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Leveraging Growth Mindset and Fact-Based Management in Manufacturing

Posted on by Adam Payne

The difference between stagnation and growth often lies in mindset and management approach. The case of an SME Manufacturer with an £8m turnover, which lost a monumental £1.5 million order to a competitor that did not even manufacture but merely outsourced, illustrates a vital lesson in resilience, mindset, and strategic focus.

The Importance of Managing by Facts

Today’s manufacturing landscape demands a shift from traditional, often emotionally-driven decision-making to a more robust, evidence-based approach known as ‘managing by fact.’ This paradigm underscores the necessity of grounding decisions in data, metrics, and factual evidence rather than intuition, gut feelings, or emotions. It’s a shift that aims to heighten efficiency, enhance productivity, and foster innovation by making informed decisions that are aligned with strategic objectives and market demands.

Understanding ‘Manage by Fact’

‘Manage by Fact’ is not just a catchphrase; it’s a comprehensive approach that encompasses:

  • Data-Driven Decision Making: Leveraging real-time data and analytics to guide strategic decisions, leading to more targeted and effective outcomes.
  • Performance Metrics: Establishing clear, measurable objectives that help in assessing performance against goals, thereby facilitating continuous improvement.
  • Objective Analysis: Encouraging a culture where decisions are made based on objective analysis rather than subjective opinion or hierarchical pressures.
growth mindset

The Power of a Growth Mindset

At the heart of the SME Manufacturer’s story is the concept of a ‘growth mindset,’ a term coined by psychologist Carol Dweck. It denotes an underlying belief that talents can be developed through hard work, effective strategies, and input from others as opposed to a ‘fixed mindset’ which posits that talents and abilities are static and unchangeable.

A growth mindset in manufacturing signifies:

  • Embracing Challenges: Seeing failures, like losing a significant order, as opportunities to learn and evolve instead of insurmountable setbacks.
  • Persistent Effort: Understanding that mastery and improvement require time, effort, and perseverance.
  • Feedback and Critique: Welcoming constructive criticism as a resource for learning and development.
  • Learning from the Success of Others: Viewing peers and competitors as sources of knowledge and inspiration rather than threats.

Combining Fact-Based Management with a Growth Mindset

The synergy between managing by fact and fostering a growth mindset can become a formidable strategy in manufacturing. Here’s how:

  1. Data-Driven Insights for Continuous Learning: Utilising data not just for operational decisions but for learning and development, aligning employee growth with strategic business goals.
  2. Metrics for Performance and Growth: Performance metrics and KPIs can serve dual purposes—measuring current productivity and efficiency while identifying areas for skill development and innovation.
  3. Adaptability through Objective Analysis: An objective, fact-based approach empowers teams to adapt swiftly to market changes, technological advancements, and competitive dynamics, fostering a culture of continuous improvement and agility.

The Story of Resilience and Adaptation

Returning to the narrative of the SME Manufacturer, the loss of a £1.5 million order could have been a crippling blow. However, the management and team’s growth mindset, coupled with a strategic focus on facts and data, turned a potential disaster into a learning opportunity. It pushed the company to analyse what went wrong, to understand the market and competitors better, and to refine its value proposition and operations accordingly.

Their journey underscores several key takeaways for manufacturers:

  • Resilience is Key: The ability to bounce back from setbacks, powered by a belief in continuous improvement and the possibility of growth.
  • Embrace Change: Being open to change and willing to adapt strategies based on what the data shows can differentiate between stagnation and growth.
  • Collaborative Teamwork: A shared growth mindset within the team fosters collaboration, innovation, and shared ownership of both challenges and successes.

Conclusion: Forging Ahead with Facts and Growth

As the manufacturing sector continues to evolve amidst ever-changing market dynamics, the story of the SME Manufacturer serves as a compelling case study in the power of managing by facts not by emotion, and the transformative impact of a growth mindset.

Their experience illuminates a path forward for manufacturers seeking to navigate the complexities of modern-day business. It’s a dual approach where decisions are driven by data and insights, and where challenges and setbacks are seen not as endpoints but as stepping stones to greater achievements.

The manufacturers who will thrive are those who embrace the power of data, leverage the resilience of a growth mindset, and view every challenge as a new opportunity for growth and learning. Just as the SME Manufacturer demonstrated, the key lies in not just focusing on what to shrink but rather on what to grow. By striving to be better today than yesterday and planning to be better tomorrow than today, manufacturing businesses can ensure they remain competitive, innovative, and poised for success in an ever-evolving landscape.

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The Lean Bug: Embracing The Lean Revolution in Manufacturing

Posted on by Adam Payne

Igniting Transformation with Lean Philosophy

Lean Manufacturing, a philosophy embedding a culture of efficiency and continuous improvement, has revolutionised industries worldwide. Its inception within the automotive industry to today’s widespread application showcases its universal benefit across various sectors. When considering Lean Thinking, one can’t help but admire its holistic approach to streamlining operations, enhancing product quality, and boosting customer satisfaction.

Throughout my career, from my initial days as an engineer at a small SME to my role as a corporate executive, I have witnessed firsthand Lean Manufacturing’s transformative potential. My journey into the world of Lean began with a simple yet profound introduction to the concept of Kaizen while working at Linread Northbridge, a precision fasteners manufacturer for the aerospace sector. This pivotal moment sparked a lasting passion for Lean principles that I’ve carried through to every organisation I’ve served (including my own businesses, New Way Growth, FactoryIQ and obviously TCMUK Limited), assisting Manufacturing SMEs in realising their full potential through strategic Lean interventions and comprehensive programs.

The First Step to Lean Success: A Kaizen Event

Reflecting on my first engagement with Lean, a SMED event aimed at reducing a Header Machine’s changeover time from an entire shift to a mere 30 minutes stands out. This experience, under the guidance of a seasoned Japanese Sensei, was not merely about time reduction. It was a lesson in unlocking hidden potential, leveraging precise KPIs, and fostering a mindset geared towards continuous improvement. From relocating machining centers to implementing strategies that yielded savings of over £15 million in the first year, the principles of Lean Thinking have proven time and again that with the right mindset, ‘impossible’ is merely an opinion.

Overcoming the “It Won’t Work Here” Mentality

Resistance to change is a common theme in any organisational transformation. Yet, the principle of marginal gains teaches us the power of incremental improvements. By nurturing a culture that embraces every opportunity for growth, however small, organisations can witness significant advancements over time. The essence of Lean is not in the complexity of tools or techniques but in harnessing the collective knowledge and creativity of its people to drive enduring improvement.

More Than Techniques: A Cultural Shift

Lean Manufacturing transcends mere operational tactics; it represents a fundamental shift in organisational culture and mindset. Its success is contingent not on the size of the company but on the depth of commitment to these principles by its leaders and teams. Engaging closely with the ground-level processes, understanding the real challenges, and courageously tackling the root causes, paves the way for sustainable growth and competitive advantage.

Conclusion: Lean Leadership and Organisational Excellence

The journey towards Lean excellence is ongoing and evolving. It demands a leadership style that is hands-on, empathetic, and visionary. As organisations venture into this transformative path, they unlock efficiencies, eliminate waste, and set new benchmarks of performance. The legacy of Lean is not just in its methods but in the cultural rejuvenation it brings about, fostering an environment where continuous improvement becomes the norm, not the exception.

Lean Manufacturing is more than a methodology; it’s a catalyst for redefining excellence in the manufacturing sector. So, as you delve into the world of Lean, remember, the journey is as rewarding as the destination. Embrace each challenge, celebrate every small win, and continuously strive for a better, leaner, and more efficient tomorrow.

For personalised advice, practical insights, and to explore how Lean can revitalise your manufacturing processes, please feel free to reach out.

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Miss that moment – and you start to decline.

Posted on by Adam Payne

“There is at least one point in the history of any company when you have to change dramatically to rise to the next level of performance. Miss that moment – and you start to decline.” – Andy Gove

My personal view and experience is that it’s more than one point in time.

SMEs are characterised by their ability to adapt easily to market changes and their lean organisational structure (not as in Lean Manufacturing), which results in a more dynamic environment and a quicker decision making process. Although SME businesses vary widely in size and capacity for growth generally they will all follow a similar path: going from Owner/Entrepreneur with two or three employees to a business aiming for £10m or even £20m per year, and experiencing 20%/30% year on year growth and upwards along this journey. The sketch below illustrates an example of this, showing where most businesses may feel the pinch points of growth at key intersections.

SME Journey and Growth

Zero to £5m

The hard work really kicks in here. This part of the journey is often the one that is the most lonely, but often the most exciting. But it is here that most business owners feel the pains. Because it can be a lonely place, it is easy for owners to doubt themselves, they also don’t know what they don’t know which can be a limiting factor. And as an owner one of the main areas of responsibility is simply getting things done, which means you are working in your business as a manufacturer, and not working on it as a strategic leader.

In smaller SMES, management structures are also small with most owners being very hands-on. People are stretched across all functions all processes. Systems are not in place, IT is minimal or non-existent and there is a lack of standard processes. Utilising the Continuous Improvement and Management graph we can see that all levels are being worked with a very lean structure. Small customer projects, odd-job shop style of working.

SME Zero to £5m

As we get closer to a turnover of £5m, it becomes clear that things need to change. We are then moving from that odd-job, one off customer delivery to a mix of bigger projects, possible increased volumes and an increase in market share from your customers. As we start to scale-up from the initial start-up, decisions have to be made about the organisational structure, the company’s technology infrastructure, its business and marketing strategy, etc. With regard to organisational structure, you might now start to see the requirement for supervisory position(s) to take on more of the owners duties, the labour force growing, new machines, loans, investment, functional departments, Operations, Quality, Sales, Technical, Finance. This is where it can be rise or decline with those decisions. In scaling and growth and the opportunities it also brings its own set of problems, (albeit they are nice problems to have because its growth).

£5m to £10m

IT Systems and Planning may start to become an issue here, Microsoft Excel may no longer be good enough to manage your shop floor requirements (although I have seen £100m business still using excel but it was beginning to creak), and you are likely at this level to be considering MRP/ERP implementations. You may also look at outsourcing some functions, like Sales, Human Resources, Engineering Support, Quality, Quality Accreditation. All this requires a lot of investment in terms of time, money and energy. You need to do your homework to avoid costly mistakes, especially where IT is concerned, but it’s all opportunity.

And this stage, the business owner is now becoming more removed from the day to day operational tasks on the shop floor. This can be a very uncomfortable feeling in one or two ways. Firstly, the owner may want that hands-on role and not relinquish that part. It could be that the business is now at the stage where the owner is stopping it from growing, the entrepreneurial side is restricted as they are tied to the business. There a number of factors and variables in play, and having the right people is key, being a good leader is fundamental (at all stages).

SME £5m to £10m

£10m upwards

Financial Audits are required at this point (although some companies can be exempt if they satisfy certain criteria), so businesses need to be aware of the UK Audit requirements. Similar issues and opportunities still arise, but on a grander scale. Organisational structures are still fundamental, we might now start to see the need for Middle Management. We may also be looking to diversify into new markets, take on bigger orders, and higher volume. From £5m and up, some of your customers may not be the ones you want to deal with now, the one-off, low volume, job shop may not be your ideal customer. You might be seeing more of a need for Product Flow and Cells (Lean Manufacturing is a must from when you first start up), competition is high so you cannot stand still, even if your decision is to stay at a certain level. You will need to be driving for improvements to maintain the status quo, and your service has to be exceptional. Collaboration with a network of Manufacturers and or Partners, in my opinion, is key in this new world, and can bring some fantastic opportunities for growth. Again, IT infrastructure comes into play as the business is getting bigger: more employees, management leadership. The addition of new premises or additional buildings on the same industrial estate (this is where having a world class logistics operations pays dividends in not impacting your efficiency/productivity). The opportunities may now open up bringing the out-sourced services back in house, Sales and Human Resources, etc. At this level, you are likely to be making informed decisions based around data. Strategy alignment throughout the organisation is required, communicated and disseminated so everyone in the organisation knows the direction the company is going in and what the priorities are.

SME £10m upwards

Every business is different. One business’s pinch point may be at £3.5m another’s £7.5m but there will be very similar decisions to be made, but at this level the advantage is that businesses are likely to be able to make these decisions in a more informed way through data. Companies may not achieve sustained profitable growth unless they draft in the specialist skills required at the right time for the business. It’s the maxim that we don’t know what we don’t know. And the best advice is to seek advice from the experts in order to shift the dial in the right direction. This is something we can certainly help with, just contact the number below.

Ask yourself:

How much will it cost you not to resolve the issues that you are currently facing now or in the immediate future? How much will it cost you not to eliminate that pain? What are the lost opportunities on not taking your business to the next level or indeed keeping it at the level you want?

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Manufacturing UK Monthly

Posted on by Adam Payne

Manufacturing UK Monthly

If you have a passion for UK Manufacturing and love to hear all the positive news about the sector we work in, then I invite you to become a member of the Manufacturing UK Monthly.

Manufacturing contributes £6.7tn to the global economy. Contrary to widespread perceptions, UK manufacturing is strong. The Manufacturing UK Monthly brings regular updates on positive news, events, best practice and articles from key people of influence all within Manufacturing.

INVITE TO JOIN THE MANUFACTURING UK MONTHLY

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Funding for Manufacturers

Posted on by Adam Payne

Are you a Manufacturer?

Are you looking to make an improvement, solve a problem?

Would some funding help ease the costs?

The image illustrates all interventions covered by the EDRF Funding up to September 2021. The funding covers areas including West Midlands, Yorkshire and Humber, parts of the East Midlands, South East and East of England.

(Case Study – SME Manufacturer Leverages Funding & Increases Output)

Interventions in Scope

With up to 35% grant funding our Improvement Programme is designed to stimulate the growth of aspiring manufacturing businesses, in any sector, helping them to identify opportunities for growth, solving current problems, driving continuous improvement and increasing competitive performance.

To qualify you have to be a Manufacturer with Fewer than 250 employees and a turnover less than or equal to €50 million OR a balance sheet total less than or equal to €43 million.

Just enter your name, email address and the description of the intervention you are interested in and we’ll be in touch, it’s as easy as that.

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Automation – Don’t shy away from it.

Posted on by Adam Payne

Automation has been a cornerstone of manufacturing for years, evolving through numerous forms and innovations. This blog post delves into the significant advantages that automation, when combined with creative thinking and Lean Principles, can bring to businesses. It emphasises that while automation should not be shied away from, it is crucial to understand its impact, benefits, and justification for your business through thorough analysis.

The Evolution and Importance of Automation

Automation is not a novel concept. Its roots can be traced back to the Industrial Revolution when machinery began to replace manual labour, dramatically increasing efficiency and production capacity. Over the decades, automation has continued to evolve, incorporating advanced technologies such as robotics, artificial intelligence, and the Internet of Things (IoT). These advancements have transformed manufacturing, enabling higher precision, faster production times, and reduced human error.

In the mid-90s, as a Kaizen Engineer with McKechnie Plc, I witnessed firsthand the transformative power of automation. We invested in machines capable of auto-ejecting or unloading parts once a cycle was completed—a process known as Hanedashi in Lean terminology. This simple yet effective device saved associate time by allowing the machine to handle the unloading process, enabling the associate to focus on loading the next part. This innovation laid the foundation for Single Piece Flow production lines, also known as Chaku Chaku Lines.

Hanedashi - Auto Eject

The Mechanics of Single Piece Flow and Chaku Chaku Lines

Single Piece Flow, or Chaku Chaku (which translates to “Load Load” in Japanese), is a Lean manufacturing approach where each machine in a production line is loaded with parts sequentially. All necessary machines are positioned close together, forming a cell that facilitates seamless workflow. The goal is to minimise work-in-progress (WIP) and ensure that each part moves through the production process without delays.

In a Chaku Chaku Line, automation is employed wherever possible to streamline operations. For example, loading a part into a machine may require precise orientation and proper seating in a jig, tasks that typically demand human skill. However, once the machine cycle is complete, the part can be automatically ejected, eliminating the need for manual intervention. This approach not only improves efficiency but also reduces the risk of errors and defects.

Single Piece Flow - Chaku Chaku

Jidoka: Automation with Human Intelligence

Another critical concept in Lean manufacturing is Jidoka, one of the two pillars of the Toyota Production System, along with Just-In-Time (JIT). Jidoka, often referred to as “automation with a human touch” or “autonomation,” involves integrating human intelligence into automated processes. The essence of Jidoka is to enable machines to detect and respond to problems autonomously, ensuring that production stops immediately when a defect or issue is identified.

By incorporating Jidoka, manufacturers can address the root causes of defects, leading to continuous improvements in product quality and process efficiency. This approach empowers equipment to distinguish between good and defective parts without constant human monitoring, further enhancing productivity and reducing waste.

jidoka - autnomation

Real-World Applications and Benefits

The implementation of Load Load Lines and Autonomation yields substantial benefits, including the elimination of WIP, defect-free production, and significant productivity gains. For instance, an associate can manage multiple machines simultaneously, a practice known as multi-process handling, thereby optimising labour utilisation.

In my experience at McKechnie Plc, we established a highly efficient production cell, not so creatively named Cell 7, which manufactured fasteners. The traditional production route involved multiple stages, including Header Machine, Turn, Centreless Grind, Fillet Roll, and Thread Roll, with parts moving as batches through various departments. This approach was fraught with inefficiencies and waste.
By adopting the principles of Single Piece Flow, Load Load Lines, and Autonomation, we transformed Cell 7 into a fully autonomous production line. The process began with bowl feeding fasteners into the system, after which the line handled everything else, from loading and unloading to quality inspection using visual cameras. This comprehensive automation minimised human intervention, with associates only required for machine consumables, tooling changes, and addressing any significant issues.

The Strategic Role of Automation in Modern Manufacturing

The integration of automation in manufacturing is no longer a luxury but a necessity for businesses aiming to stay competitive in a rapidly evolving market. The modern manufacturing landscape is characterised by increasing demand for customisation, shorter product life cycles, and heightened quality standards. Automation addresses these challenges by enabling manufacturers to produce high-quality products at scale, with greater flexibility and efficiency.

Customisation and Flexibility

One of the most significant advantages of modern automation is its ability to facilitate mass customisation. Advanced automated systems can be programmed to handle a wide variety of products and configurations without extensive downtime for retooling or adjustments. This flexibility allows manufacturers to meet diverse customer needs and respond quickly to market changes.

Quality Assurance

Automation also plays a crucial role in maintaining consistent quality. Automated systems equipped with sensors, cameras, and other monitoring devices can detect defects and deviations in real-time, ensuring that only products meeting stringent quality standards proceed through the production process. This capability is particularly valuable in industries where precision and reliability are paramount, such as aerospace, automotive, and medical device manufacturing.

Efficiency and Productivity

Efficiency gains from automation extend beyond the production floor. Automated systems can optimise supply chain operations, inventory management, and logistics, reducing lead times and minimising the risk of stockouts or overproduction. These improvements contribute to overall productivity and cost savings, enhancing a company’s bottom line.

Overcoming Barriers to Automation

Despite the clear benefits, some businesses remain hesitant to embrace automation due to perceived barriers such as cost, complexity, and potential job displacement. However, these concerns can be addressed through strategic planning, careful analysis, and a focus on long-term gains.

Cost Considerations

While the initial investment in automation technology can be substantial, the long-term benefits often outweigh the costs. Businesses should conduct a thorough cost-benefit analysis to assess the potential return on investment (ROI). Factors to consider include increased production capacity, reduced labour costs, improved quality, and shorter cycle times. In many cases, the savings and efficiencies gained through automation can lead to a rapid ROI.

Skill Development and Workforce Transition

Another common concern is the impact of automation on the workforce. While automation can reduce the need for certain manual tasks, it also creates opportunities for new roles that require advanced technical skills. Companies can mitigate job displacement by investing in training and development programs to upskill their employees, preparing them for higher-value tasks such as programming, maintenance, and quality control.

Complexity and Integration

Integrating automation into existing processes can be complex, particularly for businesses with legacy systems. However, advancements in technology have made it easier to implement and integrate automated solutions. Collaborative robots (cobots), for example, are designed to work alongside human operators, enhancing productivity without the need for extensive modifications to existing workflows. Additionally, modular automation systems can be scaled and adapted to meet evolving needs.

The Future of Automation in Manufacturing

The future of manufacturing is undeniably intertwined with the continued advancement of automation technologies. Emerging trends such as Industry 4.0, the Industrial Internet of Things (IIoT), and artificial intelligence (AI) are set to further revolutionise the sector.

Industry 4.0 and the Smart Factory

Industry 4.0 represents the fourth industrial revolution, characterised by the integration of digital technologies into manufacturing processes. This paradigm shift encompasses the use of IoT devices, data analytics, and AI to create smart factories where machines communicate and collaborate autonomously. These connected systems enable real-time monitoring, predictive maintenance, and data-driven decision-making, leading to unprecedented levels of efficiency and flexibility. This is something our sister company offers FactoryIQ – The Smart Factory Made Simple

Artificial Intelligence and Machine Learning

AI and machine learning are poised to play a transformative role in manufacturing automation. These technologies can analyse vast amounts of data to identify patterns, optimise processes, and predict potential issues before they occur. For example, AI-driven predictive maintenance can significantly reduce downtime by identifying when equipment is likely to fail and scheduling maintenance proactively.

Collaborative Robotics

Collaborative robots, or cobots, are designed to work safely alongside human operators, enhancing productivity and flexibility. Cobots can handle repetitive, hazardous, or ergonomically challenging tasks, allowing human workers to focus on more complex and value-added activities. As cobot technology advances, their capabilities and applications will continue to expand, making them an integral part of the modern manufacturing landscape.

Additive Manufacturing

Additive manufacturing, commonly known as 3D printing, is another technology that complements automation. It enables the production of complex and customised parts with minimal waste and reduced lead times. When integrated with automated systems, additive manufacturing can streamline prototyping, reduce inventory costs, and accelerate product development cycles.

Case Study: Transforming Manufacturing with Automation at McKechnie Plc

To illustrate the impact of automation in a real-world setting, let’s revisit the case of McKechnie Plc, where I worked as a Kaizen Engineer in the mid-90s. Our journey with automation began with the introduction of Hanedashi devices, which automated the unloading of parts from machines. This initial step laid the groundwork for more extensive automation initiatives.

Setting Up Single Piece Flow and Load Load Lines

Recognising the potential of Single Piece Flow, we restructured our production lines to create Chaku Chaku Lines. By co-locating all the machines needed for a product in a single cell, we minimised the time and effort required for material handling. Automation played a crucial role in this transformation, with machines automatically ejecting finished parts and readying themselves for the next cycle.

Implementing Autonomation for Quality Assurance

To further enhance our production process, we integrated Jidoka principles, enabling machines to autonomously detect and respond to defects. Visual cameras were installed to inspect parts in real-time, ensuring that only high-quality products moved forward in the production line. This autonomation approach not only improved product quality but also reduced the need for manual quality checks, freeing up associates to focus on other tasks.

Achieving Full Autonomy with Cell 7

Cell 7, our fastener manufacturing cell, became a showcase of automation excellence. By combining Single Piece Flow, Load Load Lines, and autonomation, we achieved a fully autonomous production process. Fasteners were bowl fed into the system, and the line handled everything from loading and unloading to quality inspection and defect rejection. Human intervention was required only for machine consumables, tooling changes, and addressing significant issues.

Results and Benefits

The results of our automation efforts were nothing short of remarkable. We experienced a significant reduction in work-in-progress, virtually eliminating delays and bottlenecks. Product quality improved dramatically, with defects identified and addressed in real-time. Productivity soared as associates could manage multiple machines simultaneously, optimising labour utilisation. Overall, the integration of automation led to substantial cost savings, higher efficiency, and enhanced competitiveness.

Conclusion: Embracing Automation for a Competitive Edge

Automation, when combined with creative thinking and Lean Principles, offers immense benefits to businesses. From improving efficiency and productivity to enhancing product quality and flexibility, the advantages are clear. However, it is essential to approach automation strategically, conducting thorough analysis to understand its impact and justify the investment.

As the manufacturing landscape continues to evolve, staying ahead of the curve requires embracing automation and leveraging advanced technologies. By doing so, businesses can unlock new levels of performance, reduce costs, and remain competitive in an increasingly dynamic market.

At TCMUK Limited, we are committed to helping UK manufacturers embed strategies that reduce costs, increase sales, and boost profits. Our expertise in automation and Lean Principles enables us to guide businesses through the complexities of implementing and optimising automated systems. Whether you are looking to enhance your existing processes or embark on a comprehensive automation journey, we are here to support you every step of the way.

If you are ready to explore the transformative potential of automation for your business, contact us today to learn more about our services and how we can help you achieve your goals. Don’t shy away from automation—embrace it and unlock the full potential of your manufacturing operations.

 

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Improve Productivity

Posted on by Adam Payne

Copy and Deploy the ultimate productivity swipe file to reduce costs and increase efficiency of your processes.

OEE (Overall Equipment Effectiveness) is a “best practices” metric for monitoring and improving your manufacturing processes (i.e. machines, cells, production lines…). OEE is simple, practical and powerful. It takes the most common sources of manufacturing productivity losses and places them into three categories: Availability, Performance and Quality.

This swipe file will help in understanding the data required to monitor your machines and manufacturing processes in shifting towards IR4.0 and taking the next step in fully automating the data collection.

For further reading on OEE “click here”

OEE - Improve Manufacturing Productivity

Benefits of OEE

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Operationalise your Strategy – FREE Download

Posted on by Adam Payne

OOperationalise your Strategy
Benefits of Policy Deployment

Organisations with the capability to consistently execute their plans through the adoption of Strategy Execution outperform the market. Forget all the meaningless buzzwords and fancy dashboards, you need context and a trackable action plan to drive real performance improvements.

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Sales and Operations Planning – is it a missing link in your business???

Posted on by Adam Payne

Benefits of Sales and Operations Planning

  • Increased customer service levels
  • Improved profitability
  • Reduced time to market with new products
  • More products to increase revenue
  • Lower inventories and obsolescence
  • Reduced lead times
  • Quicker responsiveness
  • Top-down management control
  • Predictable operating performance for shareholders

The Sales and Operations Planning process is the primary tool by which there is a systematic review of the business, out of which plans are established. It brings Sales, Marketing, Manufacturing and Finance together to agree on the volume of products to be produced over the next sales horizon. The process should be incorporated into the business calendar to coincide with the key activities of, strategic reviews, budget preparation, quarterly forecasting, monthly performance reviews and MRP/ERP timing.

Alignment from S&OP Process goes beyond just the meeting, the entire company is aligned to a given direction. This is one of the huge benefits from the S&OP Process. The Master Scheduler is implementing the decisions made by the S&OP team. The planners and buyers are aligning to the Master Scheduler. Capacity is being increased and decreased in accordance to the plan. Changes to the financial plan are made in advance given the decisions from the S&OP meeting. The monthly meeting allows for issues to be raised, tracked and resolved. Key department heads are present so that the entire company can be aligned behind a decision and as it is cascaded and communicated to the levels below.

The sales and operations plan looks 12 – 18 months into the future, this level of visibility opens the door to a different way of thinking: a longer term view. The process facilitates the bringing together of data from different departments and presents it to the team (Operations has visibility to Sales plans. Sales have visibility to the supply plan. Finance has visibility to expected revenues and expenses)

Finance are an integral part to making the process successful, they ensure the alignment of the financial plan to the operational plan so ultimately the objective of making money is achieved and on track. It’s no good planning to ramp up 30% if you only have the resources to ramp up 10%.

New product introduction (NPI) can be a headache (new suppliers, ramp up, technical issues, capacity, obsolete inventory, etc) but again the S&OP process facilitates the discussion. It enables all stakeholders to be aware when a new product introduction is happening. Sales needs to be talking to Operations. Operations needs to be talking to Finance. Many companies deal with NPI separately and have a project plan dealing specifically with new product introductions With NPI on the agenda within the S&OP process, issues can be raised, actioned and tracked, (releasing of capacity for trials, product traceability, etc) are managed carefully.

A big part of the S&OP agenda is reviewing the key business metrics in order to identify and resolve performance issues, when issues are raised, the key stakeholders are in the room to get things done.

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The saying goes “Culture eats Strategy for Breakfast” Drucker

Posted on by Adam Payne

The weekend of October 22nd I was watching the Austin Texas F1 Grand Prix, this is one programme that everyone knows in my house not to disturb me watching. This weekend Mercedes were all but clear of winning the constructors championship as long as Ferrari didn’t outscore them by 17 points, something in the end that Ferrari couldn’t do. Congratulations MercedesAMGF1!

Now what pricked my ears up was the interview with James Allison at the end of the race, a number of questions were asked around the differences between Ferrari and Mercedes, James (Ferrari man from 2000-2005 and returning 2013-2016 to Mercedes 2017) an absolute professional and held in high regard within F1 would not be drawn on the comparison, but what he did say regarding Mercedes summed it up in 28 seconds of video (click the image below for the interview).

If you look at Ferrari’s take on things in the past few races when things have been going wrong, their behaviour seems to be one of blame and bullet a few people, you would almost say “Manage by Fear”.

As James Allison put, by being Brave to Ultimately Prosper and the culture they have embedded at Mercedes to succeed clarifies the saying “Culture eats Strategy for Breakfast”

Culture is hard to collate, classify, categorise and it’s certainly hard to measure, it also seems one of those things Businesses seem to shy away from, even borderline not accept. It’s the invisible glue that you can’t touch or feel, so we’ll ignore it.

BUT IGNORE IT AT YOUR OWN RISK THOUGH!

Quite often, businesses think culture is some flowery-fluffy stuff that doesn’t make any difference in the end, or even if they think it does matter, they have an excruciatingly hard time describing what theirs is.

This invisible glue that holds the organisation together is probably the most powerful entity you can tap into, it’s part of your businesses DNA, the same as how I describe Policy Deployment, it becomes part of your business DNA. The “How you get things done”

The “How you get things done” drives performance.

Culture is not what we say, but what we do without asking. A healthy culture allows us to produce something with each other, not in spite of each other. That is how a group of people generates something much bigger than the sum of the individuals involved.

So don’t underestimate “YOUR BUSINESSES CULTURE”

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