Monthly Archives: November 2010

7 deadly wastes……. #lean #6sigma #pmot #in

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7muda

Toyota’s Taichi Ohno identified seven main sources of waste to be minimized in a Lean production system:-

Transportation

– the unnecessary movement of parts or materials. In our modern system of globalization where components are manufactured in many different parts of the world and transported to be assembled in a geographically remote location the opportunities for unnecessary transportation are endless. To minimize transportation waste we need to carefully analyze the origin of constituent parts and to identify opportunities for re-sourcing more local to final assembly.

Inventory – unnecessary inventory may as well be bags of cash. The operation needs to be streamlined to create a continuous flow minimizing inventory.

Motion – Any motion which is not adding value is Muda (waste) – for example if an operator has to repeatedly bend down to pick up a component this is unnecessary waste. The workstation should be designed to minimize unnecessary motion.

Waiting – time wasted whilst waiting for components, instructions, tools, indeed anything which is needed to maintain continuous flow is waste. If your organization is a service provider bear this in mind when designing systems to interface with customers. We all know the frustration of time wasted in a phone queue.

Overproduction – any production over and above the exact quantity the customer ordered is waste. The manufactured quantity should be pulled by the customer order.

Over-processing – the over embellishment or addition of none functional packaging is waste to be avoided and eliminated. What does the customer really want ?

Defects – all are waste and should be eliminated by the judicious use of 6 – sigma tools and Kaizen.

There are many other kinds of waste, which ones have you observed in your organization ?

chris@projectsguru.co.uk

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10 tips to ensure project delivery….#pmot #in

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On target delivery

On target delivery

As Project Managers our business is project delivery. However some external suppliers are more reliable than others so here are 10 tips to ensure success:-

1) At the first sign of trouble arrange to have a face to face meeting with your supplier. It doesn’t matter if they are on the other side of the world, clear a space in the diary, book the flights and get in front of them. It will be worth every penny.

2) Raise your concerns in an open, honest none aggressive manner. By all means express your irritation but don’t blow your top – you will make yourself look foolish and unprofessional.

3) Identify the key stakeholders within your own organization who share an interest in the project.

4) Identify the key stakeholders in the supplier organization who share an interest in delivering the project.

5) Break the task down into manageable chunks and identify responsibility for each sub-task.

6) Insist the supplier provide a daily report of activity to be delivered at a specific time. This report should include a simple graphical representation (such as a bullseye chart) to indicate days ahead or days behind schedule. It should also stipulate actions required and responsibility. This report should be circulated to all key stakeholders. Accept no excuses for late or none delivery of this key report.

7) Following the face-to-face have a daily conference call. Do this whether there are any issues or not. 2 minutes passing the time of day reminds the supplier they are uppermost in your mind.

8) Identify Carrots and Sticks. What penalty clauses can you invoke ?  What are the opportunities of new business ?  Identifying them gives you additional leverage.

9) Make it easy for them – have they got a spec, is it up to date, is it comprehensive enough, do they understand exactly what is required ?

10) Don’t assume everything is the fault of the supplier, have you communicated clearly and concisely what your expectations are ?  Have you paid each milestone on time ? Is the SOW & Contract clear ?

Some suppliers are always easier to deal with than others but employing the above tips should help. Have you got any more you could share ?

chris@projectsguru.co.uk

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#Lean is #Green #in #pmot………………………

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One of the key benefits of adopting a LEAN strategy is the positive environmental impact it brings.

LEAN is Green

LEAN is Green

LEAN is all about minimizing waste and inventory and increasing flow in the workplace. LEAN is equally applicable in a manufacturing environment or in an Office.

If a LEAN strategy is adopted consistently then costs will be reduced by eliminating unneccessary waste and reducing inventory, this will have a direct impact on energy use and overall Carbon Footprint.

Value Stream Mapping allows process waste to be identified and Kaizen busts offer the opportunity for significant improvements in efficiency and further reduction in Carbon footprint.

Adopting a LEAN & Green process roadmap is a great way of ensuring that the strategy is uppermost in corporate minds and ensured of delivery.

chris@projectsguru.co.uk

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Insource or Outsource ? #pmot #in

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Far East manufacture should not be the default option

Far East manufacture should not be the default option

Over the last 14 years Manufacturing in the U.K has shrunk from a respectable 28% of GDP to today’s all time low of 10%.

So maybe it is time to rethink our outsourcing strategy ?

Over the years we have become very complacent in the U.K about manufacturing, and in many respects have given up the ghost. We have blithely subcontracted all of our manufacturing operations with no long term view of the consequesnces. We have given away millions of jobs for a short term monetary gain and are now reaping the rewards of an economy built on sand.

Outsourcing to the Far East should NOT be the default option. We need to look at the alternatives and take the following into consideration:-

1) Compare Apples with Apples – just because the Direct labour Cost may be cheaper in the Far East what about the support costs. It is inevitable that a subcontracted operation will need more indirect suppport, sometimes more than you could possibly imagine, and this cost needs to be accounted for somewhere.

2) Is the Quality of the product really going to be the same ?- how will you ensure this ?

3) Cost of shipping – with rising fuel costs have you taken this into consideration ? you need to understand the cost per unit shipped.

4) Environmental Policy – How does the transport and distribution of products across the world fit in with your Environmental Policy – if you want customers to “buy in” to your Environmental Policy it needs to be credible and any offshore manufacture and transport should be accounted for in your overall Carbon Footprint.

5) Time of shipping – can you afford to delay initial deliveries while they are on the Sea for 5 weeks or do you want to pay extra for air freight to ensure fast delivery ?

6) Have you considered the cost of Import Duties ?

Consider the success of some of our best industries in the U.K – auto manufacture, Aerospace, telecommunications, mobile phones etc etc

Outsourcing should remain a key component of our manufacturing strategy but should note be the default option. We need to challenge the assumption that manufacturing will be subcontracted by asking the right questions.

chris@projectsguru.co.uk

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