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MANUFACTURING BASICS & BEST PRACTICES BULLETIN

Now serving over 11,935 subscribers

Competitive Knowledge for Manufacturing People 

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July 10, 2006

Hi [[firstname]],

Here are the 11-20 world class manufacturing best 
practices. If you missed the first 10 last week due 
to the holiday, you can still get a copy by simply 
replying to this email with "First 10" as your subject.

Have a nice day, and stay connected... more to come.

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

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MANUFACTURING BASICS & BEST PRACTICES BULLETIN

Now serving over 11,935 subscribers

Competitive Knowledge for Manufacturing People 

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

WORLD CLASS MANUFACTURING BEST PRACTICES


Best Practice #11 - TEAM DYNAMICS

Team dynamics is predicated on the effectiveness of 
their members to communicate and share knowledge. 
As with any organizational innovation, the successful 
introduction of team dynamics requires that ability 
to assimilate significant change. Hierarchies must be 
flattened, team members must be empowered to make 
and then implement decisions, and new and at times 
unfamiliar technologies must be adopted, various 
sources of resistance must be addressed, plans must 
be clearly communicated, and ownership of the new 
model of teamwork must be widely deployed. 

Best Practice #12 - SUPPLY CHAIN MANAGEMENT

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. It's time to 
realize that there is much more to supply chain 
management than simply placing purchase orders with the 
lowest price bidder. 

Best Practice #13 - KAIZEN 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. 

Best Practice #14 - STRATEGIC PLANNING DEPLOYMENT 

Many companies are very good at establishing strategies, 
but unfortunately few are effective at executing them. 
There should be no illusions. Successful strategic 
planning is not easy. It takes focus. It takes 
resources. It takes commitment. It takes time. And it 
takes effort. These are business assets that must be 
understood and invested in the planning process. 

Best Practice #15 - BALANCED SCORECARDS 

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. 

Best Practice #16 - REQUIREMENTS STABILITY 

Material storage, parts picking to a shop order, and 
shop order processing are three of manufacturing's high 
cost, non-value added activities. The elimination of 
shop orders, as it is known today, should be a strategic 
objective of materials management. It's time to realize 
that there is much more to requirements planning than 
dumping nervous requirements on to our planners

Best Practice #17 - STRATEGIC OUTSOURCING 

Without question, outsourcing is one of the hottest 
topics in business today. It is an indispensable tool 
for world-class companies, allowing them to improve 
their products and services, lower their costs, and 
enhance their flexibility. Yet, while outsourcing is 
one of the most popular ideas, it is among the least 
understood

Best Practice #18 - SUPPLIER MANAGEMENT 

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. It's time 
to realize that there is much more to supply chain 
management than simply placing purchase orders with 
the lowest price bidder. 

Best Practice #19 - BUSINESS PROCESS MANAGEMENT 

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. 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 business process linearity. 

Best Practice #20 - TOTAL QUALITY MANAGEMENT ISO 9001

I doubt that you would be able to find anyone that 
would challenge identifying QUALITY as a crucial 
business basics. And yet today, we still find most 
companies delegating the responsibility for quality to 
the manufacturing organization. For businesses to 
master customer quality requirements, they need to 
address quality as a total company change initiative 
and must formalize their efforts via a proven quality 
management system. 

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If you and your company need help with implementation 
of any of the above best practices, may I suggest that 
you invest in one or more of my cost-effective training 
modules. For training module details go to:

LEAN MANUFACTURING:
http://bbasicsllc.com/e-lp-lm-MBBP.htm

VALUE STREAM MAPPING:
http://bbasicsllc.com/e-lp-vsm-MBBP.htm

KAIZEN MANAGEMENT:
http://bbasicsllc.com/e-lp-kci-MBBP.htm

SUPPLY CHAIN MANAGEMENT
http://bbasicsllc.com/e-lp-scm-MBBP.htm

PERFORMANCE MANAGEMENT:
http://bbasicsllc.com/e-lp-bsc-MBBP.htm

STRATEGIC PLANNING:
http://bbasicsllc.com/e-lp-sp-MBBP.htm

ISO 9000 2000 TOOL KIT
http://bbasicsllc.com/e-lp-iso-MBBP.htm

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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 

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

Manufacturing Knowledge you'll not find in the books 
at Amazon.com... neither in the APICS library 
nor in the Harvard Business School Press

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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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

 Manufacturing Cost Reduction for Winners

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