March 2012

Prioritize Initiatives for Greatest Impact

Albert Einstein once said that the most powerful force in the universe is compounding. Just as in finance, this is true for managing a manufacturing operation. New problems, big and small, arise everyday. When a problem goes unresolved, it behaves like a disease on your productivity. Additionally, new problems are added to old ones, which creates a snowball effect, and thus the compounding dynamic takes effect.

Systematize for Rapid & Sustained Results

Systematization is standardizing a sequence of events through automation or verifiable reaction protocols designed to produce consistent outcomes. It's also where the rubber hits the road for the Percent Perfect Methodology® (PPM), which is designed to achieve rapid and sustained results in operating efficiency and manufacturing profitability. We see systematization everywhere we look, especially in manufacturing.

Production Throughput Increase

Having the ability to sell more product that you can make is not necessarily the worst problem in the world...but it is a problem. And we can help you with that. We have helped manufacturers to identify their true system bottlenecks considering not only process capacity, but also efficiency losses by area such as machine unreliability, changeover time, and other losses. We understand that the three primary approaches to increase throughput include process efficiency improvement, capital improvements (faster or more machines), and increasing available hours (adding manhours).

Operating Cost Reduction

We have helped clients with operating budgets ranging from $10MM to $700MM annually to cut their operating costs by as much as 35%. The typical 12 week engagement would result in a clear roadmap detailing a ranked list of improvement opportunities and have steps in place to begin the implementation process. This would include defined (and bought in) internal process owners, training material developed, and savings opportunities quantified. We can also support with the full implementation of any changes needed for a successful transformation.

Business Case Analysis

Do you have some specific business decisions to make involving manufacturing? Have you done the due diligence to determine how that change is likely to impact employee safety, quality, cost, customer service levels, scalability, agility, and other critical business factors? How often do we make hasty changes in business that end up biting us later on down the line? Sometimes you just don't have the time or professional talent available on hand to perform a thorough due diligence on an important business decision at the time you need it.

Should-Cost Analysis

You would be surprised how often there is a huge chasm between what something should cost and what it either: actually costs, is being charged for, is expected to cost. Often in business, you don't have time to challenge some of the assumptions that lead to overpaying for materials, labor, or internal process waste. In determining what something "should-cost" you almost always get a more objective response by leveraging outside support to perform the due diligence.

Manufacturing Network Optimization

It is well documented that processes naturally tend toward chaos unless effective order is established. A manufacturing network is not immune to this dynamic. Often new products are added to a given portfolio and insufficient analysis goes into where it should be made and why. Often at the time the decision is made to make a new product, you really don't have all the information needed to determine where to make it.

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