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Manufacturing: Worst Offenders

A colleague recently asked me what I would look for if I were to evaluate a Manufacturing plant (unspecified industry). My immediate response was to initially look for what I call the “Worst Offenders”. Here they are along with the rationale for why to correct them:

  • No safety program: Do not blow up anybody or anything!
  • No connection with customers: Everyone, including manufacturing personnel, should know what value the firm delivers to customers.
  • Equipment out of calibration: Get what you expect out of your machinery and tools. This includes production, QC, test, and facilities equipment.
  • No preventive maintenance program: “If it ain’t broke, fix it anyway.”
  • No standard operating procedures: Eliminate the human and machine variations from the manufacturing process.
  • Non-integrated planning: Synchronize demand-supply, production schedules, machine usage, workforce schedules, maintenance, logistics, and other plans in order to minimize planned and unplanned downtime.
  • Lack of employee training and development: Get the most out of people.
  • Poor labor management relations: Avoid strikes, showdowns, slowdowns, and other impacts to output. And employee satisfaction is a key driver of quality and productivity.
  • No quarantine for discrepant material: Don’t mix the bad with the good.
  • Inefficient layout: Avoid suboptimal flow of material and wasted time.
  • Sloppy and slow changeovers: Prevent material contamination and achieve speed.
  • No performance measures and targets: Need to evaluate performance and know what “good” is.
  • Costs required for financial reporting do not reflect the true costs to manufacture: Need to know costs to understand product profitability for effective product portfolio management. Historical costs are also required for more accurate projections during product development.
  • No continuous improvement program: Always strive to do better for competitive advantage.

There are obviously more problems that can be present in a Manufacturing Operation. But these are what I consider the worst offenders and what I would use as an initial set of diagnostic tests for a manufacturing operation.




This post first appeared on 3 To The 3rd Knowledge Transfer | We Increase The Valuation Of Your Firm, please read the originial post: here

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Manufacturing: Worst Offenders

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