERP only to see their growth 
and profits decline due to uncontrolled operating costs 
that produced non-competitive pricing. 

So, after introducing MRP/ERP computer systems and more, 
why is it that most businesses are still struggling to 
sustain profitable growth and are no where close to 
achieving their full growth and profit potential? The 
first reason is simple - the results achieved by any 
computer system are 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-day problems and constraints adopt 
a totally reactive management style. Consequently, 
their time is consumed with "band-aiding" and/or 
finding ways to work around system and process problems 
- leaving them little or no time to analyze and 
eliminate the root causes of ineffective systems and 
processes. How does one turn around such a classic 
"cart before the horse" syndrome? What's required is 
first a company-wide, in-depth understanding of the 
fundamental basics of lean manufacturing and then a 
total commitment to the consistent and tenacious 
execution of the 8-basics of lean manufacturing.

Like Vince Lombardi, who achieved success by having 
his team focus on the mastery of football basics - we 
need to have our manufacturing teams focus on the 
mastery of lean manufacturing basics. These basics 
require proactive planning and tenacious execution that 
demands leadership above and beyond just satisfying 
"day-to-day" accountabilities. Some managers can't 
envision the benefits of mastering business basics, 
other simply can't find the time. Like practicing 
blocking and tackling in football, it's not exciting, 
and like most football heroes, managers prefer to run 
with the ball. But without the tenacious and flawless 
execution of lean manufacturing basics, companies will 
seldom achieve their full growth and profit potentials. 
Delineated below are the 8-basics of lean manufacturing:

INFORMATION INTEGRITY: It is not uncommon for front 
office management to become disenchanted with 
computerized systems results when time schedules and 
promised paybacks are not achieved. Truism: acceptable 
systems results cannot be achieved when systems are 
driven by inaccurate data and untimely, uncontrolled 
documentation.

PERFORMANCE MANAGEMENT: Measurement systems 
can be motivational or de-motivational. The individual 
goal setting of the 80's is a good example of de-
motivational measurement - it tested one individual or 
group against the other and while satisfying some 
individual egos, it provided little contribution to 
overall company growth and profit. Today, the balanced 
scorecard is the choice of manufacturing winners.

SEQUENTIAL PRODUCTION: It takes more than systems 
sophistication for manufacturing companies to gain 
control of factory operations. To achieve on-time 
shipments at healthy profit margins, companies need 
to replace obsolete MRPII/ERP shop scheduling 
methodology with the simplicity of sequential 
production. Manufacturing leaders have replaced their 
MRP shop order "launch and expedite" methodology with 
continuous production lines that are supported by real-
time, visual material supply chains ... 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 manufacturing's high cost, non-value added 
activities. The elimination of the stock room, as it 
is known today, should be a strategic objective of all 
manufacturers. Moving production parts and components 
from the stockroom to their production point of use is 
truly a return to basics and a significant cost reducer.

CYCLE TIME MANAGEMENT: Long cycle times are 
symptoms of poor manufacturing performance and high 
non-value added costs. Manufacturers need to focus on 
the continuous reduction of all cycle times. Achieving 
success requires a specific management style that 
focuses on "root cause" proactive problem solving, 
rather than "fire-fighting."

PRODUCTION LINEARITY: How linear do your production 
departments produce to the company's master schedule? 
As companies struggle to remain competitive, one of 
the strategies by which gains in speed, quality and 
costs can be achieved is to form teams of employees to 
pursue and achieve linear production. Companies will 
never achieve their full profit potential if they 
produce more than 25% of their monthly shipment plan 
in the last week of the month or more than 33% of 
their quarterly shipment plan in the last month of 
the quarter. 

RESOURCE PLANNING: One of the major challenges in 
industry today is the timely right sizing of 
operations. Profit margins can be eroded by not 
taking timely downsizing actions and market windows 
can be missed and customers lost by not upsizing 
the direct labor force in a timely manner. These 
actions demand timely, tough decisions that require 
accurate, well-timed and reliable resource information.

CUSTOMER SATISFACTION: Customer satisfaction is in 
the eyes of the beholder - the customer. Perceptions 
are what we need to address when it comes to improving 
customer satisfaction. It does us no good to have the 
best products and services if the customer's perception 
of our "as received" quality and service is 
unsatisfactory. We need to plan and implement proactive 
projects that breakdown the communication barriers that 
create invalid customer perceptions. 

While many business gurus have identified one or more 
of these manufacturing basics as important to the 
successful pursuit of business excellence, the 
fundamental importance of these lean manufacturing 
basics has been lost in the proliferation of buzz words 
and the mania of systems sophistication. 

We say it is time for companies to put a hold on 
sophisticated systems development that cause self-
inflicted, day-to-day chaos. In its place, they should 
immediately initiate an action learning program for 
gaining 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 must 
follow. In short, let's 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. 

If you and/or your company want to discover why and how 
the manufacturing winners are identifying and mastering 
the 8-basics of lean manufacturing, you need to 
reconsider adding our e-Tutorial, “Kaizen Based Lean 
Manufacturing™” to your training tool kit. To help 
you make it happen, we have prepared a very special 
offer for MB&BP Subscribers:

==========================================

A SPECIAL OFFER FOR MB&BP BULLETIN SUBSCRIBERS

If your company is interested in mastering the 
basics of lean manufacturing, a good approach would 
be to consider our e-Tutorial, “Kaizen Based Lean 
Manufacturing™.” 

During this week only, MB&BP Subscribers can purchase 
their tutorial at a 25% discount from the Web site 
visitor’s special price of $395.00; or for $297.00. 
Now that’s a savings of $200 from retail and many more 
hundreds of dollars less than attending a relevant 
seminar. Now that’s an offer you shouldn’t pass up.

You can check it out at:

http://bbasicsllc.com/kblm.spl.htm

Do it today because the offer ends: Friday 01-08-2005
and after this week you won’t see this special again 
for another year.

==========================================

You are welcomed to print and share this bulletin with 
your manufacturing teams, peers and upper management ... 
better yet, have them signup for their own copy at:

http://bbasicsllc.com/subscribe.htm

With the escalating spam-wars, it's also a good idea 
to WHITELIST our bulletin mailing domain via your 
filtering software or control panel: 

cknsubscribers@getresponse.com

This will help guarantee that your bulletin is never 
deleted unexpectedly.

==========================================

Business Basics, LLC
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596

Manufacturing Knowledge you’ll 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: http://bbasicsllc.com

==========================================


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You 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:

http://bbasicsllc.com/subscribe.htm

With the escalating spam-wars, it's also a good idea to WHITELIST our bulletin mailing domain via your filtering software or control panel: 

bizbasics@getresponse.com



This will help guarantee that your bulletin is never deleted unexpectedly.


Manufacturing Knowledge you’ll 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 Manufacturing Practices

 


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