There are many aspects to a well-functioning supply chain system, but to use an example that will help us walk through our thought process, we will focus on a manufacturing plant’s point of view. The success of a plant depends on the ability to maintain a desired level of profit. To successfully accomplish this year after year, you must be able to predict and control at a minimum these six key resource areas (KRA): the site compliance and safety of all site employees and visitors, ability to provide finished goods that meet a predetermined specification, deliver product on time, manage inventory levels, balance profit margins to targets, and maintain a stable workforce comprised of well-qualified and satisfied employees.
Brian Jaenke Says... |
 |
| The success of a plant depends on the ability to maintain a desired level of profit. |
 |
What do you say? |
 |
| Click here to send us your comments |
|
|
|
Now that we have identified what we need to manage, the next questions we ask are what do we need to measure to ensure we are on track or off track, and how does that translate to predictability? We must first analyze how predictability of these KRA elements is realized. To predict a specific outcome, the process must be quantifiable. To be quantifiable, it must be measurable. To be measurable, it must be repeatable. To be repeatable, certain critical aspects of the process must be controlled.
So, how do we control a process and set a firm repeatable foundation in which to improve upon? At LandrumHR, we have adopted and perfected a customized lean approach to baseline creation using a proven 4-Step model. This includes a Product Quantity Process Router (PQPR), a value stream mapping event, a production preparation process (3P), and an Annual Roadmap Action List for gap analysis actions. Along with this approach, several key lean tools need to be rolled out as enablers to support the culture growth. Specifically, 5S (sort, set in order, shine, standardize, sustain) and standardized work along with pull systems and Genba walks are required to maintain the discipline needed to build a cadence around KRA management. Once these foundational tools are set in place, Lean Tool Experts must be taught how to champion these efforts and ensure lean is managed at the front-line leader level, and aggressively driven from the top.
After a foundation is in place that is repeatable, KRAs are measured by Key Performance Indicators (KPIs). These are the lagging and leading indicators that help judge the health of each critical area. We can now use KPIs to accurately predict the periodic outcomes of each KRA by monitoring these on a shift or daily basis. If a KPI turns red, or outside of nominal levels, the area experts can respond to those issues immediately and control them using engineering, admin, or local controls to prevent recurrence.
This foundation not only helps ensure that the site is continuously improving in a sustainable manner, but also paves the runway for supply chain analytics to take off. Now, lead times can be measured. Min/Max inventory levels can be set which allows for predictable customer delivery. Purchasing lead-times can be managed as to not impact production through overages or shortages. To make life easier, ERP systems like Oracle or SAP, and even dashboards like Power BI or SiSense, are available for data analytics and smooth organized ordering.
Although having a deep understanding of industrial engineering and a proven successful lean manufacturing track record is something LandrumHR takes pride in as we partner with clients, it doesn’t easily address the most diverse and complicated resource in supply chain management—people. In this new world of COVID-19 and the national staffing crises, LandrumHR outshines others in our field with over 50 years in the business of people and employee relations. LandrumHR is an industry leader in facilitating continuous improvement and guiding companies through their lean journey to reliability and predictability. We do it well by caring for the people we serve.
Resources:
https://www.landrumhr.com/MyLandrum/media/Benefit-Forms-Life/LandrumHR_WorkforceManagement_Flyer_PROOF_1.pdf
Any reaction to this Expert Insight column? Send below.
Your Comments/Feedback
|
