Posts

MANUFACTURING PLANT ANALYSIS

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  Good article posted on LinkedIn. I implemented this type of analysis to compare a group of (5) plants in North America. The results were interesting to say the least! But they were informative and we were able to act upon them. I found, at least in the old days, that the metric was Revenue per Employee. I think that is still useful but not all by itself. Deducting purchases and subcontract costs, as shown in the second formula, is critical to get meaningful analysis. Click here or on the photo to see the article

Leading With Lean

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This is a good article and identifies some widespread issues I see visiting customers, and potential customers, such as using activity as a metric instead of actual improvement. Another is jumping straight into solution mode skipping almost the entire improvement process.   It starts with asking the right questions. It's not about checking boxes. READ THE ARTICLE or click the image to open.

Thoughts on Just-in-time to Just-in-Case inventory

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  An interesting article and statistics. 77% of respondents use safety stock and the same % use Just-In-Time. I think many of us would consider the answers mutually exclusive. However, hidden in the data, is how big those safety stocks are. If the safety stock is really buffer stock between cellular lines and amounts to a few hours, or a day, of consumption then not a big deal. If, due to long lead times and offshore suppliers, the safety stocks are weeks of supply then it's a different story. The key is near the end - it's about lead/cycle times and component availability instead of finished goods inventory . Shorter lead/cycle time is better. If you can assemble to order, in a short time, you retain flexibility while offering responsiveness. Buffer stocks of components, especially if there is commonality across product lines/families, are easier to plan and manage than a magnitude higher number of final SKUs. The investment will be less as well. Surprisingly, only 69% of res...

THOUGHTS & (Free) ADVICE ON PRODUCTION SCHEDULING SOLUTIONS

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 This article arrived in my InBox today and I thought it was interesting enough to share.  What I really like is Figure# 2 which is really a scheduling maturity level chart. Nobody should be shocked, but many firms are still on the far-left hand side. And that might be all they need to suit their business needs. I like technology and used to be a strong proponent of software solutions. HOWEVER, as I learned more and gained more real-life experience, I firmly believe there is a strong case to be made for deeper and more thorough implementation of lean tools with “pull” signal and takt times driving scheduling based on bottlenecks.   Before going to far forward with software solutions, which tend to be VERY expensive, take a moment to reflect upon some wisdom acquired over 4 decades including multi-site, global production and supply chain management:  Read “ The Goal ” by Eliyahu M. Goldratt and Jeff Cox Read “ Creating A Lean Culture ” by David Mann...

DON'T FORGET ABOUT LEAD TIME (REDUCTION)

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As an eS&OP practitioner, the headline caught my eye. Good article discussing the issues around forecasting NEW product families and specifically SKU's in a new family. There is some good high level and tactical advice. The one thing that I would have liked to see is "reduce product lead time" with a focus on cumulative lead time (i.e. the total lead time through all levels). Everything in supply chain is easier if the lead time is short(er). Unfortunately, life seems to be throwing a lot of curve balls at the supply chain so this is difficult but not impossible. Any initiative that can reduce lead time is worthy of consideration and validation as to its practicality. READ THE ARTICLE hashtag # supplychain hashtag # supplychainplanning hashtag # salesandoperationsplanning

Obeya Management

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  I really like the materials and content from this organization. Below is a great summary read on Obeya Management. I particularly like point #6 having been in those meetings where senior management resorted to table pounding, usually in meetings held so very early in the day which prevented folks from getting the latest information to delivery as part of their updates. Those meetings were a great learning experience. I resolved to schedule reasonable meetings at reasonable times of day. I think more got done and in a more positive environment. Read the whole article ! hashtag # lean hashtag # management

Killing The "Ghost Jobs" Legend In Manufacturing

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Wow ! Let this quote from the article sink in. "A recent Quickbase productivity survey of manufacturing workers in the U.S. and U.K. found that **58% are spending fewer than 20 hours a week** on meaningful work . The remaining 20 or more hours are devoted to “gray work” — chasing information from multiple systems and various teams throughout the company, and burdened by technology and processes that just don’t deliver." Manufacturers should consider an end-to-end as-is process mapping exercise for "office" processes. Such an effort easily shows up all the places where your teams have to work outside the system, use multiple systems, or are working entirely manually. These would include transfer of engineering data to production, sales order management, planning, purchasing, and so on through to fulfilment. A great place to find multiple silos comes when mapping human resources management, time and attendance, job charging and payroll ! We have found the BPMN2.0 fram...