Vision & Strategy
- customer first
- value people
- quality
- premium return
- entrepreneurial behavior
- the process way
- production
- purchasing
- product development
- focused cells
- workplace organization
- layout
- shared vision
- ownership by people
- problem solving at the source
- self-management
- skills
- personal growth
- process mapping
- control systems
- finance
- measurements
- logistics
- problem solving
Not tuning the Organization Characteristics properly results in slack in time, costs and inventories in the total chain
supplier ----- THE SYSTEM ----- customer
Clues :
- extensive information exchange
- data redundancy and rekeying
- arbitrary fragmentation of a natural process
- many exceptions and special cases
- inventory and buffers
- high ratio of contral to value-adding
- rework and iteration
- waste
- high turnover of people
- high level of absenteeism
Manufacturing should play a key role
- Internally Neutral - Make the stuff "get it in, get it through, get it out"
- Externally Neutral - Meet the standards - Copy competitors
- Internally Supportive - Manufacturing tuned to specific competitive strategy
- Externally Supportive - Manufacturing is playing key role in whole company - World class
- Internally/externally innovative - Leading edge - Breaking old rules - Creating new rules in the industry
You belong in Stage 1 or 2 if these Characteristics apply to your orgaization
- "Command and Coltrol" mentality
- Organization is considered a collection of specialists who operate within fairly narrow job descriptions
- Sevior management makes major resource allocation decisions (with help of staff and external experts)
- Role of line managers is simply to operate the resulting configuration of facilities, systems and personel
- Values specialists, missing capabilities are bought outside
- Management's primary task is orderly assimilation, exploitation, and coordination of separate sources of experise
- Organization is hierarchical, primary relationships between people are vertical
You belong in Stage 3 or 4 if these Characteristics apply to your organization
- Workers and managers are so skilled and effective that other complnies are continually seeking to attract them
- Equipment suppliers are continually seeking one's advice
- Being more nimble than one's competitors in responding to market shifts or pricing changes, and in getting new products into the market faster than they can
- Intertwining the design of a new product closely with the design of its manufacturing process; competitors can only "reverse engineer" with major retooling and redesign expenses
- Continually improving facilities, support systems, and skills that were considered to be "optimal" or "state of art" when first introduced, so that they increasingly surpass their initial capabilities
- Horizontal relationships throughout the company
- Vendor management coupled with production scheduling and quality management
- Great emphasis on R&D decisions, experimentation, training, building general organization capabilities
How can we create and maintain a Stage 4 organization?
Look around "Vision & Strategy" - Environment - Structure, Functions, Systems, Methods - People & Culture
The Journey starts with re-framing your activities : The Process Way
A tightly coupled process of subsystems
Reduction of Cycle time:
- processes that create value
- no fragmentation of work
- one process owner
- processes have multiply versions
- checks and controls are reduced
Rigid execution of the process
Elimination of Waste and Variations:
- market based cycle time
- only added-value work
- fast feedback
- simplicity in product design and materials and information flows
- disciplined housekeeping
- standardize
- improve process capability
Developing a progressive, people oriented organization
maximize the potential of the people;
- mini company
- trainng
- glass wall management
- self management
- develop clarity of vision (core values)
- develop customer orientation
- promote involvement of everybody
- increase problem-solving capability
- provide adequate leadership
- clarify the management support system
Three Engines of Change towards Manufacturing Excellence
- The Process Way Cycle time reduction of business
- The Quality Way Elimination of Waste and Variations Improvement of product yield reliability
- The People Way maximize the potential of people
Standardize and Improve;Cycles of improvement
Manufacturing Strategy
- maintain standards/ways of working
- improve process/ways of working
Performance Measurements
- Shop Floor Mgt. incremental improvements and control (quality, delivery, cycle time, waste)
- Manufact. Mgt. redesign business process renewal (flexibility, customer satisfaction, productivity)
- Industrial Mgt. rethink strategy (market, financial)
Journey towards Manufacturing Excellence
- Managerial Technology concepts/methods/tools/techniques
- Human Resources skills
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