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Donna Mc Coy

What is...
Strategic Process Improvement (SPI)?

Part 2

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This outline is broken down into five segments:

Click HERE (or on the Index below) to read PART 1 (segments 1 ]and 2 ])

1 ]  Introduction

2 ]  More Common Than you'd Think

3 ]  Some thoughts

4 ]  The Outline

5 ]  Summary

This is the Beginning of Part 2

3 ]  Some thoughts

Problem vs challenge: Is there a difference?

Yes there is. It has become second nature in many companies to address problems as challenges. People who use the word “problem” are often immediately corrected or cast into the role of “not a team player”. Yes, problems can bechallenging. But sometimes you just need to call them what they are…problems. Climbing Mount Everest is a challenge; running out of oxygen on your way down is a problem. Receiving more orders than expected is a challenge; having key equipment that supports those orders breakdown is a problem. Addressing each appropriately to the given situation can make a significant difference in how people respond.

We need to hire someone and now!

While just about anyone can learn and possess a thorough, working knowledge and understanding of everything Lean, no one can remedy all, let alone most of your problems (or challenges!). Anyone who claims they can solve all of your problems has either been hogging the crack pipe or is in it for their own best interest. You can know kaizen and kanban inside and out and recite the wisdoms of Deming and Gilbreath all day long. But learning and understanding a company’s culture, business goals, and infrastructure is paramount to knowing how and when to apply the appropriate tools.

What’s in your Mission Statement?

I’ve read Mission Statement’s that proudly boast the company’s commitment to shareholders, profit, diversity, flexibility, being the supplier of choice; but failed to include the heart of what makes a company a team with a common goal: commitment to the customer, commitment to service, commitment to values, and commitment to one another.

Making a BIG production out of a company-wide unveiling of a new and improved Mission Statement can work wonders for morale, motivation and capturing that team spirit. A key is to include employees somewhere in the process. Nothing makes people feel more like part of the big picture than being asked for their input.

SWOT Assessment

SWOT assessment is not an action item in a to-do list. It is an ongoing practice of evaluation to identify strengths, weaknesses, opportunities and threats that affect every resource. A SWOT assessment is the springboard from which critical plans of action should be born. Embarking on a new direction without identifying and planning for SWOT can lead your team down a very bumpy road. Assessments include identifying:

  • Exceptional, weak and poor performance
  • Bottlenecks
  • Use and application of improvement concepts
  • Morale
  • Education and training

 

4 ]   Strategic Process Improvement Outline

This outline can be put into action from its most conservative to its most comprehensive application. Regardless of where you launch improvements it is important to acknowledge that any or all associated functions could at some point prove to thwart your progress. Once identified these inhibiters must be addressed, assessed, and rectified.

Regardless of the range of application, there are common thread components that are critical to the success of even the most conservative applications. The need to consider and/or apply any or all of the following must be acknowledged every step of the way.

  • SWOT assessments
  • All forms and channels of communication
  • Metrics
  • Cycle time/time studies
  • Bottlenecks and constraints
  • Budgets
  • Company principles and practices
  • Company policy and procedures
  • Psychology, culture, relationships
  • Accountability
  • Capacity and resource management
  • The 7 wastes
  • Follow-thru
  • Commitment
  • Health and safety
  • Documentation
  • VSM
  • Proper tools and training
  • Performance
  • Attendance
  • And anything that adds value in the eyes of the customer

PRIORITY ONE – The Master Schedule

In recent years I have learned that many companies are echoing the same battle cry: We’re behind, late, past-due, in trouble, delinquent, on backorder, in real trouble, overdue. The right product at the right quantity, quality and price means nothing if it’s not delivered at the right time. A good Master Scheduler will also be a good detective, starting with three simple questions:

  • Who currently manages the MS?
  • How is it managed?
  • How is it driven?

You may wonder why I didn’t include “Just how behind are we?” If you already know you’re delinquent, why ask the question? The only questions to ask are those that will lead you to the constraints causing your delinquency. The answer to improving on-time delivery is not in keeping track of how behind you are or in expediting past-due orders (though these are necessary evils). The answer is in understanding why the delinquencies exist and taking swift action to correct the course.

 

Planning and Production Control

  • Planning process
  • Routings
  • Release process
  • Follow-up
  • Demand management
  • MRP management
  • Scheduled, firm and released order tracking
  • Reporting
  • Managing backorders, shortages, changes

 

Manufacturing

  • Set-up/teardown
  • Scrap/defect handling
  • Rework/repair processes
  • Equipment availability
  • Calibration/shelf-life
  • Equipment and machine maintenance
  • Retrofits/modifications
  • Queue, wait and move times

 

Inventory Management

What is inventory? Ask this question of several people and the answers range from “parts” to “the stuff we keep on shelves”. The real answer is inventory is money, period. A key to inventory management is in teaching people this very fact. Making money is the most common denominator from the assembly line up to the shareholders, and everyone in between would always be happy to make more. Dropping a part on the floor and kicking it under the work station is common. Dropping a dollar bill on the floor and doing the same is unheard of. Teaching people to respect and understand how inventory relates to their own success and future is a connection that can prove valuable for years to come.

  • Cycle Counting
  • Physical inventories
  • SKU maintenance
  • Security
  • Receiving, stocking, issuing processes
  • Return process
  • Data management
  • Record keeping
  • Obsolescence, excess, scrap, dead stock, out of configuration
  • Loss and damage
  • Theft and pilferage
  • Customer furnished/owned
  • Consignment and VMI

Configuration and Change Management

  • Documentation
  • Change processing
  • Document Control
  • Serialization

Quality Control

  • Documentation
  • Document Control
  • MRB process
  • Standards and practices

Procurement

  • How material requirements are identified
  • How allocations are considered prior to making procurement decisions
  • Use of EOQ, JIT, min/max and other inventory management strategies
  • SCM
  • Material consignments and VMI
  • Change management

 

5 ]   Summary

In addition to all of the above: engineering; the daily demands of customers, stockholders, associates, competitors; Receiving and Shipping; suppliers and vendors; system flags and signals, and/or any other internal or external factors may directly or indirectly impact any organizations ability to cash-in on the value Strategic Process Improvement can offer. Whatever the case, as they surface, those issues and challenges need to be identified, accepted and the plans set in motion towards securing for your company a thriving and prosperous future.

Click to read Part 1

If you find all this free information useful, just imagine how much your operation will improve when we can work together one on one!

 
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19 January, 2010 13:57

 

 

 

 

 

 

 

 

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