Changing a manufacturing environment to be more profitable involves setting straightforward goals: make more money while spending as little as possible, and delighting the customer in quality and delivery performance.
Reaching the goals may not be easy, and may require a painful reflection of past practice and eliminating waste which can include some insourced operations, and additionally may require a rethink of outsourced items, vendors, and methods.
Most businesses have attempted some type of formal quality, cost, and delivery performance programs; many associated now with LEAN concepts.
LEAN focuses on eliminating eight kinds of wastes:
Critical to the success of LEAN implementation is to openly display KEY PERFORMANCE INDICATORS (KPI) or a DASHBOARD of results, marking progress and understanding how the goals are achieved.
Not all LEAN steps are always necessary. Assessment of the current business state, along with a review of corporate goals and objectives are required. A tailored plan of action is needed to address issues., which leads to a Future State Map.
Firstly, compose a Value Stream Map (VSM) of current operations from vendor inputs to customer delivery.
This map should be used to aid in identifying core competencies, value added operations, and potential areas of operational concern (cost, quality, delivery). It is then used to outline a set of Future State Map objectives with a timeline.
Click Here for an example of a Value Stream Map (VSM)
Roy has diverse experience of over 30 years; from an assembly worker, to an engaged participant in the AREVA board of directors for Canada.
Darrell has over 35 years of experience with small and mid-market businesses as an owner, operator, lender and consultant..
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