The Importance of Being Streamlined in Manufacturing
It's a given that in manufacturing today, your customers are more demanding and insist on only the best products at lower prices, and delivered in the shortest time. If this is what you're facing as a production reality (and, no doubt you are doing so in today's pressing economy), streamlining your operation is of absolute necessity in meeting customer demands. In streamlining, a manufacturer engages processes that are not always the fastest but rather those with the fewest production activities that do not add value to the product. That is to say, streamlining is a transformative event in which the product becomes improved through a process (or processes).
Whether it's milling a chunk of wood into a table leg, or creating a child's lunchbox out of pressed metal, hinges, decals, and screws, creating a useful product from basic elements/efforts is adding value to it. To identify and eliminate (or at least reduce) non-value-added activity in production are the keys to streamlining a manufacturing process, and by extension the decreasing of largely unnecessary production/management costs.
Streamlining a manufacturing operation is not a complicated thing-and the benefits of even implementing the basic efforts at the process far outweigh the costs of doing so. You can begin by first getting an idea of how your operation is flowing. Imagine your production operation as a series of streams flowing down a mountainside, with all tributaries leading in one great river of output. Look at the streams of inventory, shop floor production, machine maintenance, scheduling, quality and so forth, until you have a good sense of where the rapids are and where there appear to be dams slowing up the works. I mean, actually map these streams out so they are readable. You can even incorporate color to indicate smooth flowing areas and areas of value-adding processes (in green), to areas that tend to bottleneck, show down, and not add value to the product (in red).
When you pinpoint your non-valuing adding areas and activities, try to understand why they are being done. Many non-value-added activities are simply in-direct costs performed due to the layout of a plant (long searches for tools, routers, material, etc.), or the way a company chooses to process and distribute work orders (particularly paper-based routers). Think about the list you might put together of activities that don't add value to your products: Inefficient and/or precarious movement of parts through a plant, parts stored in inventory while awaiting work to be performed; lifting, positioning or locating a part in a work area, lost or otherwise unreadable routers, and the list goes on.
When you discover what's not working for you in terms of value-adding, eliminate these activities but do it tactically as part of a larger strategic efficiency design. For example, some operations such as in-plant transportation, temporary part storage, and temporary packaging can be eliminated right away. Other processes might take a bit more thought and coordination of activities. Relocating workstations so they are next to each other will eliminate much of the travel, storage and packaging needed for a part. Creating efficient shadow-boards for tools will cut down on the search time.
For any non-value-added activities that can't be eliminated immediately, include them as future streamlining objectives in your long-term plan. This may be the only recourse when a streamlining process may involve a capital investment realize, or machine operators need time for training on a new shop floor enterprise planning software system. In any case, non-value-added activities must be addressed in some way in order to achieve greater efficiencies throughout all the various operations in the shop. To the extent that you can get your personnel to invest their own interests in the new way of thinking about production, you will achieve greater return on the investments while also building better margins and bottom-lines.
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