April 28, 2008 

Hi MBBP Subscribers, 

Many years ago Vince Lombardi led the Green Bay Packers football team to unprecedented success by having an almost obsessive focus on doing the BASICS very well.  

It’s amazing how many companies have great visions yet fail to achieve their full growth and earning potentials. They're a lot like the Green Bay Packers football team before the arrival of Vince Lombardi...all the potential in the world but with no focus on executing the BASICS of their profession.  

I realize the word "BASICS” is not very sexy. But it is a very important thing to understand.  

The fact is, the BASICS of manufacturing... the things that serve as a solid success have not changed since before I was born... and won't change after you're dust. 

It's tempting to think that they do -- that the introduction of Enterprise Resource Planning (ERP), Material Requirements Planning (MRP), and Six Sigma change the BASICS. 

I understand the temptation. 

I can only caution against it, and invite you... urge you... to be a serious student of manufacturing history and both the evolution and revolution in manufacturing. 

Mastering the proven BASICS of what has worked in the past will give you the foundation needed to predict what will work today... and tomorrow! Are you aware that the Japanese success can be attributed to their study and mastery of Henry Ford’s manufacturing BASICS.  

Henry Ford first introduced manufacturing  BASICS at his River   Rouge operation in 1920. Using these BASICS as a basis for his production line concept, the Ford plant was able to go from receipt of iron ore to casting the engine block, and to shipment of the machined engine block in a final assembled car in an astonishing forty-eight hours. The  Japanese used Ford's BASICS as their roadmap to world class manufacturing.

NOW THAT’S LEAN! 

The first thing business teams need to do is identify the BASICS that are requisites to their success. Next, they need to provide a process for obtaining “top-to-bottom” company commitment to the flawless execution of these BASICS . This commitment becomes a launching pad for achievements beyond all expectations. 

Be sure to read this week’s article, “How To Exceed Performance Expectations.”

Have a nice day, and stay connected.

  

Bill Gaw

P.S. I have developed a “Lean Manufacturing Certificate Program” for those of you who need help in reaching your full growth and earning potentials.

Business Basics, LLC
6003 Dassia Way
Oceanside, CA 92056
bg@bbasicsllc.com 
760-945-5596

 HOW TO EXCEED PERFORMANCE EXPECTATIONS  

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 manufacturing success. For individuals and companies to consistently exceed performance expectations, they need to fully understand and effectively execute the BASICS of their business and their professions..  

While many of these basics have been documented and presented in hundreds of management articles, books, video presentations and seminars, their intra-relationship and synergistic importance to achieving solid growth and healthy profits has not been effectively defined and communicated. 

Over the past 30 years, we were led to believe that computerized systems would provide the solution to all our growth and profit problems. In manufacturing and distribution, systems like ERP were to provide the computer sophistication to significantly improve our delivery chain performance. In engineering, Computer Aided Design (CAD) systems were to be the high-tech innovation for improving engineering design and speeding the time-to-market process. In sales/service, Microsoft Office was to provide the missing link in effective business communications while e-commerce software was to improve order sales capture rates and order processing speed.  

In their efforts to draw closer to customers, many business management teams have lost focus on what should be a company's primary success target-- profitable growth. They have pursued Total Quality Management (TQM), Enterprise Resource Planning (ERP), Business Process Reengineering (BPR), ISO-9000, and Six Sigma with each respective guru reassuring them that if they followed their program ... 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 but produced few success stories. While these programs contributed to better quality and improved customer service, they accomplished little towards helping individuals and their company reach their full growth and earning potentials. 

For a measure of their shortcomings, one needs only to spend some time in a 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 costly 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 and production problems that hinder growth. Companies have spent many thousands of dollars in pursuing MRP/ERP and ISO-9000 certification, only to see their business decline due to uncontrolled operating costs that produced noncompetitive pricing. Other companies have won the Malcolm Baldrige Award for Quality and Business Excellence and subsequently fell far short of achieving growth and earnings expectations.   

So, after introducing all these computer systems and more, why is it that most individuals and their company are still struggling to reach their full  growth and earning potentials? 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 business 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 a top down, in-depth understanding of the importance of the BASICS  of profitable growth and a total commitment to their consistent and tenacious implementation. 

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 manufacturing BASICS.  

Proactive planning and tenacious execution of BASICS require leadership above and beyond just satisfying "day-to-day" accountabilities. Some managers can't envision the benefits of mastering relevant BASICS, other simply can't find the time. Like practicing blocking and tackling in football, it's not glamorous, and like most football heroes, managers prefer to run with the ball. But without the tenacious and flawless execution of manufacturing BASICS, companies will never exceed expectations.  

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 manufacturing BASICS. 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 an individual's and their company's pursuit of growth and profits. 

If you and your company need some planning and/or implementation help, check out our Lean Manufacturing Training Package, simply click on the below link:

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

The World class Manufacturing Training Modules 

Manufacturing leaders have a responsibility to educate and train their team members. To preview 7-cost-effective, e-learning modules that will help you get to where you need to go. simply click on the below link: 

http://bbasicsllc.com/training-modules.MBBP.htm

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