| Even in tough times when they need to maximize | | | | Everybody's got software to sell nowadays. It's |
| the impact of every nickel, I have seenmany | | | | tempting to avoid the complications anduncertainties |
| manufacturers burning money. | | | | of changing or upgrading. We have witnessed a |
| How? | | | | deluge of specializedofferings ranging from erp, mes, |
| Well, their attention is usually drawn to the obvious, | | | | and industry specific CRM systems to process |
| and companies in tough timesusually tackle those: | | | | controland data acquisition systems. And now |
| cutting personnel, eliminating extra programs, etc. | | | | enterprise manufacturing intelligence (emi) to tiethe |
| However theymay lose money in the long run if they | | | | loose ends together. It can all induce severe |
| don't attend to other fundamental changes. | | | | "acronymphobia", not to mentionconfusion and |
| Here are a few ways among others that I'm familiar | | | | paralysis. |
| with that are less obvious, yet canmake serious | | | | On the other hand, tough times require that we seize |
| impact on the bottom line and should be considered | | | | every advantage possible. How canwe do that when |
| especially in thiseconomy: | | | | I/T budgets are shrinking? |
| - measuring the wrong quality characteristics | | | | One approach to consider is allowing an unbiased |
| - improper sequencing and execution, | | | | computerized expert system help withthe decision. |
| - over investing in the current "as is" environment | | | | These expert system logic tools can gauge the gap |
| prior to changes | | | | between past, present,and future needs and the |
| - living with business software that is sub optimally | | | | capabilities of the applications in place. Best of all time |
| implemented or outdated. | | | | andassistance can be rented on a per project basis, |
| - overlooking opportunities to provide closer linkage | | | | keeping the investment modest. |
| between R&D and production | | | | At one time, I undertook an application software |
| I write and share this report so perhaps you, the | | | | assessment for a $30M metalsprocessor. The firm |
| reader, might find a nugget or two foryour own | | | | served the automotive and allied industries and |
| business. It's not copyrighted - you can duplicate it to | | | | organized its stockedand in-process materials by |
| your heart's content andpass it to whomever you | | | | attributes (size, weight, length, width, grade, etc.) |
| think would benefit from it. | | | | rather thanby sku numbers. The OEM firms using |
| SIMPLE EXAMPLE FOR ILLUSTRATION PURPOSES | | | | such an "outside processor" are essentially |
| A major candy and confectionery company was | | | | bothsuppliers and customers at the same |
| computerizing its supply chain to makethings more | | | | time--material arrives, gets processed, and isreturned |
| efficient. All the information of the raw ingredients, | | | | to them. |
| time to ship, qualitytesting time, etc., were being | | | | Each of these circumstances limited the metal |
| integrated into one master system. In the process | | | | processor's ability to conform to morewidely |
| theymissed one piece of information for | | | | applicable manufacturing software packages. Use of |
| synchronizing events: seasonal supply chain events. | | | | the expert system evaluationtool combined with |
| They almost missed Halloween! Eventually with | | | | some extra research revealed that an industry |
| frenzied damage control, they were ableto gear up | | | | specific niche ERPproduct for "attribute based" metals |
| the production to meet the demand. | | | | processors would work better than an initiallycheaper |
| So, that's an obvious example, and it's such a big | | | | generic ERP system that could be costly to |
| SNAFU that it's hardly likely yourcompany would | | | | customize, adapt, and maintain. |
| make that mistake: your company is not likely to | | | | After selection and implementation, the estimated |
| miss it "Christmasseason." But it can miss many | | | | savings for this small enterprise waswell in excess of |
| smaller practices that can cause bigger glitches. "A | | | | $150,000 annually when compared to previous |
| Stitchin Time Saves Nine," as they say. Trouble at | | | | methods of tracking,organizing, and executing |
| the headwaters of production can getamplified | | | | material processing that combined manual and older, |
| downstream. | | | | lessadaptable software. Savings on customization |
| Here are some illustrations from my experience that | | | | costs, both planned and unplanned,obtained by |
| could contain valuable lessons foranyone involved in | | | | selecting the specialized rather than a generic |
| process manufacturing: | | | | package added another onetime savings estimated at |
| 1. What you measure is as vital as how well you | | | | $100,000. Of course, no one should blame the client |
| measure it: or... "Productshipped by weight, not | | | | fordeclining to run an experimental generic package |
| volume; contents may settle during shipping." | | | | implementation in parallel to verifythese savings! |
| That consumer warning on packages reminds us of | | | | Is there a suspicion that the capability gap between |
| every day occurrences: Focusing onone parameter | | | | business software and requirementsmay be growing? |
| while measuring another. Why would you measure | | | | Now might be the right lull in the business cycle to |
| volume if you'reshipping weight? Well, it can get | | | | find out and takeaction. |
| confusing. | | | | 4. Needlessly Prolonging Continuous Improvement in |
| Think of a school bus. What color is it? Yellow, right? | | | | Two Crucial Ways |
| Not exactly. It's actually adistinct mix of trace colors | | | | The batch flow or semi-continuous process operation |
| like red, blue, etc, which are added to the yellow in | | | | at first glance seems less amenableto finding and |
| just theright proportions that makes the bus so | | | | implementing improvement opportunities than a |
| recognizable in dim light or stormy conditions. | | | | textbook discrete "widgetmaking" or piece part |
| The recognition and safety factors, so key to quality, | | | | operation you may have seen. Pipes, vessels, steam |
| stem from less than obviouscharacteristics. | | | | jackets, orreactor chambers obscure the easily |
| Other examples abound. Let's look at another | | | | identifiable avoidable waste and "non value |
| involving formulated industrial products. | | | | add"activity, and crews may tend to several activities |
| At one time I worked with a small maker of low-tack | | | | spanning several lines rather thandistinct work areas |
| hot-melt adhesive that was used tomake tacky | | | | or cells. Yet, reasonable bite-sized, digestible |
| polishing cloths for the furniture industries. One day | | | | improvements in theseenvironments are feasible. |
| the company foundproduct was being returned for | | | | What may make more sense, at the risk of |
| inconsistent tack levels and poor color and | | | | committing heresyagainst lean thinking or other |
| appearance. | | | | improvement philosophies, is to move directly to a |
| The firm needed an objective, targeted measure of | | | | better |
| the quality and effectiveness of thecloth to satisfy | | | | "future state", rather than optimizing or dressing up |
| its large OEMs and its ISO registration requirements. | | | | the "as is" state at critical points inthe facility. (I will |
| The "stickiness" characteristic of the finished product | | | | assume a little familiarity with process improvement |
| was conferred by the polymerimpregnated in the | | | | vocabulary here,but the ideas are straightforward.) |
| surface. Up to that point the company had relied | | | | To illustrate, it may make more sense to skip the |
| upon a "thumb feel"subjective judgment of function | | | | work area neatening and straighteningand "quick hit" |
| along with a set of deteriorating retained products | | | | efforts called for by work place clean up ("5S" in |
| asvisual standards for color and general appearance. | | | | Japanese buzzwordspeak) and "kaizen" incremental |
| Employees thought viscosity of the molten blend at | | | | improvements and proceed right to the new "to |
| various stages was the key. | | | | be"process setup. The existing human work space is |
| Measuring that would call for some expensive, high | | | | external to the process, after all, andmay even |
| maintenance instrumentation usedcarefully at precise | | | | prove irrelevant after changes are made |
| intervals. But I suggested examining the process | | | | A hand-blended, barrel and drum scale stamping |
| more closely with adisciplined experiment designed to | | | | lubricant blender that I assisted madethe leap to an |
| see which process variables are clearly related | | | | automated mass flow meter based blending system. |
| toimportant end product characteristics. | | | | This mini-scaleoperation found that neatness and |
| As it turned out, viscosity was a weak predictor of | | | | reduced clutter naturally followed in the wake of |
| quality and performance. In contrast,a low tech, | | | | thisupgrade once the frantic pace of manual rework |
| inexpensive surface friction test proved to be far | | | | and adjustments abated. It can be moreheartening to |
| more effective. Thecompany saved $6500 per | | | | the team to make manageable, meaningful changes |
| device in test equipment investment along with daily | | | | of this sort rather thantrivial or elementary ones or |
| operatingand maintenance costs associated with the | | | | to make pointless changes destined to be quickly |
| more elaborate testing method. | | | | displacedby others. |
| The subsequent QC testing program that was set up | | | | A food microbiological sample testing facility client had |
| incorporated this and otherstraightforward | | | | a congested arriving samplearea, an immovable, fixed |
| measurements. These methods kept costs and | | | | walk-in incubator, and other sample prep, scaling, |
| quality in line and offereddeeper insight into the | | | | andsequential repetitive processes surrounding it. The |
| impact of process conditions and ingredient | | | | facility needed a way to relieve thereceiving area |
| proportions. Inaddition, the friction test provided a | | | | choke point and get samples processed faster to |
| vital element of the objective "process | | | | service critical customersbetter. Through our help |
| control"requirement of QS/9000 (now 2000) | | | | they found that adapting continuous production flow |
| guidelines. | | | | techniquesto "pull" products downstream, eliminate |
| This new approach enabled the firm to obtain | | | | unnecessary unproductive movement, andproperly |
| compliance and satisfy vendor certificationand supplier | | | | manage incubator capacity and timing provided |
| audits from large key customers and to qualify for | | | | almost instant relief to thereceiving area. Business |
| new business. | | | | was solidified and billable volume increased, while |
| Is your firm, large or small, simple or complex, | | | | workers gothome earlier and avoided burn-out. Time |
| measuring the right things for the rightreasons? | | | | spent on sprucing up the receiving or first |
| 2. Haphazard Sequencing of Orders and Processes | | | | stageprocessing area beyond removal of safety |
| Causes Waste, idle time, delays | | | | hazards and some basic mistake-proofingwould not |
| Everyone knows the aggravation of living with the | | | | have yielded comparable benefits and would have |
| limitations and constraints ofprocessing equipment. | | | | postponed genuineimprovements. |
| Only so much quantity and variety can be produced | | | | Similar benefits were obtained in a small continuous |
| in a givenperiod. What is less obvious is that there is | | | | pasteurized fluid beverage facility. |
| often still room to adjust the sequencing | | | | Here, ironically, manual clean up paraphernalia created |
| andconditions to maximize throughput. These | | | | more clutter until better plannedcontinuous runs of |
| adjustments can even go a long way towardfulfilling | | | | product reduced the frequency of changeover and |
| the "lean" goals of less waste and idle time. This | | | | disruptive cleanupsteps. |
| requires at least a littledisciplined logic and spread | | | | A second cause of prolonged improvement initiatives |
| sheet figuring over and above what a visual | | | | is attempting to painstakinglystreamline every |
| scheduling toteboard, grid diagram, or other types of | | | | identifiable sub process node in a larger production or |
| crib sheets can provide. | | | | paperworkprocess regardless of its impact on the |
| In one fluid agrichemical operation I observed, the | | | | whole. More often than not there are crucial |
| purchasing manager, the shiftforeman, and a planner | | | | subprocesses that govern the performance of the |
| scheduler all had their own schedules. No schedule | | | | entire process--either in rate of production,build-up of |
| wascompared with any other until after many | | | | work-in-process queues, or control of quality. Zeroing |
| production orders were already launched. | | | | in on them will helplimit the risk of creating locally |
| Which one prevailed? You guessed it, a fourth in-plant | | | | optimized processes that don't contribute to |
| "on the fly" compromiseschedule based on hunches, | | | | overallperformance. In the lab case above, speeding |
| incomplete information and last minute corrections. | | | | up the rate of completion of final testingsteps that |
| Other examples can be found: | | | | occurred after the incubator stage, while possible, |
| Consider two consecutive interdependent processing | | | | would have only tightened afew isolated downstream |
| stages with separate processdurations that are | | | | sets of procedures. Improving the batch handling of |
| somewhat predictable in advance. The sequenced | | | | samplesthrough the incubator, on the other hand, |
| stages might involveagitating, heating, curing, drying, | | | | made a significant impact on the overalleffectiveness |
| and the like. The duration of each will vary | | | | and efficiency of the lab. |
| dependingon the raw material in question, the | | | | Even more dramatic examples occur among plant |
| conditions chosen, even the weather (as in | | | | floor operations where certain stepsinvolve |
| conveyingand melting wax or other substances). This | | | | bottlenecks or "rate limiting" steps. Finding all |
| means that for a given job one process maytake | | | | improvement opportunities is agood long term |
| longer than another, while the reverse may be true | | | | continuous improvement objective, but only a critical |
| with another job. | | | | few may yieldsuccess in the short run. Are there a |
| A producer of dispensing machine beverage powders | | | | "significant few" areas for improvement |
| was experiencing order stack upsand random waiting | | | | beingoverlooked while the "trivial many" are under |
| and idle periods as the sequence of different | | | | study? It may pay to take a look. |
| materials wereprocessed. As part of the general | | | | 5. Missing Ways of Bridging R & D and |
| process overview, I learned that the company had a | | | | Production Activity and Data Domains |
| twostageblending and spray drying process. In this | | | | While discrete manufacturing environments seem like |
| process some raw materials dissolvedbetter than | | | | naturals for integrating design andmanufacturing what |
| others, while some finished blends required slower, | | | | with CAD, shop assist drawings, and tightly |
| gentler drying cycles. | | | | orchestratedengineering change orders, the situation |
| In such cases a good way to sequence the jobs is | | | | is murkier in process manufacturing. |
| to find the job with the shortestpredicted process | | | | Complexformulations and lab scale chemistry, biology, |
| time for either stage. The job is then queued up first | | | | and material science can lead to manyloose ends on |
| if the first stage isexpected to be shorter than the | | | | the way from R&D to production such as |
| second. If the second stage is to be the faster one, | | | | separate bills of materials,recipes, or approved |
| the jobis queued up last. | | | | formulae, not to mention separate quality and |
| The process is repeated with the list of jobs | | | | performancemeasures. Scale-up pilots that show |
| remaining, filling the sequence in from bothends | | | | unexpected cause and effect relationships |
| toward the middle until all jobs are sequenced. An | | | | amongvariables and observed quality or performance |
| optimal sequence minimizingtotal process time will | | | | contribute more complexity. |
| result.A slight modification of this procedure using | | | | One confectioner I worked with experimented with |
| correction factors can be used in cases where the | | | | multiple methods of monitoringchocolate liquor |
| second stage can start before the first is complete, | | | | viscosity and solids concentration for the purpose of |
| as with split orders, drawoffs,and partial batch | | | | controlling andadjusting end product characteristics. I |
| transfers. | | | | worked with them to construct an open loop |
| This approach does not require expensive or | | | | datacommunication link between the lab and the |
| sophisticated software or more than | | | | liquor and sugar tank farm areas to |
| visualcomparisons and spread sheet level calculations. | | | | makeadjustments in full-scale special product runs. |
| This approach also proved useful in environments | | | | This approach avoided the typical delaysand lags that |
| such as a melt and mold sequence for wax slab | | | | normally require chasing and catching already |
| preparation where melting and molding steps can | | | | processed product to makechanges. Eventually, the |
| alternate as bottlenecks,de pending on the grade of | | | | close link-up allowed R&D to fine-tune the |
| wax and other conditions. | | | | in-process recipe toobtain a richer, smoother mouth |
| Note that the objective is not better equipment | | | | feel product that commanded a better price and |
| utilization for its own sake, but betterthroughput of | | | | profitmargin. Later modifications were made to QC |
| job orders per time period--what generates revenue | | | | testing to make spot checks on the sameproduct. |
| for the business aftersunk costs have been | | | | That effort brought QC and R&D into closer |
| committed. (No one has ever been paid directly for | | | | alignment on their methods andpriorities, bridging a |
| howuninterrupted their equipment usage is, unless it's | | | | gulf almost as serious as that between R&D and |
| to settle a bet!) | | | | production. |
| Are there process sequences in a facility you know | | | | Careful combinations of procedures and technologies |
| that could be more productive? Theremay be a way | | | | can bridge functional gaps andcultural "brick walls" that |
| to get that productivity without equipment upgrades | | | | can seem insurmountable or are simply "part of |
| or expansions. | | | | thelandscape". Might there be a few applicable to |
| 3. Ignoring growing gaps between aging application | | | | your environment? |
| software features and needs | | | | |