Want to discover how to absolve the poor money flow?
Consider these facts for a moment [source: “The Manufacturer”]
✅92% of decision-makers say their top business imperative is improving operational efficiency
✅Diversifying into other sectors are rising on their to-do list
✅75% say that making cost savings is one of their biggest tasks
For companies to survive and grow in today’s aggressive environment, where “every penny is a prisoner” simply having the world-competitive capability is not an option, it is a necessity. Let’s face it – businesses have faced disruption at every turn over the last eighteen months, and the vast majority have demonstrated an incredible capacity to embrace change at speed. It can mean means finding efficiencies, making every penny count and increasing work with existing clients. It also means going out and finding new customers, either in markets already being served or entering new ones. For organisations unable to diversify or who are tied into long-term projects, the emphasis is on delivering existing commitments while identifying meaningful cost savings in procurement, manufacturing, logistics, and service.
“Yes, I know this” you may be saying – but let me add that everything else that I share with you below is based on true experience. What’s important is not to view the above priorities in isolation. Greater operational efficiency and resilience help generate cost savings and aid customer growth, retention, and acquisition. Equally, workers who know that their wellbeing and development are highly regarded tend to be more engaged and productive. All that we do, the businesses we work with, and my private inner circle clients – all stick to one rule, the experiences shared are not suggested to grow and increase profitability for your business that have not been tried, tested, and implemented by us. This is what many manufacturers tell us that sets us apart from the plethora of ‘efficiency experts’ who vie for the attention of business owners. We are practical practitioners that can help implement the exact strategies, processes, and systems to suit your unique business.
To enable this to happen, key skills and processes within all companies need to include; strategic planning, leadership, project and risk management, manufacturing excellence (including efficiency thinking), strategic “make versus buy” decision making, gross value-added purchasing, skills assessment, and development, innovation, and collaborative working.
Many manufacturing companies today are involved in some sort of “Efficiency” activity. If an organisation can honestly hand on heart answer “Yes, our company is like this” to the following then they probably have no further need of support from us. If any aspects of the following are of concern or attract their interest, then contact TML and we may be able to help you benefit from some of our services.
Many manufacturing companies are needing a way to track and document the transformation of raw materials into finished goods. Tracking in such a way that the cost of quality has a clear measure and continuous improvement performance has regular and sustained appraisals. Our TML practitioners and technology partners are supporting manufacturers to monitor critical function assets and the measurement of overall equipment effectiveness and performance (especially around bottleneck processes) to help ensure greater product and production consistency.
Manual reporting and data collection still appear to be prevalent across many organisations, therefore, it’s logical to expect that a rising number of operations adopting digital tools to perform data gathering exercises or to fulfill simple HR and finance transactions. A large proportion are also upgrading their production systems, particularly those involved with overall equipment effectiveness (OEE), and manufacturing/ enterprise resource planning (M/ERP).
But to do so effectively, you have to consider three key factors that are critical to success:
- The human impact
- What data gathering supports decision-making, and
- Actions that are immediate, consistent, and shrewd
Digitisation is driving change across manufacturing and many companies have the opportunity to look at different channels of approach for improvement. By integrating technology with your existing production assets, you gain enhanced connectivity across your facility/facilities which can provide more detailed analytics of your customer cycle.
Production leaders are able to analyse your operations in real-time, onsite, and remotely; together with the facility for an end-to-end digital value chain that can impact everything from forecasting to procurement, to assembly, packaging, and logistics, all fostering an improved service for your customers.
Companies associated with being “excellent” in their field exhibit all of the following:
- A structured and systematic Improvement Programme embedded in the Business Plan
- Nominated Improvement Champion(s) for driving Continuous Improvement
- Improvement champions backed by accredited training qualifications
- Regular investment in skills training for all workforce/colleagues
- Continuous benchmarking of performance against standards set by other organisations
- Continually setting challenging and stretching performance targets
- Individual and team performance improvement targets
- Regular Continuous Improvement performance assessment and a customer focus culture
- An innovative culture always challenging the status quo
- A systematic approach to generating and capturing ideas
- A process for measuring the Cost of Quality
- A visible process for rewarding excellence for everyone
Our founder used to work with a global aircraft manufacturer that had 15 plants across Europe alone. That enabled the business to benchmark performance from one plant to another on common topics like productivity, waste levels, output and customer service delivery, and use that as a lever to continuously improve performance. In the absence of these benchmarks that maybe don’t exist in your sector – you could be looking to digital tools to help provide them.
By digitising your information and processes you can aim to become far more efficient in almost every function that you perform; sales and customer management, configuration and quoting, manufacture and quality control, distribution and service support. In turn, those efficiencies help to secure cost savings, customer growth and retention, supply chain visibility and a host of other factors that were once important but perhaps now imperative.
Now, you may be thinking: “This is all well and good, but how do I fund these features to gain the benefits I need?”
Sourcing funding can prove extremely difficult for a vast majority of organisations, but with many years of experience, and success, a helping hand is on the doorstep.
Most recently we have helped a northwest company that has a broad customer base serving an international marketplace for power and telecoms, aerospace, and garage equipment. Following a funded assessment, we have helped the company:
- create a current state map of the entire business
- develop and deploy a visual performance management system
- develop a robust maintenance system for all equipment and machinery
The end objective of Excellence is to identify and eliminate or change any part of a process that does not add value. Value as perceived by the customer. What the customer is prepared to pay for. A customer is not willing to pay for excess processing which commonly results from the creation of multiple versions of a piece of work that now must be reconciled into the true work.
We work with large and SME Manufacturing businesses where complex, safety-critical aspects are associated: namely aerospace and defense, healthcare, but also mining and oil & gas, and food & drink, that require help in improving the efficiency of their business. Alongside increased
efficiency and visibility, we help what has been an increasing trend to free workers from time-consuming, monotonous tasks in order to focus on areas where they can add value. In many cases, based on eligibility, through keeping up to date on available grants and subsidies, we can access these on the company’s behalf.
We can handle all negotiations and paperwork for them; accommodate any bureaucracy and associated paperwork. After all, they are experts in their business, and we are experts in ours.
Digitalisation can help you uncover any missed and new efficiency improvements. If you would like to enjoy consistently delivered strong, double-digit gains around productivity, waste reduction, and cost savings – then get in touch.
For example, you may want to be looking at how digital tools and visual management can help make your shift changeovers more efficient. If someone takes over from someone else, how do they know what stage the build has reached? It may be that they spend the first 15 minutes of their shift repeating several steps to ensure they’ve been done, such as tightening fittings. Relatively simple, inexpensive improvements like that can make all the difference.
If you think that time is your biggest problem because people are too focused on day-to-day activities and don’t have – or aren’t given – the time to think more strategically and explore more efficient ways of doing things – then think again. The top three most significant obstacles tend to be aligned to organisational culture and entrenched working practices.
The pandemic was a wake-up call that MANUFACTURERS disrupted the as-is more than anyone could have previously anticipated. For many, it has been a bitter reality: painful, costly, still unresolved. For a few lucky others, it has offered an unforeseen windfall. Either way, as an executive you must accept that pandemic-induced changes in strategy, management, operations, and budgetary priorities are here to stay.
Having presented you this enticing opportunity – you know you can manage complexity and drive competitiveness by tying digital transformation to business priorities — others out there will still be waiting for things to “go back to normal”. Organisational culture and complexity will be the biggest barrier to overcome, and building trust and confidence among the workforce/colleagues will be critical. How they are treated now will have an unprecedented impact on your reputation/perceptions and value in the future.
As the executive for your company, this new world permits no time for complacency or nostalgia. Risks and opportunities are too great, the stakes too high. You know that you need to prepare your business for ongoing uncertainty, inevitable disruption, and never-ending change.
