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Over the past decade people have worked hard to reduce excess capacity
and inventory fat. These initiatives have led to improvements in
operational efficiency. They are important steps toward competitiveness.
To create a manufacturing process that is continuously adaptive,
companies must –
Select
Company has a Focus on
Transforming
good alternative Core Business
Commitments
REFLECT
Implement & Issues &
CONCLUDE
Experiment Alternatives
ACT
Strategic
PLAN Priorities
People
AND
IN
VISION
• Vision without situation analysis and system development
ends up painting lovely pictures of future with no deep
understanding of the forces that must be mastered to move
from here to there.
"Service"
"Instant Photography"
• Productivity
• Quality
• Learning organisation
• Innovation
• Human resource
• ROI
• The likely impact of take-overs on customers, suppliers and
competitors.
KEY STRATEGIC ISSUES
TO IMPROVE OPERATIONAL PERFORMANCE
Employee Cost
• Outsourcing
• Inventory reduction in RM, WIP, Stores, Finish Godown
• Line setup time reduction
• Natural grouping
• Productivity
• Production Increase (at constant value)
• 5 'S'
Key Strategic issues
QUALITY IMPROVEMENT
• Continuous Improvement
• Bench Marking
• Single piece flow (SPF) system
• Cost of Quality
PLAN
KEY CHANGES
HOW TO DO IT ?
CHANGE
LEADERSHIP
CHANGE LEADERSHIP
• People
• Culture / Values
• Outsourcing
• Non-productive activities e.g. distribution, cleaning,
gardening, security etc.
• Finish components.
• Tool Room activities.
• Semi-finishing machining operations.
• New Product Development
• Developing new products as per market demand.
• Bench Marking
• Setting world class standard in manufacturing.
• Continuous Improvement
• Adopting mistake proofing techniques.
• Improving machine conditions by Kaizen,
retrofitting, changing hydraulic circuits, converting
the machine in NC / CNC controlled.
• Increasing Ppk.
• Recruitment Process
• Campus interview from reputated
Institutions.
• Succession planning.
• Job Empowerment
• Delegation of authorities.
• Job rotation.
• Average Employee Age
FINANCE
COST REDUCTION
We have got a business principle that says “our assets are our
people, our capital are our reputation.” And if any of these
are dismissed the last one the hardest one to regain.
When customers are loyal to our brand [have trust] they are
more apt to listen to your message, read information from
your organization more carefully and be more willing to
accept calls marketing new products and services.
Excellent
Hard Fire
staff
working Immediately
Officers
Stupid Intelligent
WHO ARE C MANAGERS
• Managers who deliver acceptable results -
just barely.
Note that the 'C' refers not to the person, but to the
individual's performance in a given job.
WHO ARE NOT C MANAGERS
• Grossly incompetent
• Unethical managers
'B' PERFORMERS
The solidly contributing majority of a company's
managerial force. Collectively, they are critical to the
success of the business. They should be developed and
affirmed so they realize more of their potential and feel
valued for their unique contributions.
EXPLICIT ACTION PLANS FOR
EACH C PERFORMER
One of three types of actions needs to be
taken
• Improve the C player's performance in the job
to atleast a B level.
• Culture of obedience
• Culture of Authority
• Relentless pursuit
• Bottomless resources of imagination
• Smooth team work
• Individual autonomy
CULTURE
Cultural improvement calls for -
• Quality of people's attachment to their work and to
each other.
• Willingness to --
• Perform up to the highest measure of
competence
• Always take initiatives and risks
• Adopt to change
• Make decisions
• Work cooperatively as a team.
CULTURE
• Openness, especially with information,
knowledge, and problems.
• Trust, and be trust worthy
• Respect others (customers, suppliers and
colleagues) and oneself.
• Answer for our actions (accept
responsibility).
• Judge and be judged, reward and be
rewarded, on the basis of performance.
MEASURES AND REWARDS
• Measures :
• Identify the process results that we want to
measure. This will accurately predict our business
performance. Organisation must focus on these key
process results.
• Measure customer satisfaction - effectively keeping
managers in touch with market place.
• Performance measurement processes should be
designed on the assumption that people have the
potential to do the new work. These processes
should be supportive not punitive
MEASURES AND REWARDS
• Reward
• Promotion.
• More authority.
• Recognition.
• Training
DEFINE PLAN
IMPLEMENT
&
EXPERIMENT
THE ACTIONS
CONTINUE ON THE
"LEARNING LOOP"
TO SUMMARISE
FOLLOW
"FLAG SYSTEM"
FLAG SYSTEM
Reduce Machining Time
100
50 60
0 40
100 80 60 40 20 0 1 2 3 4 5 6 20
Improve 0
machining 50 Machine Improve
Improve Simulta- cutting
methods 0 Operation neously technology
4
200 200 200
100 100 100
0 0 0
4
40
Improve 20
machinery 0
jigs and 100 Improve Improve Improve
tools 50 machinery jigs tools
0
100 100 100
4
50 50 50
0 0 0
4
Change
lot sizes 10
5
0
123456
Position
workers
10
optimally 5
0
123456
Reduce
interme-
diate stock105
0
123456
Whenever I interview a manager who
made transforming commitments –
successful or not – I always close with
the same question, “What would you
have done differently?” Almost all
reply the same: I would have started
earlier and moved faster than I did.