A business financial goal can be achieved only if a system is in place for the entire manufacturing team to participate. The alternative is no system and firefighting. There should be no surprise if a newly hired manufacturing leader only lasts 3-4 years if there is no system to guide them. The system must provide the business with a consistent approach to producing the greatest return on investment with the fastest payback. The financial goal is to produce in the 90th percentile in your industry measured in dollars/hour.
The system to improve production in a local area or product is a Rapid Improvement process. The Rapid Improvement process can increase production speed by 25%. A business can plan a reduction in downtime and defects by 50% in a set-up reduction event. The Rapid Improvement Process is a problem-solving process.
The Managing Daily Improvement process measures the business performance hourly to determine what to do differently now, not tomorrow or in the next quarter. The Managing Daily Improvement process goal is to achieve a 2% increase in production every month for every product. Managing Daily Improvement process is a problem-solving process.
Prioritizing projects becomes easier when we focus on increasing production speed. Problem solving becomes easier when the top three problems are solved, and other problems go away.
Employee suggestion systems, annual bonuses, and incentives are inconsistently applied and not problem-solving processes. These partial systems will not maximize production, and earnings or develop a positive culture.
Leadership and a positive culture emerge from the operators being trained on how to identify and solve problems.
There may be many strategies to achieve success, but only one right answer to continuous improvement. And that answer is… Art Stout! I’ve spent my professional life helping business owners implement the right changes so they can generate cash and grow their earnings in months, not years. My mission is to do the same for you. Let’s schedule a meeting so I can learn about the challenges you are facing, and we can create a solution.
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