Accountants put inventory on the asset side of the balance sheet, however, in most businesses it is more like a liability as it hides problems
The survival challenge
We can’t rely on the politicians or the bankers to get us out of this one. It’s already been the longest and deepest recession in living memory and it’s not about to end anytime soon. The more obvious savings have already been taken and probably some more painful ones as well. Where next?
Northlight Associates can provide services from a review of your current processes and approach right through to a complete manufacturing excellence program, which balances immediate priorities for performance improvement with the installation of longer term continuous improvement mechanisms.
Northlight Associates can provide services from a review of your current processes and approach right through to a complete manufacturing excellence program, which balances immediate priorities for performance improvement with the installation of longer term continuous improvement mechanisms.
• Red Flag Review of current operations
• Manufacturing Excellence
• Footprint rationalisation
• Relocation and downsizing
• Process Outsourcing and Insourcing
Overall process effectiveness is the most telling measure of your current manufacturing facility. What proportion of time is spent producing good, saleable output compared to the total time available. For most businesses this proportion is surprisingly low - even in some businesses that would consider themselves good performers find that this ratio comes out at less than 50%. We’d consider World Class Performance to be around 80%.
Understanding the metrics is just the start, though it can be very helpful in targeting further investigation and immediate action plans. Our approach involves structured analysis and provides clear and documented insight into what is preventing the manufacturing assets from delivering saleable product for a larger proportion of the time available.
When it comes to improving things we don’t ‘do’ Six Sigma. We’ve seen too many implementations where the program has become a goal in itself - management use it as an excuse to prove their doing something. Our view is that it’s all about the outcome, it doesn’t really matter what the process is called. However there are many fantastic techniques embedded within the Six Sigma approach, and we do use those, along with other industry ‘standards’ such as 5S, Plan Do Check Action cycles and Failure Mode and Effects Analysis, as well as some of our own that we’ve developed over the years. Our associates have been using these techniques for over thirty years now so can put together a comprehensive toolkit for your business which provides you with the techniques you need without the hype. We’ve even delivered training on these techniques to Japanese manufacturing companies!
Implementing some of the changes that come out of this analysis can often mean some difficult choices including redundancy programs and the closure or relocation of facilities. Thankfully most management teams only have to do these things occasionally in their working lives; however the downside to that is that they are often unfamiliar with the process. It is absolutely essential in any program like this that it is planned meticulously and that it observes a process that provides those involved with clarity and dignity at all times. It is in the nature of what we do that we’ve handled dozens of redundancy programs and downsizing exercises. We can put together a robust and effective process that will put in place the actions necessary to proceed quickly, in a totally compliant manner, releasing the costs for the good of the business and providing reassurance to the rest of the team, your customers and other stakeholders.
• Manufacturing Excellence
• Footprint rationalisation
• Relocation and downsizing
• Process Outsourcing and Insourcing
Overall process effectiveness is the most telling measure of your current manufacturing facility. What proportion of time is spent producing good, saleable output compared to the total time available. For most businesses this proportion is surprisingly low - even in some businesses that would consider themselves good performers find that this ratio comes out at less than 50%. We’d consider World Class Performance to be around 80%.
Understanding the metrics is just the start, though it can be very helpful in targeting further investigation and immediate action plans. Our approach involves structured analysis and provides clear and documented insight into what is preventing the manufacturing assets from delivering saleable product for a larger proportion of the time available.
When it comes to improving things we don’t ‘do’ Six Sigma. We’ve seen too many implementations where the program has become a goal in itself - management use it as an excuse to prove their doing something. Our view is that it’s all about the outcome, it doesn’t really matter what the process is called. However there are many fantastic techniques embedded within the Six Sigma approach, and we do use those, along with other industry ‘standards’ such as 5S, Plan Do Check Action cycles and Failure Mode and Effects Analysis, as well as some of our own that we’ve developed over the years. Our associates have been using these techniques for over thirty years now so can put together a comprehensive toolkit for your business which provides you with the techniques you need without the hype. We’ve even delivered training on these techniques to Japanese manufacturing companies!
Implementing some of the changes that come out of this analysis can often mean some difficult choices including redundancy programs and the closure or relocation of facilities. Thankfully most management teams only have to do these things occasionally in their working lives; however the downside to that is that they are often unfamiliar with the process. It is absolutely essential in any program like this that it is planned meticulously and that it observes a process that provides those involved with clarity and dignity at all times. It is in the nature of what we do that we’ve handled dozens of redundancy programs and downsizing exercises. We can put together a robust and effective process that will put in place the actions necessary to proceed quickly, in a totally compliant manner, releasing the costs for the good of the business and providing reassurance to the rest of the team, your customers and other stakeholders.