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12 Key Factors That Determine
World Class Manufacturing Operations
by Jim Cammarano, President
This article was published in the January 1994 Edition of APICS - THE PERFORMANCE ADVANTAGE
Copyright 1993 by Hawthorne Management Consulting
In my experience, there are 12 key factors that indicate if a
company's manufacturing related operations are positioned as World
Class competitors. The commonality of these 12 factors present in
World Class operations provides the motivation to emulate them.
1. The systematic organization of the work place is a basic
building block for success. A well run operation is clean,
comfortable and well organized. If you have not established this
level of discipline it is a good place to start.
2. The desire of people to be safe in their work environment
has a direct bearing on productivity. A safety program must
include measurements and systems to ensure the safety of all
personnel. Form a safety committee with a membership that
represents each department. Checklists must be developed to ensure
that an inspection of the work area is thorough. Safety should not
be regarded as a static situation: a work place that was "safe"
yesterday may not be "safe" today.
3. Goals that are common to the entire organization will engender
a team environment, which will increase your chances for success. The
goals must be quantified and measurable. Keep the feedback cycle as short
as possible. This will provide timely opportunities to make improvements.
The longer the feedback cycle the more time it will take to facilitate
improvement.
4. Encourage people to question "Why" things are done in a
certain manner. To promote continuous improvement, the
freedom to question the status quo as well as the "permission" to
fail at trying a new idea must be extended to each employee. All
forms of waste must be identified, examined and reduced. The
"process" has to be examined from the beginning to the end.
5. Inventory reduction must be recognized as a bi-product of
efficient and effective operations. Inventory reductions which are
made by an edict and not by a system or process improvement will
inevitably backfire. Removing inventory from the process to
uncover waste is a useful tool. Once the inventory buffer has been
removed, the reason behind its existence can be revealed and
resolved, resulting in reduced inventory. Inventory must be
controlled systematically to prevent its proliferation.
6. Quality has to be designed and planned into the product
long before it reaches manufacturing in order to be cost effective.
All pre-production, production and post-production groups have to
be part of the quality process from the beginning of the product
life cycle through the product's completion. All processes should
be audited automatically to ensure conformance to quality
standards. Proper documentation must exist for all products and
processes.
7. The plant layout must be organized to produce the
greatest thruput. Minimize the distance that a product has to
travel from operation 1 to the final operation. Another critical
measurement of a good plant layout is the amount of space that it
consumes. Having too much space available can be a problem because
it promotes waste.
8. Preventative Maintenance programs are a wise investment.
It is far less expensive to keep equipment running smoothly with
preventative maintenance than having a machine breakdown during the
working day. Preventative Maintenance programs reduce machine
downtime and keep quality levels uniform.
9. Work times that are highly structured yield improved
group cohesion. Tomorrow's work must be prepared today to ensure
an immediate start-up of production in the morning.
10. Skills training and cross training programs ensure a high
level of competence and increased flexibility in the deployment of
the employees.
11. Formalized systems and modern computer technology should
be used in all applications to reduce manual work currently
performed by employees. Leading edge technology should be utilized
if the cost of the process can be reduced.
12. A key indicator that you are moving toward World Class
manufacturing is the ability to routinely meet production schedules
without being in a "crisis" mode.
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