BEST MANUFACTURING PRACTICES BULLETIN
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Competitive Knowledge for Manufacturing People
October 18, 2004
Hi, welcome back.
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
Like Vince Lombardi, who focused his championship
teams on the mastering of football basics, we need
to focus our teams on the mastering of manufacturing
When it comes to improving manufacturing performance,
"Information Integrity" is a crucial manufacturing
basic. I call it “INFOTEGRITY” - the ability to
communicate data and documentation completely,
accurately and in a TIMELY MANNER.
To maintain ones competitive edge, management's focus
must be shifted from systems sophistication to systems
Infotegrity. That said, its time to put the "horse
before the cart".
Information Integrity is no panacea, however, I'm
convinced that a company with unsophisticated,
lean systems and first-rate Infotegrity will
outperform a company that has sophisticated systems
and second-rate Infotegrity. What about those
companies that have mastered both? I buy their stock!
If your company is having trouble with data accuracy,
documentation quality, report credibility, and the
timely availability of information, be sure to read
this week's bulletin, INFORMATION INTEGRITY, “A
requisite to first-rate manufacturing performance.”
Have a nice day, keep the faith, and stay connected.
Business Basics, LLC
“A requisite to first-rate manufacturing performance.”
MRPII/ERP System objectives cannot be achieved when
day-to-day production and manufacturing control systems
are driven by inaccurate, untimely and uncontrolled
data and/or documentation.
If your company is typical, you’ll find that converting
the monthly financial forecast into reality still
requires overtime, costly expediting, expensive "on-
the-run" product changes and even a little "smoke and
mirrors". With all the available sophisticated
computerized systems, why is it so?
The answer lies in what’s missing and has nothing to
do with the quality of the system designs. Like Vince
Lombardi, who focused his team on the mastering of
football basics – we need to focus our teams on the
mastering of business basics. There are 8-Basics of
Kaizen Based Lean Manufacturing, and when it comes
to manufacturing performance, "Information Integrity"
is the most important.
We call it "Infotegrity" – the ability to communicate
data and documentation completely, accurately and in a
timely manner. Like blocking and tackling in football,
it’s not glamorous and few want to do it – but without
tenacious and flawless continuous improvement and
execution, manufacturing performance can never be
Data accuracy is crucial to computerized master
scheduling and Material Requirement Planning (MRP)
computations. Second-rate Infotegrity is usually
the root cause for nervous requirements that create
excessive shop and purchase order reschedules. Both
produce costly factory chaos.
To improve the quality of MRP "rescheduling" messages,
one materials manager focused on improving the integrity
of MRP inputs. She reduced the frequency of their MRP
"re-generation" and implemented a mandatory weekly
review/purge/reset of all purchase and production "open"
order status. The results were amazing; reschedule
messages were reduced by 85% and her planner/buyers
gained time to do additional proactive parameter
maintenance. Because of increased scheduling stability,
there was a significant improvement in both supplier
and shop on-time deliveries.
A good example of the importance of Infotegrity is the
"eye-opening" result of the cumulative effect of data
inputs in a computerized order release and scheduling
system such as MRP. There are at least ten data input
files that drive such systems with data accuracy
varying between 90% and 100%.
Statistically, their cumulative effect (the product of
their values) could yield a devastating, order release
accuracy of 68.2%. That translates into a cumulative
31.8% error rate in the order release and scheduling
process. In spite of this huge constraint, American
ingenuity and energy still gets the job done – BUT AT
Although many business gurus have identified data
accuracy as important in the implementation of
computerized systems, their message has been lost in
the mania of systems sophistication. To remain
competitive in the future, manufacturers must improve
the results gained from their manufacturing operations.
To do this, the fine-tuning of Infotegrity is a "must do".
How does a company accomplish this task? Here are a few
* simplify data bases – making it easy and routine to
keep data correct and up to date,
* "bulletproof" system parameter maintenance – helping
to eliminate mistakes,
* streamline and discipline the product documentation
process – doing it right the first time,
* real time auditing and corrective actions – keeping
information current and correct,
* employ the right tools – bar coding, back-flushing,
EDI and the internet,
* establish the right mindset – the quality of
decision-making is dependent on Infotegrity.
Foreign competition is getting tougher and tougher as
each year passes. If we don’t want our competitors to
close in on our markets, we need to continuously improve
product/service quality, increase productivity, lower
costs and increase speed of new product introductions.
To maintain ones competitive edge, management’s focus
must be shifted from developing systems sophistication
to improving manufacturing Infotegrity.
If you feel your company needs help with improving
the integrity of their data and documentation, I have
prepared an exclusive INFORMATION INTEGRITY e-learning
CD for our MB&BP bulletin subscribers. Check it out at:
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