During my last post (http://wp.me/p2kKle-C), I discussed On-time Delivery (OTD), its importance, and a key step to improving OTD.  Let me take a quick step back.  The thoughts that I am sharing are not brilliant strategic insights.  They are insights learned over the years about how to significantly improve operational performance.  As stated in my earlier post, many small to medium sized companies don’t focus on these small ideas, which deliver outsized gains.  These posts are focused on doing the seemingly little things that need to be done to make sure the big things (revenue generation, customer satisfaction, etc) get done.  Now, back to our regularly scheduled programming.

So you have kicked of your production meeting.  What is next? Or more appropriately, what other activities should you be working in parallel?  Before I move on to answering that, I want to stress the importance of guidance, leadership, and behavior modelling to attendees of the production meeting.  If you have a need to put a meeting like this in place, there is a good probability that people are not accustomed to performing at the level your organization wants or needs.  People may not have an idea of what they should and shouldn’t do.  People may not be sure what to do when they reach a crossroad and have to make a decision to improve performance. With regards to crossroad, I am not referring to a moral dilemma, but instead a business dilemma.  This is where your leadership is most important.  At the early stages of the production meetings you have to consistently and constantly model the behavior you want them to emulate.  You have to demonstrate to them your thinking process when it comes to making decisions.  You have to show them how to do the right thing and not the easy thing.  You don’t want them to become clones of you, but you want them to think and do things differently than what they were doing.  Many people don’t need to be told what to do, but they do need to be taught how to fish.  I do believe this is quite important because it sets the tone for the organization. It also pushes people outside of their proverbial comfort zone and causes them to start thinking differently, and hopefully acting differently.

Okay, I’m off of my soap box.  In conjunction with the production meetings, you probably need to do things differently in your purchasing organization as well. Over time, I have come to find that organizations neglect the data in their ERP/MRP systems.  As such, the data is outdated and causes havoc within your system.  I strongly suggest that the purchasing team scrub the data in the system.  Specifically, scrub lead times to make sure they are accurate.  Scrub buyer codes and make sure each part has a valid buyer code for someone in the purchasing organization.  It never fails that an organization overlooks the purchase of a critical part because it had a buyer code of someone who no longer works for the company.  While you are at it, make sure the manufacturing group is also scrubbing your Bill of Materials (BOM) to insure that routings, revision numbers, etc are all correct.  Cleansing the data is a time consuming task, but it has to be done.  My view has always been to get it done as quickly as possible. Please do not overlook the importance of cleansing your system data.  It is neither fun nor easy, but it pays huge dividends.

I will discuss other steps in future posts.

Rindge Leaphart

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