Developing World Class Manufacturing Agility: How to Reduce Total Cycle Times In Your Company

Author : Richard G. Ligus
Use Time-based Competition as one of your most powerful strategic weapons! Drive down the time it takes to develop and deliver new products, dramatically reduce inventory and manufacturing time. Slash the cost of quality, and win back market share. This article tells you how top-flight companies are doing it.Substantial market share has been lost over years to foreign competitors. No industry is immune. The pressure is on to be the nothing less than the best. Reducing cycle times in your company is a new way of tackling the problem. It's a new world-class manufacturing strategy that is making companies fiercely competitive. Companies who are doing it are cutting out 50 percent of the time to develop and introduce new products. Some have already reduced factory throughput time by 98 percent.Time based competition is one of the most powerful strategic weapons to emerge in the last 20 years! It allows you to drive down the time it takes to develop and deliver new products, dramatically reduce inventory and manufacturing time, slash the cost of quality, and win back market share. Today, and for the next 10 years, speed kills the competition. Time compression can result in consistently producing happy customers: a great formula for success. Why? When given a situation where costs and quality are similar, customers will choose delivery as the deciding factor.Compressing time has a cascading affect on quality and cost. As cycle times are reduced, productivity increases proportionally. A fifty percent reduction in cycle time and a doubling in work-in-process inventory turns causes productivity to increase from 20-70 percent. As productivity increases, resource capacity is freed. Two things happen: costs decline, and the organization becomes capable of producing significantly more output with less resources: a winning combinationMost manufacturing companies spend anywhere from 5-10 percent total time actually adding value to the product, i.e., transforming the part or moving it closer to the customer. The rest of the time is waste, resulting in higher costs occurring with loss of time.Inducing velocity throughout a business has a profound effect on time and cost. The need for nonvalue-adding functions disappears, and the functions designed to accommodate exceptional circumstances fall out. The organization chart becomes flatter. Following this is a dramatic reduction of overhead.How to Reduce Total Cycle TimeUnderstanding the way an organization functions is key to the redesign for time-based competition. The structure dictates how labor is divided and how power is allocated. Physical proximity normally follows structure, both of which have a direct impact on ease of information sharing and time.In a traditional functional organization, communication walls begin to build as the organization grows. Over time, functional entities develop and become self-serving, losing sight of the mission of serving the customer.Sequential decision-making becomes prevalent, coupled with poor or non-existent communications. The organization develops functional empires, fraught with politics and narrow points of view. The result is an organization slow in decision-making, heavy with vertical layers of management, bureaucratic in nature, low in productivity, and generally ineffective.Every business has basic cycles that govern the way that paper is processed, product is manufactured, and decisions are made. They may be documented in the form of procedures or routings. Examples of business cycles are customer order, product development, production, and procurement.A customer order cycle begins with the placement of an order by a customer. It ends when you are finally paid for goods or services rendered. But there are activities in between the two events that consume time. Some add value, such as packing and shipping, and some are non-value adding and delay time, such as moving the order around the building from mailbox to mailbox, sitting on a desk, or repetitive motions.When a cycle ends, a lot of non-value adding time has been consumed that may constitute 90-95 percent of total time. Some of the time is lost in travel, some is lost in the processing backlog, and some may be lost diverting a customer's order to a credit department for release. If you can identify the non-value added time in the cycle, you can devise ways to eliminate the causes.Long sequential strings of cycles make up the mainstream order flow and contribute to long throughput times. Poor physical logistics worsen the time delays; i.e. when distribution is physically separated from the main assembly plant, or engineering is separated from sales, etc. Component plants located overseas add even more to the overall throughput time of the service chain of events.Mainstream value-add activities are identified on flow process charts. Flow process charts are analyzed for activities that delay mainstream activities. Delays can be moves, slow operations, inspections, as well as waiting time. Cutting cycle times fifty percent per established period of time is a good goal. The process is continuous.It is not uncommon for the manufacturing time to only consume 40 percent of the total time a customer has to wait. Yet the value-add time in the plant is generally 5-8 percent of the manufacturing throughput time. The way to identify the activities is to use process mapping.Mapping process flow is a fundamental step in reducing total cycle times. Mapping the flow and tracking time for each of the events provides a basis for analysis. The process is not difficult, however it is time consuming. It provides a step by step image of work flow, systems, procedures, and volumes. It reveals the relationships between the tasks.A process is any series or combination of tasks or activities which produce a result. The result could be a machined part, a drawing, or a requisition for materials. Cycles are sequences of recurring successions of processes or events. The cycle time is the time from the beginning of the first step of the process until the beginning of the first step of the next process. Processes can be decomposed into smaller activities. Traditionally those activities may be performed in a sequential manner. In this situation each step is completed before the next one begins.Once cycles are mapped, the opportunities to compress time can be pursued. The goal in compressing time is not to devise the best way to perform a task, but rather to either eliminate the task altogether or perform it parallel with other tasks so that the overall system response time is reduced. A basic premise of reducing total cycle times is to separate activities between in-line and off-line.Extending this approach to the entire supply chain and focusing in on the mainstream activities that add value is key. Each of the steps can be further decomposed into smaller activities. By providing the output, such as transferring information, from smaller activities much sooner to the subsequent smaller activities, time can be compressed.No sacred cows exist. Functions, tasks, jobs, and parts of organizations that stand in the way of value-add are removed from the mainstream to off-line positions. Off-line functions and positions perform preparatory work for in-line activities. Examples of off-line work are pre-engineering, pricing, credit-checks, and purchasing negotiations for just-in-time supplier contracts. Credit and accounting are not allowed to delay orders.SummaryTime-based competition is a powerful strategic weapon to counter stiff foreign and domestic competition. Reducing cycle times throughout your company can makes you fast, flexible and a fierce competitor. Its implementation requires an attack on the basic company infrastructure. Focusing on streamlining physical flow of parts and information and compressing time in the basic business cycles can make it happen.It gives you the capability to get ideas off the drawing board and into the market place faster. It enables you to move parts through your plants with turbo velocity. It gives you the means of becoming world class, and provides a new approach to competing globally in the next century.BIOGRAPHYRichard G. Ligus is President of Rockford Consulting Group, Ltd., located in Rockford, IL., with over 30 years experience in manufacturing, procurement, transportation and distribution. He specializes in developing and implementing supply chain strategies. Rich is an author and a speaker, and has developed seminars with the American Management Association. He is certified by both the Institute of Management Consultants and the The National Bureau of Certified Consultants.Rich has a bachelor of science degree in mechanical engineering from the New Jersey Institute of Technology, and a master of business administration degree from Rutgers University. He is a member of CASA/SME, and has been listed in Jane's Who's Who in Aviation and Aerospace. He has been a speaker at IMTS, USCTI, APFA, NEPMA, MCAA, Hand Tools Institute, CASA/SME, and others. He has appeared several times on WREX-TV, Mid-Morning Magazine.
Keyword : enterprise, agility, time, based, competition, world, class, performance, manufacturing

Check Printing

Author : Mic Pedretti
Who isn't tired of writing out checks by hand? Sure it's economical and practical for the average "Joe small business owner," but who has that kind of time when running a small business or other operation? Imagine saving infinite time and money with printable checks. It is a grand idea, and no longer accessible to only large corporations. Mass check production has finally come toe the masses and its calling card is VersaCheck.With minimum system requirements as low as a Pentium 166Mhz, with 32 MB of RAM, running a windows 98 platform with at least 100 MB of free hard disk space, and an inkjet or laser printer, the wealth of resource is now at all our fingertips. The VersaCheck corporation has gone to great lengths to ensure that their software integrates magnificently into such popular money management programs as Quicken, QuickBooks, and Microsoft Money, while still running just as nicely on its own accord. With the ability to fully manipulate the look, layout and design of your checks, business can take on a professional look consistently sought after. VersaCheck is only one of many well known companies which have assisted big business and small business alike to in meeting the needs and demand for a more effective payroll system. To directly compete with VersaCheck, are such competitors as Troy Checkwriting Software (TCWS), and checkwritingsoftware.com. All three programs are designed to run around the same concept of printing checks, and are reputed to do an equally good job.The key to check printing lays not so much in the software, but more in the hardware. With compatible printers, mostly laser printers, a concept of MICR (pronounced my'-kur) numbers was born. Anyone who has ever written a check should be familiar with MICR numbers on the bottom of their checks. The MICR numbers are used as a way of correctly reading and scanning checks into record. MICR numbers are printed from a specially magnetized ink reputed to be more accurate when being processed through Optical Character Recognition (OCR) software and hardware devices. This development has saved banks millions upon millions of dollars every year.When combined with check printing programs like VersaCheck, TCWS, and others, the savings can be passed along to the businesses. VersaCheck, along with many other retailers, provide MICR toners and inks as a standard product in their line. As another benefit of its already popular line, VersaCheck also carries a product aimed at average "Joe Consumer" who will also never have to hand write a check again. The program, named My Checkbook Factory, will do exactly what the name implies; create a bank friendly checkbook for any average consumer, saving them time and money on costly checks.When it all boils down, and all is said and done, our "Joe small business owner" saves himself, his employees, and his bank a great deal of time, trouble and hassle by using compatible check printing software. Next to "Joe small business owner" Versacheck and competitors can save average "Joe consumer" lots of headache by printing his own checkbook, and saving time and money.Our Printing Directory is dedicated to the printing industry. Find more information and other printing topics on our Check Printing resource page.
Keyword : Check Printing,Printing

Coaching ROI exceeds $100,000

Author : Rick Weaver
In recent years executive coaching has become increasingly popular. Once limited to entrepreneurs and CEOs, coaching is now finding its way into middle and lower levels of management. Why are more companies funding the advancement of coaching to lower levels of management? The answer is simple: ROI. According to a recent study, the average ROI (return
on investment). The same survey set a dollar value on the ROI at more than $100,000. Surprisingly, this dollar figure was based on the actual reports from executives who estimated the monetary value of the results achieved through coaching.The academic world concentrates on technical skills and theories instead of people skills. On the other hand, coaching is focused on people skills. At entry level, skill is extremely important. Can someone type? Can someone run a cash register? Can someone file? Can someone drive a forklift?At the upper level, people skills are more important. Can you lead people? Can you communicate effective? Can you draw talent out of people?In the middle, a blend is required - however rarely achieved on one's own. Research by the Center for Creative Leadership has found that the primary causes of derailment in executives involve deficits in emotional competence. The three primary ones are:==> Difficulty in handling change==> Inability to work well in a team==> Poor interpersonal relationsDue to the lack of academic attention to soft skills, employees are finding a huge need to improve the people skills of their executives. To instill people skills and how to use them, companies have the choice of public workshops and seminars or coaching. Workshops can handle topics generally, however coaching handles topics independently. Coaching also has an accountability factor not present in seminars.According to Amos Robinson, "Effective coaching works with executives and others to develop their proficiency in working with change. It helps them identify when teamwork is important and to use their skills to foster it. Coaching builds skills and capacities for effective working relationships. Coaching paves the way for decision makers to create higher levels of organizational effectiveness through dialogue, inquiry and positive interactions. Coaching creates awareness, purpose, competence and well-being among participants. Coaching is NOT another feel-good exercise based in soft skills that has no correlation to the bottom line."The key to effective coaching is to assess the cognitive skills and personality traits of the individual being coached. Additional techniques might include multi-rater feedback. The coach's goal is to know the person being coached better than know themselves. An effective coach will then help the person overcome weaknesses and build on strengths to deliver better results for their organization.Michigan based MaxImpact offers coaching in the United States and Canada through the Catapult(R) program. Successes are tremendous as entrepreneurs and executives have found their attention changes from "fixing people problems" to building business and profits.Max Impact has seen results similar or better than the survey shows when you look at things in perspective. President Rick Weaver says, "Coaching results appear right after the first sessions and then have a compounding effect, growing exponentially.Coaching has proven itself and it is time for all executives to get on the bandwagon.------------------Rick Weaver is an accomplished business executive with a wealth of experience in retail, market analysis, supply chain enhancement, project management, team building, and process improvement. Building on a strong retail background, Rick moved to full supply-chain involvement, working with hundreds of companies to improve sales, processes, and bottom-line results.As Rick's interaction in varied industries expanded, he became troubled as he increasingly noticed that people and companies had untapped or unfocused talent.Coupled with Rick's passion for training and development, popular style of interactive workshops and seminars, and strong desire for continuous improvement, he founded Max Impact Corporation to be singularly focused on helping individuals and organizations achieve high performance.Rick is a popular speaker at seminars, workshops, and conferences. He has spoken in 43 states, including Alaska and Hawaii, and in Canada and Puerto Rico. He is available to speak at groups of all sizes.Contact Rick at 248-802-6138 or rick@getmaximpact.com.
Keyword : coaching,leadership,ROI,Max,Impact

Employee Performance Reviews — Dealing With Disagreements

Author : Dick Grote
Start by listening to figure out the source of the disagreement. Is it an issue of fact (you wrote that the employee received a customer satisfaction score of 79 but the employee says that his score was actually 83), or is a matter of judgment (you wrote that the employee's customer service skills were unsatisfactory; she feels that her skills are terrific)? If the disagreement involves an issue of fact, get the facts and make any corrections necessary. If it's a matter of judgment, ask the employee for additional evidence. Then determine whether that evidence is weighty enough to cause you to change your mind, revise your judgment, and amend the rating that you assigned on the employee's performance review.Most of the time, you have a reasonably good understanding of the areas where disagreements are likely to pop up in the course of the performance review discussion. Before beginning the discussion, re-read the review you wrote and try to spot the areas where you and the individual may not seem eye-to-eye. Then ask yourself, "What am I going to say when George disagrees with my assessment that his performance on the Thompson project just barely met expectations?" If you've taken to time to review the appraisal you've written for potential hot spots, and given some thought to how you'll respond, you're much less likely to be caught off guard.During the employee performance review discussion, start with your higher ratings and move toward the lower ones. Be prepared to give additional examples besides the ones you've included on the formal written appraisal. Refer back to the informal conversations you have had with the individual over the course of the year.Of course, if you haven't had on-going, informal performance review discussions with the individual over the course of the appraisal period, then it's much more likely that disagreements will surface during the review. That's one more reason for scheduling periodic, "How's it going?" discussions with each person on your team.As soon as a disagreement pops up, switch into active listening mode. "Active listening" involves allowing the other person to clarify both the facts and feelings about an issue so there's nothing left under the surface. For example, using phrases as simple as, "Tell me more . . ." or, "What else can you share with me about that . . . ?" or, "Really . . . ?" can encourage people to talk more about their perceptions. Simply nodding without saying anything encourages people to expand on what they have said. It's not at all unlikely that the employee, allowed a sufficient chance to think aloud about what you have written, will end up saying, "Yeah, I guess I see what you mean."In dealing effectively with employee performance review disagreements, remember what your objective in the discussion is — and what it isn't. Your objective in a performance review discussion is not to gain agreement. It is to gain understanding. If the employee agrees with you, that's great. But particularly if your appraisal is a tough-minded assessment of the fact the Charlie's contribution toward achieving your department's objectives was only mediocre, you'll probably never get him to agree. That's OK. What you want is for him to understand why you evaluated his performance the way you did, even if his personal opinion is different.Finally, if you have several employee performance reviews to deliver, don't start with the individual whose performance was the worst and where disagreements are the most likely to arise. Start with the easiest — your best performer — and move toward the more difficult. In this way, you'll build your skills and become more comfortable with the performance review process. Remember the advice that John Dillinger, the 1930's public-enemy #1, once provided: "Before you rob your first bank, knock off a couple of gas stations."Dick Grote is one of America's most well-known speakers, authors, and consultants on employee performance reviews. He is the Chairman and CEO of Grote Consulting and the developer of the GroteApproach online employee performance review system. On the web: http://www.groteapproach.com/
Keyword : performance, employee, mangement, evaluation, review, assessment, online, softaware

6 Ways To Help Your Employees Beat Stress And Work More

Author : John Edmond
If you would like your business to employ highly motivated and high-energy level employees then investing in the workplace atmosphere and facilities will help and will reduce work-place stress significantly. Research confirms that if your employees are stressed then that will cost you even more money in missed workdays and increased on-the-job injuries over both the short term and the long term.In addition to the negative repercussions of having stressed out employees, your business may be experiencing lower productivity and poor quality of output. It is both clear and obvious that some very cost effective strategies could minimize stress on the job and provide your employees with opportunities to reduce other stress related problems.Below is a list of 6 ways in which you can help your company reduce stress for your employees while increasing the output of your business:1. Provide an attractive and comfortable work environment whenever possible to reduce stress. Pleasant surroundings can do more for a person's attitude then we often realize. Create a less formal atmosphere by adding plants or improved decoration, even if that is just in a rest room it will help.2. Supply a quiet room for your employees to take their breaks in. Not the canteen or games room, this room should be separate from the normal "hustle and bustle" of the work-place. It will give your employees an opportunity of a quick 10 minute break from work and any work related stress that they may be experiencing.3. Instead of giving orders 100% of the time try to create opportunities for employees to make decisions that will directly affect their job performance. This gives them a sense of personal power and less stress because they feel they have some control.4. Thank your employees for work accomplished and recognize them for exemplary performance. A quick thank you will go a long way in reducing complaints and stress. Be genuine and only thank when workers have worked well otherwise you will be rewarding sub-standard activities.5. Always choose ergonomically sound equipment, tools, and furniture. These will make work easier for your staff, reduce workplace injuries and therefore limit any compensation claims. In addition workplace stress will be reduced and staff, equipped with the correct tools, will be more productive.6. Go out of your way to create opportunities for the employees to meet, socialize and build relationships away from work. Set up a bowling team from work where you gather and play once a week or maybe a softball team, or even a book club, for employees only.When staff realize you have their interests in mind and are doing all you can to improve working conditions they will respond and you will see an improved atmosphere and productivity.John Edmond worked for many years in insurance and finance and now writes on a number of topics including small business management and finance. For anther article on leadership go to 12 Tips for Effective Leadership. Go to Small Business for a selection of articles on business and finance.
Keyword : stress, beat stress, improve productivity, work stress, management stress, workplace stress

One Minute Self Assessment & Integration – Stocks or a Mutual Fund

Author : Hans Bool
This title is some how misleading, but on the other hand figuratively explain just the main point. The question is about integration. When you buy a mutual fund you are free from integration problems – those are handled by your fund provider.If you prefer to select (the best) stocks your self, you will have to do the integration on your own.
Figuratively speaking, because the real one minute assessment is about business management; how to integrate different solutions...and, what is your preferred approach?Integration problems arise when you are to solve different problems within the organization with different solutions.For example in the Sales area. There are areas like:
e-Mail management – e-mail responding systems
Campaign management – sending e-mail campaigns. And or common mailings
Customer management
Service management
etc...For all these areas your organization may choose a best-of-breed kind of solution or a one-size-fits-all.
In the first case the solution (system) will provide the best features for a specific area. The best e-mail responder, the best campaign management tool, etc. At the other end your organization may prefer a one-size-fits-all approach; a broad functional coverage of the system and its features, but for any specific area not the best choice.In the first case your organization ought to manage the integrations problems by itself. In the last case the provider of the system will handle many (but never all) of the integration issues.This resembles financial management. It is fun to invest in individual stock, building up a portfolio of what you think are the best stocks on the market. But are you sure whether this self catered portfolio will outperform the market?
Rather you might consider buying a mutual fund; it solves you many headaches. On the other hand, its less fun.There is one difference; where in the financial situation you could choose to do both; dedicate a part of you portfolio to self selecting stocks and the other half with a mutual fund. This serves as a benchmark in the same time; which part performs better?In business there is no such a choice; it is either left -- best of breed, or right (maybe wrong) –- one-size-fits-all. There are not many other options.Check for yourself what option you would consider first. This influences much of the contribution to this integration discussion in your organization.© 2006 Hans BoolHans Bool is the founder of Astor White a traditional management consulting company that offers online management advice. Astor Online solves issues in hours what normally would take days.
You can apply for a free demo account
Keyword : one-size-fits-all, best-of-breed, business integration issues

A 5-Point Focus on Quality

Author : Valarie Washington
Henry Ford said that, "quality means doing it right when no one is looking." What is doing it? And how well must it be done?In every industry, competitors find themselves fighting price wars or positioning themselves as the low-cost provider only to find out that in many instances, quality is as important to customers (if not more so) than the cost they pay. Quality can be defined as the acceptable standard of excellence determined by the receiver. But, having a quality product and getting it to market is only part of the challenge; especially if you see quality as one action or an end result.You can't give lip service to quality. Anytime that there is a handoff, a deliverable, a discussion or even a decision to be made, quality is key. It has to be factored in and measured throughout the organization and considered in all activities of design, development, production, installation, servicing, customer interaction and documentation. The goal is to continually identify standards of quality, evaluate performance, monitor results and make adjustments that will improve the customer's perception. When it comes to improving quality in your organizations you have five points to consider: the product, the processes, every transaction and the thinking that leads to overall performance quality. Achieving quality in an organization is an ongoing pursuit and has to be adopted as a mindset before any significant gains will be realized.FOCUS #1 - Product Quality is measured by workmanship and reliability. It includes the raw materials, assemblies, products and components; as well as the function or services related to production. To have a quality product output means that you have to continually improve the inputs.FOCUS #2 - Process Quality includes the quality of work in developing, making, and selling products and services. It is measured by adherence to performance standards, fewer mistakes, fewer rejects and less rework.FOCUS #3 - Transaction Quality is measured by the effectiveness and efficiency of human interaction. When a products fails to meet the expectations of customers and they in turn seek remedy from the organization that creates a transaction (Ronald Coase, a British economist). Poor quality increase the number of transactions needed to resolve an issue and increases the cost of doing business. Once a customer picks up the phone or walks into your offices to seek resolution, the quality of the transaction itself becomes important.FOCUS #4 - Performance Quality is within the control of every employee. It is achieved when transactions are handled in a way that delivers ever-increasing value to internal and/or external customers. Performance quality begins with quality of thought. How your people think about their jobs, their roles, your products, and your customers will determine the effort that they will expend.Quality is achieved only by understanding current needs, future needs and then effectively and efficiently correcting errors and finding solutions that add value. Every internal handoff or customer exchange creates a learning opportunity for the employee involved, the organization, and the system. Employees often detect the first indication of a problem and are in the best position to eliminate it before the situation grows. How they make those decisions is indicative how they think.FOCUS #5 - Quality of Thought- Rigid, habitual thinking makes product, process, transaction, and performance quality impossible. Without the ability to think strategically, laterally, or critically employees in organizations can never develop the creative ideas that spawn innovation and lead to quality improvements. Stale thinking overrides any opportunity that a company has to outwit the competition or get ahead of change. Breakthrough thinking is needed if organizations are to deconstruct challenges, set goals, construct workable real-time solutions, and accurately identify the right solution for the right situation at the right time.In a competitive marketplace, quality is the great differentiator that pays impressive dividends. It is never a final destination but an ongoing pursuit to achieve maximum customer satisfaction in the shortest time and the lowest cost.Quality products and processes begin with quality thinking but here is a list of ten more things that you can do to increase quality:

Understand the nature and communicate the importance of quality to every employee.Know what matters most to your clients and why.Develop products and processes that help your clients meet their business goals in the most efficient way.Make what your customers care about your top priority.Make sure that dollars spent to improve operations, systems, and products relate to the needs of your current and targeted customers.Set, enforce, and revise standards to deliver your best (product, process, transaction, performance and thinking) to the marketplace.Work collaboratively to establish quality in all internal processes and interdepartmental hand offs.Create self-managed teams that focus on continuous improvement strategies.Increase the learning opportunities and challenge the habitual thinking of employees.Eliminate the waste and non-value added activities from your processes it will reduce your product development and process cycle-times.Valarie is CEO of Think 6 Results -- a knowledge broker passionate about learning and improving performance in organizations. She's a writer, presenter, and executive coach on a mission to get every employee and organization focused on and thinking about the SIX business driving goals that matter.Looking for just the right SPEAKER for your special meeting or event; we offer full-day presentations, training workshops, and keynote addresses. This high-energy presenter is ready to cover topics like: strategic thinking , career strategy,leadership, change management, teambuilding, employee engagement, or organizational learning. Let us customize a presentation for you. You won't be disappointed.SHARE this article with others. Copy this article and pass it on when you include the copyright and contact information listed below.Contact Valarie at washington@think6results.com or by calling 630-705-1189. Visit us at http://www.Think6Results.com
Keyword : quality, process improvement, employee development, quality initiatives, product, cycle-time, thinki