Archives for posts with tag: leadership

The note below is simultaneously aspirational and somewhat nerve wracking. Aspirational in that it would be ideal to have: A. Company mission / purpose line up with employee purpose or B. A company be able to support an employee, beyond just compensation, in the pursuit of their individual purpose.  Multiply that by hundreds or thousands of employees.  Both aspirational and daunting, but achievable.

Nerve wracking because before most employees would consider opening up about their purpose, leaders must do so first.  Easy to write about being vulnerable and open, but not always easy to execute.  I make a point before each financial or operational review to discuss how employees in general are doing outside of work.  But that is very different than me being open about my purpose. That is also very different than probing deeper with an employee about their purpose and what the organization can do to assist.  This note has definitely given me a few things to think about and work on.  Hope you find some meaning in the note as well.

Creating strong links to individual purpose benefits individuals and companies alike—and could be vital in managing post-pandemic uncertainties.

Source: Igniting individual purpose | McKinsey

 

Rindge Leaphart

People who find meaning at work are happier, more productive, and more engaged. Four practical interventions can help make the search more likely to succeed.

Source: How to engage employees | McKinsey

Many people have heard of the term Just in Time (JIT) as it relates to manufacturing, production scheduling, or delivery.  But have you heard of Just in Case (JIC) manufacturing? It is a term I coined years ago.  I coined the term one day while walking through a plant that only produced finished goods to order.  The business did not actively stock finished goods.  They stocked raw material and some sub-assemblies in order to produce with relatively short lead times, but in general they did not stock finished goods.  During the walk through, I looked at a work order for a part that was being machined.  The operator was machining lets say 30 parts, yet the sales order associated with the work order only called for 15 or 20 parts.  I asked the machine operator and his supervisor why they were machining more parts than were called for by the sales order.  The response I received was quite curious: “this is a really tough part to machine and we have many rejects, thus we produce extra parts just in case (italics added) we have to scrap a part.”  At that point a new term was born: Just in Case (JIC) manufacturing.  I asked the operator how often they actually had to scrap a part.  Neither he nor his supervisor could answer the question.

I told the supervisor that I suspected that they were overproducing and tying up unneeded cash in inventory.  Additionally, this was a plant that was trying to improve on-time delivery.  I explained to the supervisor that if they were tying up capacity by producing excess and unneeded parts, that they were impeding their ability to produce on-time with short lead-times.  The supervisor assured me that this didn’t happen often.  I then asked the supervisor to take a walk with me to the warehouse.  I asked the supervisor if he was sure they didn’t overproduce on a regular basis.  He assured me they didn’t.  I then asked one of the warehouse employees to pull up several recently completed work orders for parts that had been delivered to inventory.  When we checked several of the recently completed work orders, we found that a large percentage of them were completed for quantities that were larger than what the sales order called for.  At this point the supervisor was a little embarrassed, but there is more to come.  Employees on the floor ALWAYS and I mean ALWAYS know more about what is going on in a plant than supervisors and managers.  Knowing this, I engaged the warehouse employees in a conversation on this subject and they assured us that this happened on a regular basis.  Once again, the supervisor was embarrassed.  At this point the employees told me about the T location.  Being an inquisitive lad, I asked what is the T location.  Their response: “oh that the is the trailer we have outside where we store all of the production overruns.”  At this point the supervisor was quite embarrassed.

As you might imagine the supervisor was besides himself.  But being a smart guy he put a stop to the overproduction and eventually eliminated the T location.  With several other changes we were able to improve the plant’s on time delivery performance as well as their financial performance.

Key takeaways  / reminders from that day: 1. I learned on that day that Inventory is the Root of All Evil.  If you want to know if you have a problem in manufacturing, check your inventory levels to make sure you don’t have an issue with JIC manufacturing.  2. I learned about JIC manufacturing. It is more endemic than you might imagine. Walk the floor and check your work orders to see if you have a case of JIC. 3. Always talk to the hourly employees, because they know what is really taking place on the floor.

Has anyone else encountered similar issues?

Rindge Leaphart

http://www.linkedin.com/in/rindgeleaphart

All below is a link to an article and photos of a trip I took to the Great Wall of China several years ago.  It was a fun yet somewhat scary hike on the Great Wall for reasons you can read about.  I hope you enjoy.  For those of you who are familiar, this was a Parable of the Sadhu moment.  My faith in the kindness of mankind/womankind was restored thanks to generosity of other travelers.

http://www.businessinsider.com/unrestored-section-of-the-great-wall-of-china-photos-2012-4?op=1

https://picasaweb.google.com/111971231433739375218/BeijingAndShanghai2008JuneJuly#

Rindge Leaphart

This might be my last post on the particular subject.  I had a discussion the other day with an executive at a flexible packaging  / label firm.  The discussion reminded me of the fact that some industries can’t just add labor and more hours when trying to improve on-time delivery (OTD).  Industries that rely on labor for assembly / manufacturing can put in overtime to get back on schedule.  Some industries, though, that rely more on machinery and the capacity of that machinery find it harder to stay on schedule and especially get back on schedule.  Since I started off with a comment on the label company, let me expand.  In a printing or label industry you have to keep your presses running.  Changing over jobs on presses can take anywhere from 3-6 hours if not more depending on the complexity of the job.  In my experience it is particularly challenging to stay on track with the promises you have made customers.

The best way to stay on schedule is to stay on schedule.  What I mean by that, is that your operations team, especially your planners have to OWN the schedule.  You cannot let sales own the schedule.  Salespeople are typically concerned with what their customers want and may not be very concerned with the overall health (OTD) of the system and how the business is performing for other customers.  Customers always have unplanned needs.  That is the way the world works.  My view is that a business should do their best to assist with the unplanned needs of their customers.  Having flexibility (some excess capacity) in your system is key to responding to emergency needs.  But sometimes the emergency requests become normal and it throws the entire business off schedule.  Sales people should always feel free to call and jockey for improved deliveries or assistance with rush orders.  But, the planners should own the schedule and have final say with input from management.  If you fall into the trap of letting sales dictate your schedule, then your OTD and customer satisfaction will suffer.

Managing the business and rush orders is a delicate balance that is fraught with issues.  That is why management must coalesce around what the goals of the business are and who has what responsibility.  Once again, no knock on sales.  They are a lifeblood of an organization.  But once that job is dropped into the funnel, it is time for operations to do their thing and keep the business on schedule.

Rindge Leaphart

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