Operations

Measurements:

" If you don't measure it , you can't manage it! "

This is the basis for any continuous improvement program - but it is more than that. It is how good companies make money and other companies lose money.

Most businesses can be effectively run by keeping track of several daily, weekly, monthly and annual benchmarks. Businesses generally have developed a number of good measurements at one time or another. The problem is nobody is looking at the measurements, or if they are, they are not doing anything about the core issues surrounding the problems that the numbers are pointing to.

The numbers in the measurements will tell management where the problems are. It is then management's responsibility to make something happen.

Management by walking around:

In today's world of real time access to production information, senior management, plant leadership and ownership spend far less time on the production floor than in years past. This is bad for the business.

The production floor is where the majority of the company's costs are. It is where the most important people in the organization are - the workers. It is where the opportunities for internal improvement are. It is where the quality is generated, or not generated. It is where the waste is generated. It is where the heart and soul of the culture of the company resides.

This old business axiom needs to be reintroduced as a very high priority for businesses today.

LEAN Tools - Best continuous improvement program ever!

LEAN tools have proven to be the most effective process improvement programs ever developed. By drilling down on every step in a process it becomes obvious what steps are not needed to perform the function. By eliminating the extra steps, an enormous amount of time is cut out of the task.  The analysis then leads to auditable "standard work" procedures for the various tasks.  A goal is set for the task. Measurements are established to monitor progress to the goal.

What this means is that the businesses capacity can materially increase. Productivity improves dramatically. Capital expenditures can be deferred or delayed for new equipment and facilities. The impact is huge.

Having said that, it takes a firm commitment from management. LEAN is a journey that starts and never stops. If one decides to embark on the journey, they will not be disappointed.

Raw Material Waste - A hidden goldmine of profits

There are huge opportunities for companies to improve on their consumption of raw materials. Most businesses measure raw material waste under programs that have been in place for many years. Waste is simply considered part of the process and a cost of doing business. It certainly is a cost of doing business, but it can be materially reduced. By reviewing every step in the purchase, allocation, estimating, job planning, delivery systems, warehousing, converison, finishing and shipping a picture will develop that will lead to raw material waste reduction at levels never before thought possible.